American, Lufthansa, Etihad, British, Saudia, Singapore, Japan, Air India, Emirates, Delta and More Airlines Could Face Stricter EU Passenger Compensation Rules Under Proposed New EU261 Changes: What Travelers Need to Know

Written By: Rana Pratap

Rana Pratap

My formal education culminated with a Master's in English from Dibrugarh University in 2015, but my real-world learning began simultaneously. Over ten years ago, while still a student, I joined Travel and Tour World as an intern, eager to nurture my love for travel in a professional setting. It has been a privilege to grow with this company, maturing from that initial role into a leadership position. As a Senior Writer and Team Leader today, I comfortably blend my passion for travelling with years of industry experience along with mentoring a creative team.

See Full Bio

February 15, 2025 5:34 PM |

Image generated with Ai

Air passengers flying with American Airlines, Lufthansa, Etihad Airways, British Airways, Saudia, Singapore Airlines, Japan Airlines, Air India, Emirates, Delta, and other major global carriers could soon be subject to stricter passenger compensation rules under the proposed EU261 changes. These revisions, currently under review by the Council of the European Union, aim to enhance passenger rights, increase airline accountability, and streamline the compensation process for flight delays, cancellations, and denied boarding due to overbooking.

If adopted, the updated EU261 regulations would introduce clearer compensation rules, improved refund and rebooking policies, and stronger enforcement mechanisms for airlines operating flights departing from the EU. The changes could align European air passenger rights with more protective regulations seen in Canada, the United States, and Saudi Arabia.

With Poland holding the EU Council presidency, modernizing EU261 has become a priority, and consumer rights organizations like AirHelp are advocating for stronger enforcement. As discussions continue, travelers could soon see enhanced protections that make it easier to claim compensation and receive proper assistance when flights are disrupted.

This regulation, which protects passengers from delays, cancellations, and denied boarding due to overbooking, is being modernized to ensure greater transparency, better refunds, and improved compensation rules for flight disruptions. The Council of the European Union is reviewing the proposed changes, which could soon lead to stronger enforcement and higher accountability for airlines.

Why is EU261 Being Revised?

Since 2004, EU261 has been a key regulation protecting passenger rights in Europe. It ensures that travelers receive financial compensation, rebooking options, or full refunds when airlines cancel, delay, or overbook flights.

With Poland holding the EU Council presidency, the country has prioritized modernizing EU261 to better reflect passenger needs and recent legal rulings. The European Commission published updated guidelines in July 2024, outlining proposed changes that could bring EU compensation laws in line with global best practices in Canada, the U.S., and Saudi Arabia.

Legal and consumer rights groups, such as AirHelp, have played a major role in advocating for stronger protections under EU261. Aviation law specialists argue that passengers often struggle to claim compensation, and airlines should be held more accountable for disruptions.

What is EU261?

EU261 applies to passengers traveling on flights departing from the European Union (EU), as well as certain flights arriving in the EU. The regulation provides compensation and assistance for travelers affected by:

Flight cancellations
Delays exceeding three hours
Denied boarding due to overbooking

The revised version of EU261 will clarify and expand these rights, making it easier for passengers to claim compensation.

Which Airlines Are Affected?

Under the revised rules, airlines operating flights departing from the EU—whether EU-based or international—must comply with stricter compensation requirements. This includes:

European Airlines (Covered for all flights to/from EU):

• Lufthansa (Germany)
• British Airways (UK – Covered under UK261 equivalent law)

Non-EU Airlines (Covered only for EU Departures):

• American Airlines (USA)
• Etihad Airways (UAE)
• Saudia (Saudi Arabia)
• Singapore Airlines (Singapore)
• Japan Airlines (Japan)
• Air India (India)
• Emirates (UAE)
• Delta Airlines (USA)

Which Flights Are Covered Under EU261?

• All flights departing from the EU are covered, regardless of airline.
• Flights arriving in the EU are covered only if operated by an EU airline.
• Flights entirely outside the EU are NOT covered.

Example:
A Delta flight from Paris to New York is covered.
A Delta flight from New York to Paris is NOT covered.

Key Changes Under the Revised EU261 Regulations

How Much Compensation Can Passengers Claim?

Under EU261, passengers can receive up to €600 (~$650) in compensation if their flight is significantly delayed, canceled, or overbooked.

This applies to delays over 3 hours, cancellations, and denied boarding due to overbooking.

Stricter Rules for Flight Cancellations and Delays

A flight will now be classified as canceled if:

• It arrives more than one hour early.
• It returns to the departure airport after takeoff.
• It is diverted to a different airport outside the original destination city or region.

Compensation for Delays Over Three Hours

Passengers experiencing delays of three hours or more will receive the same compensation as they would for a canceled flight.

Enhanced Airline Communication and Transparency

• Passengers will no longer need to search for compensation details—airlines must proactively inform them about their rights.
• Airlines must provide a written notice to all affected passengers, clearly stating their rights and outlining how they can claim compensation.
• Airlines must clearly list the name and contact details of the company responsible for handling claims.

Stronger Passenger Rights for Refunds and Re-Routing

• If a passenger chooses a refund instead of a rebooking, the airline must provide full details of both options.
• If a passenger books a more expensive ticket due to a flight cancellation, the airline is required to cover the price difference.

Improved Assistance Services for Stranded Passengers

Passengers on delayed or canceled flights are entitled to:

• Meals and refreshments
• Two free phone calls/emails
• Hotel accommodations if required
• Transport to and from the hotel

If airlines fail to provide these services, passengers can pay for them and request reimbursement.

Who is NOT Covered?

Airlines are exempt from paying compensation if the delay or cancellation is due to extraordinary circumstances, such as:

• Extreme weather conditions (hurricanes, blizzards, etc.)
• Security risks or terrorist threats
• Political unrest (e.g., government-mandated airport closures)

However, in 2018, the European Court of Justice ruled that strikes by airline staff do not qualify as extraordinary circumstances. This means that passengers affected by airline strikes can still claim compensation.

Final Thoughts: Stronger Passenger Rights Are Coming

The European Commission published updated guidelines in July 2024, outlining these proposed improvements. These guidelines are now under review by the EU Council, and if approved, will further strengthen passenger rights.

The new rules align EU passenger rights with global best practices, such as the stronger compensation laws in Canada, the U.S., and Saudi Arabia.

If the Council of the European Union approves the new regulations, passengers flying with American, Lufthansa, British Airways, Emirates, and Delta (when departing from the EU) will enjoy:

• Stronger enforcement of passenger rights
• More transparency on compensation claims
• Improved refund and re-routing policies
• Compensation for delays exceeding three hours

As these regulations move closer to final approval, passengers should stay informed about their rights and options when facing flight disruptions.