Cancelled flight, single booking. Should each passenger make separate claims?

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If you haven't already begun the process, Europa.EU has the form which can be used to lodge a complaint with the airline and/or national authority. It lets you include all passengers affected.

Claim your rights

Step 1 : Complain to the airline
You should first send your complaint to the airline using the EU-wide air passenger rights complaint form.

Step 2 : Complain to national authorities
If you don't receive a reply from the airline within 2 months or if you are not satisfied with the reply, and if you consider that your EU air passenger rights were not respected, you can lodge a complaint with the relevant national authority in the country where the incident took place, within a reasonable time-frame.

The national authority should provide you with a non-binding legal opinion on how to proceed with your claim.

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