Airline executives blame EU261 for rising ticket prices
- The CEOs of leading European airline groups are meeting to address the costs associated with EU261 regulations.
- Michael O'Leary stated that these regulations increase ticket prices for passengers.
- There is a growing consensus among airline executives that EU261 needs reform to balance airline financial stability with passenger rights.
In Brussels, the CEOs of major European airline groups convened to address the financial burden imposed by EU261 regulations, which protect air passengers' rights and were implemented twenty years ago. These regulations have been estimated to cost airlines around €8 billion annually, significantly impacting ticket prices. Michael O'Leary, Ryanair's chief executive, highlighted that the costs associated with EU261 add approximately €8 to each passenger's ticket price. At the same time, Carsten Spohr, CEO of the Lufthansa Group, noted that passengers are bearing the costs of these regulations more than the airlines profit from their operations. The ongoing discussions around EU261 have revealed a consensus among airline leaders that reform is necessary to alleviate financial strain without compromising passenger rights. Ourania Georgoutsakou, managing director of Airlines for Europe, suggested potential reforms such as establishing a clearer list of 'exceptional circumstances' and extending the delay threshold, which currently activates passenger aid after just two hours for shorter flights. O'Leary emphasized that air traffic control (ATC) delays often far exceed this threshold, indicating a gap between current regulations and the realities of airline operations. European Commissioner Apostolos Tzitzikostas acknowledged the progress in negotiations over reforming passenger rights, stating the need to balance the financial stability of airlines against ensuring passenger protections. This balance is crucial as the airline industry grapples with economic pressures and the potential for restrictions that could stifle growth. Recent incidents like the Heathrow airport power cut, which resulted in the cancellation of over 250,000 flights, further showcase the challenges airlines face in maintaining operational resilience while adhering to strict regulations. With the complexities of regulations and operational realities intertwined, the upcoming reforms could reshape the European aviation landscape significantly. As airlines report that costs associated with passenger rights exceed their profit margins, the pressure mounts for regulatory changes that can both protect consumer rights while fostering a sustainable business environment for airlines in the changing landscape of air travel.