How would you interpret this?
Thank you for your mail. We inform you that, contrary to your mail, the flight had not been cancelled (i.e. the non-operation of a flight which was previously planned and on which at least one place was reserved) but was delayed. In the end, it indeed departed the next day. As per the regulation mentioned earlier, a flight which is delayed, irrespective of the duration of the delay, even if it is long, cannot be regarded as cancelled where the flight is operated in accordance with the air carrier’s original planning. A flight is considered delayed when it is operated in accordance with the original planning and its actual departure time is later than the scheduled departure time. We regret not being able to resolve your claim to your satisfaction.
In a earlier email they wrote
Please understand the limitations we find ourselves in due to the fire in FCO which affected the aerial transport and had a negative impact on our working system, resulting in obligatory schedule changes against our will.
We understand the setbacks these circumstances cause the passengers and it is our policy to provide or help find the most favorable solution as long as the means and alternate flights are available.
Well, the fire was two month before, I don't think they can argue with this for a flight cancellation two month later without prior information.