Regulation (EC) No. 261/2004 and the concept of “extraordinary circumstances” in air transport

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The General Court of the European Union – Judgment in Case T- 134/25 of January 21, 2026 addresses several key issues related to Regulation (EC) No. 261/2004, particularly with regard to the concept of “extraordinary circumstances” and how to analyze complex delays in air transport.

Beyond the specific case, the ruling introduces a more technical view of how air transport actually works, attempting to balance passenger protection with the operational reality of airlines.

As we know, Regulation (EC) No. 261/2004 ensures that passengers receive compensation when their flights are significantly disrupted, such as denied boarding, cancellations, or long delays. However, airlines may be exempt if they can prove that the cause was an “extraordinary circumstance,”understood as an event beyond their control that could not have been avoided even if all reasonable measures had been taken. Such circumstances may arise, in particular, in cases of political instability, weather conditions incompatible with the flight, safety risks, unexpected flight safety deficiencies, or strikes affecting the operations of an air carrier (provided that they are beyond its effective control and were not foreseeable).

This is stated in the GCEU ruling itself: “[…] the concept of ‘extraordinary circumstances’ within the meaning of Article 5(3) of Regulation No. 261/2004 must be interpreted strictly, and the cumulative requirements that must be met for events to be considered ‘extraordinary circumstances’ must be assessed on a case-by-case basis.”

Similarly, Article 5.3 of the aforementioned European Regulation states that an air carrier is not obliged to pay compensation if it can prove that the cancellation is due to “extraordinary circumstances”that could not have been avoided, even if it had taken all reasonable measures within its power. This article has generated numerous legal disputes regarding the definition and scope of these alleged circumstances, which an airline may use to exonerate itself and which passengers generally do not have access to.

Now, the European Court recognizes in its ruling that certain decisions by air traffic control bodies may indeed constitute “extraordinary circumstances.” This means that delays caused by factors beyond the airline’s control, such as operational restrictions imposed by air traffic controllers, may exempt it from liability, provided that they are beyond its effective control and there is no negligence on the part of the carrier. Therefore, if a delay is due to the airline’s internal planning or failures, the exemption does not apply.

In situations where a flight is delayed for various reasons, the ruling allows for separating and analyzing which part is due to an extraordinary event. If a partial delay is due to a justified external cause, only the remainder may be considered when calculating compensation. The ruling accepts that delays caused by problems occurring on previous flights of the same aircraft may be considered “extraordinary circumstances,” provided there is a direct causal link with the final delay, thus allowing the entire context of the operation to be assessed.

This resolution has important implications in that it provides legal certainty by offering guidelines on how to assess specific cases. By defining such an ambiguous concept as “extraordinary circumstances,” the      GCEU ruling of January 21, 2026, represents a significant jurisprudential advance in establishing a more balanced and realistic framework for the relationship between airlines and passengers in the air transport sector.

Transport Safety and the Role of the Independent Administrative Authority, in Connection with Law 2/2024 of 1 August

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Maritime, rail and air transport, in spite of technological and regulatory advances, continue to pose significant risks to human life, the integrity of means of transport, cargoes and the environment. In this context, the proper management of accidents and incidents is an essential element to strengthen safety in these strategic sectors.

Experience shows that well-structured prevention, control and response systems are vital. This need gave rise to Law 2/2024 of 1 August on the creation of the Independent Administrative Authority for the Technical Investigation of Railway, Maritime and Civil Aviation Accidents and Incidents. This law represents a significant step forward in the strengthening of investigation and control mechanisms in the field of transport safety in Spain, giving an essential role to a new body created for this purpose: the Independent Administrative Authority.

Law 2/2024 establishes the regulatory framework for the creation of this Authority, which is set up as an autonomous and impartial body. Its main objective is to investigate accidents and incidents in maritime, rail and air transport, not only to determine the causes of each event, but also to make recommendations to prevent future accidents.

The establishment of this Authority responds to the need to guarantee investigations free from external interference, thus ensuring the objectivity of its actions and conclusions, based on the principles of functional independence, objectivity, transparency, prevention, confidentiality in the investigation, institutional and international cooperation and access for victims and interested parties.

Furthermore, the new regulation reinforces Spain’s commitment to international standards, such as those established by the International Maritime Organisation (IMO), for the maritime sector, the International Civil Aviation Organisation (ICAO) for the aviation sector and the Intergovernmental Organisation for International Carriage by Rail (OTIF) for the railway sector.

Focusing on its functions, the IAA has a number of key responsibilities, among them:

  1. Impartial and technical accident investigation: The Authority will be responsible for analysing each technical incident or accident in all three modes of transport (maritime, air and rail), collecting all relevant data and making a technical assessment to determine the causes. Such an investigation shall be carried out with maximum transparency, allowing access to information to victims directly involved in the investigation in question, as well as to other interested parties.

It cannot be overlooked that the investigation of accidents and incidents is a detailed and complex process involving the collection of evidence, interviews with the parties and witnesses, and the development of a technical analysis of the means of transport involved and their protocols of action, one of the main objectives being to identify the underlying causes of accidents and incidents. These can be of a technical, human, organisational or infrastructural nature.

  1. Preparation of reports and recommendations: Following the investigation, the IAA will issue detailed reports and suggest corrective measures which will be published on the Authority’s website for public knowledge. Safety recommendations should not constitute a presumption of fault or liability for an accident or incident and may relate to deficiencies which are not the cause of the accident. It will not be necessary to wait for the publication of the final report before making safety recommendations.
  1. Collaboration with other institutions: The technical investigation of accidents and incidents shall be independent of any other administrative, judicial or parliamentary proceedings in relation to the occurrence under investigation, and IAA staff involved in the investigation shall not form part of other teams, groups or areas of investigation of the incident unless explicitly agreed by the Authority. However, in order to ensure that the different procedures are carried out efficiently, the Authority will maintain the necessary collaborative relationships with the institutions with competences related to the accident or incident subject to a technical investigation (the Spanish Courts, the Judiciary, the Public Prosecutor’s Office and other Technical Investigation Authorities).

Similarly, the IAA may participate or accept an invitation to participate in the investigation of an accident or incident outside Spanish territory, which will undoubtedly be of benefit not only to itself but also globally by being able to share knowledge and experience with authorities or institutions in other countries.

  1. Training and awareness-raising: In addition to research, the IAA will conduct training and awareness programmes for maritime, aviation and rail stakeholders to reduce accident risks and enhance an international safety culture.

Focusing on the particularities of each sector regulated by the Law, we would like to highlight the following points:

  • Railway sector: Rail transport poses risks related to derailments, collisions, accidents at level crossings, damage caused to people by rolling stock in motion, fires, technical failures of structural subsystems, components of the railway system, among others. Therefore, the IAA shall investigate serious railway accidents occurring on the General Interest Railway Network defined in Law 38/2015, of 29 September, on the Railway Sector.
  • Maritime Sector: In maritime transport, the Authority shall investigate very serious and serious maritime accidents involving vessels flying the Spanish flag, irrespective of the location of the accident, as well as accidents occurring in the Spanish territorial sea or internal waters, as defined by UNCLOS / CONVENTION, irrespective of the flag of the ships involved in the incident, or those affecting substantial Spanish interests, irrespective of the location of the incident and irrespective of the flag of the ships involved and the installations or infrastructure used for operations related to research and exploitation of hydrocarbons in the marine environment (1). On the basis of Law 2/2024 of 1 August, the Authority excludes from its scope of investigation maritime accidents and incidents involving warships and other vessels assigned to or operated by the Armed Forces, State vessels providing exclusively non-commercial services, accidents and incidents occurring in non-maritime inland waters, and finally, to vessels without mechanical propulsion, wooden ships of primitive build, yachts and pleasure craft not used for commercial purposes, unless they are or will be crewed and carrying or will carry more than twelve passengers for commercial purposes and fishing vessels of less than fifteen metres in length.
  • Civil Aviation Sector: Civil aviation, not only because of its high technological and organisational complexity, but also because it has historically been required to do so, applies the highest levels of safety and security. The IAA shall assume responsibility for the investigation of serious civil aviation accidents and incidents (2), accidents and incidents occurring in Spanish territory or outside Spanish jurisdiction when a person of Spanish nationality has suffered relevant damage. 

CONCLUSIONS:

The creation of the Independent Administrative Authority (IAA) is a decisive step towards reinforcing transport safety in Spain, with a positive impact also on overall safety. By consolidating maritime, rail and air accident investigations into a single body, administrative efficiency is optimised, functional independence is guaranteed and Spain’s international safety position is strengthened.

This reform will not only facilitate impartial and rigorous investigations, but will promote a proactive approach to accident prevention, continuous learning and improvement, fully aligned with the principles of transparency, objectivity and continuous progress demanded by international standards.

  1. Royal Decree-Law 16/2017, of 17 November, establishing safety provisions for the research and exploitation of hydrocarbons in the marine environment.
  2. Regulation (EU) 996/2010 of the European Parliament and of the Council of 20 October 2010.

AIYON Abogados commemorates its 10th anniversary at its headquarters in Bilbao, marking the culmination of a great year of celebrations

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AIYON Abogados celebrates its 10th anniversary at its headquarters in Bilbao, after a decade in which it has consolidated its position as a national and international leader in maritime and transport law, reaffirming at all times its commitment to professional excellence and personalised service to its clients.

Our boutique firm celebrated its tenth anniversary with a wonderful event held at La Torre de Iberdrola on 2 October, attended by clients and partners, as well as representatives from the logistics and transport sector at national and international level. An event that brings a great year of celebrations to a close, after a decade of hard work and shared enthusiasm.

Founded in 2015 by a team of expert lawyers, all specialising in maritime law, transport, international trade and insurance, the firm has grown to have offices in Madrid, Cadiz and Algeciras, in addition to its headquarters in Bilbao, which hosted the event. Its multidisciplinary team of solicitors, with an average of more than twenty years’ experience in the sector, offers a comprehensive 360º legal service (24/7) within its areas of expertise, as well as in any other area of law with the help of its regular collaborators.

During these ten years of work, the AIYON team has demonstrated its ability to adapt to the challenges of the sector. Over the years, the firm has advised companies and professionals of all kinds, handling both small queries and actively participating in large-scale projects. In addition to being appointed to assist in major maritime accidents occurring at sea, the firm’s solicitors are at the forefront of new technologies being implemented in the sector, such as offshore platforms and, more specifically, floating offshore wind farms. Our close collaboration with local engineering firm SAITEC Offshore Technologies is proof of this.

AIYON Abogados has not only consolidated its presence in the domestic market, but we are also one of the main collaborating firms for numerous companies in the sector based in other countries, including multinationals and insurance companies with an international presence, prestigious law firms and P&I Clubs, and institutions such as the IOPC Funds (IMO). In this way, we position ourselves as a leading law firm, offering tailored legal advice and solutions.

In a global and constantly evolving environment, the solicitors at AIYON know that the sector always requires dynamic measures tailored to each case and each client. The five partners, Mikel Garteiz-goxeaskoa, Verónica Meana, José Antonio Domínguez, Enrique Ortiz and Zuberoa Elorriaga, whose work has been recognised by specialist British directories such as The Legal500 and Chambers & Partners, lead a team of young professionals who aspire to contribute to the firm’s growth in the coming years so that, in another decade, we can all once again commemorate the good work of our firm and its hallmark, which combines the serious, professional and dedicated practice of its profession with an approach that is always friendly and attentive.

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Closure of the II Advanced Arbitration Practice Course for Arbitrators, with recognition for creativity for Verónica Meana

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On September 27, 2025, the II Advanced Arbitration Practice Course, organized by CIAM-CIAR, came to a close, with our partner Verónica Meana among its participants.

The program provided an in-depth exploration of key issues in arbitral practice, including the validity of the arbitration agreement, the appointment of arbitrators, the duty of disclosure, emergency arbitrators and interim measures, the case management conference, the first procedural order, the taking of evidence, procedural incidents, allocation of costs, as well as the drafting of awards and possible challenges.

The experience proved to be highly enriching thanks to a top-quality program, flawless organization, and outstanding faculty. Verónica wishes to publicly express her gratitude to Juan Fernández-Armesto, Giulio Palermo, the CIAM-CIAR team —Marta Lalaguna, María Paula Jijón, Thalía Jiménez, and Stefano Lobatón—, as well as the rest of the faculty, for their academic excellence and dedication throughout the course.

At the closing ceremony, Verónica was honoured with the Extraordinary Award for Creativity, a recognition that is a particular source of pride for our firm.

Fair Competition in Sustainable Air Transport

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Regulation (EU) 2023/2405 of the European Parliament and of the Council of 18 October 2023 on safeguarding a level playing field for sustainable air transport or ‘ReFuelEU Aviation’, on ensuring a level playing field for sustainable air transport, entered into force in 2023 with the aim of reducing emissions from the use of hydrocarbons in aviation. To this end, it establishes a plan that mandates the use of sustainable aviation fuels by 2050. With this legislation, the European Union (EU) is strengthening its strategy to achieve climate neutrality by 2050, as part of the so-called ‘European Green Pact’.

What is the ‘European Green Pact’? It is a growth strategy established by Europe based on the contribution of all policy areas to the fight against climate change, with the aim of achieving climate neutrality by 2050.

Air transport, together with maritime and land transport, plays an important role in our daily lives, both in passenger and freight transport. While it is true that this sector represents a smaller share of global emissions compared to shipping, it also requires attention due to its growing demand and intensive use of fossil fuels.

Specifically, the ‘ReFuelEU Aviation’ Regulation establishes rules for the use and supply of sustainable aviation fuels and, to this end, grants the European Aviation Safety Agency (EASA) the functions of promoting and monitoring the use of new sustainable aviation fuels (SAF) in civil aviation, monitoring the effects of these fuels and keeping informed users or travellers who choose to use air transport.

The goal is to make 70% of aviation fuels sustainable (SAF) by 2050. Within that percentage, 35% would be synthetic aviation fuels, out of all fuel supplied at EU airports. This makes it mandatory for a minimum percentage of 2% of sustainable aviation fuels to be applied from 1 January 2025.

EASA’s functions also include the publication of the annual technical report. This year, a report has been published with the aim of improving the level of environmental protection in the civil aviation sector and helping the EU to ensure that the aviation sector contributes to the objectives of the ‘European Green Pact’ through effective collaboration and continued commitment. The report provides an overview of the current situation and proposes recommendations for further progress in environmental protection, in cooperation with national aviation authorities, in the case of Spain, with AESA.

Regarding SAF, the report recommends reducing the price gap between SAF and fossil fuels, as the price of SAF is currently higher than the price of fossil fuels. It also highlights the allowances allocated in the Regulation and the measures needed to comply with the mandate. In addition, the promotion of less carbon-intensive SAFs is mentioned to maximise their contribution to the ‘European Green Pact’. The identification and optimisation of the composition of aviation fuels, both fossil and SAF, is also recommended to mitigate overall climate and air quality impacts.

In conclusion, through the different regulations addressed in the ‘European Green Plan’ for the year 2050, which includes this ‘ReFuelEU Aviation’ Regulation, not only aims at achieving climate neutrality, but also a more sustainable transport system. As mentioned by EASA in its report, this objective can only be achieved through real and effective international cooperation, with the involvement of all concerned operators.

The CJEU Allows Advance Complaints for Delayed Baggage (Article 31.2 of the Montreal Convention)

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On 5 June 2025, the Court of Justice of the European Union (CJEU) ruled on case C-292/24 (AD vs. Iberia Líneas Aéreas de España, S.A. – Operadora Unipersonal), addressing a key point of the Montreal Convention, namely: can a complaint be lodged for delayed delivery of baggage before it is made available to the passenger?

The context of the dispute is based on a claim filed by AD, an air passenger, against the airline Iberia Líneas Aéreas de España, S.A.- Operadora Unipersonal (hereinafter, ‘Iberia’), in relation to the latter’s liability for the damage caused by the delay in the air transport of AD’s luggage. The passenger reported the incident on the same day, requesting contact from the airline. When he did not receive a response, he made the purchases he deemed necessary to cover his needs. A few days later, his luggage was delivered to him. Iberia, for its part, refused to compensate the expenses related to the replacement purchases made, as well as the travel expenses and the price of the tickets corresponding to a replacement flight, arguing that the complaint did not comply with the 21-day deadline set forth in Article 31.2 of the 1999 Montreal Convention.

The preliminary ruling referred to the CJEU concerned the interpretation of the second sentence of Article 31.2 of the Montreal Convention, approved by Decision 2001/539/EC and in force for the Union since 28 June 2004. Article 31.2 of the aforementioned Convention states: “[…] In the event of delay, the complaint must be made no later than twenty-one days from the date on which the baggage or cargo was made available to you.”

The CJEU ruled that the aforementioned provision does not impose a strict time limit on when the complaint must be lodged, provided that the maximum period of twenty-one days from the date on which the luggage was finally made available to the recipient has not been exceeded. Therefore, the Court made a literal and final interpretation of the article, emphasising that its wording sets a limitation period but does not expressly prohibit early protest.

Consequently, this interpretation avoids unnecessary formalities and promotes greater legal certainty and effectiveness in protecting the rights of passengers affected by unjustified delays in the delivery of their luggage.

Algeciras Hosts the First Celebration of the 10th Anniversary of AIYON Lawyers

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On Thursday, 29 May, the entire AIYON Abogados team celebrated the firm’s 10th anniversary at an event held at the Hotel Alborán in Algeciras, attended by our clients and friends, as well as our regular collaborators, with whom we form a solid team of lawyers and experts.

At this pleasant event, we brought together leading operators and various stakeholders from the logistics and transport sector in Algeciras and the rest of the province of Cádiz, as well as some local authorities, to commemorate a significant milestone in our professional career.

Multiple local media outlets reported this news, which undoubtedly fills us with pride for the effort and dedication that the team has put into achieving this goal, but above all for its five partners, Enrique Ortiz (head of the Cadiz office), Verónica Meana (head of the Madrid office), Mikel Garteiz-goxeaskoa and Zuberoa Elorriaga (heads of the Bilbao office) and José Antonio Domínguez (head of the Algeciras office); partners who work side by side with the rest of the team in handling all kinds of matters related to their specialities.

Founded in 2015 in the city of Bilbao, AIYON Abogados is one of the few specialist law firms currently operating in Spain that provides advice in the areas of maritime law, transport law (both land and air), insurance law and international trade, addressing all of its clients’ legal needs thanks to a highly qualified and multidisciplinary team of lawyers and a network of trusted collaborators in other areas of law (criminal, tax, commercial, and labour), enabling them to offer a 360º legal service. In fact, last March, we were once again highlighted by the prestigious British legal guide Chambers & Partners in the category of ‘Shipping – Maritime Law’ for Spain, and we also contributed to the chapter on Maritime Law in Spain for the guide The International Comparative Legal Guides, 2025 (ICLG).

This is the firm’s first celebration in this momentous year 2025, which will be followed by a second celebration in Bilbao after the summer, serving as the grand finale to commemorate a decade of work and joint effort, with all eyes set on the next 10 years. Congratulations, AIYON Abogados!

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Laura Cabello Joins the Aiyon Algeciras Office

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Following the departure of Rocío López, to whom we wish her all the best in her new career and with whom we continue to work closely, the new lawyer of the team, Laura Cabello, now attends the AIYON office in Algeciras together with the partner in charge of the office, José Antonio Domínguez.

After a few months of adaptation in our Cadiz office, working in direct contact with the two local partners on all kinds of cases, Laura now faces the challenges of an important logistics hub such as the Port of Algeciras, which has a strategic geographical location, her daily activity being a true reflection of the relevance of the maritime and logistics sector in general in the province of Cadiz.

Laura, a member of the Malaga Bar Association, holds a Law Degree from the University of Cadiz (2017) and a Master’s Degree in Access to the Legal Profession from the Malaga Bar Association (2022). She also has a specialisation in International Maritime Law from the Universidad Pontificia de Comillas (Madrid) ICADE- in collaboration with the Spanish Maritime Institute – IME (2023), with specific training in navigation areas, maritime safety, inspection, certification of ships and prevention of maritime pollution.

During her time at university, Laura actively participated in conferences and congresses organised by the Department of International Public Law of the University of Cadiz, where she had the opportunity to deepen her knowledge of key issues of International Law; knowledge that she later expanded with an in-depth study of procedural law.

After successfully passing the entrance exam to the Spanish Bar in June 2022, she completed several internships in the banking sector, where she put into practice her expertise in the development and drafting of lawsuits, appeals and foreclosure of mortgage deeds. She also conducted pre-trial and trial hearings in banking and criminal proceedings.

Given the interest she has always shown in international practice, in July 2024 she joined AIYON Abogados, where she is working in the different areas of maritime law, inland transport law and international trade law, specialising in the management of claims on maritime and inland transport contracts, administrative sanctioning procedures for ships, recovery and maritime insurance.

Revised Limits of Liability Under the Montreal Convention 1999

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In 2024, the International Civil Aviation Organization (ICAO) has proceeded to review the liability limits in accordance with the provisions of Article 24 of the Convention for the Unification of Certain Rules for International Carriage by Air, done in Montreal on May 28, 1999 – Montreal Convention of 1999, which states that the liability limits prescribed in Articles 21, 22 and 23 relating to destruction, loss, damage or delay of passengers, cargo or baggage, established in Special Drawing Rights (SDR), will be reviewed every five years.

Since it was rules in 1999, the Montreal Convention has suffered variations with respect to the limits originally established both in 2009 and in 2019, this being the latest modification, which will take effect on December 28, 2024.

Consequently, and with the appropriate exceptions or requirements to be reviewed in the Montreal Convention for each of the items, articles 21 and 22 of the Montreal Convention are modified as set forth below:

  • Article 21, compensation in case of death or injury of passengers: 151,880 SDR
  • Article 22.1, in case of damage caused by delay in the transport of people: 6,303 SDR
  • Articles 22.2, in case of destruction, loss, damage or delay in the transport of baggage: 1,519 SDR
  • Article 22.3, in case of destruction, loss, damage or delay in the transport of cargo: 26 SDR

This amendment to articles 21 and 22 of the Montreal Convention has been published in the Spanish Official Gazette num. 50, dated 27 February 2025.

AIYON collaborates with the ‘Diario del Puerto’ in its report ‘Legal Allies’

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The special report entitled ‘Legal Allies’, recently published by the specialised newspaper of the logistics and transport sector, ‘Diario del Puerto’, has counted on the collaboration of our colleagues Verónica Meana and Zuberoa Elorriaga, among other professionals of the sector.

After analysing the various questions posed to us, which covered different aspects of our work and included our vision for the future in the face of new challenges, we discussed aspects such as the value of advice and prevention in conflict areas, the most common deficiencies and lack of knowledge in the sector, the role we play as lawyers and its importance in the transport sector, as well as the future challenges facing the world of transport, our lawyers provided their perspective, based on their broad and varied experience.

For her part, Zuberoa Elorriaga commented that the lack of the proper coordination and joint vision that should exist between the purchase and sale operation and the subsequent transport operation can give rise to claims and disputes, which could be avoided with good prior advice. We are talking about both the logistics operation and the insurance that accompanies it.

It considers that the transport phase must be highlighted as an essential complement that complements and perfects the sale and purchase from which it derives. Therefore, correct management of routes and delivery times to avoid delays or damage to the goods is essential, a task that always involves a cost if we want to guarantee a correct service at the hands of professionals.

Verónica Meana, in turn, explained that the EU’s growing demands to reduce emissions are forcing the transport sector to look for alternatives, such as the use of electric vehicles or cleaner fuels. All of this is causing concern among operators about the high costs of adapting their fleets, whether by sea, air or land, which will be required by the new regulation.

In addition, she points out that the delay in adopting digital solutions for optimising operations or complying with environmental regulations, and the lack of robustly implemented protocols among employees of transport companies to make them less susceptible to cyber-attacks, are factors that can be improved with good research and planning.

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