Could flight compensation for delays or cancellations be reduced? Here’s what you need to know

Why are the rules around flight compensation being reconsidered?

Since it was introduced in 2004, EU261 has been the regulation ensuring passengers’ rights in cases of flight delays, cancellations, or when denied boarding. Initially, the regulation included rules on passengers' rights during delays but did not require compensation. However, following the Sturgeon ruling in October 2012, it was confirmed that passengers are entitled to compensation for delays as well, granting them the same rights as in the case of cancellations. For many travellers, it’s been a crucial protection, offering financial relief when things go wrong with their travel plans. Airlines are now pushing for a change. 

With a growing focus on reducing their costs, the idea of limiting flight compensation for delayed and cancelled flights is gaining traction. The reform is therefore getting strong backing from European carriers, particularly through the Airlines for Europe (A4E) lobby. They argue that the current system is simply too expensive to maintain, even though calculations show that the financial impact is limited on their total operations. 

Cutting costs boosts profits for airlines, but it often leads to poorer service and reduced passenger protection. Without penalties in place, airlines could delay flights with little consequence. However, we are now seeing airlines actively work to keep delays under three hours, indicating that EU261 is having a positive effect. While its primary goal is to protect passengers, this secondary effect has led to improved efficiency and better management of flight schedules.

The European context: a push to ease the burden on airlines

The revision of EU261 has been in limbo since 2013, for several reasons. Initially, it was due to a lack of common ground between key European institutions - the European Parliament, the Commission, and the European Council, which represents the Member States. Another major roadblock was the dispute between Spain and the UK over the Gibraltar airstrip. While Brexit resolved this issue, the EU’s focus quickly shifted to dealing with the aftermath of Brexit itself. Then came the COVID-19 pandemic, followed by the war in Ukraine, both of which added further obstacles. These global events have kept the revision on hold, effectively preserving the passenger rights currently in place.

That balance may now be starting to shift. With increasing pressure from the airline industry, there is a renewed push to move the revision process forward. As of January 1, 2025, the Polish Presidency of the Council of the European Union has taken over and has placed updating EU261 among its main priorities.

What does the current law say about compensation for delayed flights?

As mentioned previously, the current law requires airlines to compensate passengers when their flights are significantly delayed (3 hours or more), cancelled, or when they’re denied boarding. 

However, the regulation does make room for exceptions. Airlines are not held responsible for paying compensation if the disruption is due to what are known as “extraordinary circumstances.” These refer to situations beyond the airline’s control, such as severe weather, security risks, or strikes of airport personnel. 

EU Regulation 261/2004: what are your rights as a passenger?

Under the current EU Regulation 261/2004, passengers are given rights when flights don’t go as planned. If your flight is delayed by 3 hours or more, cancelled with little notice, or you’re denied boarding due to overbooking, you may be entitled to compensation. 

Beyond compensation, the regulation also ensures that passengers are taken care of during disruptions. This means access to meals, drinks, and accommodation if necessary, especially during long waits. It’s important to highlight that these rights apply to any flight departing from the EU, or arriving in the EU on an EU-based airline

How much can you claim for a delayed flight?

The amount of compensation you can claim for a delayed flight under EU Regulation 261/2004 depends on both the length of the delay and the distance of your flight. For delays of 3 hours or more, the compensation ranges from £220 to £520.

• Short-haul flights up to 1,500 km: £220 per passenger
• Flights between 1,500 km and 3,500 km: £350 per passenger
• Flights over 3,500 km within the EU: £350 per passenger
• Flights over 3,500 km outside of the EU: £520 per passenger

Flight delayed by 1 hour: are you eligible for compensation? 

No. Under EU rules, a one-hour delay does not entitle you to compensation, though airlines may still offer minor gestures like vouchers in some cases.

Flight delayed by 2 hours: what can you do? 

For delays of two hours or more, you’re entitled to certain care (refreshments, meals, or hotel accommodation if needed), depending on the flight distance. Full compensation typically kicks in after 3 hours or more of delay.

Flight delay vs. cancellation: what’s the difference in passenger rights?

While both situations may entitle you to compensation, the rules differ. For example, if your flight is cancelled with less than 14 days’ notice, you could be eligible not only to flight compensation, but to a refund of your ticket as well. 

What changes could be coming soon to EU261?

The upcoming revision of EU261 covers several key points, such as the clarification of extraordinary circumstances, enhanced passenger assistance during delays, mandatory rerouting obligations, and limitations on accommodation obligations, to name a few. However, one of the most significant changes is the proposed extension of the delay threshold from 3 hours to 5 hours. 

It is important to note, though, that there is a growing movement to lower this threshold to 2 hours instead, a shift that would further strengthen passenger rights and ensure quicker compensation in case of disruptions.

Could flight compensation caps be lowered?

Yes,the proposed EU261 under consideration is to extend the amount of time a flight must be delayed before passengers can claim compensation. This change would impact millions of travellers across Europe, as it would significantly reduce the number of passengers able to claim compensation for disruptions. 

What’s at stake for passengers: weakened or rebalanced protections?

What’s at stake for passengers with the proposed changes to EU261 is a potential weakening of the protections that have long been considered a gold standard in air travel. As pointed out by the Association of Passenger Rights Advocates (APRA), “EC 261 has become the global gold standard in air travel. Any proposal to reduce the rights enjoyed by European consumers is absolutely outrageous and out of tune with voter sentiments”. 

Ultimately, if these changes go through, it could mark a significant setback for air passenger rights, shifting the focus away from consumer protection to the financial interests of airlines, and potentially undermining the standards that have defined European air travel for the last 20 years.

What can you do if your compensation claim is denied?

How to file a claim effectively

Start by gathering all relevant travel documents, disruption notifications, and any other supporting information. Then, use our Claim Calculator to check if you're eligible for compensation. If you are, you can easily file your claim with Flight-Delayed.co.uk by uploading the required documents and providing any additional details that could strengthen your case. We’ll review your file and take care of the entire process

How Flight-Delayed.co.uk can help defend your rights

Sometimes, simply filing a claim isn't enough to secure compensation, as airlines may provide false reasons for flight delays or cancellations. At Flight-Delayed.co.uk, we leverage advanced flight data and the expertise of our legal team to ensure your right to compensation is defended, even if it means taking the case to court. We work on a no win, no fee basis, meaning you only pay if we successfully win your case.

Can you take legal action if compensation is wrongfully denied?

Yes. At Flight-Delayed.co.uk, we are committed to fighting for your rights. If an airline denies your compensation without a valid justification, our experienced legal team will step in to take the necessary legal action. 

Who will be most affected by this potential EU261 reform?

Why frequent flyers need to be extra vigilant

Regular travelers are likely to be the most affected by flight delays, as short-haul flights (less than 1,500 km) constitute over 80% of flights within Europe.

Are domestic and short-haul flights most at risk?

Yes, these flights are typically more susceptible to delays due to factors like weather, air traffic congestion, or tight schedules between connections. Shorter flight routes often have less buffer time for delays, meaning a disruption can easily throw off the entire day’s itinerary. 

If compensation rules are tightened, passengers on domestic and short-haul flights could be left without compensation for delays they frequently experience, making their travel even more frustrating.

Practical tips to prepare for upcoming EU261 changes

Always keep your travel documents

It’s essential to hold on to all your travel documents, including boarding passes, booking confirmations, and receipts, as they are key pieces of evidence when filing a compensation claim under EU261. Even if the compensation rules change, having a record of your travel details will ensure you’re able to submit the necessary information accurately and promptly.

Stay up to date on your rights as a passenger

As regulations evolve, being aware of the latest rules will ensure that you’re not caught off guard if the criteria for compensation shifts. This way, you can keep track of your rights and take appropriate action when disruptions occur, ensuring that you’re always prepared to fight for your right to compensation.

Frequently asked questions about air passenger rights

Can a staff strike be a valid reason to deny compensation?

It depends. If the strike is internal to the airline, such as one involving airline crew or pilots, you may still be entitled to compensation. However, if the strike is external, like one involving airport security or ATC, it could be considered an extraordinary circumstance.

Is a delay due to a missed connection eligible for compensation?

If both flights were on the same ticket or reservation and the delay was the airline’s fault, you may be eligible. 

Can you get compensation if a flight is delayed due to technical issues?

Often, yes. The European Court of Justice has ruled that most technical problems are not considered “extraordinary circumstances,” meaning airlines are still responsible. Exceptions may apply for unforeseeable safety issues, such as manufacturing defects.

What evidence should you provide when filing a flight compensation claim?

To support your claim, make sure to include your booking confirmation, along with a written summary of the delay. It's also important to provide receipts for any out-of-pocket expenses, such as meals or hotels, as well as photos or screenshots showing the delay on airport boards or airline apps.

Is there a time limit for claiming compensation?

Yes, there is a time limit but it varies by country. In the UK, for example, you generally have 6 years to file a claim. In EU countries, it may range from 1 to 6 years.