The International Air Transport Association (IATA) issued a stern warning against proposed amendments by the European Parliament to the EU261 consumer rights regulation, stating that the changes threaten to entrench existing flaws, escalate costs for both airlines and consumers, and ultimately fail to address passengers’ core concerns.
IATA is urging the European Parliament to abandon its proposed amendments and instead uphold the more balanced approach recently agreed upon by the European Council.
The Council’s position included critical reforms, such as moving the compensation thresholds for delays from three hours to four hours for short-haul flights and to nine hours for long-haul flights. IATA strongly supported this measure as a means to reduce the perverse incentive for airlines to cancel delayed flights and align the regulation with the majority of passengers’ preference to arrive late rather than not at all.
The European Parliament’s proposed amendments seek not only to eliminate these crucial threshold improvements but also to introduce numerous non-essential measures, such as the requirement for airlines to allow a free cabin bag.
“Everyone knows there’s no such thing as a free lunch. Similarly, there is no such thing as a ‘free’ bag or ‘free’ compensation thresholds. The EU Parliament’s new provisions to EU261 work as a ‘reverse Robin Hood’, putting further costs on to the 99% of passengers who don’t benefit from it,” said Willie Walsh, IATA’s Director General. “They are imposing things people haven’t asked for, and don’t want to pay for unless they choose to. Given the choice, passengers would prefer to pay for a less gold-plated compensation scheme in exchange for lower fares.”
IATA’s analysis of Eurocontrol statistics reveals that fewer than 1% of flights are delayed by more than three hours. This means the vast majority of passengers are paying for an overly generous compensation scheme from which they never benefit. IATA’s own May passenger survey further supports this view, with 72% of respondents prioritizing the lowest possible fare and choosing to pay for additional services as needed.
IATA stressed that MEPs must prioritize correcting the regulation rather than meddling in business and operational decisions. It called for the Council’s position to be upheld as the necessary starting point for a meaningful competitiveness strategy for European aviation.
“The best guarantee of great customer service is choice and competition delivered by a thriving air transport market. Correct reform of EU261 can be the starting point for a meaningful competitiveness strategy for European aviation and show that European politicians are serious about the lessons of last year’s Draghi report and the need for fewer and smarter regulations,” added Walsh.
The need for action is urgent, as European air connectivity growth has slowed significantly in major markets, with Germany, France, and the Netherlands seeing annual growth rates of less than 3% over the last decade.
IATA called on European governments to also address other cost-burdening policies that undermine competitiveness, including:
Removing Passenger Taxes: These taxes damage connectivity and should be deleted, following the examples of Sweden and planned action in Germany.
Reforming the ReFuelEU “Green Deal” Regulation and EU Emissions Trading Scheme (ETS): Fuel producers must be incentivized to make affordable Sustainable Aviation Fuel (SAF), as airlines currently face a $2.9 billion penalty for choosing SAF over conventional jet fuel, in addition to ETS payments.
IATA concluded that the combination of punitive taxes, unsustainable environmental costs, and flawed passenger compensation rules is severely reducing the viability of new routes and flight frequency additions, ultimately limiting consumer choice in Europe.
