Global airline association says revised European passenger rights regulations increase financial and operational pressure on carriers while failing to address underlying air traffic management inefficiencies.
The International Air Transport Association (IATA) has strongly criticised the European Union’s revised EU261 passenger rights framework, warning that the latest reforms will increase costs for airlines without effectively addressing the primary causes of flight delays and operational disruptions across Europe.
Representing more than 300 airlines worldwide, IATA said the revised regulation misses a significant opportunity to modernise Europe’s passenger rights system by introducing measures that could have improved operational efficiency, reduced disruption-related costs, and delivered better outcomes for both travellers and airlines.
EU261, the European Union’s regulation governing passenger compensation and assistance in cases of flight delays, cancellations, and denied boarding, has been one of the most debated aviation policies in Europe for more than a decade. According to IATA, the regulation currently imposes an annual cost burden of approximately EUR 8 billion on the airline industry, yet has not succeeded in reducing the frequency of delays or improving overall system performance.
The association highlighted that a substantial proportion of delays originate from structural challenges within Europe’s air traffic management network rather than airline operations. Citing data from Eurocontrol, IATA argued that addressing airspace inefficiencies and improving air traffic management should be a priority for policymakers seeking long-term improvements in punctuality and passenger experience.
Under the revised EU261 rules, a non-exhaustive list of “extraordinary circumstances” has been introduced, clarifying situations in which airlines may be exempt from paying compensation. Airports will also be required to establish contingency accommodation plans to support passengers during major disruptions.
While IATA acknowledged these changes as a modest step toward recognising the shared responsibilities across the aviation ecosystem, it argued that the reforms do not go far enough to create a balanced framework.
The airline body had previously supported proposals from the European Commission that recommended increasing the delay thresholds before passenger compensation would apply, arguing that such changes would allow airlines greater flexibility to recover operations and minimise cancellations.
Willie Walsh, Director General of IATA, said the conclusion of more than 13 years of discussions had failed to deliver meaningful reform for either passengers or the aviation industry.
“After 13 years of discussion, the opportunity to improve Europe’s competitiveness and the passenger experience by addressing the flaws of EU261 was lost. The result will not reduce delays, but considering the whole package of changes, it will create operational challenges and add costs which will ultimately be borne by passengers. It is a reform in name only that does nothing to help disrupted passengers,” he said.
Walsh further called for greater transparency to measure the impact of the new rules and urged European institutions to ensure that the implementation of the enforcement package does not add unnecessary regulatory burdens on the aviation sector.
He emphasised that Europe’s forthcoming Aviation Strategy must prioritise comprehensive reforms of air traffic management systems, which IATA considers one of the fundamental causes of persistent delays affecting both airlines and passengers.
“Europe’s imminent Aviation Strategy must address air traffic management deficiencies, which remain the root cause of many delays. The focus must be on practical, effective and consistent implementation rather than creating additional burdens for an industry already facing significant operational challenges,” Walsh added.
The debate over EU261 reforms highlights the broader challenge facing the aviation industry: balancing strong passenger protection with an efficient and economically sustainable operating environment. As European air travel demand continues to grow, airlines and policymakers are expected to remain engaged in discussions aimed at improving network resilience, operational performance, and the overall passenger journey.
