Glossary term

Flight Cancellation Compensation

  • 2 min read
  • Travel operations glossary

Flight cancellation compensation is a fixed cash payment a carrier owes a passenger when it cancels a covered flight inside a defined notice window and the cancellation is within the airline’s control. 

Under EU261, cancellation compensation ranges roughly EUR 250 to EUR 600 per passenger by distance, on top of the refund or rebooking. Similar regimes exist under UK261, Canada’s APPR, Brazil’s ANAC Resolution 400, and Israel’s Aviation Services Law. All require the cancellation to be within the carrier’s control (technical, crew, commercial), and all exclude “extraordinary circumstances” like weather, ATC action, or security. Support agents apply the correct rule based on the flight’s origin and destination and the operating carrier, not the ticket seller. 

The most common escalation is the fine line between “cancellation” and “rerouting”. If the passenger is rebooked onto a flight arriving within the threshold (usually 2 to 4 hours late by distance), compensation may drop by 50%. Verify against primary source at build time. 

Common questions 

When does cancellation compensation not apply?
When the cancellation is caused by extraordinary circumstances (severe weather, ATC strike, security event), or when the passenger was notified within the rule’s advance window. Verify against primary source at build time.
 

Can I claim compensation and a refund together?
Yes, for cancellations within the carrier’s control. The refund covers what you paid; the compensation is a separate payment for the disruption.
 

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