The International Air Transport Association has issued strong warnings over proposed amendments to the EU261 passenger rights regulation, cautioning that the European Parliament’s latest recommendations will increase airline operating costs and airfares while failing to address the true needs of travellers.
In a statement, the association noted that the weaknesses of EU261 have been widely recognised for years. In June, European governments proposed a more balanced reform aimed at protecting connectivity and strengthening the competitiveness of European aviation.
The European Council’s version recommended raising compensation thresholds—from three to four hours for short-haul flights and nine hours for long-haul flights. IATA said such changes would discourage unnecessary cancellations and better reflect passengers’ preference “to arrive late rather than not at all.”
However, the association warned that the European Parliament intends to discard these improvements and introduce new measures, including mandating a guaranteed free cabin bag for all passengers—an idea IATA says is not supported by public demand and would ultimately push fares higher.
Citing a passenger survey conducted in May, IATA reported that 72% of travellers prefer the lowest fare and are willing to pay separately for extra services, while 97% said they were somewhat or very satisfied with their most recent flight.
Using Eurocontrol data, the group emphasised that less than 1% of flights are delayed beyond three hours, meaning “99% of passengers are funding compensation that only 1% ever use.”
IATA’s Director-General, Willie Walsh, criticised the Parliament’s stance, saying:
“Everyone knows there’s no such thing as a free lunch—nor a free bag or free compensation threshold. The Parliament’s new provisions act like a ‘reverse Robin Hood’, placing additional costs on the 99% who don’t benefit. Passengers prefer lower fares over gold-plated compensation schemes that they haven’t asked for.”
Walsh added that meaningful reform is crucial to improving Europe’s aviation competitiveness, urging lawmakers to return to the Council’s position.
IATA also warned that Europe’s aviation connectivity has slowed significantly over the past decade. Data from IATA Economics shows that between 2014 and 2024, connectivity grew by only 2.2% annually in France, 2.9% in the Netherlands, and 0.4% in Germany.
To reverse the trend, the association called for broader reforms beyond EU261, including the removal of passenger taxes that weaken connectivity. It noted Sweden’s recent abolition of its passenger tax and Germany’s announced plans to follow suit.
IATA further urged revisions to the ReFuelEU Green Deal Regulation and the EU Emissions Trading Scheme, arguing that fuel suppliers must be incentivised to produce affordable Sustainable Aviation Fuel. Airlines currently face a $2.9bn penalty for purchasing SAF over conventional jet fuel, alongside ETS payments.
While acknowledging the European Commission’s recent STIP proposal as “a step in the right direction,” IATA stressed that the impact will only be clear when commitments translate into action.
