Can I claim compensation for incurred expenses and compensation under EU Reg 261?

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Or am I entitled to both compensation for my expenses and compensation under EU 261?

You are not exactly entitled to compensation for your expenses under EU 261. Instead, you have a “right of care”. Meaning that if you are delayed for a long time (and the relevant article applies), the airline has to provide refreshments, food, possibly accommodation and transportation to the airport, and two phone calls.

The regulation doesn't say that you have a right to buy whatever you want and claim the expenses afterwards. Instead the notion is that the airline is supposed to provide all that to you. The EU Commission adds that if it was not offered and you paid for meals or drinks yourself, the airline is supposed to reimburse you provided the expenses were “necessary, reasonable and appropriate”. That leaves a lot of room for interpretation.

For example, if the airline was organizing busses to a specific hotel where they put other passengers on the same flight or the same day and you just didn't avail yourself of that possibility and decided to book a hotel yourself, it will be very difficult to argue that they should reimburse you.

However, easyjet is saying that I am not entitled the 250 euro compensation as I already claimed expenses incurred by the delay. Is this correct?

Under EU 261, the right of care is entirely separate from “compensation”, which is dealt with in another article and not always triggered in the same conditions. That's the source for the €250 lump sum and the amount is based on the distance and length of the delay, without any reference to potential or actual expenses you would incur. Article 12 of the regulation also covers further compensation:

  1. This Regulation shall apply without prejudice to a passenger's rights to further compensation. The compensation granted under this Regulation may be deducted from such compensation.

The question then is whether the money you already received should be considered a form of compensation. To the extent that this money was not something you were entitled to under the “right of care” but a compensation then it seems the airline would be partly right that it shouldn't be paid on top of the €250.

However since you received less than €250 per person, you would still be entitled to the difference. I do not see how article 7 and 12 can be read in any other way or how accepting partial compensation in whatever form could be construed as waiving your right to receive €250 per person. At the same time, talking about “compensation” for the hotel and claiming both can be confusing and weaken your claim.

In general, I would recommend making clear that you're asking for a reimburs*m*nt of the hotel costs as part of the “right of care“ and insists on receiving the €250 per person no matter what, even if you have to abandon the other claim.

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