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28-May-2026 4:31 PM

A4E warns passenger rights reform could double compensation costs

Airlines for Europe (A4E) warned (27-May-2026) planned reforms to passenger rights legislation could double airlines' annual compensation costs to EUR15 billion, leading to higher ticket prices. A4E MD Ourania Georgoutsakou stated: "This burden will inevitably lead to structurally higher airfares for European passengers, at a time when many families are already feeling the pressure of rising travel costs". A4E argued that compensation expenses should be shared among all parties involved in passenger travel, noting that air traffic control delays and lengthy border control queues also contribute to travel disruptions, yet airlines bear sole financial responsibility for compensating passengers. [more - Aviation Week]

Background

Airlines for Europe previously argued EU261 was unclear and called for extended delay thresholds and a defined list of extraordinary circumstances to improve schedule recovery and reduce cancellations.1 2 AIRE and IATA urged EU co-legislators to adopt a clear, balanced passenger-rights regulation, backing proportionate delay thresholds, pricing freedoms and a fairer allocation of responsibilities across the travel chain.3 A4E also opposed European Parliament amendments on "free" cabin bags, warning it would raise fares and worsen boarding delays.4

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