New EU Air Passenger Rights: Refunds, Baggage and Compensation

The European Parliament and the Council of the EU have approved the reform of air passenger rights in the European Union. The new EU rules strengthen passenger rights relating to refunds, compensation, hand baggage, price transparency and claims procedures. The updated regulations will apply 12 months and 20 days after their publication in the Official Journal of the EU, giving air carriers and intermediaries time to adapt their booking systems, refund procedures and business models.

New Obligations for Airlines: Automatic Refunds and Claims Deadlines

The adopted measures are intended to simplify claims and reimbursement procedures by introducing standardised processes across the EU. Key changes include:

• Automatic refunds: automatic and timely reimbursement where, following a flight cancellation or significant delay, the passenger chooses reimbursement instead of rerouting.
• 96-hour notification requirement: passengers must receive clear information about their rights and how to submit a compensation claim within 96 hours of the end of their journey.
• Digital claims deadlines: passengers will have nine months to submit a compensation claim, while airlines will have 30 days to pay the compensation, invoke extraordinary circumstances or provide a substantive explanation for refusing the claim.
• Open digital access: passengers cannot be required to create an account or install a dedicated application to receive information about the claims procedure or obtain a digital boarding pass.

Despite the harmonisation of the rules, airlines will retain the right to refuse compensation where they demonstrate the existence of documented extraordinary circumstances.

New Rules on Fees, Baggage and Price Transparency

The new EU rules introduce a number of improvements and require the aviation industry to eliminate some of the additional charges previously imposed on passengers.

• Tickets and check-in: passengers will not be charged additional fees for correcting spelling errors in their names or for printing a boarding pass after completing online check-in. Airlines will also be prohibited from denying boarding on a return flight because the passenger did not use the outbound part of the journey.
• Hand baggage and price transparency: passengers will be entitled to carry one personal item, such as a small bag or backpack, free of charge. Airlines, intermediaries and search platforms will be required to display a fare including hand baggage, such as a small cabin bag weighing up to 7 kg, from the beginning of the booking process. Airlines may still offer a cheaper fare to passengers who choose to travel without a cabin bag.
• Protection for passengers with specific needs: accompanying persons will be entitled to free adjacent seating when travelling with children under 14, passengers with disabilities or reduced mobility, or pregnant women. Passengers with disabilities or reduced mobility will also be entitled to compensation, rerouting and assistance from the airline if they miss their flight because the airport failed to provide timely assistance.

Full implementation of these measures will require preparation by both the Member States and businesses operating in the aviation sector.

Compensation for Delayed and Cancelled Flights Remains Unchanged

The new measures will operate alongside the existing passenger protection rules. Travellers will continue to be entitled to compensation for delays exceeding three hours, flight cancellations made less than 14 days before departure and denied boarding due to overbooking.

The standard compensation amounts remain unchanged and, depending on the distance, are EUR 250, EUR 400 or EUR 600. The basic duty of care, including the provision of refreshments, meals and, where necessary, overnight accommodation during prolonged delays, also remains in place. Where the disruption is outside the airline’s control, accommodation may be limited to a maximum of three nights.

Prepare Your Business for the New EU Air Passenger Rights

Airlines and travel intermediaries should use the implementation period to adapt their booking systems, refund policies and claims procedures. We assist businesses with legal audits, updating terms and conditions, and implementing robust compliance procedures.

Contact our team to assess how the new rules will affect your business model and how to prepare for their application.