The EU Parliament on Monday said hand luggage will be included in airline ticket prices.
From 2027, airlines will be required to include both a small personal item and hand luggage in the ticket price, effectively ending separate carry-on fees.
Passengers will also be eligible for a discount if they choose not to bring additional baggage.
The rules mark an end to carry-on baggage fees, a common practice particularly among low-cost carriers such as Ryanair and EasyJet.
Passengers will be entitled to a free personal item measuring 40cm x 30cm x 15cm, as well as a wheeled carry-on bag with maximum total dimensions of 100cm and a weight limit of 7kg.
The EU also retained rules requiring airlines to seat adults next to their children without charging an additional fee.
The new rules clarify that airlines will pay 300 euros for delays on flights over 3,500 kilometres, and 600 euros if delays exceed four hours or if a flight is cancelled outright.
Airlines will also be required to provide more help to passengers who miss connections. They will no longer be allowed to force travellers to download a mobile app to obtain a boarding pass, a requirement introduced by Ryanair in November.
Carriers will also be barred from charging fees for correcting spelling errors or changing passenger names on tickets. So-called 'no-show' penalties on return flights will also be banned.
Airlines say the rules will harm their competitiveness in the market and lead to higher ticket prices.
EU member states and the European Parliament have been locked in political wrangling over passenger rights for 13 years. The new rules are due to take effect in 2027.
