European Union lawmakers announced on Monday that they have reached a deal with EU member states to keep the current three-hour threshold for passenger compensation when flights are delayed. The move ends a debate that stretched over more than a decade.
Under the agreement, the 27 EU member states had already signalled on Friday that they would preserve the existing compensation amounts that airlines must pay travellers for delays. Those amounts, established in rules from 2004, allow passengers on flights delayed by more than three hours to claim compensation between 250 and 600 depending on the length of the flight.
The European Commission had put forward a proposal more than ten years ago to reduce the compensation passengers could seek. That initiative generated a sustained dispute between airlines, which argued for greater leeway to remain competitive, and consumer protection groups. Both camps spent years lobbying EU institutions as the issue moved through negotiations.
As part of the long-running talks, the Commission proposed increasing the delay threshold to four hours. At the same time, member states had pushed for a cap on payments at 500. After years of negotiation, representatives of EU countries and the European Parliament ultimately agreed to leave the existing system unchanged, maintaining the three-hour threshold and the 250- 600 compensation bands.
The agreement also covers how airlines may charge for cabin baggage. Member states and parliamentarians agreed to allow airlines to levy fees for larger carry-on bags while requiring them to permit small bags free of charge. The deal mandates that any cabin bag fees be incorporated into the basic ticket price, and it allows for the option of discounts for customers who choose not to bring cabin baggage.
Officials said the luggage-related measure is intended to improve price transparency so passengers can compare fares more easily. The provision aims to ensure that customers see the cabin bag fees reflected in the advertised ticket price, rather than encountering them as separate add-ons that complicate comparisons.
The package of measures concludes a prolonged period of debate over passenger rights and airline pricing practices, preserving long-standing compensation rules while introducing clearer rules on carry-on fees.