EU261 vs. the Montreal Convention: What Applies When?

EU261 vs. the Montreal Convention: The quick overview

After a flight disruption, two rulebooks come into play: Regulation (EC) No 261/2004 — retained in UK law as UK261 after Brexit — and the Montreal Convention. Both protect you, but in very different ways. EU261/UK261 pays a fixed lump sum without any proof of loss. The Montreal Convention instead reimburses actual, documented costs — lost baggage, a missed paid connection, consequential expenses.

The good news: it's not either-or. The Court of Justice confirmed the two systems complement each other (CJEU C-344/04, IATA). In many cases you can claim the EU261/UK261 lump sum and the reimbursement of your real out-of-pocket costs under Montreal. This article shows what applies when — and how to claim both correctly.

What does Regulation 261/2004 cover?

EU261 (and its UK261 mirror) grants standardised compensation for three disruptions: long delay, cancellation and denied boarding (overbooking). The amount is fixed by law and depends only on flight distance — not on your actual inconvenience. No receipts, no loss calculation.

• 250 EUR (commonly quoted as ~£220) for flights up to 1,500 km.
• 400 EUR (~£350) for flights between 1,500 and 3,500 km.
• 600 EUR (~£520) for flights over 3,500 km outside the EU/UK.

A key condition is an arrival delay of at least three hours (CJEU Sturgeon, C-402/07). If the airline refuses, the Civil Aviation Authority (CAA) and its approved ADR (Alternative Dispute Resolution) bodies handle escalation in the UK. The lump sum covers the standard hassle of a disruption. Anything beyond that is Montreal territory.

What does the Montreal Convention cover?

The 1999 Montreal Convention governs airline liability for concrete, provable damage on international flights. Unlike EU261 there is no fixed sum: it reimburses the loss you can document, up to a liability cap expressed in Special Drawing Rights (SDR). One SDR is worth roughly £1.05.

Since the limits were revised at the end of 2019, these caps apply per passenger:

• Baggage (loss, damage, delay): up to 1,288 SDR (around £1,350).
• Passenger delay damages: up to 5,346 SDR (around £5,600).
• Death or bodily injury: strict liability up to 128,821 SDR, fault-based above that.

Typical cases: your suitcase arrives three days late and you buy replacement clothes. Or the delay makes you miss a prepaid hotel night or excursion. You recover those real costs under Montreal — against receipts.

Side by side: the key differences

The core difference is simple: fixed versus individual. This table sets the two rulebooks against each other:

When does each apply — and when both together?

Both systems run in parallel. The CJEU clarified that the standardised EU261 payment operates "upstream" and does not replace the right to individual damages under Montreal (CJEU C-63/09, Walz). A concrete example makes it clear:

• Four-hour delay, long-haul: 600 EUR lump sum under EU261/UK261 — regardless of whether you suffered any loss.
• Plus a missed, prepaid car hire of £120: you claim those real £120 additionally under Montreal — with the receipt.
• Baggage arriving late, £90 of clothing: a pure Montreal case, nothing to do with EU261.

The rule of thumb: standardised hassle goes through EU261/UK261, concrete expenses through Montreal. Airlines occasionally try to offset the lump sum against wider damages — the CJEU allows this only under narrow conditions. When in doubt, state both claims separately and clearly.

Deadlines: two years or six?

This is the biggest trap. The Montreal Convention sets a fixed two-year cut-off in Article 35, from arrival (or scheduled arrival). It is rigid and cannot be extended — miss it and the claim is gone for good. So for baggage and consequential-cost claims: don't delay.

The EU261/UK261 lump sum, by contrast, follows national limitation law. In England and Wales that's six years (Limitation Act 1980); in Scotland five years. That's far more generous than Montreal's window — so if you have both claims, anchor to the shorter two-year deadline and act early.

Legal notice: This article is for general information and does not constitute legal advice. Liability caps in SDR, exchange rates and limitation periods can change and vary by country. For complex cases or high-value losses, we recommend consulting a solicitor.

Frequently Asked Questions (FAQ)

Can I claim EU261 compensation and Montreal damages at the same time?

Yes. The CJEU confirmed that the fixed EU261 payment and individual Montreal damages sit side by side (C-344/04, C-63/09). The lump sum covers the standardised hassle; Montreal covers your real, documented out-of-pocket costs.

Which rulebook applies to lost or delayed baggage?

Only the Montreal Convention. EU261/UK261 has no baggage compensation. Documented costs are reimbursed up to a cap of 1,288 SDR (around £1,350) per passenger — against receipts and the PIR damage report filed at the airport.

What are Special Drawing Rights (SDR)?

SDR is an accounting unit of the International Monetary Fund. The Montreal Convention expresses its liability caps in SDR to smooth out exchange-rate swings. One SDR is currently worth roughly £1.05; the exact rate is published daily.

Why does the two-year deadline matter so much?

Because it's a cut-off, not an ordinary limitation period. It cannot be paused or extended. Two years after arrival, the Montreal claim is irrevocably lost — even if your UK261 claim would still be open for six years.

Does ClaimEU261 help with Montreal claims too?

Our generator specialises in EU261/UK261 complaint letters and names the relevant legal basis. It costs a one-off 10.00 EUR. For pure baggage or consequential-cost cases under Montreal, gather your receipts too — the letter references both bases where both apply.