According to European Passengers Rights Regulation (EU 261/2004), passengers are entitled to standardized compensation for flight cancellation and delays, unless the disruption was caused by ‘extraordinary circumstances’. Despite themajor legal and financial implications of this provision, its exact content remains uncertain, causing a constant debate between passengers, air carriers and national authorities. The European Court of Justice has clarified many of the disputed cases, but in some occasions its decisions have caused further confusion. In the last two years, new decisions of the European Court of Justice, such as on the matter of wildcat strikes, and relevant reports of European instruments show that the problems intensify. This article will investigate the current state of affairs with regard to the application of the ‘extraordinary circumstances’ exception and address some of the issues that remain uncertain, in an attempt to demonstrate the importance of the matter in the general context of European law. Deficiencies in the interpretation and enforcement of the Regulation will have to be addressed, in order to promote a more coherent application to the benefit of passengers and airlines.