The Fight for Passengers’ Rights Begins: Parliament Backs Stronger Protections, Rejects Council Plan

Members of the European Parliament propose keeping compensation for three-hour delays, including a cabin bag in the fare, and mandatory, prompt payouts for denied boarding. The package counters the Council of the EU’s plan to raise thresholds and dilute passenger rights in favour of airlines. It’s the first turn in the long-running EU261 saga. Let's break down what this means for your passenger rights.

What are the Latest Air Passengers Rights Regulation News?

On 13 October, the European Parliament’s Transport Committee (TRAN) voted unanimously for an alternative legislative text that keeps the three-hour delay threshold for compensation and signals a broader intent to strengthen—not weaken—air passenger protections.

The vote sets the tone for decisive negotiations with the Council and the Commission over the next three months. The contrast with the Council’s position is stark.

In its draft, the Council of the EU would narrow eligibility by paying compensation only for delays over four hours on short-haul and over six hours on long-haul flights, replacing today’s three-hour standard. 

It would also cut the maximum payout for flights over 3,500 km from €600 to €500. 

Committee rapporteurs and consumer advocates warn that pushing the threshold higher would place a large share of real-world cases—especially those just above three hours—outside compensation, erasing roughly two-thirds of valid claims.

After the vote, rapporteur Andrey Novakov underlined Parliament's will to defend passengers' rights in the upcoming talks, pointing both to TRAN's unanimity and to concerns with the Council's procedural approach—after years of delay in forming a negotiating line the Council now seeks a compressed timetable that could constrain deliberation.

According to last air passenger rights news, with Parliament and Council clearly apart, discussions will be the arena where a compromise is, or isn’t, found. 

What Are the Possible Effects on Air Passengers?

From SkyRefund’s perspective, reform should solve passengers’ real problems, not dilute existing rights.

 “Such a change would send a troubling signal that consumer protection is taking a back seat to airline interests. Instead of restricting passengers’ rights, the EU should create a more effective mechanism to tackle real issues like lost baggage,” says Ivaylo Danailov, CEO and co-founder of SkyRefund. 

SkyRefund’s internal data align with the official statistics: 60% of the company’s claims involve delays just over 3 hours—precisely the cases that would fall out if thresholds were raised. 

Danailov also cautions that higher thresholds risk weakening airlines’ incentives to prevent delays, potentially leading to systemic increases in disruption across the EU.

New Rules for Carry-On Luggage And Other Proposals

Parliament’s mandate heading into discussions is clear: keep the three-hour threshold and strengthen practical protections that matter day to day. MEPs have framed five “red lines” for the talks: 

• Preserve the 3-hour rule.
• Ensure family seating without extra fees.
• Include one 7 kg carry-on in the ticket price.
• Provide a standard compensation form after disruption.
• Guarantee immediate compensation for denied boarding due to overbook

Civil society is moving in the same direction: the Air Passenger Rights Association (APRA)—of which SkyRefund is a member—has launched a petition opposing any weakening of core protections and calling for clearer, enforceable rules that work in practice.

There is already pushback from airlines. On 14 October, Airlines for Europe (A4E)—speaking on behalf of major airline CEOs—criticised Parliament’s direction on compensation thresholds and “free” cabin bags, calling the three-hour rule “arbitrary” and urging EU leaders to focus on competitiveness and structural bottlenecks (airspace/ATC capacity, SAF affordability). 

A4E argues that extending the delay window (even to five hours) could reduce delays and warns that additional mandates risk higher costs without fixing root causes.

Meanwhile, the European Consumer Organisation’s director weighed in on the Commission’s infringement case against Spain over fines on five airlines for hand-luggage fees, calling the move “premature.” He stressed that consumers should be able to bring a reasonably sized carry-on and a small personal item onboard for free.

What happens next? 

Over the next three months, Parliament, Council and Commission will try to reconcile their positions in trilogue. The outcome will hinge on whether the Council can maintain unity around higher thresholds and whether Parliament’s red lines hold under pressure.

There is broad recognition that Regulation (EC) No 261/2004 needs an update. “Over the past two decades, many crucial questions were settled by the courts, but those rulings are complex and hard for the average passenger to navigate. The new version should consolidate these interpretations into clear, usable rules,” says Tsvetelina Botseva, Legal Counsel at SkyRefund. 

She notes that compensation bands—€250 to €600—have not been indexed to inflation since 2004, eroding their real value, and that the framework still lacks coherent rules on lost or delayed baggage, a frequent pain point.

Record Airline Profits Amid More Delays 

All this plays out against an industry backdrop of strong financial performance. According to the International Air Transport Association (IATA), in 2025 the sector is expected to post $36 billion in net profit and $979 billion in revenue — the highest in the industry’s history, surpassing even pre-Covid 2019 levels.

In 2024, more than 287 million passengers in Europe were affected by delays or cancellations. Yet only 30% of Europeans feel informed about their rights as air passengers, shows data from Eurobarometer.

If the Council’s proposal were adopted as-is, a notable share of costs would undoubtedly be avoided—but at the expense of passengers’ core protections.

For now, the message from TRAN is unambiguous: do not weaken the three-hour standard, and focus reform on clarity, enforceability and real-world passenger needs. SkyRefund will continue to advocate for passengers and share updates as negotiations progress.