Airlines maintain that adhering to stricter compensation and financial regulations will inevitably lead to higher ticket prices.
The European Council and European Parliament reached an agreement to preserve free cabin baggage allowance and compensation for delayed flights under the European Union’s air passenger rights, concluding over ten years of negotiations.
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According to these regulations, passengers will retain their right to free cabin luggage and can claim compensation if flights are delayed by three hours or more—a major request upheld by the European Parliament despite opposition from several EU member states.
“The fees applied have been consistent for airlines for nearly two decades. This framework provides predictability,” a senior EU diplomat explained to journalists on Friday after the compromise was reached.
Currently, European air travelers qualify for compensation between €250 and €600 if their flight is cancelled or delayed beyond three hours. The updated legislation endorsed by EU co-legislators specifies that airlines must pay €300 for flights exceeding 3,500 kilometers and €600 if the delay surpasses four hours or the flight is cancelled.
Additionally, the rules prohibit charges for cabin baggage, a practice common among budget airlines such as Ryanair and EasyJet. Travellers will be entitled to carry one free personal item measuring 40cm by 30cm by 15cm, plus a small wheeled bag with total dimensions up to 100cm and weighing no more than 7kg.
From 2027, when the new regulation takes effect, airlines are obligated to include both a personal item and a larger carry-on suitcase in the standard ticket price.
This adjustment may raise initial ticket costs, especially for low-cost carriers that currently levy fees for overhead luggage. Yet, passengers flying without a suitcase will have the option to purchase a cheaper ticket.
Consumer organizations have contended that charging for cabin bags contradicts regulations, particularly through methods used by low-cost airlines, and that passengers deserve compensation related to flight delays.
Meanwhile, some airlines have recently accelerated adding fees for cabin baggage, attributing these to financial strains caused by rising jet fuel costs linked to Middle East disruptions.
The accord was finalized on Friday by EU ambassadors and the Cypriot Presidency of the Council of the EU, which holds the presidency until the end of June. The European Parliament is scheduled to confirm the agreement and send a joint endorsement letter to the Presidency on Monday afternoon, officially closing the legislative file.
The updated rules will be enforced starting in 2027.
Negotiations spanning a decade
The EU began reviewing passenger protection regulations in 2013.
Lawmakers advocated for broader baggage rights and passenger protections in airline bankruptcy cases during negotiations that met resistance from some EU countries and industry representatives.
Lithuanian Green MEP Virginijus Sinkevičius noted that when the air passenger rights law was enacted in 2004, it was not designed for today’s vastly increased air traffic.
“Ryanair transported approximately 23 million passengers annually,” he said. “By 2024, this number reached over 183 million—nearly eightfold. Wizz Air had not yet launched while EasyJet remained a niche operator. Low-cost carriers now dominate internal European flights, having developed business models based on unbundling services that were once standard and charging separately for each.”
An EU diplomat concurred, commenting that «the previous rules no longer fulfilled expectations» and that updating the legislation had become indispensable.
Earlier discussions saw efforts by some member states, including Germany, Portugal, Slovenia, and Spain, to raise the compensation threshold for cancelled flights from three to four hours, but these proposals were not adopted.
Over the decade of talks, airlines lobbied for compensation to apply only after five hours to reflect operational realities and to discourage cancellations aimed at avoiding penalties.
Airlines argued that the proposed regulations would severely limit their market competitiveness, emphasizing that delays are often due to airport technical issues beyond their control.
Ultimately, the European Parliament’s position prevailed, maintaining the three-hour threshold for compensation eligibility.