What's the Difference Between Flight Compensation and Refund?

Travel disruptions are a common occurrence, yet most people are unaware of their rights. Refunds and compensations serve distinct purposes and apply to different situations. It is essential to know what you can claim depending on the circumstances. In this article, we will break down the key differences, explain eligibility criteria, and explore what you are entitled to under EU Regulation EC 261/2004.

What’s the Difference Between a Flight Refund and Flight Compensation?

In simple terms, a flight refund reimburses the cost of your ticket when you cannot take the flight for valid reasons. Such may include unexpected cancellations or significant delays. 

In contrast, flight compensation is a financial payout provided for inconveniences caused by the airline, like last-minute cancellations or long delays.

It is possible to claim both a refund on flights and compensation for the same incident if it meets specific criteria. For example, you may be eligible for a refund of your airfare and additional compensation if your flight is cancelled or delayed beyond acceptable limits.

What’s a Flight Cancellation Refund?

A flight cancellation refund is provided when your flight is cancelled, and you choose not to take an alternative route offered by the airline. This refund typically only covers the ticket cost.

In What Cases Can You Get a Refund on Plane Tickets?

You can claim a refund in these situations:

• The airline cancels your flight without offering an alternative.
• You decide not to travel because the alternative provided does not suit your schedule.
• Your flight is delayed for over 5 hours, and you pick not to proceed with the journey.

Passenger Entitlements

If your flight is cancelled, you are entitled to the following:

• A full refund of your ticket price. This applies even if the airline offers alternative travel options that you decide not to take.
• A free flight to your original destination via an alternative route. Airlines are obligated to ensure passengers reach their destination at no extra cost, even if it involves rebooking with another carrier.
• A new ticket for a later date at no extra cost. This is an option for passengers who prefer to delay their travel plans instead of taking immediate alternatives.

The airline must also provide care, including free meals and refreshments, and access to communication during extended waiting periods. For overnight delays, airlines must provide hotel accommodation and transport to and from the airport.

Partial Refunds and Missed Connecting Flights

You may be eligible for a flight refund of your airfare and additional compensation if you’ve already completed part of your journey, but the rest is cancelled. Airlines are required to reimburse you for the segment of your trip that you could not complete due to cancellations or delays. 

Additionally, if the disruption causes you to miss a connecting flight booked under the same ticket, you are entitled to rebooking options or the airline has to pay your airfare.

For example, a missed connection can significantly disrupt travel plans, especially for long-haul journeys. In such cases, airlines must also cover reasonable expenses incurred while waiting for rebooking, such as meals and accommodations.

And lastly, you may file a claim for additional monetary compensation if the provided alternative flight reaches the destination with a delay of over 3 hours. The amounts equal those for cancellations (€250 — €600).

In What Cases Can You Get Flight Cancellation Compensation?

To qualify for compensation, the cancellation must not be due to extraordinary circumstances (e.g. severe weather conditions) and the airline must have notified you less than 14 days before departure.

Compensation eligibility depends on the timing of the cancellation notice:

• Between 7–14 days before departure: You’re eligible if the airline’s alternative flight departs more than 2 hours earlier or arrives more than 4 hours later than the original schedule.
• Less than 7 days before departure: You’re eligible if the alternative departs more than 1 hour earlier or arrives more than 2 hours later than the original schedule.

Compensation for Flights Cancelled Less Than 14 Days Before Departure

If your flight is cancelled less than 14 days before the scheduled departure, you may be eligible for compensation, unless extraordinary circumstances are involved. Compensation amounts are regulated by EC 261/2004 and depend on the flight distance:

• €250 (£220) for flights up to 1,500 km.
• €400 (£350) for flights between 1,500 and 3,500 km.
• €600 (£520) for flights over 3,500 km.

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Additional Compensation for Cancelled Flights

Airlines may be required to cover extra expenses caused by the cancellation in addition to monetary compensation. This includes reasonable costs for meals, transportation, and accommodations. 

For example, if a cancellation forces an overnight stay, the airline must provide a hotel room and transport to and from the hotel. However, keep in mind you should retain all receipts for compensation claims.

What’s a Flight Delay Refund?

A flight delay refund is a reimbursement of your ticket cost if you decide not to travel after a significant delay. You are entitled to a refund if the flight is delayed by more than 5 hours, and you choose not to continue with your journey due to the delay.

Refunds for delayed flights must include the full cost of the ticket for the affected segment and any unused portions of the journey. In addition, if the delay disrupts a connecting flight, the airline must also provide a refund for the entire trip, including completed segments.

In What Cases Can You Get Flight Delay Compensation?

You can claim compensation if the delay exceeds 3 hours upon arrival and is caused by reasons within the airline’s control. The amount is calculated based on the delay duration and flight distance per EC 261/2004:

• £220 (€250) for flights up to 1,500 km.
• £350 (€400) for flights between 1,500 and 3,500 km.
• £520 (€600) for flights over 3,500 km.

Delay Compensation for Replacement Flights

If your original flight is cancelled, and you are placed on a replacement flight, you may still qualify for compensation if the delay upon arrival exceeds 3 hours. 

When Aren’t You Entitled to a Refund or Compensation?

You may not qualify for a flight refund or compensation in the following cases:

• Extraordinary circumstances: These include extreme weather conditions, political instability, air traffic control strikes, or other events beyond the airline’s control. In such cases, airlines are exempt from liability for delays or cancellations.
• Voluntarily denied boarding : You cannot claim additional compensation if you agree to give up your seat in exchange for incentives. However, it’s essential to understand the terms of the airline’s offer before you agree.
• Delays outside the airline’s control: Situations like security risks, airport closures, or technical issues caused by third-party service providers are not grounds for compensation claims.

Why SkyRefund?

Navigating refund and compensation claims can be complex. SkyRefund simplifies the process by handling all the paperwork, negotiating with airlines, and ensuring you get the compensation and refunds you deserve. Check your compensation eligibility today and let our experts help you maximise your payouts.