Passengers booking flights through online travel agencies or directly with airlines in the European Union now face a major shift: as of July 31, 2025, these companies must refund customers within 14 days for cancelled flights. This change follows new rules pushed by the European Commission and consumer protection authorities, aiming to fix long-standing problems with slow refunds and unclear processes.
The Council of the EU approved a draft revision of EU Regulation 261/2004 in June 2025, tightening deadlines for refunds and compensation. While the new law still needs final approval from the European Parliament, many airlines and online travel agencies have already started following the 14-day refund rule. This move comes after years of complaints, especially during the COVID-19 pandemic, when passengers often waited months for their money back.
Key changes include:
– Refunds: Airlines and online travel agencies must process refunds or give a clear answer within 14 days of a claim for a cancelled flight.
– Compensation: The delay needed to qualify for compensation rises to 4 hours for short- and medium-haul flights, and 6 hours for long-haul flights.
– Amounts: Compensation increases to €300 for short-haul flights but drops to €500 for long-haul flights.
– Rerouting: If an airline does not offer rerouting within 3 hours of a cancellation, passengers can book their own travel and claim reimbursement—up to 400% of the original ticket price.
– Claims: Passengers have 6 months to submit claims, and airlines must now offer simple online forms for these requests.
The European Commission says these changes are needed because “passengers deserve fast, fair treatment when flights are cancelled.” Consumer groups welcome the faster refunds and easier claims but worry that raising the delay threshold for compensation will leave some travelers with less protection. Airlines and online travel agencies, on the other hand, support the clearer rules, saying they will reduce disputes and confusion.
For travelers, the process is now more straightforward:
1. Flight cancelled: The passenger gets a notice from the airline or online travel agency.
2. Submit claim: The passenger uses a simple online form to request a refund.
3. 14-day response: The company must refund or explain within 14 days.
4. Escalate if needed: If there’s no refund, the passenger can contact national enforcement bodies or use services like AirHelp (for a fee).
5. Reroute: If no rerouting is offered in 3 hours, the passenger can book another flight and claim reimbursement.
These steps should make it easier for people to get their money back and find new travel options quickly. However, fewer passengers may qualify for compensation due to the higher delay thresholds.
According to analysis by VisaVerge.com, the new rules are expected to become fully binding by autumn 2025. Until then, most airlines and online travel agencies are already following the 14-day refund rule due to pressure from the European Commission.
For more details on your rights as an air passenger in the European Union, visit the official European Commission Passenger Rights Portal.
Travelers should keep records of all communication and submit claims as soon as possible to ensure quick refunds and support if problems arise.
Learn Today
EU Regulation 261/2004 → An EU law protecting air passengers’ rights including compensation for delays and cancellations.
Compensation → Monetary payment passengers receive if flights are delayed or cancelled beyond set thresholds.
Rerouting → Offering alternative flight options to passengers when their original flight is cancelled or delayed.
Online Travel Agency → A web service that sells flight tickets and manages bookings without physical offices.
European Commission → The EU executive branch responsible for proposing and enforcing regulations across member states.
This Article in a Nutshell
Starting July 31, 2025, EU airlines and travel agencies must refund cancelled flights within 14 days, easing passenger frustrations and clarifying compensation rules for delays, cancellations, and rerouting, setting a new standard for faster, fairer air travel in Europe amid ongoing pandemic recovery challenges.
— By VisaVerge.com
