Brussels, February 6, 2025 – In 2024, more than 287 million passengers across Europe were affected by flight cancellations and delays and the trend is expected to grow in the next few years. Within the EU, Regulation EC 261 sets out compensation entitlements for passengers in the event of cancellations, delays and denied boarding. The regulation has been in place for more than 20 years and has been a major success for consumers whilst helping build a thriving European travel industry. Just as countries around the world are looking to emulate EC 261, European consumers are suddenly faced with the astonishing possibility that their rights may be degraded and chiseled down by a revision of the Regulation being pushed by industry lobbies.
- APRA calls EC 261 regulation a major success for consumers, the travel industry, and European leadership.
- During the Covid 19 pandemic European airlines received billions of euros in tax-payer funding and currently are reporting record profits. European consumers do not deserve to lose passenger rights.
- Modifications to EC 261 should be made to enhance consumer rights, not degrade them. They should include compensation amounts that reflect inflation, cover baggage and ancillary services, and not allow for any exemptions to non-EU carriers.
- APRA calculates the cost of compensation under the EC 261 regulation to be only 60 cents to USD 1.20 (EUR 0.58 – 1.17) per passenger[1].
“Through our combined membership, we have been helping passengers, travel sellers and airlines manage flight disruption and related laws worldwide forover 18 years. We frequently encounter lawmakers around the world – especially those striving to build a stronger, more attractive travel industry – who want to learn more about EC 261″ says Tomasz Pawliszyn, APRA President
Low costs for airlines for compensation payments
“According to estimates by the International Air Transport Association (IATA), the industry’s revenues in 2024 amounted to US$965 billion (approx. EUR 940 billion), which corresponds to an increase of 6.2 percent compared to the previous year. According to our analysis, the cost of compensation under EC 261 is only 60 cents to USD 1.20 (EUR 0.58 – 1.17) per passenger. Given that the profit per passenger in 2024 is estimated at 6.4 USD (6.24 EUR) and only a fraction of passengers are actually entitled to compensation, clearly these payments should not be a financial burden for airlines. EC 261 has proven to be a cost-effective success. We do not see the European air travel industry struggling but thriving, and we don’t see European consumers saying they no longer need these rights. ”
Proposing to Reduce 20 Years of Rights is Outrageous
After twenty years, EC 261 has become the global gold standard in air travel. Any proposal to reduce the rights enjoyed by European consumers is absolutely outrageous and out of tune with voter sentiments. Moreover, any cutbacks would appear to relinquish European sovereignty in this area to other countries at a time when Europe most needs to maintain and even strengthen its leadership and ability to determine how its consumers will be treated.
Airlines are only responsible for compensating passengers when flights are cancelled within fourteen days or delayed by three hours or more, and only when the disruption is caused by something within the airlines’ reasonable control. These are sensible service commitments. However, we fear that without consumers’ knowledge, there is suddenly an astonishing push by industry lobbies to chip away at these rights.
If any revision were to be made, it should enhance our rights to better reflect the current reality of costs and how airlines have de-bundled their services over the past two decades. APRA would like to see the maximum contributions for compensation payments raised from 600 EUR to 900 EUR. Since 2004, these have lost over 40 percent of their real value since the Regulation’s inception in 2004. The EC 261 regulation also currently contains no provisions for lost, delayed or damaged baggage or ancillary services– in our opinion, clear rules are needed here.
All passengers should be equally protected too. Flights to the EU with a non-EU airline should no longer be exempt from EC 261. Extending the regulation to all flights to the EU – regardless of the airline – would ensure greater fairness and uniform passenger rights. This implementation is an important step towards sustainably securing the rights of air passengers in the EU in view of the numerous challenges.
[1] *Source: AirHelp analysis, October 2023, Impact of EC261 regulation on the cost per passenger in EU and in the USA
