Evolution delivered: what Regulation (EU) 2026/2202 means for EU261 reform

In June 2026, the European Union reached a political agreement on the most significant reform of passenger rights legislation in more than two decades. The detail of that agreement has now been published, providing airlines with their first complete view of EU261.

On 2 October 2026, the European Commission published Regulation (EU) 2026/2202 (EU2202). Rather than replacing Regulation (EC) No 261/2004 (EU261), EU2202 substantially amends it and introduces a series of related changes to Council Regulation (EC) No 2027/97 (the Air Carrier Liability Regulation). Although the reforms will require airlines to make important operational, commercial and claims handling changes before October 2027, the final text broadly confirms the view that we expressed following the June political agreement: this is a case of regulatory evolution, not revolution. 

Below we examine the most important changes and what they will mean for airlines operating to, from and within the EU.

From political agreement to the Official Journal

Following the political agreement in June, EU2202 was formally adopted by the European Council and Parliament on 16 September 2026 and published in the Official Journal on 2 October 2026. It will enter into force on 22 October 2026, but most of its substantive provisions will not apply until 23 October 2027.

Importantly, EU2202 does not replace either EU261 or the Air Carrier Liability Regulation. Instead, it amends large parts of both existing regulations and introduces a smaller number of new provisions.

Evolution confirmed: what is going to change?

EU2202 amends almost every article of EU261. For carriers, the ten most significant changes include:

1. Re-routing rights are significantly expanded (Article 8). If a passenger chooses rerouting at the earliest opportunity, carriers must consider flights operated by competitors and other modes of transport where available. If rerouting under comparable transport conditions is not offered within three hours of a cancellation, passengers may make their own arrangements and recover up to 400% of the original ticket price from the carrier.
2. Automatic reimbursement rights are introduced (Articles 8 and 8a). Passengers who choose reimbursement must be refunded automatically within seven days, including any intermediary fees, without needing to submit a separate reimbursement request. How this obligation will operate in practice where bookings have been made through intermediaries that are not in a direct contractual relationship with the carrier remains to be seen. Vouchers remain permissible, but only on tightly regulated terms and any unused balance must ultimately be returned to the passenger.
3. Extraordinary circumstances are codified (Article 6c and Annex). The two-limbed test from Wallentin-Hermann is incorporated directly into EU261 and supplemented by a non-exhaustive list of qualifying events. The Annex largely codifies existing case law and includes examples such as disruptive passengers, certain airport failures, medical emergencies and specific categories of strikes.
4. New claims and complaint deadlines are introduced (Articles 7 and 15a).  Passengers must generally bring compensation claims within nine months of departure. If the claim is submitted by a third party, the carrier may require evidence of a valid authorisation to act on their behalf. Carriers must determine compensation claims within 30 days, operate a formal complaints process and respond to complaints within prescribed deadlines.
5. Assistance obligations are expanded (Articles 9 and 11). Carriers must provide refreshments every two hours and meals after three hours of disruption. Hotel accommodation remains available where an overnight stay is required, although a three-night cap applies where the disruption was caused by extraordinary circumstances. A broader category of passengers with specific needs is created, including passengers with reduced mobility (PRMs), infants, unaccompanied minors, pregnant women and passengers requiring specific medical assistance.
6. “No show” clauses are curtailed (Article 4). Passengers who fail to travel on an outbound leg may no longer be denied boarding on a return flight solely because they were a "no show" on the earlier sector.
7. Tarmac delays receive dedicated regulation (Article 6a). For the first time, EU261 contains specific provisions governing tarmac delays. Carriers must provide updates and basic welfare measures and, at EU airports, passengers must generally be permitted to disembark after two hours where it is safe to do so.
8. Hand baggage and fare transparency are reformed (Article 11a). Passengers must be permitted to carry a personal item free of charge. Airlines must also clearly disclose their hand baggage allowances and display fares including hand baggage by default, although fares excluding hand baggage may continue to be offered.
9. Connecting flights are addressed expressly (Article 6b). Where disruption on one flight causes a passenger to miss a connection, the carrier operating the disrupted flight becomes responsible for rerouting and assistance obligations through to the passenger's final destination.
10. Airports face greater responsibilities (Articles 10a and 13).  EU airports with annual traffic exceeding four million passengers for at least three consecutive years will be required to maintain contingency plans for major disruption events. Smaller airports are also required to make reasonable efforts to coordinate airport users during major disruption. EU2202 also confirms that EU261 does not restrict carriers' rights to seek redress from airports and other third parties with whom they have a contract, although the practical significance of those rights will often depend on the terms of the relevant contractual arrangements.

Although it is not (yet) a mandatory requirement, EU2202 also paves the way a new “EU261 label” to be used by carriers to identify which flights are covered by EU261. This is introduced in Article 3a and will be promoted by the Commission, who will adopt implementing acts covering the content and design of the label by no later than 23 October 2027. 

Codifying the case law

Many of the changes contained in EU2202 are codifications of the most important decisions in the extensive body of EU261 case law. These include:

• Case C-549/07 (Wallentin-Hermann v Alitalia): in addition to the new non-exhaustive list, EU2202 introduces a definition of “extraordinary circumstances” that expressly incorporates the two-limbed test from Wallentin-Hermann and refers to events that are “not inherent in the normal exercise of the activity of the air carrier concerned and are beyond the actual control of the air carrier.”
• Case C-173/07 (Emirates Airlines – Direktion für Deutschland v Schenkel): EU2202 provides definitions for “flight”, “connecting flight” and “journey” that are consistent with the approach adopted in Emirates. For example, a “flight” is defined as an air transport operation between two airports specified in the ticket that is operated by a single aircraft.
• Case C-537/17 (Wegener v Royal Air Maroc): per Recital 8 and Article 3, EU2202 expressly provides that EU261 will apply to any flight that forms part of a journey covered by EU261, even if the flight in question is operated entirely outside the EU.
• Case C-22/11 (Finnair v Lassooy): consistent with the approach adopted in Lassooy, “denied boarding” is now defined broadly and is no longer confined to situations involving overbooking. The definition expressly includes cases where passengers are denied boarding for operational reasons, including where they are informed in advance and therefore do not present themselves for boarding.
• Case C-11/11 (Air France v Folkerts): Article 6b expressly extends Article 7 and 8 to passengers who miss a connecting flight as a result of disruption affecting an earlier leg of their journey.

These codifications do not create new law. Instead, they place the interpretation of some of the most important elements of EU261 on an express legislative footing, with the aim of increasing consistency, clarity and predictability.

What is staying the same?

Although EU2202 introduces a wide range of changes, some of the central features of EU261 remain largely untouched. Most notably:

• Compensation amounts remain broadly unchanged: the fixed compensation amounts payable under Article 7 remain €250, €400 and €600. The distance bands also remain broadly unchanged. EU2202 does, however, clarify that the relevant distance is assessed by reference to the passenger's overall journey and final destination rather than an individual flight sector, reflecting the broader emphasis placed elsewhere in the reforms on connecting flights and end-to-end journeys.
• Carriers cannot contract out of EU261: airlines remain prohibited from limiting or excluding their obligations towards passengers in their conditions of carriage.
• National enforcement remains the responsibility of Member States: each Member State remains responsible for establishing and overseeing a national enforcement body for EU261. Whilst Article 15a introduces a new internal complaints process, the broader enforcement framework remains unchanged and it is likely that the national enforcement bodies which currently oversee EU261 will continue to perform that role under the amended regime.

More broadly, the core architecture of EU261 remains intact. Whilst EU2202 expands and clarifies many rights and obligations, it does not fundamentally alter the system of compensation, reimbursement, assistance and enforcement that has existed since 2004.

Amendments to the Air Carrier Liability Regulation

The passenger protection scope of EU2202 is not limited to EU261. It also introduces a number of amendments to the Air Carrier Liability Regulation, including:

• Baggage pricing: carriers and intermediaries must provide passengers with clearer information about baggage allowances and charges throughout the customer journey, including during booking, online and at the airport. This includes cabin and hold baggage allowances, limits on the number of items that may be carried and any associated fees.
• Baggage claims and complaints: carriers must provide clear and accessible information regarding claims for lost, delayed or damaged baggage at all points of sale. Complaint forms must be available online, through mobile applications and in airport baggage halls. The date on which a complaint form is submitted will constitute the filing date for the purposes of Article 31 of the Montreal Convention 1999 (MC99).
• Mobility equipment: carriers must inform PRMs of their rights and offer a free special declaration of interest in respect of mobility equipment and recognised assistance dogs. Where mobility equipment is lost, delayed or damaged, temporary replacements must be provided as soon as reasonably practicable pending payment of compensation.
• Musical instruments: carriers must permit musical instruments to be carried in the cabin where they can be stowed safely and securely. Larger instruments may continue to travel on an additional paid-for seat.

As with the amendments to EU261, the changes to the Air Carrier Liability Regulation are intended to ensure more consistent protection of passenger rights across the EU. They also seek to improve the practical operation of MC99 by providing greater clarity and certainty for both passengers and carriers.

What does this mean for carriers?

For EU carriers, EU2202 introduces a mixture of incremental and more significant changes that will need to be implemented before October 2027. Compliance is likely to require a cross-functional programme spanning legal, customer services, digital, commercial and ancillary revenue, and airport operations teams.

Among the most significant changes are stricter reimbursement obligations, expanded rerouting obligations, greater freedom for passengers to arrange their own rerouting and new requirements relating to personal items and hand baggage. Perhaps the most operationally significant reform is the introduction of automatic reimbursement rights, which are likely to require carriers to revisit existing reimbursement processes, customer communications and payment systems. Taken together, these measures are likely to increase both the operational complexity and the cost of dealing with disruption.

The reforms are not entirely one-sided, however. Airlines are likely to welcome the introduction of a nine-month limitation period for compensation claims, together with clarification of carriers' rights of recourse against airports and other third parties under Article 13. The codification of extraordinary circumstances may also provide greater legal certainty and reduce the scope for disputes concerning compensation liability. Similarly, the new airport contingency planning requirements should improve preparedness for major disruption events and facilitate a more coordinated response when such incidents occur.

For UK and other third-country carriers, EU2202 will continue to apply to flights departing from EU airports. Carriers operating services between the UK and the EU should also be mindful that many flights will remain subject to both EU261 and UK261, meaning that potential future divergence could increase compliance complexity. 

What does this mean for the UK?

Brexit means that passenger protection regimes in the UK and the EU are no longer required to develop in parallel. In theory, therefore, EU2202 presents the UK Government with an opportunity to take a different approach to passenger rights and decline to introduce equivalent reforms to UK261.

In practice, however, significant divergence appears unlikely. Many flights between the UK and the EU will remain subject to EU261 in any event. In addition, recent policy announcements indicate that the UK Government is continuing to develop passenger protection rules in a broadly similar direction to the EU. Shortly before publication of EU2202, for example, the Government announced plans to prohibit airlines from charging adults to sit next to children and from charging passengers for correcting simple booking errors.

Recent disruption events in the UK, including the August 2023 and September 2026 NATS outages, the Heathrow substation fire and various airport power outages, have also highlighted the importance of effective coordination between airlines, airports and other aviation stakeholders during major operational incidents. Against that background, the airport contingency planning requirements introduced by EU2202 may have particular resonance in the UK.

The direction of travel therefore appears clear. Once enacted, the UK Civil Aviation (Consumer Protection and Regulatory Reform) Bill will give the Secretary of State for Transport broad powers to introduce further air passenger rights measures through secondary legislation. The Bill will also confer significantly enhanced consumer enforcement powers on the CAA. Taken together, these developments suggest that the UK is more likely to maintain broadly comparable standards of passenger protection than to pursue a materially more liberal regime. 

What happens next?

As noted above, most of the amendments introduced by EU2202 will not apply until 23 October 2027. The European Commission is then required to report to the European Parliament and Council by 23 October 2031, and every five years thereafter, on the operation and enforcement of the revised regime, including the application of the extraordinary circumstances Annex.

The Annex itself is not fixed permanently and the periodic review mechanism provides an opportunity for the Commission to consider whether the list continues to reflect operational realities and developments in the case law.

For carriers, intermediaries and airports, however, the real work begins well before then. The reforms will require changes to reimbursement, rerouting, compensation and complaints handling processes, as well as reviews of conditions of carriage, digital systems and operational procedures. Airports may also need to design or update contingency planning arrangements, whilst airlines and their service providers are likely to revisit existing contractual arrangements to assess how disruption-related liabilities are allocated under the revised framework.

It may be several years before the full impact of EU2202 can be properly assessed. One conclusion, however, is already clear. Despite introducing a range of important new obligations, EU2202 does not fundamentally alter the architecture of Europe's passenger rights regime. Rather, it builds upon existing legislation and case law to create a more prescriptive and detailed framework for dealing with passenger disruption.

In that respect, the final text confirms the conclusion we reached in June: this is a case of evolution, not revolution.

If you would like any further information or advice on how the proposed changes may affect your organisation, please contact Chloe Challinor and Patrick Bettle in Burges Salmon’s aviation team.