Difference Between Compensation and Refund for a Cancelled Flight

When a flight is cancelled, passengers often come across two similar-sounding terms: ‘cancelled flight refund’ and ‘flight cancellation compensation’. Although they may seem alike, they refer to two distinct rights under EU261 and UK261 regulations.

Understanding the difference between compensation and refund for a cancelled flight is key to ensuring you claim the full amount you’re entitled to if your flight gets cancelled.

Check your compensation online.

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

A refund for a cancelled flight applies when your flight is cancelled and you get back the money you paid for the unused ticket. This refund must be paid in full to your bank account. You don’t have to accept any KLM vouchers, unless you want to.

Flight cancellation compensation, on the other hand, is additional money paid to you for the inconvenience you’ve experienced. You may be entitled to compensation not only for a cancelled flight, but also for a delayed or overbooked flight — as long as the disruption was the airline’s fault, such as technical problems, airline staff strikes, or staffing shortages.

However, you’re not eligible for compensation if the flight was cancelled due to extraordinary circumstances, such as severe weather or air traffic control strikes.

Learn more:

• KLM Refund for a Cancelled Flight
• KLM Flight Cancellation Compensation

1. Cancelled Flight Refund: Getting Your Money Back for the Ticket

A refund for a cancelled flight simply means that the airline returns the money you paid for your flight.

You are entitled to a refund if:

• Your flight is cancelled, and you have decided not to fly.
• Your flight is rescheduled and you no longer wish to take it.
• Your KLM flight is overbooked, so you’re denied boarding and decide not to accept the alternative flight offered.

Refund for a Cancelled Flight: Basics

Under EU261/UK261 regulations, the airline must issue your refund within 7 days.

This refund includes the ticket price as well as any unused paid services, such as checked baggage or seat reservations.

You’re entitled to a refund no matter when your flight is cancelled — whether it’s a month, a week, or just a few hours before departure. Also, you are entitled to a refund even when your flight is cancelled due to extraordinary circumstances.

Sometimes, airlines may offer vouchers instead of cash, but you have the right to request a cash refund instead.

How to Get a Refund for a Cancelled Flight?

You can get a refund via the official website.

1. Go to the official KLM website
2. Log in with your booking code and last name.
3. Select your cancelled flight.
4. Choose “Request a refund”.
5. Confirm your preferred refund method (usually back to your original payment card).

If you booked through a travel agency or third-party website, you must contact them directly — KLM cannot process refunds for tickets issued by other sellers.

KLM might offer a travel voucher instead of a cash refund. You can refuse the voucher and insist on a cash refund, as this is your right under EU261/UK261.

KLM typically processes refunds within 7 days, though it may take longer depending on your bank or payment method.

2. Flight Cancellation Compensation: Payment for Travel Inconvenience

EU flight compensation is different. It is not a refund, but additional money paid to passengers for the inconvenience caused by flight disruptions.

You are entitled to compensation if:

• Your flight is delayed by 3+ hours on arrival.
• Your flight is cancelled less than 14 days before departure.
• You are denied boarding due to overbooking.

Compensation is paid only when your flight is cancelled due to the airline’s fault such as technical issues, staffing shortages, airline staff strikes.

Flight Compensation Amounts (Under EU261/UK261)

Refund vs Flight Compensation: Can You Get Both?

Yes — in some cases, you can receive both.

If your flight is cancelled less than 14 days before departure and the disruption is KLM’s responsibility, you are entitled to a full refund of your ticket and compensation under EU261/UK261.

Both the refund for a cancelled flight and the flight compensation must be paid directly into your bank account. You are not required to accept coupons or vouchers. If KLM has already issued you a travel voucher, you can request a cash refund instead.

A refund returns the money you paid for a cancelled or unused flight, while compensation is an additional payment for the inconvenience caused. You may be entitled to both, so make sure you know your rights and don’t settle for less.

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