EU reaches deal on air passenger rights reform, maintains compensation thresholds for delays

After more than a decade of negotiations, representatives of EU member states and the European Parliament have agreed on an overhaul of air passenger rights. The deal, reached on 12 June 2026, leaves the existing compensation framework intact while introducing new obligations for airlines.

The new rules will make compensation simpler and more efficient for everyone. The European Parliament has successfully defended air passenger rights.

Compensation levels unchanged

The amount passengers can claim for delays remains at €250 for flights under 1,500 km, €400 for flights up to 3,500 km, and €600 for longer distances. A push by several member states, including Germany and France, to raise the threshold to four or five hours was dropped after pressure from the European Parliament. Airlines had argued that annual compensation payouts of $8 billion were straining their finances.

This is a clear rejection of the attempt by some member states to dismantle passenger rights. The reform brings more transparency and stronger consumer protections.

New obligations for airlines

Carriers must now proactively inform travellers about their right to compensation and provide clear instructions on how to file a claim. The European consumer organisation BEUC estimates that only 38% of eligible passengers currently request compensation. The reform also bans extra fees for correcting a name on a ticket and for seating parents next to their children.

The enforcement provisions do not, regrettably, improve anything.

Hand luggage and price transparency

Airlines will be required to display prices that include a standard cabin bag from the start of the booking process. While the Parliament failed to secure free cabin luggage for all, the new rule aims to make real costs visible and comparable across carriers. Passengers can still opt for cheaper fares without hand luggage, but the baseline price must include it.

Extended protections and next steps

The deal also strengthens safeguards for passengers with reduced mobility, pregnant women, and unaccompanied minors, guaranteeing seating with companions and priority assistance. The agreement must still be formally approved by the Parliament on Monday, 15 June, which is considered a formality. After entry into force, airlines will have twelve months to implement the changes.