IATA Warns EU261 Amendments Could Raise Costs and Harm Passengers

The International Air Transport Association (IATA) has expressed strong concerns over proposed amendments to the EU261 passenger rights regulation by the European Parliament, warning that the changes could worsen existing flaws, increase costs for airlines and consumers, and fail to address passengers’ real priorities.

In a statement, IATA noted that the shortcomings of EU261 have been long recognised. While the European Council recently proposed reforms to extend compensation thresholds—four hours for short-haul flights and nine hours for long-haul—to reduce unnecessary flight cancellations, the European Parliament seeks to discard these key improvements and add new requirements, such as guaranteeing free cabin baggage, which IATA says lacks public demand and would drive up fares.

Citing a May passenger survey, IATA highlighted that 72% of travellers prefer lower fares with optional paid services, while 97% were satisfied with their most recent flight. Eurocontrol data show that fewer than 1% of flights are delayed beyond three hours, meaning 99% of passengers pay for a compensation scheme that benefits only a small fraction.

IATA Director-General Willie Walsh criticised the Parliament’s proposals, describing them as a “reverse Robin Hood” that imposes costs on the majority of passengers who gain no benefit. He stressed that passengers would rather pay for a simpler compensation scheme and lower fares than mandatory additional services. “Correct reform of EU261 can be the starting point for a meaningful competitiveness strategy for European aviation,” Walsh said, calling for the European Council’s position to be upheld.

The association also warned that Europe’s connectivity has slowed, with annual growth of just 2.2% in France, 2.9% in the Netherlands, and 0.4% in Germany between 2014 and 2024. IATA urged governments to complement EU261 reform with broader measures, including the removal of passenger taxes, adjustments to the ReFuelEU Green Deal Regulation, and incentives for the production of affordable Sustainable Aviation Fuel (SAF).

Airlines currently face $2.9 billion in penalties for using SAF instead of conventional jet fuel, on top of contributions to the EU Emissions Trading Scheme. While welcoming the European Commission’s recent STIP proposal as a positive step, IATA stressed that tangible results are still needed.