Revision to EU air passenger rights regulation raises concerns for regional airlines

After more than a decade of discussion the European Parliament has voted on a revision to EU261, the regulation which governs passenger rights after flight delays and cancellations. Proposed revisions have prompted warnings from industry groups that the changes could place significant pressure on regional airlines and threaten essential air connectivity across Europe.

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The revision process is intended to strengthen passenger protections, but representatives of smaller carriers have expressed concern that increased compensation obligations will disproportionately affect airlines operating low-margin, short-haul services.

The European Regions Airline Association (ERA), which represents more than 50 regional airlines and aviation stakeholders, said the Parliament’s position does not sufficiently take into account the operational and economic realities faced by regional operators.

ERA argues that while enhanced passenger rights are a shared goal, the current revisions could impose higher compensation costs and additional regulatory burdens on smaller carriers, potentially leading to reductions in services on routes that connect remote or less-served communities.

Montserrat Barriga, Director General of ERA, said that political considerations appeared to have outweighed evidence-based regulatory adjustments and warned that the measures risk overlooking the specific conditions of regional airline operations, which typically involve smaller aircraft, tighter financial margins and limited ability to absorb added costs. ERA said some regional routes “provide the only viable transport option” for certain areas and could be put at risk.

The European Parliament’s vote reaffirmed a three-hour delay threshold for compensation eligibility – preserving a higher level of protection than other proposals under consideration to raise thresholds to balance passenger rights with airline operational viability.

Industry groups such as Airlines for Europe (A4E) and the International Air Transport Association (IATA) have also expressed concern that maintaining or expanding compensation entitlements without accounting for economic constraints may increase operating costs, reduce the affordability of air travel and weaken the competitiveness of European carriers. These organisations argue that stricter compensation requirements do little to address underlying causes of delays such as infrastructure and air traffic management limitations.

The proposal now moves on to negotiations between the Parliament and member states in the EU Council. Because the Parliament and the Council currently hold different positions on key elements, most notably delay thresholds and compensation levels, the revision is now entering what is termed inter-institutional negotiations between the European Parliament, the Council and the European Commission. These negotiations will determine the final text that could eventually become EU law.