The European Parliament’s push to tighten EU261 passenger rights rules has drawn reaction from IATA, Airlines for Europe (A4E), and the European Regions Airline Association (ERA), who warn that the proposals ignore cost impact, operational realities, and route viability. The groups argue that, while aimed at consumer protection, the changes risk adding significant pressure to airline operations – with knock-on effects for cargo capacity, connectivity, and overall network resilience.

In a joint statement, the associations outlined their core objections:
“Our three main concerns are: first, that there is currently no impact assessment of the proposals or their impact on costs and route viability; second, that the compensation thresholds are not being raised above three hours; and third, that operational realities are being ignored — particularly on the issue of a so-called ‘free’ bag and the list of extraordinary circumstances.”

The European Parliament’s Committee on Transport and Tourism (TRAN) has voted to maintain strict demands that airline groups argue will increase operational and financial pressures on air carriers. While EU261 is primarily focused on passengers, industry leaders point out that added burdens on airlines—such as increased compensation thresholds, unclear extraordinary circumstances, and stricter baggage rules—impact the cost base and network viability of mixed-use carriers operating both passenger and cargo flights.

“These changes threaten the affordability and connectivity of air transport across Europe. For carriers operating both passenger services and critical air cargo shipments, the financial and operational impact is compounded,” the associations warned in a joint statement.

IATA, A4E, and ERA argue that EU261 already imposes some of the heaviest regulatory costs in global aviation—estimated at EUR8.1 billion annually. They caution that introducing further cost burdens without adequate impact assessments risks reducing network resilience, harming route viability, and ultimately affecting cargo flows—particularly to and from Europe’s regional airports and peripheral markets.

They also highlight that stricter passenger regulation does not solve the root causes of delays—such as infrastructure bottlenecks and air traffic management issues—but could lead to schedule cuts or reduced flexibility in capacity planning, indirectly affecting bellyhold cargo operations.

Will EU261 hurt air cargo too?

While EU261 is focused on passenger rights, the proposed revisions could have significant knock-on effects for air cargo operations.

Airlines operating mixed passenger and cargo services do not separate their cost base, so increased compensation obligations and regulatory burdens will raise overall operating costs. These added pressures may lead to reduced route viability, particularly on marginal long-haul routes where bellyhold cargo plays a critical revenue role. Passenger-focused rules that ignore operational realities risk eroding both connectivity and cargo reliability across Europe.

What is EU261?

EU261 is a European Union regulation that sets out rules on air passenger rights in the event of flight delays, cancellations, or denied boarding. Officially titled Regulation (EC) No 261/2004, it applies to:

• All flights departing from an EU airport (regardless of airline),

• And flights arriving in the EU on an EU-based carrier.

Under EU261, passengers are entitled to:

• Financial compensation (up to €600) for long delays, cancellations, or being denied boarding,

• Care and assistance (meals, accommodation, rebooking),

• And reimbursement or rerouting in the event of disrupted travel.

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