Dozens of European airlines have collectively urged EU officials to pause planned reforms to passenger compensation rights, warning that a surge in jet fuel prices driven by the conflict in Iran leaves them unable to bear additional financial burdens. The plea comes as EU institutions negotiate an overhaul of the bloc's decades-old passenger rights regulation, known as EU261, with the next round of discussions scheduled for 2 June.
Letter from 35 Airlines
Executives from 35 airlines, including Air Serbia, SkyExpress, Luxair, Atlantic Airways, SprintAir, KLM Cityhopper, and Air Corsica, sent a letter to EU officials on Tuesday, seen by Reuters. "We urge European policymakers to pause and reassess," the letter stated. A key point of contention between the European Parliament and EU member states is the proposed increase to the flight delay threshold for compensation, as well as the maximum refund amount.
Disagreements Over Threshold and Baggage
The European Parliament wants to keep the threshold unchanged at three hours for short-haul flights, while member states advocate raising it to four hours. Smaller airlines are calling for a longer threshold or no compensation at all, without setting explicit demands. The co-legislators also disagree on a Parliament proposal to include the right to a free cabin bag of up to 7 kilograms (15lb) in the new rules, which airlines oppose.
"Conduct a full impact assessment, in the new geopolitical scenario, recognise the unique role of regional aviation, adjust the compensation regime to reflect operational realities, discourage flight cancellations and avoid pushing essential air links out of existence," the airline executives said in their letter.
Impact on Small Carriers
Small European carriers have been hit particularly hard by the spike in jet fuel prices, which have practically doubled worldwide. These airlines operate thin routes with very low profit margins, making it harder for them to pay compensation if disruptions occur. "Europe’s strength lies in its connectivity, not only between major capitals, but across every region and community. Regional aviation is what makes that connectivity possible. Do not let this be the last straw," the letter added.
Other rules not in dispute include free seating for an accompanying adult next to a child or person with reduced mobility.
