Aviation Law
18. June 2026
After 13 years of waiting since the Commission’s initial proposal in 2013, the European Parliament and the Council have finally reached a compromise on the reform of EU air passenger rights. However, from an airline perspective, the result is far from the comprehensive overhaul the industry sought to reflect modern operational realities.
While the new agreement provides greater legal certainty in specific areas, such as the codification of „extraordinary circumstances,“ it leaves the core financial burden of the compensation regime largely untouched, representing a missed opportunity for real structural reform.
1. The Compensation Regime: The Threshold Remains Frozen in Time
The most disappointing news for airline representatives is that the three-hour arrival delay threshold remains the universal trigger for compensation.
- Failed Modifications: Despite significant efforts by Member States to increase this trigger to five or seven hours to better account for operational complexity, the European Parliament successfully blocked these adjustments.
- Fixed Costs: Compensation amounts remain unchanged at €250, €400, and €600, based on flight distance.
- Strategic Impact: This outcome means airlines continue to operate under one of the world’s strictest regimes, which may continue to incentivize cancellations over long delays to manage aircraft rotations.
2. Gains in Legal Certainty: Codifying „Extraordinary Circumstances“
Perhaps the most positive development is the formal codification of a non-exhaustive list of extraordinary circumstances in Annex I. This is intended to reduce mass litigation by providing a clearer framework for what constitutes an event beyond a carrier’s „actual control“.
- Included Events: Meteorological conditions incompatible with flight safety, medical emergencies, and security risks are explicitly listed.
- Labor Disputes: Strikes at essential service providers (e.g., ATC, airport management) are considered extraordinary. However, strikes by an airline’s own staff only qualify if they arise from demands that only public authorities can satisfy.
3. Rerouting and the 400% Liability Cap
The reform introduces a strict three-hour window for rerouting. If an operating carrier fails to offer an alternative within three hours of the disruption, passengers may arrange their own rerouting.
- Financial Limit: In a welcome move for financial planning, the carrier’s liability for these self-arranged expenses is now capped at 400% of the full price of the ticket.
4. New Operational and Commercial Requirements
Airlines must prepare for several „mini-reform“ adjustments that will require updates to booking engines and ground handling procedures within the 12-months implementation period:
- Prohibition of „No-Show“ Practices: Carriers are strictly forbidden from denying boarding or charging fees for a return journey just because a passenger did not take the outbound flight.
- Price Transparency & Baggage: Booking processes must display fares that include a piece of hand baggage by default. Additionally, passengers have an absolute right to carry a personal item (maximum 40x30x15cm) free of charge.
- Name Corrections: Spelling errors must be corrected free of charge at least once, up to 48 hours before departure.
- Tarmac Delay Disembarkation: A hard limit of two hours is set for tarmac delays, after which passengers must be allowed to disembark, subject to safety/security.
5. Legal and Compliance Outlook
The reform signals a more aggressive enforcement. Airlines will be required to submit compliance documents to National Enforcement Bodies (NEBs) proving their operating procedures are sufficient to meet these mandates. Furthermore, carriers must now proactively and electronically provide passengers with information on their rights and instructions on how to claim compensation within 96 hours of a disruption.
6. The Bottom Line: A Framework of „Symptoms over Structures“
While the improvements in legal clarity are welcome, this reform ultimately fails to address the underlying pressure on connectivity and competitiveness. By retaining the 2004-era compensation triggers in a 2026 world of geopolitical conflict and supply chain volatility, the EU has opted for a „mini-reform“ that may provide legal clarity but offers little meaningful financial relief where airlines need it most.
Industry leaders should now focus on the 12-months transition to ensure all digital interfaces and contractual agreements with third-party service providers are compliant with these new, more granular obligations.
7. What would be the practical impact of the reform?
Several questions are to be posed. What will be the impact on the defense of the claims in court? What obligations have to be observed in future and complied with? In this respect it shlould be mentioned that the new regulation provides for information obligations of the carrier on the one hand as well as a time limit to file the claims with the carrier. Please follow our series on the reform that will analyse all relevant aspects in detail. The first part will follow soon. Stay tuned!
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Jana-Natascha Garisch, LL.M.
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