Key facts
- Lawmakers agreed to update air passenger rights on June 15 after 13 years of negotiations.
- New protections include banning the no-show clause and clarifying compensation rules.
- Airlines have avoided paying out an estimated €3.2 billion in unclaimed compensation.
- Airlines often wrongfully reject 52% of claims, citing 'extraordinary circumstances'.
- New rules, effective mid-2027, require airlines to proactively inform passengers of their rights and simplify the claims process.
- Claims agencies like AirHelp charge a percentage of successful compensation.
Lawmakers have agreed to update air passenger rights, a move that comes after thirteen years of negotiations and aims to simplify the process for travelers seeking compensation for flight disruptions.
The new regulations, set to take effect mid-2027, will ban the controversial 'no-show' clause and clarify compensation and reimbursement procedures, while maintaining existing protections for flight disruptions. For two decades, airlines have reportedly avoided paying out an estimated €3.2 billion in unclaimed compensation, often contesting claims or making the process overly complex for passengers.
Consumer groups have highlighted that low awareness of rights and burdensome procedures prevent many passengers from exercising their entitlements under EC261. A survey by claims agency AirHelp found that 79% of respondents were unaware of their rights, and airlines only informed travelers in 40% of cases. Airlines also frequently use the 'extraordinary circumstances' clause to deny compensation, with AirHelp reporting that 52% of claims are wrongfully rejected.
Claims agencies like AirHelp have emerged to assist passengers, offering a streamlined process for a fee. AirHelp, for example, charges 35% of successful compensation, with an additional 15% for legal action. While these agencies have a high success rate, critics, including the International Air Transport Association (IATA), label them as 'claim farms' that exploit the system.
The revised rules mandate that airlines must proactively notify passengers of their rights, provide clear instructions for claiming compensation electronically within 96 hours, and acknowledge claims within 30 days, either repaying or justifying any refusal. National Enforcement Bodies are also expected to be better equipped and coordinate more closely across borders.