Does Pegasus refund the full ticket if it cancels?

Yes. If Pegasus cancels and you do not accept the rebooking, you are entitled to a full refund of the ticket price. Low-cost fares are still fully refundable when the airline is the one that cancels, regardless of the fare rules that apply to voluntary changes.

Is Pegasus covered by EU261?

Pegasus is a non-EU, Turkish carrier, so EU261 covers only its flights departing an EU or EEA airport. A flight leaving Sabiha Gokcen in Istanbul for Europe is not covered by EU261.

How much compensation for a cancelled Pegasus flight?

When EU261 applies: 250 EUR up to 1,500 km, 400 EUR between 1,500 and 3,500 km, 600 EUR over 3,500 km, if notified less than 14 days ahead and not caused by extraordinary circumstances.

Will Pegasus try to give me a voucher instead of cash?

It may offer a voucher or travel credit first. You are not obliged to accept it: you can decline and request a cash refund to your original payment method.

Pegasus Airlines cancelled flight refund: rights and how to claim

Pegasus Airlines is Turkey’s main low-cost carrier, built around its base at Istanbul Sabiha Gokcen. As with any low-cost airline, the cheap fare and the optional extras can make a cancellation feel confusing - but your core rights do not depend on the fare you bought. When Pegasus cancels a flight, there are two distinct things to claim: a refund of what you paid, and, in some cases, EU261 compensation on top.

Refund vs EU261 compensation

Refund = the full ticket price back when the flight is cancelled and you do not fly on the alternative offered. This applies even to the cheapest non-refundable fare, because it is the airline that cancelled.
EU261 compensation = a separate fixed payment for the disruption: 250 EUR (up to 1,500 km), 400 EUR (1,500-3,500 km), 600 EUR (over 3,500 km).

A low-cost ticket does not reduce these amounts: EU261 compensation is fixed by distance, not by what you paid.

When EU261 applies (the key nuance)

Pegasus is a Turkish, non-EU carrier. For a non-EU airline, EU261 covers only flights departing an EU or EEA airport:

Milan-Istanbul (Sabiha Gokcen) (departs the EU) -> EU261 applies.
Istanbul (Sabiha Gokcen)-Milan (departs Turkey, non-EU carrier) -> not covered by EU261.

Where it applies, compensation is due only if the cancellation came less than 14 days before departure, the airline was at fault, and it was not caused by extraordinary circumstances (severe weather, airspace closure, ATC strikes).

How to get a refund from Pegasus

Use Manage My Booking on the Pegasus site or app, and decline the rebooking if it does not work for you.
If you are offered a voucher or travel credit, you can refuse it and ask for a cash refund to the original payment method.
For an EU-departing flight, file a separate EU261 claim quoting the flight number, date and distance band.
If Pegasus refuses or does not reply, escalate to the national enforcement body of the departure country (for example ENAC in Italy, AESA in Spain).
Keep the cancellation message, boarding passes and receipts for meals, hotel and transport.

Check the risk before you fly

With FlightGuard you can assess your flight’s risk from weather, carrier punctuality, ATC delays and other factors before departure. The data sources are listed at /en/sources/.

In short

If Pegasus cancels, you can always reclaim the ticket price in cash, even on a cheap fare, and you do not have to accept a voucher. EU261 compensation (250/400/600 EUR) is added only for flights departing an EU or EEA airport and only when you were notified less than 14 days ahead. Check the departure airport first.