Brussels 4 November 2025. Regulation EC261 is a powerful engine for operational efficiency and consumer protection. This is the conclusion of a new economic analysis. The study also warns against the EU Council’s 2025 reform proposal. Specifically, that by weakening the regulation’s current economic incentives, we risk eroding the improvements in punctuality and passenger rights that EC261 has achieved.
EC261 Substantially Reduces Delays
The report, “Air Passenger Rights at the Crossroads: Economic Impact of Proposed EC261 Reform” by Dr. Hinnerk Gnutzmann and Dr. Piotr Śpiewanowski, finds incentives brought by EC261 have had a substantial positive impact on flight disruptions:
- Flights under EC261 are up to 70% less likely to face long delays (>3 hours), compared to the U.S., where no equivalent regulation exists.
- There’s up to a 66% reduction of long delays (>3 hours) on short-haul flights where EC261 applies.
- The chance of same-day cancellations is more than 20% lower in the EU than in the U.S.
- Overall, passengers in the EU are 5% more likely to arrive on time, representing improved punctuality for millions of flights.
Improvements cost €1.73 or less
As the report shows, EC261 essentially offers airlines a choice between investing in measures to mitigate disruptions or paying compensation. The data shows they overwhelmingly choose mitigation, because it costs less than the expected compensation. This significant improvement in reliability is achieved at a low cost: at most €1.73 per passenger.
No evidence of strategic cancellations
The report debunks an industry narrative that EC261 incentives cancellations. The flawed argument suggests that to avoid costly delays, airlines are cancelling flights and rebooking passengers on spare seats on other planes. Making it sound as if cancellations are cheap and operationally simple.
As the report points out, if this argument were true, cancellation at departure time would be more common. Instead, the evidence supports the exact opposite. In the EU, same-day cancellations are 20% lower than in the USA, indicating that EC261 encourages flights to operate, not be abandoned.
Tomasz Pawliszyn, president of APRA, says “This report confirms what millions of European travellers already feel: EC261 works! Weakening the regulation, as is planned by the European Council, would be a step backwards for consumers and the industry. When passengers can rely on fair compensation, airlines are motivated to deliver better performance – it’s a win for everyone.”
