Flight cancellation: what the employee is entitled to and what the company should do

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When a flight departing from the EU is cancelled, the passenger is entitled to a choice between a refund and a new flight, care while waiting and, if the airline is at fault, financial compensation of €250 to €600. These rights are set out in Regulation (EC) 261/2004 and apply directly in Greece.

Which flights are covered

  • Every flight departing from an EU airport, with any airline.
  • Flights to the EU from a third country, only if operated by an EU airline.
  • It also applies in Iceland, Norway and Switzerland.

The passenger’s three rights

1. Refund or rerouting. The passenger chooses between a ticket refund (within 7 days) and rerouting to the destination at the earliest opportunity or at a later date of their choice.

2. Care. While waiting for the new flight, the airline must provide meals and refreshments in proportion to the waiting time, two phone calls or emails and, if an overnight stay is needed, a hotel and transport to it.

3. Compensation. It is due when the cancellation was announced less than 14 days before departure and was not caused by extraordinary circumstances.

Flight distance Compensation
Up to 1,500 km (e.g. Athens–Rome) €250
Intra-EU over 1,500 km, or 1,500–3,500 km (e.g. Athens–London) €400
Over 3,500 km outside the EU (e.g. Athens–New York) €600

Compensation may be reduced by 50% if the alternative flight arrives only slightly later than the original. According to EU Court of Justice case law, the same amounts also apply to arrival delays of 3 hours or more.

When no compensation is due

When the airline proves extraordinary circumstances it could not have avoided: extreme weather, air traffic control strikes, airspace closures, security risks. Even then, the rights to a refund or rerouting and to care still apply. An ordinary technical problem with the aircraft is generally not considered an extraordinary circumstance.

What changes with the 2026 reform

On 15 June 2026 the European Parliament and the Council reached a provisional political agreement on the first substantial revision of the Regulation since 2004. According to available information:

  • The 3-hour threshold and the €250–600 amounts are retained.
  • Airlines will proactively send passengers a link or form to claim compensation.
  • A single list of extraordinary circumstances is introduced.

The new rules are expected to apply from the second half of 2027. Until then, Regulation 261/2004 applies as it stands today.

Who receives the compensation on a business trip?

Legally the right belongs to the passenger, i.e. the employee, even if the company paid for the ticket. Many companies state in their travel policy that the employee assigns the compensation to the company, since the company bears the additional costs. This should be agreed in writing.

What the traveller should do

  1. Ask for written confirmation of the reason for cancellation at the airport.
  2. Keep boarding passes and receipts for expenses (food, taxi, hotel).
  3. Inform the travel agency immediately to arrange an alternative route.
  4. Submit a written compensation claim to the airline.
  5. If the airline refuses or does not reply, contact the national enforcement body for the Regulation or the Consumer Ombudsman.

Travel agency tip

On a business trip, the biggest loss is not the ticket but the missed meeting. An agency with emergency support finds an alternative route before the next flights fill up, while the passenger is still standing in the queue.

Frequently asked questions

How much compensation do I get for a cancelled Athens–Berlin flight? €400 (intra-EU, over 1,500 km), if there are no extraordinary circumstances and you were informed less than 14 days before.

Does the Regulation apply to a New York–Athens flight? Only if it is operated by an EU airline.

Did the amounts change in 2026? No; the reform keeps them and has not yet come into force.

Sources: Your Europe – Air passenger rights · CMS – New European Regulation on Air Passenger Rights · Skyrefund – EU261 Reform 2026

Validity: This article reflects the sources as of 06/07/2026 (most recent source on the reform). When the revision of Regulation 261/2004 comes into force, this article should be updated.

Photo: Matthew Henry / StockSnap.io, CC0 – free to use (source)

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