HeadlinesBriefing favicon HeadlinesBriefing.com

Airlines Face €3.2bn Delay Compensation Liability

Financial Times Companies •
×

European airlines face a €3.2 billion liability in unpaid flight delay compensation, according to Financial Times calculations. Passengers can claim compensation up to six years after disruptions, but less than half of eligible payments have been claimed over the past 15 years. The system designed to promote punctuality has instead created a complex repayment regime.

Customers were eligible for about €18 billion from delayed flights between 2011 and 2025, yet airlines paid out just €7.7 billion. Many passengers remain unaware of their rights or face obstacles in pursuing compensation. Airlines argue delays are often outside their control due to factors like underfunded air traffic control.

EU negotiations to reform the compensation system remain deadlocked, with member states proposing to raise compensation trigger times. Airlines warn against measures that would increase costs and ticket prices. The system, once a high-water mark for passenger rights when established in 2004, now faces criticism for its complexity and inefficiency.