The International Air Transport Association has issued a strong warning over the European Parliament’s proposed amendments to the EU261 passenger-rights regulation, stating that the reforms will significantly raise airline cost, weaken sector competitiveness, and fail to address the real needs of air travellers.
The concerns reflect growing tension between industry players and policymakers over new rules that carriers believe are disconnected from operational realities.
In a detailed statement, IATA cautioned that the latest parliamentary proposals would worsen the long-standing flaws in the EU261 regime.
The association argued that instead of introducing balance and efficiency, the amendments would drive up airline cost, inflate ticket prices for consumers, and impose obligations that most passengers neither requested nor prioritize.
IATA noted that the deficiencies of EU261 have been widely acknowledged for years. Earlier in June, the European Council proposed a more measured reform approach to correct these gaps.
The Council’s position included raising compensation thresholds from three hours to four hours for short-haul flights and from three hours to nine hours for long-haul operations.
According to the association, these changes align with passengers’ preferences, as most travellers would rather arrive late than face a total cancellation.
But the European Parliament has opted for a hardline reversal of the Council’s proposals, discarding the threshold extensions and adding new provisions—most notably, a guaranteed right for passengers to carry a cabin bag for free.
While appealing at surface level, IATA stressed that these measures would inevitably increase operational burden and escalate airline cost, ultimately being passed on to passengers through higher fares.
The association cited a recent passenger survey conducted in May, which showed that 72 per cent of respondents prefer to pay the lowest possible fare and purchase additional services only when necessary.
A striking 97 per cent reported being satisfied with their most recent flight experience, underscoring that the majority of travellers do not perceive baggage fees or existing compensation thresholds as problematic.
IATA also referenced Eurocontrol data indicating that fewer than 1 per cent of flights experience delays beyond three hours—meaning the overwhelming majority of passengers are effectively subsidising compensation schemes that benefit only a small minority.
“Ninety-nine per cent of passengers are paying for a compensation structure that only one per cent ever uses,” IATA emphasised, adding that such inefficiencies continue to inflate airline cost across the continent.
IATA’s Director-General, Willie Walsh, criticised the Parliamentary approach as misguided, calling the proposals a “reverse Robin Hood” framework that forces the majority of passengers to shoulder unnecessary expenses.
Walsh noted that the idea of a “free” bag or “free” compensation threshold is misleading, as these costs must ultimately be absorbed through higher ticket prices.
“Everyone knows that nothing comes without a cost. The Parliament’s new provisions impose requirements that passengers did not ask for and do not want to pay for,” Walsh said.
He argued that, if given a choice, travellers would opt for a less extravagant compensation scheme in exchange for lower fares and improved connectivity.
According to him, the amendments represent political interference in commercial aviation operations, risking long-term damage to competitiveness and increasing airline cost far beyond what carriers can sustainably absorb.
IATA further warned that connectivity in key European markets has already slowed drastically.
Data from IATA Economics showed that between 2014 and 2024, connectivity expanded by just 2.2 per cent annually in France, 2.9 per cent in the Netherlands, and a mere 0.4 per cent in Germany.
The association argued that poorly-designed regulations, rising compliance demands, and high airline cost are contributing to a stagnation that will hurt European travellers and economies.
To reverse this worrying trend, IATA urged European governments to adopt broader policy measures beyond EU261 reform.
The association recommended eliminating passenger taxes that cripple air transport affordability.
It cited Sweden’s decision to abolish its passenger tax in July and Germany’s plans to do the same as examples of positive steps that could help reduce airline cost and stimulate travel demand.
IATA also called for reforms to the ReFuelEU Green Deal Regulation and the EU Emissions Trading Scheme, especially regarding Sustainable Aviation Fuel (SAF).
The association explained that airlines currently face a $2.9bn penalty for choosing SAF over traditional jet fuel—on top of ETS payments—making it financially punishing to adopt greener fuel alternatives.
The group argued that fuel producers must be incentivised to supply affordable SAF to avoid further increases in airline cost and the risk of penalising environmentally responsible carriers.
Although the European Commission’s Sustainable Transport Investment Proposal (STIP) is seen as a step forward, IATA stressed that real progress can only be measured when political statements translate into regulatory and market reforms.
Walsh added that a thriving European aviation market—fuelled by choice, competition, and balanced regulation—is the best guarantee of superior customer service and lower airline cost.
He reiterated the importance of a regulatory framework that strengthens competitiveness rather than undermining it with excessive and impractical rules.
IATA concluded that the Parliament must modify its latest proposals and restore the Council’s more balanced position if Europe is to avoid a fresh wave of inflated airline cost, weakened connectivity, and frustrated consumers.
The association emphasized that sensible reform of EU261 is a critical starting point for building a strategic and competitive future for European aviation.
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