American Airlines has quietly updated its (formerly) generous policy when it comes to 24-hour refunds for tickets that are booked last minute, as flagged by View from the Wing. This is worth being aware of, as American now just complies with regulations, rather than going above and beyond in this area…
American no longer allows free 24-hour refunds close to departure
Under Department of Transportation (DOT) regulations, airlines are required to give passengers the option to refund a ticket for free within 24 hours of booking, assuming that they book at least a week in advance. However, many airlines have actually had a more generous policy than necessary, intended to put people at ease when they book a ticket.
Up until now, American has allowed passengers to cancel flights for a full refund within 24 hours of booking, as long as they were ticketed at least two days before departure. Now that policy has been updated, so you can only get a full refund when you book at least seven days before departure. That puts American exactly in line with the regulations.
Let me emphasize that this policy is about cash refunds to the original form of payment. As before, many types of tickets still quality for a travel credit that can be used within 12 months of the original date a ticket was issued.
As you can see, American has updated its customer service FAQs to reflect this change:
If I cancel my trip within 24 hours of purchase, can I get a full refund?
This content can be expanded You have 24 hours from the time you first buy your ticket for a refund if you booked at least 7 days before departure. The 24-hour refund policy applies to all ticket types, but you have to cancel the trip to get a refund. If you bought your ticket through a travel agency or another booking source, contact them for a refund. Reservations booked as part of group block do not qualify for the 24-hour refund.
The alternative to booking last minute tickets with flexibility
As mentioned above, American is now just following regulations. American has long been extremely generous when it comes to both refunds and ticket holds, on both revenue and award tickets. So it’s hard to be too mad at American, though it definitely eliminates one of the areas where the airline was more customer friendly.
Among the major US carriers, Delta continues to have the most generous policy in this regard, as the airline gives you that flexibility even until the day of departure. So if you book a Delta ticket the day before a flight, you can cancel it within 24 hours for a full refund.
If you are flying American and aren’t sure if you’ll be able to take the flight, you can always book through an online travel agency that allows passengers to cancel within 24 hours for a refund, even close to departure. You’ll want to check with the individual online travel agency, but this is a policy that you’ll find on sites like Expedia.
Bottom line
American has updated its policy for ticket refunds within 24 hours of booking. Up until now, you could get a full refund if you canceled a ticket within 24 hours of booking, as long as you were ticketing at least two days in advance. With this update, the window has been increased to seven days, in line with regulations.
This is of course a disappointing change, and definitely something to be aware of. If you aren’t sure about whether you’ll be able to take a trip and don’t value a trip credit, then it could make sense to book those last minute tickets through an online travel agency.
What do you make of American’s 24-hour refund policy update?
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