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

When flights get cancelled, passengers often hear the terms ‘cancelled flight refund’ and ‘flight cancellation compensation’. While they sound similar, they actually mean very different things under EU261 and UK261 regulations.

Knowing the difference can help you claim everything you’re entitled to when your Wizz Air flight is cancelled.

Check your compensation online.

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

The main difference is that a cancelled flight refund applies when your flight is cancelled and you get back the money you paid for the unused ticket.

Flight compensation, on the other hand, is extra money you receive for the inconvenience. Usually, when your flight is delayed, cancelled at short notice, or you are denied boarding due to flight overbooking.

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

A cancelled flight refund 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 decide not to travel.
• Your flight is rescheduled and you no longer wish to fly.
• Wizz Air denies you boarding (e.g., overbooking) and you choose not to take the alternative offered.

Cancelled Flight Refund Basics:

• The airline must refund you within 7 days (according to EU261/UK261).
• The refund covers the ticket price and any unused services (like checked baggage or seat reservations).

You can get a refund no matter when your flight is cancelled — whether it’s a month before departure, a week before, or just a few hours before.

Airlines sometimes try to offer vouchers instead of cash — but you have the right to insist on a cash refund.

Example: Your Wizz Air flight from London to Warsaw is cancelled 5 days before departure. If you don’t want the rebooked option, you can get a full refund of your ticket.

Read more: Wizz Air Refund for Cancellation

How to Get a Refund for a Cancelled Flight?

You can get a refund via the Wizz Air app or official website.

1. Log in to your Wizz Air account or go to their refund request page.
2. Select your cancelled flight and choose Refund instead of rebooking.
3. Fill in your bank details if required for direct payment.
4. If you plan to travel again soon, you can choose to receive your refund as Wizz Air credits or vouchers instead of cash. But this is optional.

Read more: How to Claim Wizz Air Compensation/Refund?

2. Flight Compensation: Extra Money for 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 (unless due to extraordinary circumstances, like bad weather).
• Your flight is cancelled less than 14 days before departure.
• You are denied boarding due to overbooking.

Flight Compensation Amounts (Under EU261/UK261):

• €250 (£220) – flights up to 1,500 km
• €400 (£350) – flights 1,500–3,500 km
• €600 (£520) – flights over 3,500 km (delays/cancellations outside the EU/UK can sometimes reduce this to €300 if delay is under 4 hours).

Example: Your Wizz Air flight from Budapest to Madrid is delayed by 4 hours due to a technical fault. You can claim €400 compensation — even though Wizz Air still flies you to your destination.

Refund vs 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 Wizz Air’s responsibility, you are entitled to a full refund of your ticket and compensation under EU261/UK261.

The best part? Both the cancelled flight refund and the compensation can be paid directly into your bank account. You are not required to accept coupons or vouchers. If Wizz Air has already issued you a voucher, you can request a cash refund instead — the airline is obliged to honour this, unless you have explicitly agreed to receive a voucher as compensation.

Example: Wizz Air cancels your flight 5 days before departure. You choose a refund. Since the cancellation was last-minute, you may also claim up to €600 compensation, depending on flight distance.

Cancelled Flight Refund vs Compensation: Comparison

Flight Refund	Flight Compensation
Ticket money back	Extra money for inconvenience (up to €600)
Always tied to not flying	Paid even if you still fly. And even if you get a refund.
Covers cost of flight + booked extras	Fixed amounts (€250–€600)
Triggered by cancellation/denied boarding	Triggered by delay, cancellation, or denied boarding

Conclusion

A refund gives you your money back for a cancelled or unused flight.

Compensation is extra money you can claim when disruptions cause inconvenience, under EU261/UK261.

Sometimes, you can claim both.

Don’t confuse the two — and don’t let airlines mislead you into accepting only one when you may be entitled to both.

Read more: Understanding Passenger Rights Under the EC261 Regulation

Featured photo by Pixabay from Pexels