The International Air Transport Association (IATA) has warned that the European Parliament’s proposed overhaul of EU261 risks moving passenger-rights rules in the wrong direction. The association argues that the changes could lead to increased costs for both travellers and airlines, while failing to effectively address the real issues that passengers encounter.
For years, IATA has pointed out the shortcomings of the existing regulation. In June, European governments sought to address these by backing amendments aimed at safeguarding connectivity and enhancing the competitiveness of European aviation. While the proposed changes were not without flaws, they aimed to create a more balanced regulatory framework. This included raising the delay thresholds for compensation from three hours to four hours for short-haul flights and from three hours to six hours for long-haul services.
IATA suggested that this adjustment would reduce the incentive for airlines to cancel flights that are delayed, aligning with passengers’ preferences of arriving late instead of not arriving at all. However, the European Parliament is now advocating for the removal of these threshold changes and is proposing additional obligations, such as allowing passengers to bring a cabin bag for free.
According to IATA, there is no evidence that passengers are demanding such measures, nor that they are willing to pay higher fares for them. A recent passenger survey conducted by IATA revealed that 72 per cent of respondents preferred to pay the lowest fare available, with the option to purchase additional services as needed. Furthermore, an impressive 97 per cent of those surveyed expressed satisfaction with their most recent flight experience.
Data from Eurocontrol reinforces IATA’s position, showing that fewer than 1 per cent of flights experience delays exceeding three hours. This indicates that the vast majority of passengers are contributing to a compensation scheme that benefits only a small minority. IATA argues that this dynamic makes value for money even more critical.
Willie Walsh, IATA’s Director General, has been vocal about the potential implications of the Parliament’s approach. He described it as functioning like a ‘reverse Robin Hood’, emphasising that there is no such thing as a ‘free’ bag or ‘free’ compensation thresholds. Walsh further noted that Members of the European Parliament (MEPs) are imposing requirements that passengers have not requested and are not willing to finance unless they choose to do so. He reiterated that passengers would prefer lower fares over a more extravagant compensation scheme.
In addition to the immediate concerns surrounding EU261, IATA has linked this debate to wider issues regarding Europe’s stagnating air-connectivity growth. Research indicates that from 2014 to 2024, connectivity growth in countries like France, the Netherlands, and Germany has been alarmingly low—averaging just 2.2 per cent, 2.9 per cent, and 0.4 per cent per year, respectively. IATA asserts that these trends highlight the necessity for measures that would bolster the industry’s competitiveness.
Part of IATA’s call to action includes advocating for the elimination of passenger taxes that hinder connectivity. For instance, Sweden’s recent removal of its levy has been highlighted as a positive step, and IATA is urging other nations to follow suit. The association is also pushing for revisions to the ReFuelEU ‘Green Deal’ Regulation and the EU Emissions Trading Scheme to encourage fuel producers to provide more affordable sustainable aviation fuel (SAF), which could benefit airlines as well.
At present, airlines face a substantial premium of USD 2.9 billion when purchasing SAF compared to conventional jet fuel, along with additional costs from the Emissions Trading Scheme. While IATA has acknowledged the European Commission’s recently proposed Sustainable Transport Infrastructure Plan (STIP) as a promising sign, they stress that concrete actions are still awaited.
Ultimately, IATA warns that the rising costs associated with regulations, environmental measures, and taxes are already threatening the viability of new routes and increased flight frequencies, resulting in reduced choices for consumers.
