Delayed and Cancelled Flights Cost Airlines €8.1 Billion in 2024

Key Takeaways

• EU airlines faced €8.1 billion in costs from delayed and cancelled flights in first five months of 2024.
• Proposed reforms raise compensation delay thresholds from 3 to 5, 9, or 12 hours for flight disruptions.
• Consumer groups warn up to 85% of passengers could lose compensation rights under new EU rules.

Airlines Face €8.1 Billion Hit from Delayed and Cancelled Flights as EU Debates Passenger Compensation Cuts

Airlines operating in the European Union 🇪🇺 have faced a staggering €8.1 billion bill so far in 2024 due to delayed and cancelled flights. This huge cost, confirmed by the European Commission, has triggered a heated debate in Brussels about whether to cut the compensation owed to passengers when their flights are disrupted. On May 28, 2025, EU ambassadors and ministers gathered to discuss possible reforms, with more talks expected in June. The outcome could reshape air travel rights for millions of people across the EU, the European Economic Area (EEA), and the United Kingdom 🇬🇧.

Why is this happening now? Airlines say the current rules are too costly and encourage cancellations, while consumer groups warn that the proposed changes would strip away hard-won protections for travelers. The stakes are high for both sides, and the final decision will affect everyone who flies in or out of Europe.

What’s at Stake: The Cost of Delayed and Cancelled Flights

The €8.1 billion figure represents the total cost to airlines from flight delays and cancellations in just the first five months of 2024. According to the European Commission, this covers compensation payments, extra expenses like hotel stays, and the cost of rebooking passengers. In 2024 alone, 218,000 flights in the EU, EEA, and UK were delayed by more than three hours or cancelled—about 1.5% of all departures.

Under current EU law, known as Regulation EC 261/2004, airlines must pay passengers between €250 and €600 if their flight is delayed by three hours or more, unless the delay is caused by “extraordinary circumstances” like severe weather or air traffic control strikes. These rules have been in place for over 20 years and are seen as some of the strongest passenger protections in the world.

But with the cost of compensation now reaching €6–8.1 billion per year, airlines and some EU officials argue that the system needs to change.

Proposed Changes: Raising the Bar for Compensation

The main reform under discussion would raise the minimum delay needed for compensation. Right now, passengers can claim money if their flight is delayed by three hours or more. The new plan would increase this threshold to:

• 5 hours for short- and medium-haul flights (up to 3,500 km)
• 9 hours for longer flights within the EU
• 12 hours for long-haul flights outside the EU

In addition, the time limit for passengers to file a claim could be cut to as little as three months, down from the current practice where deadlines vary by country and can be much longer.

What does this mean for travelers? According to consumer groups, up to 85% of passengers who are currently eligible for compensation would lose that right under the new rules. For most people, this would mean waiting much longer before they could claim any money for a delayed or cancelled flight.

Who Supports and Who Opposes the Changes?

Airlines and Industry Groups

Airlines, represented by groups like Airlines for Europe (A4E), strongly support the reforms. They argue that the current rules force them to cancel flights rather than delay them, because a delay of three hours or more triggers automatic compensation. By raising the threshold, airlines say they could manage disruptions more flexibly, avoid mass cancellations, and save billions in payouts.

A4E, which represents over 80% of European air traffic, says the changes would help airlines recover from disruptions and keep schedules running more smoothly. They also claim that the current system is unsustainable, especially after the financial hit from the COVID-19 pandemic and ongoing challenges like strikes and airspace closures.

Consumer Groups and Some EU Countries

On the other side, consumer advocates and several EU member states—especially Germany 🇩🇪 and Belgium 🇧🇪—are fighting hard to keep the current protections. The European Consumer Organisation (BEUC) calls the proposal a “disastrous change” and an “unacceptable step back from the current level of protection.” They warn that most passengers would be left without any compensation for long delays, and that airlines would have less reason to keep flights on time.

Stefanie Hubig, Germany’s Consumer Rights Minister, said, “Long flight delays are a real nuisance… Berlin could not agree to any changes ‘unilaterally aligned’ with airlines’ interests just before the holiday season.” Rob Beenders, Belgium’s Minister for Consumer Protection, called the plan “a step backwards, not forwards,” and a “red line that should not be crossed.”

Tomasz Pawliszyn, CEO of Airhelp, a company that helps passengers claim compensation, warned that the reform would be “disastrous” for European consumers.

How the Current Compensation System Works

As of May 2025, the rules for compensation are clear and well-established:

1. Eligibility: If your flight arrives at its final destination three hours or more late (and the delay isn’t due to extraordinary circumstances), you can claim compensation.
2. Compensation Amounts:
   • €250 for flights up to 1,500 km
   • €400 for flights between 1,500 and 3,500 km
   • €600 for flights over 3,500 km
3. Claim Submission: Passengers submit a claim directly to the airline. There’s no strict EU-wide deadline, but national laws may set limits.
4. Airline Response: The airline must pay unless it can prove the delay was outside its control.
5. Escalation: If the airline refuses, passengers can contact national enforcement bodies or use legal services.

For more details on your rights as a passenger, you can visit the EU Passenger Rights Portal.

What Would Change Under the New Rules?

If the proposed reforms are adopted, the process would look very different:

• Delay Thresholds: Compensation would only be owed after 5, 9, or 12 hours, depending on the flight distance.
• Shorter Claim Deadlines: Passengers might have as little as three months to file a claim.
• Legal Uncertainty: Some legal experts warn that the changes could weaken important court decisions that have clarified passenger rights over the past 20 years.

Summary Table: Current vs. Proposed Compensation Rules

Note: Compensation amounts may stay the same, but the delay required to get paid would increase a lot, meaning most current claims would be excluded.

Why Are Airlines Pushing for Change?

Airlines say the current system is too expensive and encourages them to cancel flights rather than risk a long delay. They argue that with the €8.1 billion cost of delayed and cancelled flights, they need more flexibility to manage problems like bad weather, strikes, or technical issues.

They also point out that the rules were written before the rise of low-cost carriers and the huge growth in air travel. Today, with more flights and more disruptions, the cost of compensation has become a major burden.

According to Airlines for Europe (A4E), raising the delay threshold would:

• Reduce unnecessary cancellations: Airlines could delay flights to recover from problems without automatically owing compensation.
• Save billions in payouts: Less compensation would mean more money for airlines to invest in operations and customer service.
• Help airlines recover from disruptions: More time to fix problems would lead to fewer knock-on delays and cancellations.

Why Are Consumer Groups and Some Countries Opposed?

Consumer advocates say the changes would gut one of the EU’s most important consumer protections. They argue that:

• Most passengers would lose compensation rights: Up to 85% of people who now get paid for delays would get nothing under the new rules.
• Airlines would have less reason to be on time: If compensation only kicks in after 5, 9, or 12 hours, airlines might not try as hard to avoid shorter delays.
• Legal protections could be weakened: The European Court of Justice has made many rulings that protect passengers. The new rules could undo some of these gains.
• Shorter claim deadlines would hurt travelers: Many people don’t even know they can claim compensation until weeks or months after their trip. A three-month deadline could mean most claims are never filed.

Stefanie Hubig and Rob Beenders have both spoken out strongly against the reforms, saying they would hurt ordinary travelers and only benefit airlines.

The Political Battle: Who Decides?

The push for reform is being led by the Polish Presidency of the EU Council, which wants to break a decade-long deadlock on the issue. Some countries, like Germany 🇩🇪 and Belgium 🇧🇪, are firmly opposed, while others support the changes.

Negotiations are ongoing, and no final decision has been made. Ministers are expected to continue talks into June 2025, and a compromise may be reached in the coming weeks or months. If adopted, the new rules could take effect as early as late 2025 or 2026.

What Does This Mean for Passengers?

If you fly within the EU, EEA, or UK, these changes could have a big impact on your rights:

• Fewer people would get compensation for delayed and cancelled flights—possibly up to 85% fewer.
• You’d have to wait longer before you could claim any money—5, 9, or even 12 hours, depending on your flight.
• You’d have less time to file a claim—possibly just three months.
• Legal protections could become less clear, making it harder to know your rights.

According to analysis by VisaVerge.com, these changes could make air travel less predictable for passengers, especially during busy travel seasons or when disruptions are common.

What Should Passengers Do Now?

• Know your rights: Under current rules, you can claim compensation for delays of three hours or more. Check the EU Passenger Rights Portal for the latest information.
• Keep records: If your flight is delayed or cancelled, save your boarding pass, booking confirmation, and any communication from the airline.
• File claims promptly: Even now, some countries have short deadlines for claims. Don’t wait too long to contact the airline.
• Watch for changes: The rules could change soon. Stay informed by following updates from official sources and consumer groups.

Looking Ahead: What Happens Next?

The debate over delayed and cancelled flights, and the €8.1 billion cost to airlines, is far from over. The EU is trying to balance the needs of airlines with the rights of passengers. With negotiations ongoing and strong opinions on both sides, the final outcome is still uncertain.

Consumer groups are mobilizing to fight the changes, and more political debate is expected. If the new rules are adopted, they could take effect in late 2025 or 2026, changing the way compensation works for millions of travelers.

For now, passengers should pay close attention to developments and make sure they understand their rights under the current system. The next few months will be critical for the future of air travel in the EU.

Key Takeaways:

• Delayed and cancelled flights have cost airlines €8.1 billion in 2024.
• The EU is considering raising the delay threshold for compensation from 3 hours to up to 12 hours.
• Consumer groups warn up to 85% of passengers could lose compensation rights.
• No final decision has been made; negotiations continue into June 2025.
• Passengers should stay informed and act quickly if their flight is delayed or cancelled.

For official updates and detailed information on your rights, visit the EU Passenger Rights Portal.

Learn Today

Regulation EC 261/2004 → EU law requiring airlines to compensate passengers for delays over three hours, unless unusual circumstances apply.
Extraordinary Circumstances → Unforeseen events like bad weather or strikes exempting airlines from paying compensation.
Airlines for Europe (A4E) → Industry group representing over 80% of European air traffic, advocating for compensation reforms.
European Consumer Organisation (BEUC) → Group defending passenger rights, opposing cuts to flight delay compensations.
Compensation Threshold → Minimum delay time passengers must experience before being eligible for flight compensation.

This Article in a Nutshell

Airlines in the EU spent €8.1 billion on flight delays in 2024. Proposed reforms raise minimum delay times to claim compensation, possibly excluding 85% of passengers from payouts. Consumer groups and some governments oppose these changes, fearing weaker protections for travelers across Europe and beyond.
— By VisaVerge.com