Airlines warn EU261 plan is heading off-track and becoming a ‘reverse Robin Hood’

The International Air Transport Association (IATA) has warned that the European Parliament’s proposed overhaul of EU261 risks moving the bloc’s passenger-rights rules in the wrong direction, arguing that the changes would raise costs for travellers and airlines while failing to address the issues passengers actually face.

According to IATA, the regulation’s shortcomings have been evident for years. European governments attempted to address these in June, when the European Council backed amendments designed to safeguard connectivity and strengthen the competitiveness of European aviation.

Although not perfect, that position aimed for a more balanced framework, notably by increasing the delay thresholds for compensation from three hours to four hours for short-haul flights, and to six hours for long-haul services.

This, IATA said, would reduce incentives for airlines to cancel delayed flights, while aligning with passengers’ clear preference to arrive late rather than not at all.

The Parliament, however, is pushing to scrap these threshold changes and introduce additional obligations, including a right to bring a cabin bag for free.

IATA noted that there is no evidence passengers are asking for such measures, and even less that they are willing to pay higher fares for them.

In its May passenger survey, 72 per cent said they preferred the lowest fare with the option to pay for extra services when needed.

At the same time, 97 per cent reported being satisfied with their most recent flight.

Eurocontrol data also shows that fewer than 1 per cent of flights face delays longer than three hours, meaning the remaining 99 per cent of passengers are funding a compensation scheme that only a small minority ever uses.

IATA argues this makes value for money even more important.

Willie Walsh, IATA’s Director General, said the Parliament’s approach effectively “works as a reverse Robin Hood”, adding that “there is no such thing as a ‘free’ bag or ‘free’ compensation thresholds”.

He stressed that “MEPs are imposing things people haven’t asked for, and don’t want to pay for unless they choose to”, noting that passengers would rather pay lower fares in exchange for a less “gold-plated” scheme.

He added that the Council’s position should be upheld to support competitiveness and reflect the calls in last year’s Draghi report for fewer and smarter regulations.

IATA also linked the debate to broader concerns over Europe’s slowing air-connectivity growth. Its research shows that between 2014 and 2024, connectivity grew by only 2.2 per cent a year in France, 2.9 per cent in the Netherlands, and just 0.4 per cent in Germany, trends it says emphasise the need for action to help the industry remain competitive.

This, it argued, includes phasing out passenger taxes that undermine connectivity; Sweden removed its levy in July, and IATA urged others to follow.

It also called for changes to the ReFuelEU “Green Deal” Regulation and the EU Emissions Trading Scheme, saying fuel producers should be incentivised to supply affordable sustainable aviation fuel (SAF), while airlines need to benefit from using it.

At present, airlines face a USD 2.9 billion premium for purchasing SAF compared with conventional jet fuel, on top of ETS costs. IATA described the Commission’s recent STIP proposal as a positive signal, although it said concrete action remains to be seen.

Finally, IATA warned that the combination of rising regulatory, environmental and tax-related costs is already undermining the viability of new routes and additional frequencies, ultimately reducing choice for consumers.