What is EU261 and does it cover UK travellers?

EU261 is an EU regulation that pays fixed compensation for long delays and cancellations on qualifying flights. It applies if you depart an EU airport, or fly into the EU on an EU carrier. UK travellers are covered on those routes. UK261 is similar for UK departures and UK carriers.

How much is EU261 compensation for delays and cancellations?

Payouts are fixed at €250, €400 or €600 per passenger, depending on flight distance and arrival delay of 3 hours or more. Cancellations under 14 days’ notice can also qualify. Extraordinary circumstances may limit cash payouts, but airlines must still provide meals, accommodation and re-routing.

Why do Madrid flight delays matter to airline finances?

A madrid flight delay can spark EU261 compensation, hotel and meal costs, and re-routing expenses. The larger hit often comes from knock-on effects that disrupt crew and aircraft rotations. Those costs land in the same quarter, reducing margins and cash flow until operations stabilise and backlogs clear.

How should travellers file for EU261 compensation?

Submit your claim on the airline’s website with booking reference, dates, and delay length. Keep boarding passes, receipts and any written notices. If rejected, escalate to the relevant national enforcement body or an approved dispute scheme. Avoid fee-charging claim firms unless you cannot manage the process yourself.

Global Market Insights

Madrid Flight Disruptions: EU261 Cost Risk for Airlines – February 22

ByDanny Kontos February 22, 2026February 22, 2026

A madrid flight disruption wave on 22 February has pushed EU261 compensation risk back into focus for UK investors. Spain’s four busiest airports reported 460 delays and 15 cancellations, affecting Iberia, Vueling and Air Europa. EU261 compensation, duty of care and rebooking expenses can pressure margins in Q1. For UK travellers, payouts are set in euros, though the cash impact is felt in pounds by London-listed groups with Iberia exposure. We explain the costs, operational pinch points and what to watch next.