Understanding EU 261 Compensation: a Simple Guide to Regulation 261/2004

Reviewed by a licensed lawyer.

Last Updated: April 9, 2025

Even though EU Regulation EC 261/2004 became law 20 years ago, very few passengers are aware of how it protects them. In fact, the 2020 Eurobarometer survey found that just 43% of European citizens knew that these passenger rights regulations were even in place. Because of this, countless sums of money go unclaimed every year!

Find out how you can claim up to £520 (€600) no matter your country of citizenship or residency.

What is EU Regulation 261/2004?

Regulation 261/2004 is a set of rules that protects air passenger rights. It went into practice on February 17, 2005 and protects you when your flight has been delayed or cancelled or when you’ve been denied boarding because of overbooking.

Not only do these rules protect air passengers rights, but they also incentivize airlines to provide more on-time service. A 2023 study¹ found that EC261 had a positive effect on arrival and departure delays as well as overall punctuality by reducing delays by an average of 4.92 minutes.

Which Countries are Covered

The rules of EU261 apply to all 27 states of the European Union as well as to several other countries and territories including the following.

What about the UK?

The same law used to apply in the UK, but this has changed since Brexit. Passengers traveling from the UK or with a UK airline are now protected by the UK261 law. It guarantees the same rights as its European Union counterpart.

Who is Protected by Regulation EC 261/2004

The rights provided by EU261 are not limited to European passengers. In fact, anyone who flies with a European airline within the EU or departs from a European airport with other airlines, is protected as long as the following criteria are met.

• Your flight was departing from an EU airport or a European Economic Area (EU/EEA) or
• Your flight arrived at an EU airport on an EU-based airline and
• You have a valid airline ticket

Passengers with free or discounted fare tickets unavailable to the general public are not eligible for EU261 compensation.

See the following table for clarification.

Expert tip: EU261 applies to both full-service and low-cost air carriers.

If your flight was delayed, cancelled or overbooked within the last 3 years, you could be eligible for up to €600 in compensation. Check Your Flight

How Codeshare Flights are Protected

A codeshare is an agreement between 2 airlines where each carrier will sell seats for the other. This means that you might buy a ticket with Air France, but the flight will be operated by SAS.

When you have delays or other flight interruptions, the airline responsible will be the one that operated the interrupted flight. 

Passenger Rights for Flight Delays

Flight delays are probably the most common flight disruption that you will encounter. Under the rules of EU 261, you are entitled to the following for delays.

• Right to care: If you have a flight delay that lasts more than 2 hours, then the airline must provide you with free food and drink, access to communication, and even overnight hotel accommodation if your departure has been delayed until the next day.
• Right to cancel: If you choose to abandon your flight plans, then you are entitled to a refund and transport back to your original point of departure.
• Right to reimbursement: If your flight disruption results in any out-of-pocket expenses, then you have a right to be reimbursed by the airline.
• Right to cash compensation: If your flight was delayed by more than 3 hours and the airline is to blame for the disruption, then you are entitled to compensation.
• Right to a refund: If your flight delay lasts 5 hours or longer, then you have the right to a full refund for the unused part of your ticket and a refund for the used parts of your ticket if they don’t serve a purpose in relation to your original travel plans.

You are also entitled to a free return flight to your original departure airport. Refunds must be given to you within 7 days of your flight.

Example scenario: If you travel from Milan to Beijing to attend a one-day conference and your connection out of Frankfurt is delayed by more than 5 hours, you can get a refund for your unused tickets. However, You will also get a refund for your flight originating from Milan since you can't make it to the conference in time, as well as a return ticket.

Compensation for Flight Delays

According to EU passenger rights regulations, you are entitled to cash compensation of €250 to €600, depending on:

1. The total distance of your flight,
2. The length of time you’re delayed, and
3. Whether or not the airline can be blamed for the delay

Compensation Amounts

* For internal EU flights over 3,500 km with late arrival from 3 to 4 hours, an airline may pay a reduced compensation in the amount of £260 (€300).

Global payouts Comparison table 

To give you a better idea of how EU261 compensation payouts compare to those of other regions, take a look at the table below. All amounts have been converted to Euros.

How the rules Apply to Cancelled Flights

If your flight is cancelled and you’re either flying with an EU airline OR departing from an EU airport, then you could be eligible to receive:

• Compensation
• An alternate flight or a refund
• Reimbursement for additional expenses 

When your flight is cancelled, the airline must give you the choice of a rebooking or a refund.

The rebooked flight offered by the airline must depart at the earliest opportunity, and if you must wait 2 or more hours for the new flight to depart, then you are entitled to the same care and assistance we mentioned above.

If you accept an alternate flight and are seated in a lower cabin class than the one you purchased, then you will be reimbursed between 30-75% of the price you paid originally. But, if you are seated in a higher class, then you do not have to repay the airline.

If the flight(s) they offer doesn’t work for you, you can also choose a booking that meets your needs.

If you choose to be refunded, you should get your money back for both the used and unused tickets within 7 days.

Example scenario: You have a flight with Air France that is scheduled to leave at 4:00PM. When you get to the airport, you find out the flight has been cancelled. You speak with an airline representative who offers you the choice of a rebooking, but the new flight doesn’t depart until the following morning.

Because you will have to wait more than 2 hours for the new flight, you must be given meals and refreshments as well as hotel accommodation and transport to and from the airport.

The next day you find out that the new flight is also delayed. You were supposed to arrive by 2PM but you actually arrived at 6PM. Because of this, you are also entitled to delay compensation. 

Compensation for Cancelled Flights

Whether you receive compensation and how much depends on several factors:

• When you were notified
• If the airline is at fault for the cancellation
• How late you arrive at your final destination 

If you were notified of the cancellationmore than 14 days before departure you will not be eligible for compensation, but you can still get a rebooking at no extra charge OR a refund.

If you were notified less than 14 days before departure, then you will be eligible for compensation if you end up arriving at least 3 hours late at your destination and the airline is at fault.

The amount of money you can get in compensation is based on the length of your delay and the distance of your flight.

Compensation Amounts

Should You Accept Vouchers?

Sometimes airlines will offer passengers vouchers in lieu of a refund when a flight has been cancelled. These can be very tempting, but we recommend being especially careful about accepting these because they tend to come with lots of restrictions, they can have short expiry dates, and in many cases, passengers won’t use them before they expire. Besides this, accepting a voucher can also negate your right to compensation.

The BBC found in 2023, that passengers hadn’t used an astounding €724 million in airline vouchers. Remember, you are entitled to a full ticket. If you’re considering accepting an airline voucher, be sure to read and understand all the details.

Don’t accept airline vouchers

Let AirAdvisor help your case.

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Compensation Payouts from Top Airlines

To give you a better understanding of how much airlines have paid in compensation since 2017, we’ve created the following table of compensation totals collected by AirAdvisor for its customers.

Your Rights for Denied Boarding

When a flight has been oversold, the airline will try to find volunteers to give up their seats in exchange for benefits negotiated directly with passengers. If the airline doesn't find enough volunteers, it will begin to select passengers to bump from the flight.

If you are bumped from a flight, your rights include:

• A rebooking at the earliest possible time or at a later date of your choice, OR
• A ticket refund, AND
• Financial compensation based on the duration of the delay and flight distance, AND
• Care and assistance at the airport if you have to wait more than 2 hours for your replacement flight

Additional Rights Under Regulation EU 261

Besides cash compensation, you are also entitled to a few other things. Let’s take a look.

1. Right to information about EU261 claims

Airlines must inform you about your EU261 rights when you experience delays, cancellations, or denied boarding. For more details, you can also refer to the official document of the EU Regulation 261 2004².

This information must be given to you in writing and presented at the check-in counter.

Carriers must also provide each affected passenger with a written notice specifying the rules for assistance and compensation.

2. Reimbursement for out-of-pocket expenses

If you incurred additional expenses because of flight delays or cancellations, you are also eligible for reimbursement of these purchases, so remember to keep receipts!

Early claims have a 72% higher chance of payoutAct now before your claim expires.Check Your Flight

When Airlines Don't Have to Pay Compensation

Airlines don’t have to compensate passengers if the flight disruption was caused by something they couldn’t control. These uncontrollable events are known as extraordinary circumstances.

The following table illustrates which situations are within the airline’s control.

Pursuing a Claim is Still Worthwhile

There are some situations where you could still be compensated even if extraordinary circumstances were largely to blame for your flight disruption. 

The airline didn’t take reasonable measures

If the delay could have been avoided if the airline had taken reasonable measures or had planned better, then you could still be compensated. 

Extraordinary circumstances are resolved but delays persist

If the extraordinary circumstance passes (i.e. a dangerous storm), and the airline is slow handling the situation, then you could still receive compensation.

How Much Time Do You Have to Submit a Claim?

If you want to pursue a compensation claim, you’ll have to do so within a certain time frame. Because the EU is made up of member states, these filing deadlines are determined by each country.

If you’ve flown between EU countries, then you can choose which deadline to use for your case. The statute of limitations can vary widely, from 1 to 10 years and everything in between.

How to File an EU261 Compensation Claim

If you choose to file by yourself, you will have to write a letter to the airline providing them with all the flight details and other relevant information including  your bank transfer details so they know where to issue your compensation. If the airline refuses to pay you, then you might have to go to court. 

Tips for a Successful Claim

1. As soon as you learn about the flight disruption, ask airline staff or crew members to explain why your flight was cancelled or delayed. Also ask them for a written copy of your EU rights
2. Hold onto all your travel documents (boarding pass, etc.) as well as receipts if you have to make purchases because of the flight disruption. Remember to attach them to your air passenger rights EU complaint form.
3. Do not settle for travel vouchers unless you fully understand the nuances of them. Sometimes accepting one will eliminate your chance of getting cash compensation.

If your flight was delayed, cancelled, or overbooked anytime within the last 6 years, you could still be eligible for up to £520 (€600) in compensation.Check Now. It's Free

Why Trust AirAdvisor

1. We have already helped over 430,000 air passengers from around the world
2. We are experts in submitting and winning compensation claims for all kinds of flight disruptions including denied boarding, missed connections, flight cancellations, and delays.
3. Our legal team goes above and beyond to protect your EU passenger rights. We’ll even go to court on your behalf, if required.
4. Our work is performed on a no-win, no-fee basis, so there’s no risk to you.
5. Finally, our legal service is, on average, 5% less than other services!

All you have to do is enter your flight details, and we’ll show you how much you could get from the airline. Not only that, but it’s free and so easy to use.

People Also Ask

Sources:

¹ Hinnerk Gnutzmann, Piotr Śpiewanowski, Can consumer rights improve on-time performance? Evidence from European Air Passenger Rights, Transport Policy, Volume 136, 2023, Pages 155-168, ISSN 0967-070X, https://doi.org/10.1016/j.tranpol.2023.03.017. (https://www.sciencedirect.com)

² Official document of the EU Regulation 261 2004