New EU regulations designed to force airlines to compensate passengers after they delay or cancel a flight are being routinely ignored by many of the big airlines, a Jobs & Money investigation has found.

Long-suffering air passengers across Europe who dared to hope that things would improve when the EU brought in legislation in February look to have been disappointed - because when airlines cancel flights they regularly refuse to pay compensation.

The main problem is that the wording of legislation has been shown to be seriously flawed - it effectively gives the airlines carte blanche to turn down claims safe in the knowledge that they will get away with it.

At the same time the body charged with policing the EU rules in the UK - the Air Transport Users Council (AUC) -has admitted it can't cope with the deluge of gripes from passengers whose claims have been rejected. It has just three people dealing with a backlog of several thousand complaints.

Since February, the airlines have, in theory, had to offer compensation to any passenger bumped off a flight because of overbooking - and, more importantly, anyone delayed for more than two hours.

They are also required to hand out documents to all affected passengers detailing their rights. This, according to frequent flyers, is being routinely ignored. They suggest that many of the airlines appear to be withholding such information to reduce the number of claims for compensation.

Once the delay exceeds five hours a passenger is entitled to a full refund of their ticket plus a free flight back to their departure point (if appropriate) as well as €400 compensation for shorter flights or €600 for longer haul flights. To be eligible, the flight has to either start or end within the EU.

However, compensation is only payable if the delay is the airline's fault. The legislation states the airline should not have to pay if the delay is caused by "extraordinary circumstances". If the delay is the result of adverse weather, strike action, air traffic control delays or anything safety related, compensation is not payable.

Critics of the scheme highlight that fact that the airlines no longer cancel flights for normal reasons - now they automatically pin the fault on something that allows them to escape their obligation to pay out.

Last week, we asked readers to send in their experiences of trying to obtain compensation. British Airways and easyJet were the most frequently cited airlines, but we also had some from charter customers. All complained they had not been given information detailing their rights - and many described the enforcement of the legislation as "toothless".

The AUC says it has been swamped by passenger complaints and admits that with only three people handling them it is struggling to cope.

"The legislation hasn't been a complete disaster because passengers are offered food and drink and being put up in hotels when there are long delays. That said, we have seen a quadrupling in the number of complaints we have received following the introduction of the regulations, which tells its own story. We used to get 1,700 a year. Now we are currently getting more than that every three months," says a spokesman.

"Over the next few months we will start to analyse the figures. If some airlines stand out as always using excuses to avoid compensation, we will be reporting them to the Civil Aviation Authority (CAA), which has the power to fine them."

He suggested that there needs to be a test of the legislation in the courts.

"Ideally, someone will take an airline to court to claim compensation which would help to clarify in what circumstances the airlines are responsible for the delay, and when they should be forced to pay compensation."

A spokesman for the CAA, which funds the AUC, admits the legislation is, in his own words, "not perfect" but says it is up to the AUC to deal with complaints.

"You have to remember that this legislation is still in its infancy - more work needs to be done on this at a European level to clarify in what circumstances compensation should be paid. We do have the power to intervene where the AUC advises us that an airline has not met its duty and compensated passengers. I understand we have just received the first cases - and it's too soon to say if any action will be taken," he says.

Talking to airline staff, you almost get the impression that the airline industry has delighted in turning down claims - not least because they were heavily opposed to the legislation's introduction in the first place. One airline executive suggested the legislation is unworkable and hinted that the airline industry is almost boycotting it as a result. "No airline was consulted when the legislation was drafted and as a result the rules are a nonsense," one airline spokesman said, preferring to remain anonymous.

A spokesman for the European Commission's transport division admits the problems have not just been restricted to the UK. "We are monitoring the situation closely and will be having a meeting in the autumn to analyse how the legislation is being applied. The airline industry has asked the European Court of Justice to look at its legality. The full hearing is unlikely to be heard before next spring. Regardless of that we will be seeking ways to establish that the legislation is adhered to," he says.

Meanwhile the AUC might get its legal test sooner than expected. Trevor Buck, who lives in Leicester, is trying to claim compensation from easyJet after it cancelled the return leg of a flight that he and three members of his family had made to Edinburgh "without explanation". They were forced to buy other flights at a cost of £239 and to pay more than £200 hotel expenses.

easyJet refunded the costs of the flight leaving them £414 out of pocket. They have written to the firm to say they will take the company to court if the money is not forthcoming.

What the airlines say

British Airways, which owns GB Airways, declined to say how much money it had paid out to passengers since February, citing "commercial sensitivity" as the reason. It did, however, say that it has always offered a comprehensive compensation package.

"The new legislation has not had the level of impact on us as it would on other airlines who previously have given no compensation. If we are not able to operate the schedule as planned due to a reason within our control, we will compensate passengers under the terms of the EU regulation.

"The most common reason for not operating a scheduled service is the weather. Clearly, this is outside our control and we would not compensate passengers under this circumstance. Similarly, if there is industrial action at the hands of an external company, again this is outside our control."

easyjet did not reply to the specific complaints J&M passed on. It says it has been working closely with the AUC to ensure it is responding correctly to passengers inquiries. "We are one of the few airlines that fully adheres to the legislation. If a flight is delayed for more than one hour easyJet offers customers a free transfer to another flight or a refund if they choose not to travel - the EU compensation does not kick in until a delay over two hours."

Ryanair declined to comment.