The International Air Transport Association has raised new concerns over proposed amendments to the EU261 passenger rights regulation by the European Parliament, warning that the revisions will “entrench and worsen” existing flaws while increasing costs for both airlines and consumers without truly addressing passengers’ needs.

In a statement, IATA said the shortcomings of EU261 have been “known for years,” noting that a June proposal by European governments offered more balanced reforms aimed at protecting connectivity and strengthening the competitiveness of European aviation.

The European Council’s version recommended extending compensation thresholds, from three to four hours for short-haul flights and to nine hours for long-haul flights, changes IATA says would help reduce unnecessary cancellations of delayed flights and reflect passengers’ preference “to arrive late rather than not at all.”

However, IATA warned that the European Parliament plans not only to eliminate these important threshold improvements but also to introduce new requirements, such as guaranteeing passengers the right to carry a cabin bag for free. The association says these measures lack real public demand and would ultimately push fares higher.

Citing a passenger survey conducted in May, IATA said 72 per cent of travellers prefer the lowest possible fare and are willing to pay for extra services separately, while 97 per cent reported being somewhat or very satisfied with their most recent flight.

Referencing Eurocontrol data, IATA highlighted that “less than 1 per cent of flights are delayed beyond three hours,” meaning “99 per cent of passengers are effectively funding a compensation scheme that benefits only 1 per cent of travellers.”

“The best guarantee of great customer service is choice and competition delivered by a thriving air transport market. Correct reform of EU261 can be the starting point for a meaningful competitiveness strategy for European aviation and show that European politicians are serious about the lessons of last year’s Draghi report and the need for fewer and smarter regulations,” said Willie Walsh, IATA’s Director General.

IATA also emphasized that the need for reform has intensified as connectivity in major European markets has slowed.

According to IATA Economics, between 2014 and 2024, connectivity grew by just 2.2 per cent annually in France, 2.9 per cent in the Netherlands, and 0.4 per cent in Germany.

To counter this trend, the association urged European governments to go beyond EU261 reform by taking additional measures, such as removing passenger taxes that “harm connectivity.” IATA noted that Sweden eliminated its passenger tax in July, and Germany has announced plans to follow suit.