Air passenger rights reform: Part Deux

Hot on the heels of the political agreement recently announced by the Council of the European Union regarding revisions to Regulation (EC) No 261/2004 ("EU261") (see our blog post) is the news that members of the European Parliament's Committee on Transport and Tourism (TRAN) have voted to ban airlines from charging passengers extra to take carry-on bags.

The vote, which took place on 24 June 2025, proposes an amendment to the Proposal for the Enforcement of Passenger Rights (2023/0437) that is currently passing through the European Parliament. This amendment would entitle passengers to take two pieces of carry-on luggage on board an aircraft: a bag to fit in the overhead locker weighing less than 7kg and with maximum dimensions of 100cm, and a small under-seat bag with maximum dimensions of 40x30x15cm.  

Similar to the scope of EU261, the new baggage rules would apply to all flights leaving the EU but only to flights arriving at EU airports that are operated by EU carriers. The new Regulation would amend EU261, thereby forming part of the legal framework for air passenger rights at an EU level.

The proposed amendment is now subject to the consideration of the European Parliament, who will decide whether to adopt or reject it or propose further amendments. 

Problems on the horizon for airlines and consumers

The unbundling of airline fares commenced with the rise of low cost carriers and their drive towards increased ancillary revenue. Such practices have now been largely adopted by legacy and full service carriers.

While some passengers may find it irritating that they have to pay a separate sum for items such as cabin or hold baggage, seat selection and priority boarding, much can be said for the increased choice this gives to passengers who can decide whether or not to select these services. Passengers who do not are the beneficiaries of the lowest fares. Airlines are broadly supportive of the practice of charging for cabin bags for operational reasons in that it provides for more efficient boarding, improved punctuality of services and safety.

Airline associations, including the International Air Transport Association (IATA) and Airlines for Europe (A4E), have strongly condemned the proposed amendment, with IATA accusing the European Parliament of “meddling in operational and commercial issues that it doesn’t understand”. 

Legal and regulatory conflicts

The topic of charging for cabin bags has already generated substantive legal traction with regulators and consumer groups alike:

• In November 2024, the Spanish Ministry of Consumer Affairs imposed fines totaling EUR 179 million on several airlines for practices including charging for larger cabin bags. 
• On 26 June 2025, Madrid's administrative court ruled in favour of two of these airlines, Ryanair and Norwegian, granting an injunctive order to suspend the payment of the airlines' fines while the substantive issues were determined.
• In May 2025, BEUC - the European Consumer Organisation - filed a complaint with the European Commission and the Consumer Protection Cooperation (CPC) Network concerning seven airlines who charge for cabin baggage. 

It is already clear from these challenges that there is a conflict between the positions of the regulators and consumer groups and the established position in EU law, namely:

1. Article 22(1) of Regulation (EC) No 1008/2008 on common rules for the operation of air services ("Air Services Regulation") provides for pricing freedom of air fares by EU carriers.
2. Article 23(1) of the Air Services Regulation permits airlines to levy optional price supplements - which could be said to include cabin bag fees - where these are communicated in a clear, transparent and unambiguous way at the start of the booking process and their acceptance by the customer is on an ‘opt-in’ basis.
3. The CJEU’s judgment in Vueling Airlines (Case C‑487/12) supports the interpretation of Articles 22(1) and 22(1) of the Air Services Regulation and therefore the commercial practice of an airline charging an additional fee for cabin bags.

The scope for conflict will only increase if the amendments proposed by TRAN are adopted. If that happens and the proposed amendments find their way into the final version of the Enforcement of Passenger Rights regulation, then it is very likely that a legal challenge will follow. We now await the European Parliament's view on the amendments.

UK reflections

Following the UK's departure from the EU in January 2020, the Air Services Regulation has been assimilated into UK law by virtue of Assimilated Regulation (EC) No 1008/2008. Since the Vueling case was determined by the CJEU prior to the UK's exit from the EU, the UK courts are bound by it pursuant to section 6 of the European Union (Withdrawal) Act 2018, save that section 6 of the Retained EU Law (Revocation and Reform) Act 2023 - when it comes into force - will include provisions that aim to encourage the UK courts to depart from assimilated EU case law when interpreting assimilated law.

With UK law on air passenger rights currently mirroring that of EU law, a new EU regulation to mandate free cabin bags may result in the UK following suit in order to avoid a two-tier system and confusion for passengers flying to and from the UK. It might just also provide the UK with an opportunity to diverge from the EU's direction of travel and, at least to some extent, to preserve the consumer's right to choose.

“Europe’s airline market is built on choice. Forcing a mandatory trolley bag strips passengers of that choice and obliges passengers to pay for services they may not want or need,” said Ourania Georgoutsakou, Managing Director of A4E. “What’s next? Mandatory popcorn and drinks as part of your cinema ticket? The European Parliament should let travellers decide what services they want, what services they pay for and, importantly, what services they don’t,” she continued.

https://a4e.eu/publications/airlines-condemn-mep-proposals-to-remove-consumer-choice-with-compulsory-free-trolley-bags/