American Airlines Revises Refund Policy With Stricter Rules

American Airlines quietly revised its refund policy, making it more restrictive for passengers. Under the updated policy, customers are eligible for a full refund within 24 hours of booking only if their flight departs at least seven days later.

The airline made the change by updating the fine print in its Customer Service Plan. The policy applies to flights booked on or after July 29 and was first reported by media outlets without an official announcement from American.

Federal Minimum

Under Department of Transportation rules, airlines must provide a full refund to customers who cancel within 24 hours of booking a flight departing at least seven days later. However, airlines may voluntarily apply the policy to flights departing fewer than seven days after booking.

For flights booked at least seven days before departure, the rule requires airlines to either “allow consumers to cancel their reservation and receive a full refund without a penalty for 24 hours, or allow consumers to reserve a ticket (place it on hold) at the quoted prices without paying for the ticket for 24 hours.” 

American allows customers with uncertain travel plans to hold a booking for up to 24 hours at no charge.

Delta and Alaska Airlines allow customers to receive a full refund if they cancel within 24 hours of purchase, even for flights departing within 24 hours.

Before the policy update, American allowed customers to receive a full refund if they canceled within 24 hours of booking a flight departing at least two days later.

With its latest refund policy change, American now matches the policies of JetBlue, Southwest Airlines, and United Airlines.

Recent Policy Changes

The cancellation policy is one of several recent policy changes by American Airlines. In December 2025, the airline removed AAdvantage mileage earnings and Loyalty Points accrual from its cheapest fares. In May 2026, elite status members lost the ability to select seats for free or receive upgrade options when purchasing Basic Economy tickets.