European airlines push to cut compensation for delays under 5 hours

European air passengers used to having compensation for severe delays or cancellations may no longer get same treatment, as the European Union has launched a review of regulations dating back to 2004.

A proposed update to European rules to get compensation could deprive 85 per cent of passengers in compensation, according to consumer associations. 

As is, passengers are able to obtain between €250 and €600 for delays of three hours or more. However, negotiations underway could result in new rules that are less favourable to consumers, according to the European Consumers’ Organisation (BEUC). Under the proposed revision, passengers would only be eligible for compensation after a delay of 5 hours or more.

The current directive applies to any flight departing from an EU airport, regardless of the nationality of the airline, and to flights arriving at EU airports if they are operated by an EU airline.

It does not apply to flights to Europe operated by non-EU airlines, or to non-EU flights with a stopover in Europe.

“The Commission has proposed changing the time limit for receiving compensation. It would no longer be three hours, but five, nine or twelve (hours), depending on the distance,” Steven Berger, a legal expert at BEUC, told Euronews.

“In concrete terms, what impact is this going to have? If what is currently being discussed is approved, 85 per cent of consumers would no longer be entitled to compensation.”

The regulation covers all EU member states as well as Iceland, Norway and Switzerland.

Compensation is not payable in the event of “extraordinary circumstances”, for example extreme weather conditions, air traffic control restrictions, strikes not involving airline staff and political instability.

The discussions underway between the EU states are based on a proposal made by the European Commission in 2013.

On the other hand, some airline associations argue that the current compensation rules place an unsustainable financial burden on carriers. The International Air Transport Association (IATA) claims that compensation costs airlines around €5 billion annually. However, considering record-breaking profits reported by many airlines in the post-COVID period, financial compensation for passengers could remain a good incentive for airlines to reduce delays from their end as much as possible.

If the regulations are changed, these costs could also help reduce flight delays and cancellations at their source, through better infrastructure, staffing, improved air traffic control systems, and smarter scheduling that can make a more reliable travel experience, without severely undermining consumer protections.