Quick Points: What’s the difference between American Airlines trip credits and flight credits?

American Airlines offers two primary types of travel credits: "trip credits" and "flight credits."

Given that the names are practically synonymous, we understand if you're confused. But American Airlines trip credits and flight credits are actually very different animals, so it's important to know which type you have and how you can use it. Let's dive into the nuts and bolts of both.

Related: How to earn miles in the American Airlines AAdvantage program

American Airlines trip credits

American issues trip credits for things like flight cancellations, significant delays, compensation and refunds.

You can redeem trip credits for airfare, including taxes and fees, but not for extras like baggage fees or seat upgrades. This applies to flights operated by American or American Eagle; it also applies to flights marketed and sold by American but operated by one of American's codeshare or Oneworld partners. However, you can only use your trip credit toward flights that start in the U.S. and select countries.

According to AA's website: "If you cancel your trip on aa.com before departure, we will cancel your ticket and issue a Trip Credit. Your Trip Credit will be valid until the date listed on the credit." Note that you must cancel before the first flight departs, or you'll lose the value of the ticket, and it can't be redeemed for future travel.

If your trip credit isn't enough to cover the full cost of your flight, you can pay the difference. On the other hand, if your flight costs less than the value of the credit, you'll be issued a new credit for the difference.

Although trip credits are nontransferable, you can use them to book travel for anyone, not just yourself. You can redeem up to eight trip credits in a single transaction.

It's important to note that you must go through the American website or the reservations phone line to redeem your trip credit. You can't redeem it through any other channel, including airport ticket counters.

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Trip credits have an expiration date listed on the credit, typically 12 months from issue for AAdvantage members and six months for nonmembers.

Related: How to keep your airline and hotel points and miles from expiring

American Airlines flight credits

Flight credits are very similar to trip credits: They're redeemable for airfare on both American and partner carriers but not for add-ons like seats or bags. There are a few key differences, though.

Flight credits are issued when a customer cancels their ticket through "any other channel" aside from aa.com. To receive credit, you must cancel your flight before the first segment of your itinerary departs — otherwise, you'll forfeit the entire value of your original ticket.

When redeeming flight credits, there is no limitation on where your travel can originate. However, when you book your new trip on American's website, your flight credit can only be applied to flights within the U.S., Puerto Rico, and the U.S. Virgin Islands. You can book other tickets over the phone.

You can redeem flight credits online or through the reservations phone line, but you can also do it in person at an airport. When booking online, you can only use one flight credit at a time; contact Reservations to use more than one.

Unlike trip credits, flight credits can only be used to book travel for the passenger named on the credit. Flight credits also have a different expiration policy. In most cases, the new trip you book with your flight credit must begin within one year of the original ticket date.

And just to make things a little more confusing, if you use part of your flight credit on a trip, American will issue the remaining amount to you as a trip credit, not a flight credit.

Related: Best credit cards for American Airlines flyers

Bottom line

American Airlines issues trip credits when the airline cancels tickets or experiences significant delays, or if there is a remaining value when exchanging tickets. It also issues trip credits when passengers cancel their ticket on aa.com before departure. However, if you cancel a ticket yourself through any other channel, you'll receive a flight credit.

Both types of credit can come in handy for future travel as long as you know how to use them. Also, keep in mind that you can't combine a flight credit and a trip credit on the same booking.