Yes, Lufthansa does provide compensation for flight cancellations, but eligibility depends on specific conditions outlined in EU Regulation 261/2004, which governs air passenger rights within the European Union. According to this regulation, if Lufthansa cancels a flight and the passenger was informed of the cancellation less than 14 days before the scheduled departure, they may be eligible for financial compensation, unless the airline can prove that the cancellation was caused by extraordinary circumstances beyond its control. Compensation amounts are based on the distance of the flight and the length of the delay caused by the cancellation. For example, passengers are entitled to €250 for flights of up to 1,500 kilometers, €400 for flights between 1,500 and 3,500 kilometers, and €600 for flights over 3,500 kilometers, especially if the cancellation results in the passenger reaching their final destination more than three hours later than originally scheduled.

However, Lufthansa is not required to pay compensation if the cancellation was due to factors such as severe weather conditions, security threats, air traffic control strikes, or medical emergencies, as these are categorized as extraordinary circumstances. Even when no compensation is due, Lufthansa is still obligated to provide “right to care” services under EU law. This includes meals and refreshments during delays, hotel accommodation for overnight disruptions, and transportation between the hotel and the airport. Additionally, Lufthansa must offer passengers the choice between a full refund of the unused ticket or rebooking on an alternative flight to their final destination at the earliest opportunity. If the passenger decides not to travel at all, they are entitled to a full refund of the unused portion of the ticket, and if applicable, a return flight to the original point of departure.

To claim compensation for a canceled flight, passengers must typically contact Lufthansa customer service or use the claims form available on the Lufthansa website. It's important to retain all booking confirmations, emails, boarding passes, and any written notice of the cancellation, as these documents will support your claim. Lufthansa may take several weeks to process the claim, and if a passenger disagrees with the airline’s decision, they may escalate the matter to the relevant national enforcement body or seek legal or mediation support. It's also worth noting that for flights to or from the United States, passengers may not be covered under EU Regulation 261 unless the flight originates from an EU country, but Lufthansa often offers voluntary compensation or vouchers in some cases as part of its customer service approach.

In conclusion, Lufthansa does compensate passengers for canceled flights in many cases, especially when the cancellation is due to reasons within the airline’s control and occurs with short notice. Passengers should understand their rights under EU261, keep all necessary travel documents, and promptly file a claim if they believe they are eligible for compensation.