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Difference Between Flight Cancellation Compensation and Refund for a Cancelled Flight

Flight cancellations are every traveler’s nightmare — missed connections, disrupted plans, and the stress of figuring out what you’re entitled to. Many passengers assume that if a flight is cancelled, they’ll automatically get compensated. However, flight cancellation compensation and refund for a cancelled flight are two very different things. While you are always entitled to a refund, you may not always be entitled to flight compensation.

Let’s break down the key differences so you know exactly what to expect — and what you can claim — when your flight is cancelled.

Check your compensation online.

What Is a Flight Refund?

A refund is the reimbursement of the money you paid for your flight ticket.

When your flight is cancelled, the airline must give you a choice between:

  • A full refund of your unused ticket (including taxes, fees, and any add-ons), or
  • Re-routing to your destination on another available flight (sometimes with another airline).

This applies regardless of the reason for cancellation — whether due to weather, technical issues, or operational problems. Whenever a flight is cancelled, you’re always entitled to choose between a full refund or rebooking.

Example: If your flight from Vienna to London is cancelled due to an airline scheduling issue, and you decide not to travel, the airline must refund your full ticket price.

Example No 2: If your flight from Vienna to London is cancelled due to bad weather, and you decide you don’t want a refund, the airline must book you on another flight to London (with Austrian Airlines or another airline).

Austrian refund for a cancelled flight = You get your ticket cost back.

What Is Flight Cancellation Compensation?

Flight cancellation compensation is different — it’s a financial payment made in addition to your rebooking or refund for a cancelled flight. And it’s designed to compensate you for the inconvenience caused by the cancellation.

To qualify for flight cancellation compensation:

  1. The flight must be cancelled less than 14 days before departure (this is called a ‘last-minute flight cancellation’) and
  2. The cancellation must be within the airline’s control (not due to extraordinary circumstances like weather, strikes, or air traffic restrictions).

You may be entitled to compensation if your flight falls under certain passenger rights laws, such as:

  • EU Regulation 261/2004 (EC 261) – covering flights that depart from or arrive in the EU or UK.
  • UK Regulation 261 – covering flights within or operated by UK airlines.

Example:
If your Austrian Airlines flight is cancelled 5 hours before departure due to a staffing issue, you could be entitled to €250–€600 compensation, depending on the distance of the flight.

Flight cancellation compensation = Extra payment for inconvenience (not just your ticket price).

Read more: How to Claim Austrian Airlines Compensation?

Flight Cancellation Compensation vs Austrian Refund for a Cancelled Flight

AspectRefund for a cancelled flightFlight cancellation compensation
What it isReimbursement of your ticket priceExtra payment for inconvenience
When you qualifyAny flight cancellation (regardless of cause)Cancellation within airline’s control, less than 14 days before departure
AmountEqual to the ticket cost Fixed amount (€250–€600 under EU law)
PurposeTo get your money backTo compensate for inconvenience and time lost
Can you get both?✅ Yes, if eligible✅ Yes, refund + compensation is possible

Can You Get Both – Cancelled Flight Refund and Compensation?

In some cases, you can get both – a refund on flight cancellation and flight compensation.

If your flight is cancelled less than 14 days before departure and the disruption is within Austrian Airlines’ control, you may be eligible for both a full refund of your ticket and flight compensation under EU261 or UK261 regulations.

Importantly, both the refund and compensation must be paid directly into your bank account — you are not obligated to accept travel vouchers or travel credits.

Can You Get a Flight Refund If You Cancel Your Flight?

Whether you can get a refund when you cancel your flight depends on the type of ticket you purchased and the airline’s fare rules.

Most non-refundable tickets do not qualify for a full refund, but you may still be able to recover taxes, fees, or part of the fare. Many airlines (including Austrian Airlines) offer flexible or refundable fares, which allow cancellations with little or no penalty.

In cases of illness, bereavement, or other exceptional circumstances, airlines may also consider refunds or travel credits on a case-by-case basis.

It’s best to review your booking conditions and contact the airline directly as soon as possible — the earlier you cancel, the higher your chances of receiving a partial refund or credit toward a future flight.

What to Do If Your Flight Is Cancelled

  1. Check your flight status and ask the airline for the reason for cancellation (get it in writing if possible).
  2. Decide whether to rebook or get a refund.
  3. If you are at the airport when the cancellation happens, get free services from the airline such as free meals and a hotel (it’s called ‘right to care‘).
  4. Check your eligibility for compensation based on the route and cause.
  5. Submit a claim directly with the airline or through a verified flight compensation service.

A refund for a cancelled flight returns the money you paid for your flight, while compensation is an additional payment for the inconvenience caused. You may be entitled to both, so make sure you know your rights.

Featured photo by Nataliya Vaitkevich from Pexels