The International Air Transport Association (IATA) is expressing concerns over the proposed changes in consumer right regulations proposed by the European parliament. IATA says that the amendments under consideration by EU lawmakers, and in particular regarding compensation rules would threaten long-standing passenger rights while reducing airline costs. Travelers enjoy several benefits under the current EU 261 rules, such as being entitled to compensation of up to €600 when their flight arrives more than three hours late but passenger rights may change in the next few months.
What Might Change Under the EU261 Reform 2025?
The new proposals would raise that compensation threshold: for flights under 3,500 km, it would require a 4-hour delay for compensation, and for longer routes, a 6-hour delay. The compensation amounts would also significantly shift: short trips would be capped at €300, while long-haul flights could claim up to €500.
IATA has strongly criticized these changes and called the proposed revisions a “gold-plated wish-list” arguing that longer delay thresholds favor carriers and goes against the original spirit of EU 261, which was meant to fairly protect passengers.
Compensation rules are changing and perhaps even more controversial is the threat to free cabin luggage. Under the new rules, airlines could be allowed to charge for cabin bags, stripping away a fundamental right that many travelers currently enjoy.
Some EU Countries Opposing the New Compensation Rules
Not all voices agree. Several EU countries including Germany, Spain, Slovenia and Portugal have publicly opposed to the changes in delay times and compensations or allowing charges for cabin baggage. Meanwhile, MEPs from the European Parliament’s Transport Committee are pushing back too, demanding that the current three-hour compensation threshold be retained.
This reform has been debated for years, with negotiations ongoing since 2011. The most recent update came in June 2025, when EU transport ministers reached a political agreement on the new passenger-rights framework. While some of the proposals have raised concerns, the European Council also introduced several positive changes aimed at improving the travel experience.
Positive Measures to Improve Passenger Experience
One of the biggest improvements involves better rerouting rules. Under the new plan, if a flight is canceled or heavily delayed, airlines would need to find passengers an alternative route more quickly and more efficiently than before. This is meant to reduce long overnight waits or situations where travelers struggle to get clear information.
The European Council is also calling for stronger assistance obligations. This means airlines would have clearer responsibilities when it comes to providing meals, accommodation, or communication support during disruptions.
Another positive update focuses on “no-show” policies, which currently allow airlines to cancel a passenger’s return ticket if they miss their outbound flight. Under the new rules, passengers would keep their right to travel home even if they fail to take the first flight, and they would be entitled to compensation if denied boarding.
Finally, the proposal would require airlines to follow stricter response deadlines when passengers file a complaint, ensuring claims are processed faster and more transparently.
What is your opinion on the proposed changes? Let us know in the comment section.
