European lawmakers hit a roadblock this week in their efforts to finalize a new air passengers’ rights law, failing to reach an agreement on key provisions during political talks. The 11-year legislative process is now headed for mediation under the upcoming Cypriot Presidency of the European Union, following intense lobbying from the aviation industry. The stalled negotiations center around compensation for flight delays and fees for cabin luggage, areas of significant dispute between the European Parliament and the EU Council.
The core issue revolves around balancing passenger protections with the financial realities of airlines, particularly in the wake of ongoing economic pressures. While the European Parliament aims to strengthen existing rights for travelers, several EU member states, representing the Council, are pushing for revisions that the Parliament views as detrimental to consumers. The talks took place Monday evening, revealing deeply entrenched positions on either side and highlighting the challenges in reaching a consensus.
The Future of Air Passengers’ Rights in Europe
Currently, EU regulations entitle air passengers to compensation ranging from €250 to €600 for flights delayed more than three hours, or for cancellations with insufficient notice. The proposed update seeks to clarify and expand these rights, but disagreements over the specifics have stalled progress. A key sticking point is the Parliament’s insistence on maintaining the three-hour delay threshold for compensation, a provision some member states want to increase to four hours.
Consumer groups strongly support the Parliament’s position, arguing that charging extra for cabin luggage is often an illegal practice, particularly by low-cost carriers. They point to a 2014 ruling by the EU Court of Justice which stated that a reasonable piece of hand luggage should be included in the basic fare. They also advocate for clear rules defining “reasonable size and weight” to prevent disputes at the airport.
However, airlines contend that stricter compensation rules and the elimination of cabin baggage fees would significantly impact their ability to compete. Representatives from the industry warn that these increased costs would inevitably lead to higher ticket prices for consumers. Montserrat Barriga, director general of the European Regions Airlines Association, emphasized the financial strain on regional airlines, stating that a €300 compensation for a three-hour delay can exceed the price of a ticket on short-haul routes.
Diverging Positions and Ongoing Negotiations
According to a spokesperson from the EU Danish Presidency, efforts were made to find “landing zones” for agreement, but ultimately proved unsuccessful. Despite “constructive atmosphere,” the Parliament reportedly concluded that the gaps between positions were too wide to warrant further immediate political discussions.
Lawmaker Andrey Novakov, leading the file in the Parliament, acknowledged the progress made with the Danish Presidency but expressed disappointment with the Council’s unwillingness to compromise on core principles. “Parliament cannot endorse a deal that reduces passengers’ rights,” Novakov stated, emphasizing the importance of preserving existing protections, including the three-hour compensation rule and the right to carry a small personal item and wheeled cabin bag without extra charge.
The Parliament is now preparing its draft report for a vote by the transport committee on January 12, 2026. This position will then be presented at a conciliation meeting, a formal procedure used when agreement cannot be reached after two attempts. The Cypriot Presidency, taking over on January 1, 2026, will then be tasked with mediating the final stages of the negotiations.
The resolution of this legislative process will have significant implications for both air travel consumers and the European aviation industry. Stakeholders are encouraged to follow the proceedings of the transport committee and the efforts of the Cypriot Presidency as the debate continues. The outcome will shape the future of passenger rights and airline operations within the EU for years to come.

