Air Travel Claim urges UK to raise frozen flight compensation

Air Travel Claim is pressing the UK government to review UK261 compensation levels, arguing that fixed payouts for delayed and cancelled flights have lost about half their value since 2005. The call comes as the EU’s passenger-rights overhaul leaves compensation amounts unchanged and Brexit prevents Britain from automatically following any reform.

Why it matters: - UK passengers have received the same compensation amounts for flight disruptions since 2005, even as inflation has cut the value of those payments. - Air Travel Claim says the current system leaves travelers underpaid when flights are delayed or cancelled and replacement travel, hotels and meals can cost far more than the fixed payout. - The firm wants compensation uprated and then linked to inflation so the amount does not drift out of date again.

What happened: - Air Travel Claim is asking the Department for Transport to reopen UK261 and update long-standing flight compensation amounts. - The appeal follows a 7 July 2026 European Parliament vote to overhaul EU passenger rights by 646 votes to 12 without changing the compensation figures. - The company also wants the UK government to add a mechanism that keeps compensation aligned with the Consumer Prices Index.

The details: - Under UK261 and EU261, compensation is fixed by distance at £220 under 1,500km, £350 for 1,500–3,500km, and £260 or £520 for longer flights depending on how late the aircraft lands. - The EU’s parallel amounts remain €250, €400 and €600. - Air Travel Claim says the top UK long-haul amount has been unchanged since February 2005. - The company estimates that £220 in 2005 would be closer to £440 in today’s money, while the top rate would be nearer £1,000. - The firm says a same-day replacement flight can routinely cost several times the £520 compensation, before hotels or meals are added. - Ryanair’s profit after tax rose from €226.6 million in the year Regulation 261/2004 was adopted to €1.61 billion in the year to March 2025. - IAG, British Airways’ parent, reported record annual profit of €4.4 billion in 2024. - Air Travel Claim says it is not tying compensation to airline profits, but argues that a more profitable industry cannot credibly claim inflation-linked payouts are unaffordable. - UK261 was carried into domestic law after Brexit as a fixed snapshot of the old EU rules, so UK passengers will not automatically follow later Brussels reforms. - The company says that means British travelers could end up under different compensation rules from European neighbors on the same trip. - It uses a Birmingham-to-Amsterdam return journey booked as two one-way tickets as an example: the outbound leg would fall under UK261 and the return under EU261. - Air Travel Claim says that from mid-2027 such a passenger could face two different claims systems within one trip if both flights were disrupted.

Between the lines: - The campaign is about more than higher payouts. It is also about keeping statutory consumer protections from quietly eroding over time. - Air Travel Claim is framing the issue as a fairness and administrative simplicity problem, not a call to redesign the compensation model. - The firm is also pointing to a mismatch between the pace of airline profits and the pace of consumer compensation reform.

What's next: - Air Travel Claim has written to Heidi Alexander MP, the Secretary of State for Transport, asking the department to review UK261, uprate compensation for inflation since 2004 and add an automatic update mechanism. - The company is inviting MPs, consumer groups and other claims firms to support the call. - A copy of the letter to the Secretary of State is available on request.

The bottom line: - Air Travel Claim wants the UK to stop treating 2005 compensation amounts as if they still reflect 2026 costs.