European and Australian airlines are urging the European Commission to amend its airline pay-for-delay regulation, EU261, stating that it has not reduced delays and could lead to higher costs for passengers.
Under EU261, passengers are entitled to compensation if their flight is delayed by more than three hours, cancelled within 14 days of departure or overbooked. Airlines are advocating for changes, proposing that compensation should only apply to delays exceeding five hours.
Airlines for Europe (A4E), representing carriers such as Air France-KLM, Lufthansa and Norwegian, recently voiced concerns in discussions with the Commission in Brussels, claiming that EU261 was impractical.
“The European Commission's 2013 proposal to revise passenger rights legislation has come back from the dead. A4E has consistently called for a revision to these rules to ensure that they are clear, consistent and fair, while balancing passenger rights with operational realities,” said A4E.
Furthermore, Qantas CEO Markus Svensson, in response to an enquiry into passenger rights amid delays in Australia, said delay compensation schemes did not deliver better outcomes and increased the cost of travel.
“The potential effect on fares, implications for low-cost carriers and the likely negative effect on economically marginal routes should all be closely considered,” said Svensson.
These concerns align with IATA’s ongoing opposition to ‘pay-for-delay’ regulations. In December 2024, IATA criticised a proposed US delay compensation bill, arguing that similar policies in Europe and Canada had failed to reduce delays while increasing airline costs.
“Similar schemes in the European Union and Canada have proved completely ineffective in reducing underlying delays or cancellations, the majority of which are outside the control of the airlines,” said IATA.
“In Europe, the EU261 regulation, on which the US proposal is based, costs airlines over US$5 billion (R91 billion) a year. These costs continue to rise and are eventually paid by consumers through higher fares and reduced choice.”
