EU strikes air passenger rights deal: hand luggage in base fare, compensation thresholds preserved

The breakthrough deal

After more than a decade of deadlock, EU member states endorsed a political agreement on 12 June that overhauls air passenger rights. The deal was struck between Council and Parliament negotiators and must now pass a final committee vote in the European Parliament on Monday, 15 June. The reform will take effect twelve months after formal adoption.

Hand luggage and pricing

Airlines will be required to display a base fare that includes a cabin trolley bag by default. Passengers who choose to travel without such luggage may receive a discount. The agreement stops short of recognizing an unconditional right to free cabin baggage, but guarantees that every passenger can bring at least one small personal item (e.g., a handbag or laptop sleeve of up to 40×30×15 cm) on board at no extra cost.

It is perfectly legal to offer a cheaper fare to those passengers who only carry a hand item.

Free hand luggage is a recognized right for passengers, as dozens of court rulings in Spain have defended and as a CJEU judgment stated, on which the Ministry of Consumer Affairs based its sanctions on five low-cost airlines.

Compensation thresholds unchanged

The reform retains the existing rules that trigger compensation after a three-hour flight delay. Payouts remain at €250 for flights up to 1,500 km, €400 for intra-EU journeys of 1,500–3,500 km, and €600 for all other routes. Spain’s consumer ministry criticized the lack of an update to the amounts, noting they have been frozen for 20 years.

Family seating and disability protections

The agreement prohibits airlines from charging extra fees to families or dependent persons to ensure they sit together. A Cypriot presidency official called the outcome “pragmatic and balanced.” The text also strengthens rights in cases of denied boarding and offers fairer voucher schemes and return-ticket protections.

No agreement is ever perfect, but the ambassadors’ deal shows why Parliament fought so hard: clearer passenger rights, free seats for families, more protection for people with disabilities, fairer vouchers and better protection for return tickets.

Opposition and next steps

Spain and Latvia voted against the deal in the Council committee, while Finland and Austria abstained. The airline association ALA welcomed the agreement, arguing that about 40% of passengers on sanctioned carriers do not carry a trolley bag and that forcing inclusion misaligns with EU rules on optional services. The Parliament’s conciliation committee will vote on Monday afternoon; if approved, the regulation enters force 12 months later.