American is adding automated refund processing for refundable tickets at the time of cancellation. Instead of canceling first and then separately requesting a refund, the customer can choose:
- Cash refund to the original payment method, generally within seven business days; or
- An immediately usable Trip Credit or Flight Credit, depending on the itinerary
American is also laying out which credit product gets issued:
- Trip Credit for the cleaner cases of U.S./Canada-origin itineraries, wholly unused tickets, and certain partially flown domestic, single-passenger bookings.
- Flight Credit for indirect bookings, UATP payments, nonrefundable tax jurisdictions, partially flown international tickets, multi-passenger reservations, and bookings outside the listed countries.
Both AAdvantage members and non-members can receive Trip Credits, with a one-year expiration. Here’s the internal American Airlines details:
American Airlines introduced ‘trip credits’ six years ago. They have different rules from the ‘flight credits’ they often replaced. Both forms of payment you can use towards a new ticket. And in some cases it’s possible to convert flight credits to trip credits.
This is unquestionably positive. It means fewer refund hoops, since that can be done as part of the cancellation flow rather than requiring a follow-up request or agent intervention. And there’s still immediate optionality for a credit that can be reused immediately, rather than waiting several days for funds to return to the card. They still can’t manage to show the refund amount before selection, though.
The agent script nudges customers toward taking a credit, contrasting “available for immediate use” versus a refund that “may take up to 7 business days.” That’s clearly designed to get people to take credits, which expire, while cash of course does not.
They are very dishonest and deceptive about this. I often choose to pay a significantly higher fare in order to be able to cancel and refund to original FOP, yet when you go to cancel there is only the option to receive a “flight credit,” then when you call the call center they insist it is refund only to flight credit. So, you have to cancel and then beg for your proper refund online and fully justify the obvious. They’re a shite company and have been since the first flight I took with AAL in 1977!
Maybe I’m just in a different financial situation than most but frankly don’t care. If a credit I will likely use (have let some expire) and if credit back to card that is fine. However, no single trip refund makes any difference to my financial situation and have no problem just giving up the funds
Friends, mere refunds are not enough. Why do we keep giving these multi-billion-dollar for-profit companies interest-free loans, and no penalty for them when they breach their end of the deal? C’mon. We need an EU261 equivalent in the US. Make them pay.
@Retired Gambler — Well, well.. thassa finger lickin’ BAD hot-take if I ever seen one… “I have so much spare change, I don’t care about credits verses refunds to the original form of payment…” /s
@Retired Gambler — You’re missing the point. It’s emblematic of a company that does not care one bit for its customers. Even if you can afford it, it doesn’t mean it should be a practice that’s accepted.
@Aa — Pretty sure @Retired Gambler’s main point was to imply that he’s so wealthy he can afford to make bad financial decisions. Which is quite the irony, because, most ‘wealthy’ people are incredibly stingy, never allow anyone to take a dollar from them, especially not airlines or the big banks.
I’m of two minds about EU/UK 261, but it does not apply when the traveler requests the cancellation of a ticket.
You people are full of cow manure. AA will give you the option of a refund on a significantly delayed flight or a cancelled flight. I see the option every time my flight is delayed by a couple of hours or cancelled. I have no idea where some of the cr%p comes from.
Obviously, I’d take the refund to my credit card. There is zero chance of losing value through expired credits. I’m curious about why they need 7 days, though. Still, there are probably more than a few folks who can’t purchase a new ticket until the refund clears.
Airlines are no better than the proverbial “Pond Scum”. Of course they want to give credits… they expire! That means any credits unused go right back in the airlines pockets!
@ Gary
Almost got a migraine reading your review of the AA options.
The very best solution is a US261. What AA is doing is baffling customers with B. S.
I just went through a cancel and rebook situation. I thought I was only eligible for Trip Credits but AA gave me the option to get a refund. I was going to use most of the credit so I opted for that. For the 6$ trip credit remaining it doesn’t expire for 5 years! I didn’t know that was possible!
@AlanZ — Preach! US261! Someday!