End of the hidden-fee era? EU agrees major overhaul of air passenger rights

The European Union has agreed on the most significant overhaul of air passenger rights in more than two decades, introducing new protections aimed at tackling hidden fees, simplifying compensation claims and strengthening safeguards for families and vulnerable travellers.

The provisional agreement, reached between the European Parliament and the Council of the EU after years of negotiations, updates passenger rights rules that have remained largely unchanged since 2004. The reforms are expected to enter into force in mid-2027, following formal approval procedures.

EU officials described the deal as a milestone that modernises passenger protections while preserving a balance between consumer rights and the operational realities faced by airlines.

“I’m proud that, after 13 years of negotiations, we reached a landmark agreement to strengthen EU air passenger rights,” said Cyprus Transport Minister Alexis Vafeades. “This modernised framework will deliver certainty, fairness and stronger protection for millions of European air passengers.”

The package comes amid growing scrutiny of low-cost carriers and widespread complaints from travellers about additional fees, complex booking systems and difficulties obtaining compensation following disruptions.

One of the most visible changes concerns ticket pricing. Airlines will be required to display fares that include a standard piece of hand luggage by default before the booking process begins. Passengers who choose not to travel with cabin baggage will be able to opt for a lower fare, allowing easier comparisons between airlines and reducing what consumer groups have long criticised as misleading pricing practices.

The agreement also preserves passengers’ right to compensation for significant delays and cancellations. Travellers will remain entitled to compensation when flights arrive more than three hours late or are cancelled less than 14 days before departure.

Compensation levels remain unchanged at €250 for flights of up to 1,500 kilometres, €400 for medium-distance flights and €600 for longer routes.

However, the new framework seeks to make claiming compensation considerably easier. Airlines will be required to inform passengers electronically of their rights and explain how to submit claims. Carriers must acknowledge claims immediately and provide a response within 30 days, either paying compensation or offering a clear justification in case of refusal.

The changes could significantly reduce the role of private claims-management companies, which currently handle large numbers of passenger claims in exchange for commissions that often consume between 40% and 50% of compensation payments.

Passenger assistance during disruptions is also being clarified and expanded. Under the new rules, travellers will be entitled to refreshments after two hours of waiting, meals after three hours and internet access alongside two telephone calls. If an overnight stay becomes necessary, airlines will be required to provide hotel accommodation and transport between the airport and the hotel free of charge.

The agreement also strengthens rerouting obligations. Airlines will have three hours to offer passengers an alternative route following cancellations or denied boarding. If they fail to do so, passengers will be able to organise their own travel arrangements and seek reimbursement of up to 400% of the original ticket price.

Several new protections specifically target practices that have generated criticism in recent years.

The so-called “no-show” policy, under which airlines could cancel a passenger’s return ticket because the outbound flight was missed or unused, will be prohibited.

Families travelling with children, pregnant women and passengers with disabilities or reduced mobility will gain stronger rights to sit together without additional charges. The reforms also improve protections for mobility equipment and assistance services at airports, introducing compensation rights when required assistance is not provided.

Passengers will no longer face administrative fees for correcting spelling mistakes in their names, while airlines will be required to provide boarding passes in electronic form without forcing customers to create user accounts or download dedicated applications.

The agreement also attempts to end long-running disputes over what constitutes “extraordinary circumstances” exempting airlines from compensation obligations. A clearer list of events beyond airline control – including severe weather, natural disasters and certain airport staff strikes, has been introduced. Airlines invoking such circumstances will be required to provide passengers with a clear explanation and supporting evidence.

While consumer advocates welcomed the reforms, the aviation industry reacted critically.

The European Regions Airline Association (ERA) warned that additional financial obligations could undermine regional air connectivity across Europe.

The International Air Transport Association (IATA) argued that the reforms would not reduce delays but would instead increase operating costs that would ultimately be passed on to passengers through higher ticket prices.

Low-cost carrier Ryanair was particularly outspoken, describing some of the measures as “complete nonsense” and arguing that mandatory fare displays could create confusion rather than transparency.

Supporters of the reforms reject those criticisms. European Parliament transport committee vice-chair Virginijus Sinkevičius argued that passenger rights should not be viewed as a financial burden on airlines.

“When you buy a ticket, you want to arrive at the airport, leave on time and arrive on time,” he said. “Nobody buys a ticket because they expect compensation or because they expect a delay and a hotel.”

Caption: Illustrative photo. Airplanes of international airlines at Terminal 3 at Frankfurt Airport in Frankfurt, Germany, 23 April 2026. EPA/RONALD WITTEK