New EU Passenger Rights Deal: Three-Hour Compensation Threshold May Remain, but Clearer Rules are Coming

The reform of air passenger rights in the European Union has entered a new phase: according to a provisional agreement between the Council and the European Parliament, the three-hour delay threshold may continue to play a key role, while more transparent compensation procedures, clearer hand luggage information, stronger assistance rules, and better complaint handling may be introduced. The change is not yet an applicable law, but it is already worth it for Hungarian travelers to understand where the system may be moving.

During the summer peak season, many Hungarian passengers depart from Budapest Airport or choose Vienna Airport as an alternative. A delay, cancellation, or a schedule change announced too late is not just an inconvenience at such times: it can disrupt hotel bookings, ship departures, car rentals, connecting trains or family programs. This is why the EU passenger rights reform is not an abstract Brussels legal technique, but a very practical question: when is monetary compensation due, when must the airline provide care, how quickly must they respond, and how should refunds for tickets bought through online intermediaries be handled.

What happened now in the EU?

In mid-June, the Council and the European Parliament announced a provisional agreement on the modernization of air passenger rights. The current framework has protected passengers since 2004 in case of delays, flight cancellations, and denied boarding, but over the last two decades, legal interpretation, court practice, online ticket sales, and airline business models have become much more complex. The goal of the reform is to make it easier for passengers to enforce their rights, and for airlines and airports to act according to clearer rules.

The most important news is that the political deal does not involve the complete dismantling of the compensation system. According to the Council's announcement, passengers can still claim compensation if the flight arrives more than three hours late, or if the flight is cancelled less than 14 days before departure. The compensation amounts essentially follow the current logic: 250 euros for flights up to 1500 kilometers, 400 euros for longer flights within the EU or between 1500 and 3500 kilometers, and 600 euros for the longest category.

It is important, however, to be precise in the wording: this is a provisional agreement. The text must still undergo legal-linguistic scrutiny, then formal Council and Parliamentary approval. Therefore, this article does not claim that every rule has changed from tomorrow, but that a compromise has emerged in the EU that may define the passenger rights environment in the coming period.

Submitting compensation claims may become easier

Among the practical changes, one of the most important is the clarification of information provision and administration. If a delay creates a situation where a compensation claim may arise, the airline should inform passengers electronically about their rights and how to submit a claim. According to the Council's announcement, passengers must receive clear guidance, and the airline must confirm receipt of the claim and then pay or provide a justified response within 30 days.

This is significant for Hungarian travelers because one of the weak points of the current system is not the compensation principle itself, but that many passengers do not know what to document, where to write, what deadlines they can expect, and when they can refer to the airline's extraordinary circumstances. A clearer, more uniform complaint process could reduce situations where legitimate claims are lost because the passenger does not receive usable information amidst airport stress.

The current agreement also specifically addresses the issue that complaints should not be absorbed only by the airlines' internal systems. EU national enforcement bodies and other competent authorities should receive more effective tools for monitoring, handling complaints, and deterring violations. This is no guarantee that every case will close quickly and without dispute, but it could strengthen the principle that passenger rights are not a promise existing only on paper, but enforceable consumer protection.

Care, re-routing, and self-help: what should the passenger watch for?

The planned regulation also clarifies the right to care. In the event of a disruption, the airline must provide refreshments, meals, internet access, and communication options after a specified waiting period, and for longer disruptions, it must also provide accommodation and transfer between the accommodation and the airport. This is especially important if the passenger is stranded at an airport not close to their place of residence, such as when trying to continue travel from Vienna or a transfer hub.

A significant new element in re-routing is that if the airline does not offer a suitable alternative route within a specified time after a cancellation or denied boarding, the passenger may, under certain conditions, organize their own onward travel and request a refund. According to the Council's announcement, a maximum refund limit appears for self-organized re-routing, which is linked to the original ticket price. In practice, this means that before buying an expensive last-minute ticket in a panic, it is still worth documenting the situation, keeping the airline's information, and, if possible, asking in a provable way what alternative the carrier offers.

Those starting a family trip, a tour, or a cruise in the summer are particularly recommended to check their flight status before departure. Useful starting points for this can be the Budapest live flight information or the Vienna live flight information, but these do not replace the airline's official notifications. The safest solution is for the passenger to keep every booking confirmation, boarding pass, delay notification, invoice, and airport expense.

Hand luggage and price comparison: why do the details matter?

One passenger-friendly element of the reform concerns the transparency of prices. According to the agreement, airlines should display a fare by default at the beginning of the booking process that includes the entitlement to one piece of hand luggage. The goal is for the passenger to be able to truly compare prices, rather than seeing only the lowest, often misleadingly low base fares.

This is particularly important for Hungarian travelers accustomed to the low-cost model. For a Budapest-Milan, Budapest-Barcelona, or Vienna-Malaga ticket, the offer that seems cheaper at first can easily become more expensive if one has to pay separately for the seat, larger hand luggage, checked baggage, priority boarding, or airport administration. The planned EU rule does not mean that all luggage will be free, but that the comparison must be fairer.

Among the new rights is the prohibition of the no-show practice in some form: the airline could not deny boarding simply because the passenger did not use the outbound leg. This issue is mainly important for complex return tickets, business trips, and routes where the passenger's plans change in the meantime. However, it is worth waiting for the final text of the detailed rules, as ticket types, fare conditions, and connections may still carry different risks.

Tickets bought through intermediaries: clearer refunds may come

On June 25, the Council and the European Parliament announced another provisional agreement strengthening the enforcement of passenger rights. This extends not only to air transport but to several modes of transport, and a particularly important part is the refund of flight tickets bought through online intermediaries, travel agencies, or booking platforms.

According to the planned rules, in the event of flight cancellation, it would become clearer how the passenger gets their money back, including the intermediary fee in some cases. Intermediaries should inform the passenger at the time of booking about which refund system applies to the ticket, and airlines should publicly indicate whether they cooperate with intermediaries in processing refunds. The agreement also mentions specific deadlines: a legitimate refund should generally be completed within a short time, and in the case of an intermediary payment chain, a separate deadline may apply to when the money returns to the passenger.

This point is very practical. Many Hungarian passengers do not book directly with the airline, but through a price comparison site, an international online agency, or a package deal. If a cancellation occurs, it is often difficult to determine who to turn to: the airline, the intermediary, the other bank, or the insurer. Clearer EU rules could narrow this grey area, although in practice it will still be best if the passenger checks in advance who the contractual partner is, what customer service contact details they provide, and in what language they handle complaints.

Airline criticism: not everyone is satisfied

The reform should not be viewed only from a passenger protection perspective. IATA, which represents a significant part of the world's airlines, reacted critically after the deal on June 15. According to the organization, the change does not sufficiently address the deeper problems of the EU261 system, does not reduce delays on its own, and may bring additional costs and operational burdens to airlines. IATA also emphasizes that many delays are linked to European airspace and air traffic management capacity problems, which cannot be solved simply with compensation rules.

From the passenger's perspective, two conclusions arise from this. One is that compensation is not the same as prevention: even if a claim is enforceable, the holiday can still be interrupted or become unpleasant. The other is that the regulation must find a balance between consumer protection, prices, regional connectivity, and the operational viability of airlines. For the Hungarian traveler, the most important thing is still to be able to act in a clear legal situation, with documented information and verifiable deadlines, if something goes wrong.

What should the Hungarian traveler do now?

The current agreement does not mean that every procedure changes immediately, but it is a good opportunity for passengers to prepare more consciously. When booking, it is worth comparing airline and intermediary offers directly, checking baggage conditions, name correction rules, re-routing options, and whether the ticket is a single booking or a trip composed of separate segments. With separate tickets, a missed connection is a much greater risk than with a route issued as a whole by an airline.

Before departure, have the airline's app or web booking interface at hand, but it is important that, according to the spirit of the new rules, passenger rights should not depend exclusively on a mandatory app or user account. If a disruption occurs, the first step is always to record the official information: when the delay or cancellation was announced, what was offered, what reason was cited, and what costs were incurred by the passenger. Without an invoice, later reimbursement is much harder.

For passengers living with disabilities or with reduced mobility, pregnant travelers, families traveling with companions, and minors, the planned stronger protection may be especially important. According to the agreement, greater emphasis would be placed on sitting together, assistance, appropriate re-routing, and the handling of mobility aids. This is not just a matter of convenience, but part of the actual access to travel.

Why is this important for the tourism market?

The reform of air passenger rights affects tourism as a whole. If passengers book in a more predictable legal environment, they can more boldly plan longer trips, connecting holidays, city visits, or conference trips. If, however, the rules are too complex, administration is slow, or costs are built into ticket prices in an opaque way, it can reduce trust and diminish the travel experience.

From Hungary's perspective, the issue is particularly sensitive because, besides the Budapest offer, many passengers also monitor Vienna, Bratislava, or other regional airports. When choosing between several airports, not only the ticket price matters, but also how stable the schedule is, how fast the customer service is, whether there is a suitable alternative in case of cancellation, and how much an unexpected night or reorganized transfer costs. Passenger rights therefore indirectly influence airport choice, insurance decisions, and the overall travel budget.

Cautious but important progress

The most important message of the EU passenger rights deal is that the three-hour delay threshold and the 250-600 euro compensation logic may remain, while the system can become more transparent in several points. The price display for hand luggage, the clarification of refunds through intermediaries, the faster response obligation, stronger authority cooperation, and greater protection for more vulnerable passengers are all changes that can be felt by everyday travelers.

Until the final rules, however, the best strategy does not change: before booking, read the fare conditions, before departure check the flight, in case of disruption request written information, keep the receipts, and especially in peak season leave enough buffer time for connections. The reform will be truly valuable for Hungarian travelers if it does not only promise new rights, but also makes their actual enforcement simpler.

Sources: Council of the European Union announcements of June 15 and June 25, 2026, European Commission Your Europe passenger rights information, and IATA's professional reaction of June 15.