American Airlines adopts consumer-friendly 24-hour refund policy

One of the biggest airline “gotchas” is no more.

Effective today, American Airlines will start offering refunds for most tickets canceled within a day in order to comply with the Transportation Department’s 24-hour rule.

“We’re making the switch to minimize the customer confusion that arose sometimes because our policy was different from those of other airlines,” an airline representative told me late yesterday.

Before now, you might recall, the world’s largest airline offered the option of a 24-hour “hold.” But customers complained that the option was not clearly disclosed and they believed they’d purchased tickets that could be refunded.

The rule applies to newly purchased tickets, according to American. Award tickets will not be affected, and the change will not be immediately visible on, which will continue to offer the “hold” option “for the time being,” an airline spokesman told me.

What prompted American to make such a sudden course correction? Certainly, the company had heard from many customers who were disappointed that they couldn’t get their money back for tickets, despite the presence of a DOT “24-hour” rule that suggests their fares should have been refundable.

Many of these customers have written to us recently, complaining loudly about what they say is a deceptive “hold” option. We’ve had everyone from infrequent fliers to loyal AAdvantage members claim they were duped by the rule.

One unpleasant byproduct of the discussion: Defenders of American’s old policy, who suggested anyone who didn’t read the booking screen carefully deserved to get stuck with a non-refundable ticket. If anything, these voices gave American pause as it considered whether or not to do the right thing, offering a significant roadblock to progress.

But in the end American did the right thing — and then some. The “hold” fans will be happy to know that they can still place dibs on a ticket, as long as they’re willing to pay for it.

“We offer paid hold on many routes now,” the American rep told me. “Our long-term strategy for hold options, including paid hold, is a work in progress.”

While American was moved by its many complaints, it may have also been prodded by possible government intervention. The latest version of the Federal Aviation Administration reauthorization bill is said to contain language that would have closed what insiders call the “American loophole” on the 24-hour rule. The policy change effectively eliminates the need to regulate this policy out of existence, at least for domestic airlines. (Other carriers, notably Turkish Airlines, also have a “hold” option, so a DOT rulemaking may still be necessary.)

Interestingly, the policy change doesn’t apply retroactively to older tickets, which suggests American isn’t as sorry as it claims to be. Late yesterday, I heard from Anna Eppink, whose case may have been the tipping point that killed the “hold” trap.

She says American ignored her written request for a ticket refund for weeks. Finally, she the airline agreed to credit her with a few “bonus” miles.

“They still would not refund my purchase,” she says.

The only real question is: How much money did American make from passengers who believed they had the option of canceling, but ended up booking a non-refundable ticket?

Millions? Tens of million? Hundreds of millions?

It’s impossible to know. But here’s a fact: American has never been this profitable. It can certainly afford a little goodwill.

As an aside, the pro-airline readers almost had me convinced the answer was zero. Then I heard from a former American employee who got suckered by the “hold” policy. Then I heard from one of my editors at a large newspaper who also fell for it. After that, I believed the answer was not zero.

Speaking of believing, some of you might suspect this is an April Fool’s joke, even though technically I caught wind of this story on March 31. But still. The date on this story is April 1.

“A fair question,” said my American contact. “No, I promise you, we are not kidding. This is a real policy change.”

American's new policy is:

View Results

Loading ... Loading ...

Underwritten by

Elliott Advocacy is underwritten by

With nearly 20 years in the industry, over 128 airport covered in the U.S. and Canada, and over 1,000 Hotel and Parking Partners-we provide travelers the best options on how to get to the airport when flying. Whether you want to; drive yourself and park near an Airport (Airport Parking), stay the night before your flight at an airport hotel and leave your car (Hotel and Parking Package), or take a shared Shuttle/Private Car/Limo to the Airport- we got you covered. The best deals can be found online, and booking a reservation has never been easier. You can explore all of our options by visiting us at,,, and

Elliott Advocacy is underwritten by Cavalry Travel Insurance

Cavalry takes the worry of out travel by providing 24/7 access to medical and security professionals combined with the best medical evacuation and security extraction services. Cavalry gets you home safely when you need it most. Learn more at

Elliott Advocacy is underwritten by Seven Corners

Seven Corners has helped customers all over the world with travel difficulties, big and small. As one of the few remaining privately owned travel insurance companies, Seven Corners provides insurance plans and 24/7 travel assistance services to more than a million people each year. Because we’re privately held, we can focus on the customer without the constraints that larger companies have. Visit Seven Corners to learn more.

Elliott Advocacy is underwritten by Sodexo North America

Sodexo North America Sodexo North America is part of a global, Fortune 500 company with a presence in 80 countries. Sodexo is a leading provider of integrated food, facilities management and other services that enhance organizational performance, contribute to local communities and improve quality of life for millions of customers in corporate, education, healthcare, senior living, sports and leisure, government and other environments daily. Learn more at

Elliott Advocacy is underwritten by Travelex Insurance Services

Travelex Insurance Services is a leading travel insurance provider in the United States with over 55 years combined industry expertise of helping people dream, explore and travel with confidence. We offer comprehensive travel insurance plans with optional upgrades allowing travelers to customize the plans to fit their needs. Compare plans, get a quote and buy online at

Elliott Advocacy is underwritten by AirHelp

AirHelp is the world’s leading flight delays compensation company, helping passengers apply for compensation following a delayed or canceled flight or when boarding has been denied. It is AirHelp’s mission to fight for passenger rights by holding airlines accountable for flights disruptions that are out of passengers’ control. AirHelp has already helped 5 million people, taking the stress out of applying for compensation and making it as hassle-free as possible for travelers around the world.

Elliott Advocacy is underwritten by Allianz Travel Insurance

The Allianz Travel Insurance company has built its reputation on partnering with agents all around the world to provide comprehensive travel insurance for their clients. Contact Allianz Travel Insurance for a comprehensive list of coverage.

Elliott Advocacy is underwritten by Chubb

Chubb is the world’s largest publicly traded property and casualty insurance company, and recognized as the premier provider of insurance for successful individuals and families in the U.S. and selected international markets, offering coverage for high-value automobile, homeowners, recreational marine/aviation, valuables and umbrella liability coverage. As an underwriting company, Chubb assesses, assumes and manages risk with insight and discipline, and combines the precision of craftsmanship with decades of experience to conceive, craft and deliver the best insurance coverage and services to individuals, families and business of all size.

Elliott Advocacy is underwritten by Fareportal

Fareportal’s portfolio of brands, which include  CheapOair and  OneTravel, are dedicated to helping customers enjoy their trip. Whether you want to call, click, or use one of our travel apps, one thing is clear: We make it easy to take it easy.

Elliott Advocacy is underwritten by

An independent provider of low cost CDW/LDW insurance for use with rental cars. Up to $100,000 cover with no deductible. Policies available on a per day, per trip or per year basis. Also works with overseas rentals. Try  Insuremyrentalcar.comnow.

Elliott Advocacy is underwritten by

Since its inception over three decades ago, G1G has continued to revolutionize the travel insurance industry by being the only aggregator to operate a customer portal, placing all of the user's primary needs in one place. We have continued to innovate and disrupt the market by reimagining the way travel insurance can be delivered to the end user in ways no competition can. Simply put, no one knows the market as well as its founders and no one else shares G1G values and mission.

Elliott Advocacy is underwritten by Mediacom Communications

The nation’s fifth-largest cable operator, serving the smaller cities and towns in the Midwest and Southern regions of the United States. We are a high-performance broadband, entertainment, and communications company that brings the power of modern technology and quality customer experience to life inside the connected home by combining ultra-fast gigabit speeds with personalized local and over-the-top entertainment choices that fit your lifestyle. Details at

Elliott Advocacy is underwritten by Arch RoamRight

Arch RoamRight is one of the fastest growing, most-highly rated travel insurance companies in the United States. Travel advisors love working with us, and travelers feel protected with our trip cancellation and travel medical insurance coverage. We also make it easy to file a claim online with our fast, paperless claims website. Learn more about RoamRight travel insurance.

Elliott Advocacy is underwritten by Virtuoso

The leading global network for luxury and experiential travel. This invitation-only organization comprises over 1,000 travel agency locations with 17,500 advisors in over 45 countries, and holds preferred relationships with 1,700 of the world’s finest travel companies. Virtuoso advisors collaborate with their clients to create personalized itineraries featuring exclusive perks, while also providing advice, access, advocacy, and accountability. For more information, visit

Elliott Advocacy is underwritten by VisitorsCoverage

As a company that is constantly striving to simplify travel insurance, VisitorsCoverage, is on a mission to help travelers make the better decisions about purchasing travel insurance, quickly. VisitorsCoverage has helped millions of travelers globally to buy the suitable travel insurance and explore the world with confidence. Get insurance for your next trip at  VisitorsCoverage. Lowest Price Guaranteed.

Elliott Advocacy is underwritten by MedjetAssist

Medjet is the premier global air-medical transport, travel security and crisis response membership program for travelers. With a MedjetAssist membership, if you become hospitalized more than 150 miles from home, we will get you from that unfamiliar hospital all the way home to the hospital you trust. All you ever pay is your membership fee. MedjetHorizon members add 24/7 personal security and crisis response benefits. readers enjoy discounted rates. Travel safer with  MedjetAssist.

Elliott Advocacy is underwritten by Southwest Airlines

The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth.

Elliott Advocacy is underwritten by makes it fast and easy to compare and buy travel insurance online from top rated providers. Our unbiased comparison engine allows travelers to read reviews, compare pricing and benefits and buy the right policy with a price guarantee, every time. Compare and buy travel insurance now at

Elliott Advocacy is underwritten by Squaremouth

Squaremouth helps travelers easily and instantly compare travel insurance policies from all major providers. Only companies that meet the strict requirements of Squaremouth’s Zero Complaint Guarantee are available on the website. Compare policies on to save over 70 percent on your next purchase.

Elliott Advocacy is underwritten by Travel Leaders Group

Travel Leaders Group is transforming travel through its progressive approach toward each unique travel experience. Travel Leaders Group assists millions of travelers through its leisure, business and network travel operations under a variety of diversified divisions and brands including All Aboard Travel, Andrew Harper Travel, Colletts Travel, Corporate Travel Services, CruCon Cruise Outlet, Cruise Specialists, Nexion, Protravel International,, Travel Leaders Corporate, Travel Leaders Network and Tzell Travel Group, and its merger with ALTOUR. With more than 7,000 agency locations and 52,000 travel advisors, Travel Leaders Group ranks as one of the industry’s largest retail travel agency companies.

Elliott Advocacy is underwritten by Travelers United

If you’ve been mistreated by the airlines, Travelers United is your voice in Washington. Join the #1 travel advocacy organization working with Congress to improve and protect travelers. Plus, get $400 of annual benefits you can use for travel for only $29/year. Add your voice to ours. Make travel better.  Join today.

Send this to a friend