Compensation for delayed passengers: airlines strongly oppose European rules

International airlines are increasing pressure on European institutions regarding compensation for passengers affected by delays. Meeting in Rio de Janeiro for the International Air Transport Association's (IATA) annual general meeting, they strongly criticized the European Parliament's intention to maintain the current rules, which they consider too costly for the industry.

The European regulation adopted in 2004 stipulates that a traveler can receive up to €600 in compensation when their flight arrives at its destination more than three hours late, except in exceptional circumstances. This system has become one of the most protective in the world for air passengers, but it has been the subject of discussions in Brussels for several years.

A power struggle between member states and the European Parliament

In June 2025, a majority of European Union member states voted in favor of relaxing the compensation scheme to reduce the amount of compensation paid by airlines. A few months later, however, the European Parliament rejected this approach and even voted to strengthen travelers' rights, triggering a new institutional standoff.

For IATA, the current system represents a considerable financial burden. According to Rafael Schvartzman, the organization's vice president for Europe, the overall cost of compensation reaches nearly eight billion euros per year. Airlines denounce a mechanism that heavily penalizes their operations and limits their capacity to invest in fleet renewal or service improvements.

The companies denounce a counterproductive system.

The airline industry also believes these rules have unintended negative consequences. Carriers claim they are sometimes forced to cancel flights rather than risk a series of delays throughout the day that could lead to multiple compensation payments. IATA even calls the system a "reverse Robin Hood," arguing that the majority of passengers indirectly fund the compensation paid to a minority affected by disruptions.

According to several European media outlets, the European Commission is currently working on a compromise solution. One of the options under consideration is maintaining the three-hour threshold for entitlement to compensation while simplifying certain administrative procedures. However, no final agreement has yet been reached between the European institutions.

A summer that looks promising for air transport

Despite these regulatory tensions, the sector's outlook remains positive. IATA points out that bookings for summer 2026 are up compared to the previous year. In an international context marked by several geopolitical crises, many European travelers are reportedly favoring destinations closer to their country of residence.

Traffic forecasts for the summer season suggest sustained activity for airlines in the coming months. It remains to be seen whether the ongoing discussions in Brussels will strike a balance between protecting passenger rights and addressing the economic concerns of a sector that feels it is bearing an increasingly heavy financial burden.