Refund vs Compensation: What's the Difference on a Flight Claim?
A refund and compensation are two separate things after a delayed or cancelled flight, and you can often claim both. Here is exactly how they differ under UK261 and EU261.
When a flight is delayed or cancelled, most people use "refund" and "compensation" as if they mean the same thing. They don't. They are two separate entitlements, they are paid for different reasons, and in many cases you are owed both. Airlines rarely explain the distinction, and that confusion often means passengers walk away with far less than they're entitled to.
What a refund actually is
A refund is simply getting your money back for a flight you didn't take, or didn't take as booked. If your flight is cancelled and you choose not to travel, the airline must return the full cost of that ticket, including any unused return leg. A refund is not a payout or a bonus. It is the airline returning what you already paid because it failed to provide the service you bought.
You are entitled to a refund whenever a flight is cancelled, or when a long delay (5 hours or more) makes you decide not to travel at all. The airline must pay it within 7 days, and it must be in cash or the original payment method if you want it that way. You do not have to accept a travel voucher instead.
What compensation actually is
Compensation is a separate, fixed cash sum paid on top of any refund, to make up for the disruption and lost time caused by the delay or cancellation. It is set by law under UK261 and EU261 and does not depend on how much your ticket cost. The amount is based purely on the distance of your flight:
- £220 / €250 for flights under 1,500km
- £350 / €400 for flights between 1,500km and 3,500km
- £520 / €600 for flights over 3,500km delayed 4+ hours
Compensation is triggered when you arrive at your destination 3 or more hours late, or when a flight is cancelled with less than 14 days' notice, and the cause was within the airline's control. A £40 ticket and a £900 ticket on the same route attract exactly the same compensation, because it pays for your lost time, not your fare.
Can you claim both at once?
Yes, and this is the point airlines are least keen to spell out. If your flight is cancelled and you choose not to travel, you can claim a refund of the fare and the fixed compensation, provided the cancellation was the airline's fault and came with short notice. They are answering two different questions: the refund returns your money, the compensation pays for the disruption.
The one thing you cannot do is claim a refund and also demand a replacement flight to the same destination. You choose one or the other: get your money back, or be re-routed. But whichever you pick, your right to compensation for the disruption sits separately and is unaffected.
Where airlines blur the line
A common tactic is to offer a quick "refund" or a travel voucher and present it as if it settles everything. It does not. Accepting a refund does not sign away your right to compensation, and you should never treat a voucher as full and final settlement unless you've checked what you're actually owed. Watch for:
- Being offered a voucher "as a goodwill gesture" instead of the cash compensation you're legally due
- An email confirming your "refund" that stays silent on compensation entirely
- Being told the refund is the compensation, when they are two different payments
What about expenses and care?
There is a third category worth knowing about. On top of a refund and compensation, if you're stuck waiting, the airline must also provide "duty of care": meals, refreshments, and overnight accommodation where needed. If they fail to and you pay out of pocket, you can reclaim those reasonable costs too. Keep every receipt.
How far back can you claim?
You can claim compensation for eligible flights going back 6 years in England, Wales, and Northern Ireland, or 5 years in Scotland. Even if you accepted a refund at the time, the compensation may still be sitting unclaimed.
Start your claim
If you took a refund after a delay or cancellation but were never paid compensation, there's a good chance you're still owed a fixed cash sum on top. Klaimly checks your flight against real flight data, works out exactly which payments you're entitled to, and handles the whole claim for a flat 5% fee, only if we win. No VAT, no minimum fee, and nothing to pay if the claim doesn't succeed.
Check your flight in under 2 minutes and see exactly what you're owed.