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Ticket refund vs. compensation for canceled flight: Useful explanations from AirClaim

Ticket refund vs. compensation for canceled flight: Useful explanations from AirClaim

December 02, 2025

Airplane ticket with the text 'Refund'

You’re planning a trip or a business meeting, and suddenly you get a notification that your flight has been cancelled. This situation can disrupt your schedule and create uncertainty about what rights you have as a passenger. Many travelers don’t know exactly how they can get their money back or what kind of compensation they can receive when a flight is cancelled, even though the EU and many countries provide legal protection in such cases.

In this article, you will find clear answers, examples from real situations, and useful explanations for each step: from requesting a refund to claiming compensation if the flight can no longer take place. Below, you will discover the differences, advantages, and limitations of each option. In the end, you will be able to make an informed decision about which option fits your situation.

What does airfare refund mean?

A refund covers the return of the amount paid for a plane ticket that you can no longer use because the flight was cancelled or your travel plan has changed. This right is valid regardless of the reason the airline cancelled the flight, and the procedure remains similar for EU and non-EU operators, if local legislation allows it.

You can usually request a refund in these circumstances:

  • The flight is cancelled and you no longer wish to choose an alternative flight.

  • The airline offers you a rerouting option, but it is not convenient for you, or you cannot accept it.

  • Changes in your schedule determine you to cancel your entire travel plan.

What exactly do you receive through a refund?

If your flight is cancelled, you have the right to request compensation for a cancelled flight through AirClaim. The airline is required to return the amount paid for the ticket, including all related taxes, within a maximum of 7 days from submitting the claim. Usually, the payment is made directly to your bank account, but some airlines may offer travel vouchers instead, which you can accept or refuse. If you prefer the money, you can insist on a full refund.

For example, if you purchased a Bucharest–Amsterdam ticket and the flight is cancelled just two days before departure, and you refuse rerouting, you can quickly request compensation with the help of our team of specialists. All you need to do is fill out the refund request, attach the supporting documents (plane ticket, cancellation confirmation, etc.), and shortly the money will reach your account. If you prefer a hassle-free process, AirClaim can handle the entire file and manage your compensation request, saving you time and stress.

How do you submit a refund request?

Follow these steps:

  1. Complete a form on the airline’s website, where you add your personal data and flight details.

  2. Attach the electronic ticket and proof of payment (bank statement, invoice, or receipt).

  3. You are informed about the status of your case, and the amount is transferred to your account.

  4. If delays appear or you do not receive a response within 7 days, you can use specialized solutions such as AirClaim, depending on the terms and conditions provided by each service provider (terms and conditions for airline compensation).

Alternative to refund: rerouting or rescheduling

In some cases, the airline offers you the option to travel at a different time or on an alternate flight, at no extra cost. However, you may decline if the new itinerary does not fit your plans. Refunds cover only the money paid for the unused ticket, not additional expenses.

FAQ about refunds

  • When can I request a refund?
    Whenever the airline cancels the flight or offers an alternative that doesn’t suit you.
  • How long does it take to receive the money?
    EU law provides a maximum of 7 business days, and exceeding this deadline gives you the right to file an additional complaint.
  • What if I don’t receive the amount on time?
    Contact the airline directly and use specialized platforms or external consulting if you encounter difficulties.

Advantages and limitations of refunds

Advantages Disadvantages
You quickly recover the money paid for the ticket It doesn’t cover additional costs (e.g., accommodation, meals)
You keep the freedom to reorganize your plans The process may require patience if the airline delays
You decide what to do next Some airlines initially offer only vouchers
You get guidance if you use specialists Sometimes requires submitting several documents

What does compensation for a cancelled flight mean?

Compensation covers a legally defined amount that the airline owes you for the inconvenience caused by the flight cancellation. This right differs from the refund because you receive compensation regardless of the ticket price, if certain legal conditions are met.

Under EU Regulation (EC) 261/2004, you have the right to compensation as follows:

  • The amount may range between €250 and €600, depending on the distance between the departure and arrival airports.

  • You can receive compensation if the cancellation is announced less than 14 days before the flight and there are no circumstances beyond the airline’s control.

When can you request compensation for a cancelled flight?

  • The airline announced the cancellation less than two weeks before the departure date.

  • The operator did not cite events such as storms, volcanic eruptions, air traffic control restrictions, or medical emergencies on board.

  • You did not accept rerouting or you arrived significantly late at your destination.

Concrete example: You were notified 5 days before your Paris–Malaga flight that it was cancelled, and the proposed rerouting would arrive at the destination more than five hours late. In this situation, you have the right to a fixed compensation, in addition to the refund.

How much compensation can you receive?

Distance (km) Compensation (EUR)
up to 1,500 km €250
1,500 – 3,500 km €400
over 3,500 km €600


Note: For connecting flights or delays, amounts may be adjusted depending on the actual delay compared to the initial schedule.

Circumstances in which compensation is not granted

If the cancellation occurred due to reasons beyond the airline’s control (for example, severe weather, natural phenomena, government decisions, or air traffic control strikes), the operator is not required to pay compensation. However, refunding the amount paid for the ticket or rerouting on another flight remains valid.

FAQ about compensation

  • How can I check if I’m eligible for compensation?
    Use specialized platforms, enter your flight details, and receive a quick answer. You can also consult the AirClaim Denmark page to check online.
  • Is the compensation granted per passenger?
    Yes, the compensation is calculated individually, including for children who had a paid seat.

Advantages and limitations of compensation

Advantages Disadvantages
You receive compensation for the time and stress caused It is granted only if no extraordinary circumstances occurred
The amount is fixed, regardless of ticket price You may face bureaucracy in the claim process
Valid even if you also received a ticket refund You must prove the event was not caused by external factors
Optional legal assistance, though not mandatory Does not cover indirect costs (e.g., food, hotel, taxi transfers)


Refund or compensation: how to choose and what applies to your case?

Situations vary from one trip to another, but legislation allows you to request a full ticket refund, rerouting, or additional compensation depending on the circumstances. You may also request both refund and compensation if the flight was cancelled without justification related to extraordinary circumstances (e.g., extreme weather, external strikes, medical emergencies).

Possible scenarios

  • Flight cancelled, no force majeure explanation: request refund and compensation. Both can be granted simultaneously if you have supporting documents.

  • Flight cancelled due to objective reasons (e.g., storm): you receive a refund, without additional compensation.

  • Rerouting offered but unsuitable: you retain the right to request a refund for the initial ticket.

Comparison table: Refund vs. Compensation

Criterion Ticket refund Cancelled flight compensation
Returns ticket cost Yes No
Additional fixed amount No Yes (€250–€600)
Can be requested anytime Yes, if you don’t use the flight Only if no extraordinary circumstances
Requires supporting documents Yes Yes
Legal payment deadline 7 days from request May take longer, depending on case
Compatible with other rights Yes Yes

Choosing the right option for you

  • If you changed your mind and no longer want to travel, the refund allows you to recover the amount and use the money for other plans.

  • If the delay caused you to miss important connections, request compensation for stress and inconvenience, in addition to the refund.

  • Always check whether your rights include both options or only the simple refund.

Documents and steps for requesting a refund or compensation

Prepare your documents in advance. A complete claim helps you receive the money faster and avoid complications.

Basic documents:

  • Electronic ticket (PDF received upon booking)

  • Boarding pass

  • Proof of payment (bank statement, invoice, or receipt)

  • Official communications from the airline (emails, SMS notifications, platform messages)

Steps for each situation

For refund:

  • Access the airline’s website and complete the refund request.

  • Upload the required documents.

  • Wait for official confirmation and track the bank transfer.

For compensation:

  • Check eligibility on specialized platforms.

  • Submit the completed form digitally or on paper.

  • Respond promptly to additional document requests.

  • Stay in touch with the platform or the airline until the process is complete.

Additional passenger rights for cancelled or delayed flights

Know your rights as an airline passenger! In addition to refund and compensation, travelers are entitled to supplementary rights guaranteed by international legislation:

Access to support and free assistance

The airline must provide:

  • Free snacks and beverages proportional to waiting time

  • Two free calls, two emails, or faxes

  • Hotel accommodation and transport between airport and hotel if rerouting requires overnight stay

Furthermore, besides compensation for cancelled flights, there are other types of compensation passengers are entitled to under European law — for example, compensation for delayed flights.

  • Compensation for delayed flights

If your flight is delayed by more than 3 hours, you have the right to compensation under EU Regulation 261/2004. The amounts range between €250 and €600 depending on flight distance. For delays exceeding 3 hours, the airline must provide not only financial compensation but also assistance such as meals, drinks, and accommodation if necessary.

This type of compensation applies to all flights departing from the EU or operated by EU airlines, regardless of final destination. If the delay exceeds 5 hours and you decide not to travel, you can request a full refund.

  • Compensation for damaged or lost luggage

Another major type of compensation refers to lost or damaged baggage. If your luggage does not arrive within the established time frame or arrives damaged, the airline is responsible for compensating you. There are also clear procedures for claiming compensation when luggage is delayed or lost.

Compensation for damaged luggage is regulated by the Montreal Convention and can reach up to 1,131 SDR (Special Drawing Rights), meaning around €1,300, depending on the value of the baggage. Passengers can request compensation for damaged items by submitting a claim form and the necessary proof.

If your bags are delayed for more than 21 hours, you are entitled to compensation for essential expenses such as clothing or personal hygiene products until the luggage arrives.

  • Compensation for denied boarding due to overbooking

Another common incident in the airline industry is overbooking, when the airline sells more tickets than available seats. In this case, if you are denied boarding due to overbooking and the airline cannot offer a reasonable alternative, you are entitled to compensation. The amounts range between €250 and €600 depending on flight distance, and the airline must also provide assistance such as meals and accommodation if the delay extends.

In all these cases, you can contact a specialized company such as AirClaim, which handles the entire compensation process for denied boarding, reducing stress and saving time. These firms are experts in European legislation and can help you obtain compensation quickly, without dealing with legal details or paperwork.

Practical guide: How AirClaim helps you recover your rights

AirClaim offers clear services for consultancy, document handling, and negotiation with airlines for refunds and compensation.

What AirClaim offers?

  • Quick case analysis and clear information about viable options

  • Document management and follow-up on the entire process

  • Transparency and communication throughout the recovery process

The "no win, no fee" approach means you pay no commission unless you receive the compensation. The platform allows direct scanning of your boarding pass, speeding up the procedure.

Steps on AirClaim

  1. Fill in the online introductory form with your flight details.

  2. Attach the required files (e-ticket, boarding pass, bank statement, airline correspondence).

  3. The platform analyzes your case, and if eligible, communication with the airline proceeds automatically.

  4. You receive updates and information until your claim is resolved.

Respecting confidentiality and data protection requirements is a priority on the platform.

Conclusion

Knowing your rights as a passenger in case of a cancelled or delayed flight is essential to ensure you receive all compensation provided by law. Whether it’s a full ticket refund, financial compensation for stress caused by delays or cancellations, or compensation for lost or damaged baggage, it’s important to know how to access these rights.

AirClaim is here to help you with a complete, fast, and hassle-free procedure. If you face any type of flight issue, regardless of the type of compensation you need, don’t hesitate to contact AirClaim for professional claim handling. Let our experts manage the paperwork and the process so you can focus on what truly matters: your travels.

Take the first step today! Visit the AirClaim platform and request a case analysis — no fees, no risks, just fast and secure solutions!

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