State radio said around half the audience at the Madrid opera house walked out after organisers announced the no-show of Pavarotti who was indisposed and two other singers who said they could not perform due to poor health and family problems.
Concert organisers agreed to refund the tickets.
The show eventually started with the auditorium at 50 percent capacity. Kraus, a world famous Spanish tenor, died last year. Top opera stars paid tribute to the Spanish tenor after his death including Pavarotti.