Flight Refund Vs Compensation: What Is the Difference?

Compensation is often considered the same as a refund, as it is obtained for a loss in a particular product and service. In terms of airlines, refunds and compensations are often provided due to flight cancellations and delays. However, it is important to know flight refund vs compensation to request at an airline on suitable conditions.
 
Compensation is mainly offered as an apology for an inconvenience a person faces or as a goodwill gesture by an airline. Compensation does not necessarily include money but it can be a travel voucher, meal voucher, accommodation, etc.
 
Whereas a refund includes a monetary amount on the condition of an unused part of a flight ticket, partial or full. When the paid fund is returned to the customer for not using the service or product, it is known as a refund. It is important to refer to the refund policies.

When are you entitled to compensation at an airline?

There are plenty of conditions for which a person is entitled to get compensation from the airline. Check out the below points to learn about those conditions:
  • When there is a significant delay (mainly more than 3 hours) in the originally scheduled takeoff time,
  • A flight has been cancelled in less than 14 days of the scheduled date.
  • You have arrived at the airport, and the flight has been cancelled or delayed.
  • A disruption in the flight's boarding is caused by a reason that was under the airlines' control.

When are you entitled to get a refund from an airline?

Refund includes returning the paid amount, mostly on the original form of payment. The conditions for which a person is entitled to receive a refund from their airline are as follows:
  • The reservation holder who chooses to cancel their flexible flight ticket under the cancellation conditions.
  • The originally reserved flight has been rescheduled to another date and time, and the passenger has chosen not to fly and made a cancellation.
  • The airline has denied boarding a passenger due to overbooking and has not provided an alternative flight.
  • The airline has cancelled the flight, and the passenger has chosen not to get on the alternate flight.

How much compensation does one get for cancelled flights?

The compensation amount wholly depends on when the flight has been canceled by the airlines, the distance between the arrival and departure destinations, and the timing of the assigned alternative flight. Below is an overview of the compensation amount for flight cancellations by an airline:
  • For the flights less than 1500 km: €125 to €250
  • Flights covering more than 1500 km: €200 to €400
  • Flight covering more than 3500 km internationally: €300 to €600

How much will I get as a refund for a flight cancellation?

As long as the flight cancellation is due to the airline, a full fare refund of the reserved ticket will be obtained. If you cancel your flight ticket for personal reasons, the airline usually provides a partial refund, depending on your fare conditions. Moreover, medical emergencies also permit a full refund on ticket cancellation.

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