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American Airlines Improves 24-Hour Cancellation Policy

June 24, 2017
3 min read
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American Airlines Improves 24-Hour Cancellation Policy
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American Airlines has changed its 24-hour cancellation and refund policy again — but this time for the better. The airline will now allow customers to cancel (for free) within 24 hours of booking on tickets purchased for flights as close as two days ahead of departure. The previous policy only covered tickets booked at least seven days out.

The Department of Transportation (DOT) requires airlines to give customers either the opportunity to put a ticket on hold for 24 hours before purchasing, or provide at least 24 hours after booking a flight to cancel without penalty even on a non-refundable ticket. However, that rule only applies to tickets booked at least seven days in advance of departure, so AA is being more generous than the DOT rule requires.

Originally, American complied with the DOT rule by offering a 24-hour free hold option before purchasing tickets. But after a mistake fare in 2015 caused headaches for the airline and led to a settlement with the DOT regarding cancelled holds, the carrier switched to a 24-hour cancellation policy in April 2016.

The new 24-hour policy, which has been in place for a few weeks and clarified in recent days, also applies to American award tickets redeemed at least two days ahead of departure. Meaning if space suddenly opens up and you want to book a speculative award, you can do so knowing that you can cancel within 24 hours and won't have to pay a redeposit fee — so long as your flight leaves at least two days after booking. Customers will also no longer have to cancel and request a refund for tickets in two separate steps, streamlining a previously somewhat confusing process.

Even though American offers free 24-hour cancellation, you can often also find a free 24-hour hold option as well.

When American changed to a 24-hour cancellation policy in 2016, the airline stated that free 24-hour holds would eventually disappear. However, those 24-hour are often still available at aa.com depending on the flight. There's no guarantee that any particular booking will be offered a 24-hour hold option, but if you do get the opportunity to put an itinerary on hold, you'll still be eligible for the 24-hour free cancellation if you end up booking the ticket before the hold ends. That means in certain cases when booking American tickets, you can get quite a bit of time to consider your options before you're 100% locked into a non-refundable ticket.

When it comes to American's main competitors, United currently requires tickets to be booked at least seven days in advance of departure in order to be eligible for free 24-hour cancellations, though enforcement of that rule is spotty. Delta is the most generous of the three legacy airlines, as you can cancel almost any Delta revenue ticket within 24 hours if it was booked directly with Delta. Award tickets are a different story, as Delta does not allow award ticket cancellations within 72 hours of departure.

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H/T: @xJonNYC via View From The Wing

Featured image by JT Genter

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Apply for American Express® Gold Card
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Rewards Rate

4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
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  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.
  • Annual Fee

    $325
  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.