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European Parliament Approves Sweeping Overhaul Of Air Passenger Rights

The European Parliament has backed a major overhaul of EU air passenger rights, approving new rules that strengthen compensation, speed up refunds and improve transparency around airline pricing and claims.

Lawmakers approved the revised framework on Tuesday by 646 votes to 12, with three abstentions. The legislation updates passenger rights first introduced in 2004 and aims to address long-standing gaps between passenger protections and airline obligations.

Clearer Rules For Delays And Cancellations

Passengers will continue to be entitled to a refund or re-routing if their flight is cancelled, while compensation will remain available for delays exceeding three hours or cases of denied boarding.

Compensation will continue to depend on flight distance:

  • €250 for flights of up to 1,500 kilometres;
  • €400 for EU flights over 1,500 kilometres and other flights between 1,500 and 3,500 kilometres;
  • €600 for longer-haul flights.

Airlines will be allowed to reduce compensation by 50% on long-haul journeys if they provide alternative transport that limits the arrival delay to no more than four hours.

Exemptions will apply only in extraordinary circumstances beyond an airline’s control, such as severe weather, natural disasters, armed conflict, unruly passengers or strikes affecting airports or air traffic services.

Faster Refunds And Better Assistance

Even when disruption is caused by extraordinary circumstances, airlines will still be required to provide meals, refreshments and, where necessary, accommodation for up to three nights.

Passengers choosing a refund instead of re-routing will benefit from a simplified process. Airlines must provide clear instructions on how to claim within four days after the journey ends, while refunds or compensation decisions must be issued within 30 days. Travellers will have up to nine months to submit a claim.

Greater Transparency For Travellers

The revised rules introduce several consumer-friendly changes aimed at improving transparency during the booking process.

Passengers will be able to use the return leg of a ticket even if they did not travel on the outbound flight. A small personal item will remain free of charge, while airlines will be required to display all mandatory charges, including cabin baggage fees, from the start of the booking process.

The legislation also bans fees for correcting spelling mistakes in passengers’ names and requires airlines to provide digital boarding passes without forcing customers to create an account or download a dedicated app.

New Protections For Families

The package also expands protections for passengers with disabilities or reduced mobility. Travellers who miss a flight because airport assistance failed will remain entitled to compensation and re-routing.

Children under 14 must be seated next to the accompanying adult at no additional cost. The same protection will apply to pregnant women and passengers with reduced mobility.

Virginijus Sinkevičius, vice-chair of Parliament’s Committee on Transport and Tourism, said the reforms preserve existing passenger rights while extending protections to groups that need them most.

Rapporteur Andrey Novakov described the vote as the end of more than 13 years of negotiations, saying the new rules would provide greater legal certainty for both passengers and airlines.

Next Steps

The legislation must now receive formal approval from the Council before becoming law. Once published in the Official Journal of the European Union, it will enter into force 20 days later, with member states and airlines given one year to implement the new rules.

Bitcoin Surges 23% In A Week As Investor Optimism Returns

Bitcoin was on track for a weekly gain of around 23% on Friday as a series of positive macroeconomic and policy developments boosted investor sentiment.

The cryptocurrency was trading about 6% higher at roughly $77,000, up from around $62,800 at the start of the week. Crypto-related stocks also rallied, with Coinbase and Circle gaining more than 9%, while Strategy rose 7%.

Macro Factors Fuel Rally

Bitcoin’s latest surge began Wednesday after Treasury yields fell sharply following a major intervention by the U.S. Treasury in the bond market. Lower yields eased pressure on risk assets and helped trigger a broader move into cryptocurrencies.

The rally was further amplified by a major short squeeze. Around $2.7 billion in crypto short positions were liquidated, according to CoinGlass.

Max Stuedlein, head of Partnerships at Sygnum APAC, said the move reflected an alignment of macroeconomic and policy catalysts, including the Treasury’s decision to increase buybacks of longer-dated government debt.

Clarity Act Boosts Sentiment

Investor confidence improved further on Thursday as the White House and crypto industry leaders made a final push to advance the Clarity Act in the coming weeks.

The legislation is widely viewed as a potential catalyst for the crypto market, although its chances of passing remain relatively limited.

Despite the rally, bitcoin remains well below its 2026 high of $94,820 reached in January and its all-time high of $126,198, set last October.

Analysts See More Volatility Ahead

Lucy Gazmararian, founder and managing partner at Token Bay Capital, said the crypto market may be approaching the end of its bear cycle.

She expects bitcoin could experience one more decline of around 20% before the market turns, pointing to historical cycles and the recent liquidation of heavily leveraged short positions.

Gazmararian also described bitcoin as a long-term hedge against monetary debasement, while warning that its short-term price remains highly volatile and driven by market cycles.

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