WHERE WE ARE AT: The EU, passenger rights & proposals to change EU261

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Rania Georgoutsakou of A4E
Rania Georgoutsakou of A4E

The European Parliament’s Transport and Tourism Committee (TRAN) has voted overwhelmingly to strengthen passenger rights across air, rail, sea, and bus travel, with a landmark focus on multimodal journeys and stricter enforcement mechanisms. The vote, held on 24 June 2025, approved amendments to EU passenger rights regulations by 38 votes to two, with two abstentions, and paved the way for negotiations with EU member states, pending plenary approval in July. The aviation and travel industries, however, have raised concerns, warning that the new rules could increase costs and stifle innovation.

The TRAN Committee’s proposals aim to close enforcement gaps and enhance transparency for travellers, particularly those combining multiple transport modes, such as a flight and train journey under a single ticket. Key measures include a common reimbursement form for disruptions, free carry-on luggage (up to 7kg and 100cm total dimensions), no charges for child seat selection, and guaranteed assistance for passengers with reduced mobility. For multimodal journeys, the rules mandate that carriers and intermediaries clarify whether tickets are single, combined, or separate contracts, with sellers liable for 75% compensation if passengers miss connections due to unclear information.

Aviation & free cabin bags

The aviation industry, represented by Airlines for Europe (A4E), has welcomed proposals to reduce the cost of EU261 compensation, which is adding €8 to the cost of each airline ticket, but voiced strong opposition, particularly to the free hand luggage provision, which they argue could disrupt pricing models and raise ticket costs. 

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A4E shared: “Today’s vote on enforcing passenger rights and multimodal passenger rights has seen the Transport Committee (TRAN) finally take action against online freeriding. Unfortunately, this is overshadowed by the Committee using this vote to add air travel specific amendments by the backdoor that remove choice from passengers.”

Ourania Georgoutsakou, A4E’s managing director, quipped, “What’s next? Mandatory popcorn and drinks as part of your cinema ticket?” She warned that the rules “would force carriers to increase ticket costs, even for people flying with minimal baggage”. Low-cost carriers like Ryanair, which rely heavily on ancillary revenues (including baggage fees), face significant impacts, with such fees accounting for €4.7 billion of Ryanair’s €13.95 billion total revenue last year.

The TRAN Committee’s push for a defined list of “extraordinary circumstances” (e.g., natural disasters, war, or weather, but excluding airline staff strikes) to limit airline exemptions from compensation has also drawn scrutiny. A4E argues that the current Regulation 261/2004 is already poorly defined, leading to legal disputes and court-driven standards. “Airlines and passengers need clarity and legal certainty,” an A4E statement noted, calling for a broader reform of the regulation.

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Reactions

The travel industry, particularly bus and coach operators, has expressed mixed reactions. The International Road Transport Union (IRU) welcomed the Council’s earlier clarification of reimbursement deadlines but urged the Parliament to address gaps, such as the needs of small enterprises. IRU’s EU Advocacy Director, Raluca Marian, highlighted the sector’s challenges: “The bus and coach sector is largely made up of SMEs, many of which lack digital infrastructure”. IRU called for paper-based submission options and clearer intermediary liability rules to ensure operational feasibility.

Consumer and disability advocates, however, have praised the proposals. Delphine Grandsart from the European Passenger Federation (EPF) described the multimodal rules as “a first step in the right direction” but noted their limited scope, covering only 0.7% of passengers under existing regulations. The European Disability Forum (EDF) welcomed provisions for passengers with disabilities but cautioned that issues like pre-notification requirements and inadequate compensation for damaged mobility equipment remain unresolved.

The debate reflects a broader tension between consumer protection and industry competitiveness. Proponents argue the rules bolster passenger confidence and encourage multimodal travel, aligning with the EU’s Sustainable and Smart Mobility Strategy. Critics, however, warn of overregulation. Fiona Campbell, speaking at a 2023 tourism conference, cautioned against “knee-jerk” legislation, a sentiment echoed by airlines: “Legislation must be evidence-based, not knee-jerk”.

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As negotiations loom, the TRAN Committee’s vote signals a bold push to harmonise passenger rights, but the aviation and travel industries face a contentious path to implementation. With the plenary vote scheduled for July, stakeholders are bracing for a critical showdown that could reshape European travel.

‘A milestone for passenger rights’

Rapporteur Jens Gieseke (EPP, Germany), overseeing multimodal passenger rights, hailed the vote as a milestone. “For the first time, we are creating clear and enforceable rights for combined journeys by train, plane, bus, or ferry,” he said, emphasising guarantees for timely information, fair reimbursements, and accessibility. 

Matteo Ricci (S&D, Italy), rapporteur on enforcement, underscored the focus on vulnerable travellers: “Today’s vote marks an important step toward fairer and more transparent travel, with special attention to persons with disabilities and reduced mobility”. 

Andrey Novakov (EPP, Bulgaria), handling air passenger rights, shared, “Every delay, cancellation, or confusion at the gate reminds us why passengers need stronger rights”.

MEPs plan to revisit passenger rights in detail this Autumn when they examine the revision of the EU261 Regulation.

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