EU lawmakers fail to agree on new air passengers' rights law

European lawmakers were unable to agree on the scope of a contentious air passengers' rights law during political talks on Monday evening, setting up the already decade-long process for mediation by the upcoming EU Cypriot Presidency.

The EU's law to increase protection for travellers has been in the making for 11 years, but lawmakers have come under intense pressure from the aviation industry that has stymied its progress.

Among the draft law's provisions are that passengers shouldn't pay for cabin luggage and that they should receive financial compensation if their flights are delayed by more than three hours, a key demand from the European Parliament.

But in previous negotiations, EU member states represented by the European Council moved to raise the threshold for compensation from three to four hours, signalling a lack of consensus among legislators. Germany, Portugal, Slovenia and Spain were among the member states against the change.

Consumer groups argue that charging for cabin luggage is illegal, especially in the form of practices followed by low-cost airlines, and that air travellers should have the right to delay compensation.

On the other hand, airlines claim that the burden imposed by the draft law would dramatically hamper their ability to compete in the market. They say that if the sector is required to comply with stricter compensation and financial rules, ticket prices will inevitably rise.

“We had hoped that the constructive atmosphere of last night's trilogue [inter-institutional discussions] had been enough for the Parliament to be willing to continue exploring possible landing zones on this important file," said a spokesperson from the EU Danish Presidency, currently helming the EU27 bloc.

"Nevertheless, we hope that our negotiations with the Parliament can be an important step towards an agreement at a later stage,” the spokesperson added.

According to one EU diplomat, the Parliament concluded that the different sides' positions were too far apart, and that holding official political talks would be inconsequential given the polarisation of the EU's co-legislators.

"Obviously, there were big differences, but there were also many common goals," the EU diplomat added, regretting the lack of continued willingness to "find common landing zones".

Lawmaker Andrey Novakov (Bulgaria/ European People's Party), leading the file in the Parliament, recognised the "real progress" made with the EU Danish presidency, but regretted the Council's inability to agree on "core red lines".

"Parliament cannot endorse a deal that reduces passengers’ rights. A compromise must not come at the expense of passengers, removing rights they already have in their hands, such as the three-hour compensation rule, the financial compensation or the distance thresholds," Novakov told Euronews.

Compensation and hand luggage

Currently, European air travellers are entitled to compensation of between €250 and €600 if a flight is cancelled or delayed by more than three hours.

The draft proposal suggested airlines would have to pay between €300 and €600 depending on the distance, while Parliament considered the three-hour delay threshold non-negotiable.

The draft text also sought to end cabin luggage fees, entitling passengers to a free personal item of 40cm by 30cm by 15cm and a small wheeled item with maximum total dimensions of 100cm and weighing up to 7kg.

Montserrat Barriga, director general of the European Regions Airlines Association, stressed that regional airlines play a key role connecting remote and island communities with essential services, jobs and healthcare.

"Raising compensation to €300 while keeping the three-hour delay rule is completely out of scale for regional operations," she told Euronews. "In many cases it’s several times the price of the ticket."

Barriga added that small carriers are already in a fragile financial position.

"With such short timeframes and limited access to maintenance facilities outside their home base, fixing issues quickly is often impossible for small regional airlines."

Court of Justice rejects fees on hand luggage

Agustín Reyna, the European Consumer Organisation's director general, lamented EU governments' attempts to "legitimise illegal practices" such as charging consumers for their hand luggage.

Reyna noted a 2014 precedent from the EU Court of Justice, which established that a reasonably sized piece of hand luggage cannot be made subject to an additional fee as it is part of the basic fare and not an optional extra.

"Our data shows that consumers expect to see a small item and a piece of hand luggage when buying basic tickets," added Reyna.

"Policymakers should also define hand luggage’s "reasonable size and weight" to avoid surprises at the airport and ultimately reduce the number of disputes costing consumers and airlines time and money."

Since no mandate agreement has been reached with the Council, the Parliament is now working on its draft report, which will be presented to the transport committee today.

"This position will be presented at the conciliation meeting," an EU parliamentary source told Euronews, referring to the procedure followed within the institutions when no deal is reached after two attempts.

"We stay committed and constructive, but our responsibility is to deliver a balanced, fair regulation, not one that turns the clock backwards for travellers," said lawmaker Novakov.

The Parliament's transport committee will vote on 12 January 2026, ahead of a plenary in Strasbourg. The EU's Cypriot Presidency, kicking off on 1 January 2026, will then take up the legislative file to mediate talks among the co-legislators.