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Compensation rules for airline passengers in Europe are set to change, with maximum compensation thresholds for the longest delays set to decrease to €500 down from €600.

Conversely compensation payments for ‘medium’ delays will increase from €250 to €300 under the proposals, although compensation eligibility is set to start from a four hour delay instead of the current three hours.

In addition, a new set of rules would strengthen passenger rights relating to the provision of information on compensation and the status of their delays. 

Delayed passengers will also have to be provided with more re-routing options than currently, or airlines face hefty reimbursement charges.

European Transport Ministers agreed the new terms in a meeting in Luxembourg on Thursday (June 5), after current EU Presidency holder Poland backed reforms on the issue.

It comes after more than a decade of discussions on the matter, with EU rules having been interpreted differently amid a lack of clear definitions. 

Ministers were effectively charged with both satisfying passenger and airline requirements in considering the changes.

Transport Ministers also agreed – far from unanimously – that airlines had the right to charge for hand luggage, despite a recent claim by European consumer associations that the practice was illegal. 

The changes now need to be voted on by MEPs, and could face further amendments before being adopted by EU countries.

What is set to change? 

If the current terms set out by the ministers are passed, the three major compensation policies will be as follows: 

• For journeys under 3,500km to a non-EU country and flights between EU countries: a maximum of €300 for delays of more than four hours. Previously, this was €250 compensation for a delay of three hours or more for a flight of less than 1,500 km, or €400 for a flight of between 1,500km and 3,500 km.

• Journeys over 3,500km including to overseas EU territories: a maximum of €500 compensation for delays of more than six hours. Previously this was €600.

• Passengers whose flight is cancelled with less than 14 days’ notice are entitled to compensation, and the airline must provide a pre-filled claim form for the passenger to submit.

Passengers will have up to six months to file a compensation claim request (from the date of the incident) – far longer than individual airline policies currently allow.

Airlines must pay the compensation or provide detailed reasoning explaining a refusal to do so within 14 days of the claim being submitted.

The airlines will also be required to offer passengers re-routing options free of charge in the case of a delay, even if this involves flying with other airlines. 

If an airline fails to offer an alternative route to the destination within three hours of a delay, passengers will be able to arrange their own travel and be reimbursed up to 400% of the original cost of their ticket for the delayed journey. 

Rights surrounding refreshments, food, phone calls and accommodation for delayed passengers will also become more straightforward, and in cases where passengers have to provide their own these costs must be reimbursed. 

Finally, passengers will be entitled to more information from airlines surrounding the reason for a delay, and compensation will be payable if passengers are denied boarding a return flight for which they have paid because they did not board the outbound flight.

Further information on the changes is detailed by the EU Commission .

Note that this compensation is not available in all cases. 

Airlines do not offer compensation in ‘exceptional circumstances’, which includes strikes by non-airline staff at airports, weather events etc.

The EU Commission has not detailed whether there are any changes to what constitutes an ‘exceptional circumstance’.