The International Air Transport Association (IATA) has strongly criticised the European Parliament’s opposition to reducing compensation for passengers affected by flight delays.
Under a 2004 regulation, passengers can claim up to €600 if their flights are delayed by more than three hours. This rule is currently under negotiation in Brussels.
In June 2025, the majority of the 27 EU member states voted in favour of less generous compensation terms. However, in January 2026, the European Parliament rejected the proposal, saying it wanted to “strengthen passenger rights.” A compromise must now be found.
During its annual general meeting in Rio de Janeiro, IATA expressed its frustration that the regulation might not be altered.
The rule already costs airlines €8 billion annually, according to Rafael Schvartzman, IATA’s Vice President for Europe, speaking at a press conference.
Mr Schvartzman criticised the ongoing negotiation process, saying it had “gone in the wrong direction” and that “air transport is treated as a political punching bag.”
He described current proposals as inadequate, arguing that unless reform leads to meaningful improvements, maintaining the status quo would be preferable.
IATA has dubbed the EU regulation “a reverse Robin Hood,” because it believes 99% of passengers are unfairly saddled with surcharges to compensate the 1% affected by delays.
Airlines claim the rule incentivises them to cancel flights rather than risk cascading delays and the subsequent compensation payouts.
The French daily newspaper *Les Echos* reported on Saturday that the European Commission has drafted an agreement for a vote. Under the proposal, the three-hour threshold for compensation would remain unchanged, but compensation forms would no longer be pre-filled for passengers.
Despite these challenges, Mr Schvartzman expressed optimism about the outlook for air travel in Europe.
He stated that summer bookings have improved compared to 2025. Given current geopolitical uncertainties, European tourists appear to favour trips to nearby destinations, with many choosing to stay close to home.
