A “fairy-story” is one which touches on or uses Faerie, whatever its own main purpose may be: satire, adventure, morality, fantasy. Faerie itself may perhaps most nearly be translated by Magic — but it is magic of a peculiar mood and power, at the furthest pole from the vulgar devices of the laborious, scientific, magician. There is one proviso : if there is any satire present in the tale, one thing must not be made fun of, the magic itself. That must in that story be taken seriously, neither laughed at nor explained away.
Tolkien