Regulation 261/2004 of the European Parliament defines measures to protect passengers travelling within a restricted area:

• Flights with departure from EU airport and arrival to EU airport
• Flights with departure from EU airport and arrival to non-EU airport
• Flights with departure from non-EU airport and arrival to EU airport operated by EU airlines.

In case of Iberia cancelled flight is required to indemnify the passenger with a maximum amount compensation of 600 euros.

Airlines often don't tell passengers their rights, so that the passengers don’t know how to claim for an eventual compensation.
First of all we need to understand if following a Iberia cancelled flight it must recognize to passengers a refund or compensation.

The refund, as the word itself says, consists in the refund of the amount paid by the passenger when he cannot fly.
If the flight is cancelled, the passenger must claim a Iberia ticket refund if does not reschedule it on the first useful flight

Compensation instead is the amount in case of Iberia cancelled flight must recognize to each passenger due to a cancellation and it has a value ranging from 250 to 600 euros, as follows:

• 250 € of Iberia cancelled flight compensation for flight’s itineraries lower 1500 km
• 400 € of Iberia cancelled flight compensation for flight’s itineraries included between 1500 km and 3500 km
• 600 € of Iberia cancelled flight compensation for flight’s itineraries higher than 3500 km

In addition, in case of Iberia cancelled flight and waiting at the airport is more than 2 hours the airline must provide the passenger with the appropriate assistance: a voucher to use for a meal, a couple of phone calls and the eventually the possibility of staying in a hotel if the flight is postponed to the next day.

When I'm entitled to get a Iberia cancelled flight compensation?

The passenger is entitled to receive a Iberia cancelled flight compensation if the reason for the cancellation is caused by Iberia; technical and operational problems enter into this category, while if the interruption is created by external factors, such as bad weather, strikes or impact with birds, Iberia is not considered as responsible of the issue. As mentioned above, the airline is only possible an Iberia ticket refund if the passenger does not fly.

Check it more about: Iberia compensation

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