After more than a decade of debate and negotiation, the European Union is preparing a major overhaul of its flight compensation policy — a move that will have a profound impact on millions of air travelers across the continent. The existing Regulation EC 261/2004, which has governed passenger rights for over 20 years, is being revised to reflect the changing dynamics of the aviation industry, rising travel volumes, and increasing disruptions due to climate events, strikes, and operational challenges. EU flight compensation policy 2025

The proposed reform, agreed upon by EU transport ministers in June 2025, aims to strike a balance between protecting passengers’ rights and easing the regulatory burden on airlines. Key changes include longer delay thresholds before compensation is owed, updated payout amounts, and stronger obligations for airlines to assist and reroute stranded passengers. While the new rules have been welcomed by airlines as a step toward “realistic” compensation standards, consumer groups argue that the revisions dilute crucial protections for travelers.

This article breaks down the most important changes, what they mean for travelers, and what happens next as the proposal moves toward approval by the European Parliament.

Longer Delays Required for Compensation

Currently, passengers are eligible for compensation if their flight arrives three hours or more late. Under the new proposal:

• Short-haul flights (up to 3,500 km): compensation kicks in only after 4 hours of delay.
• Long-haul flights (over 3,500 km): eligibility begins only after 6 hours of delay.

Adjusted Compensation Amounts

The proposal also alters payout amounts:

• Short-haul compensation increases from €250 to €300.
• Long-haul compensation is reduced from €600 to €500

Enhanced Rights Beyond Money

Beyond the financial changes, the reform introduces over 30 enhanced or clarified passenger protections, including:

• Automated compensation forms to ease the claims process.
• Stricter denial-of-reimbursement criteria.
• Stronger rerouting obligations: if airlines don’t reroute within 3 hours of disruption, passengers can arrange their own and claim up to 400% of the ticket price
• Better assistance protocols: clear rights to care, including for those denied boarding on return flights due to ‘no-show’ and for passengers with disabilities

Diverse Reactions: Airlines vs Consumer Advocates

Stakeholders are sharply divided over the changes:

• Airlines (via Airlines for Europe, including Lufthansa, Ryanair, EasyJet, Air France-KLM) welcomed the longer thresholds, stating they help reduce cancellations and unnecessary payouts, potentially benefiting “up to 10 million passengers annually.”
• Consumer groups like BEUC argue that the changes weaken passenger protections since most delays fall between 2 and 2–4 hours, meaning many travelers would lose out
• Member states are split: Germany and Spain opposed higher thresholds, while Belgium and France backed the compromise

Next Steps: From Agreement to Law

Though EU ministers have reached a political agreement, the proposal must now clear the European Parliament, which has up to four months to object or amend it. If unopposed, it will move to formal adoption and national implementation. Only thereafter will the revised rules officially take effect. EU flight compensation policy 2025

Broader Implications for Travelers

• Fewer eligible claims: Those experiencing delays under 4 or 6 hours will no longer qualify, impacting frequent flyers across Europe.
• Streamlined claims: Self-service forms and clearer rules could speed up compensation.
• Fairer rerouting: Tighter rerouting obligations aim to reduce judgment calls and inconsistencies.
• Cross-border impact: UK passengers flying on EU carriers may also be affected, even post-Brexit

Final Take: Balancing Rights and Realities

This reform reflects a compromise between consumer protection and the economic realities of aviation. Airlines argue the changes reduce disruption and cost, while advocates believe they erode nearly two decades of robust passenger rights. The final balance will only emerge once the Parliament weighs in—and when the regulations are formally enacted, travelers across Europe will feel the impact.