EU reaches deal on air passenger compensation and cabin baggage rules

The European Council and the European Parliament have finalized an agreement after a decade of negotiations to standardize air passenger rights. Under the new framework, passengers are entitled to compensation ranging from €250 to €600 for flight cancellations or delays exceeding three hours. Specifically, for long-haul flights over 3,500 kilometres, airlines will pay €300 for delays over three hours and €600 for delays exceeding four hours or total cancellations. A major change involves the prohibition of extra fees for cabin baggage for low-cost carriers. Passengers will be entitled to one personal item of 40x30x15cm and one wheeled bag up to 7kg with maximum dimensions of 100cm included in the ticket price. These rules are set to take effect in 2027. While EU officials state the deal provides necessary regulatory clarity, the aviation industry warns that mandatory inclusion of baggage in base fares could potentially increase overall ticket prices. Formal confirmation from the Parliament is expected by the following Monday.