"It appears that Ryanair has now capitulated", CAA Chief Executive Andrew Haines said in a statement on Friday, after the regulator had warned the airline on Thursday to deliver "action, not words".
The CAA was "furious" after the budget airline cancelled a further 18,000 flights, a decision predicted to affect 400,000 customers.
Ryanair has called upon the UK CAA to now require UK airlines to comply with these EU261 obligations which the CAA did not apply to British Airways in May this year, when a computer meltdown stranded hundreds of thousands of British citizens/visitors at London Heathrow and many other airports, with no apparent action taken by the CAA in respect of re-accommodation or enforcement against British Airways.
Thirdly they must help all passengers who "chose an unsuitable option as a result of being misled".
Ryanair shares fell as much as 4 percent before closing 60 cents lower at 16.44 euros in Dublin.
Last week Michael O'Leary stated that the airline would not be accomodating affected customers by booking them on other carriers but that has changed with today's update.
It also wants the airline to commit to helping travellers who have had to choose an alternative option that isn't suitable for them as a result of the cancellations, as well as a clear statement showing Ryanair will reimburse any out-of-pocket expenses incurred by passengers as a result of the disruption - as is their right under European Union law.
The airline also says cancelling more flights means it will be able to give pilots and crew the annual leave owed to them under the IAA's requirement.
Andrew Haines, chief executive of the CAA, commented: "There are clear laws in place, which are meant to assist passengers in the event of a cancellation".
Ryanair said it met with the commission on?Friday and agreed to implement measures to better inform customers of their rights and claims ahead of a deadline by Britain's Civil Aviation Authority.
RYANAIR announced that return flights between Dublin and Birmingham (FR 664 and FR 665), Paris Beauvais (FR 22 and FR 23) and Barcelona (FR 3977 and FR 3976) on Mondays between November and March will be cancelled.
Ryanair had already canned 2,100 flights in the six weeks to the end of October as it struggled with landing planes on time, reportedly mainly owing to a shortage of pilots.
He added that 99 per cent of Ryanair's customers remain unaffected by the cancellations.