American Airlines extends free change and cancellation policy
Editor's note: This post has been updated to reflect AA's extension of its travel waiver.
Since the coronavirus pandemic started, most airlines have been waiving change and cancellation fees for new bookings. With the situation taking longer to recover than originally anticipated, most airlines have extended their flexible booking policies to include new bookings made through mid-September. American Airlines initially had a major exception to its updated policy, but has since reversed course with a customer-friendly move.
In early June, American announced that it would tighten up its flexible booking policy and start to exclude basic economy and AAdvantage award tickets. Of the "big three" U.S. carriers, American was the only one to place such restrictions on tickets. However, American has since quietly backtracked on this and is now once again offering free changes for basic economy tickets.
For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.
Change waiver extension
On July 29, American began allowing all paid and award tickets purchased by Sept. 8, 2020 to be canceled or changed without any fees so long as new travel occurs by Dec. 31, 2021. The purchase-by date has now been extended to Sept. 30, 2020.
It's also worth noting that starting Sept. 9, 2020 American's new award fee structure will kick in, allowing free award-ticket changes and redeposits at least 60 days in advance.
In describing the July 29 policy update to TPG, a spokesperson of American Airlines explained, "We are always evaluating the marketplace and looking to provide our customers with the most flexibility for their travel plans during the Covid-19 pandemic." The airline also recently made a positive change to its seat fee refund policy.
As a reminder, eligible tickets are allowed one free change and you cannot get a cash refund unless the airline cancels the flight. If you rebook to a more expensive flight, you will have to pay the difference in fare.
Related: Airline coronavirus change and cancellation policies
Bottom line
With flexibility not being a differentiator anymore, basic economy has become a lot less relevant during the pandemic. As a result, it may even disappear in the future. In an interview with TPG's founder and CEO, Brian Kelly, JetBlue's COO, Joanna Geraghty, mentioned that "flexibility will be a significant component of the future of air travel. As we move through this experience, it'll be interesting to see how customers use change [policies] going forward. Long-term, it will definitely be part of the purchase decision." If airlines keep extending their flexible booking policies for all ticket types, travelers will have a lot less reason to buy-up from basic economy.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | 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. |
| 4X | 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. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
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 $8,000 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.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.