New EU rules will raise airfare prices, industry warns

New EU passenger rights rules set to take effect in late 2027 will increase ticket prices, according to Danish and Norwegian airline representatives.

The updated regulations, the first major revision in over 20 years, mandate that all fares include both a personal item and a cabin bag, allow free name corrections on tickets, and ensure families can sit together without extra fees. Passengers can still claim compensation of up to €600 for delays exceeding three hours.

Mathias Milling, head of secretariat at Dansk Luftfart, the Danish airline industry association, said the rules fail to reflect modern aviation’s complexity. He argued that the three-hour delay threshold for compensation is too rigid, potentially forcing airlines to isolate delays rather than risk cascading disruptions across multiple flights.

Sara Neergaard, Norwegian’s country manager for Denmark, said including baggage in base fares will increase fuel costs, pushing up prices. She added that while passengers can opt out of baggage, many may overlook the option, leading to higher overall demand and fares.

Milling acknowledged that while compensation systems are necessary, the new framework does not adequately balance passenger rights with airline operational and financial constraints.