American Airlines makes its flight refund policy more restrictive
American Airlines changed its flight cancellation and refund policy to make it more restrictive, potentially preventing passengers from getting their money back when trips are disrupted.
The airline's 24-hour refund policy now applies only to customers who book a ticket for a flight at least one week away. That means travelers are only entitled to full refunds for trips canceled within 24 hours of booking for flights departing at least a week later.
Under American's previous policy, customers who purchased tickets for flights departing at least two days later were entitled to refunds within 24 hours of making a purchase. The new policy took effect on Wednesday, the airline told CBS News.
The Department of Transportation requires airlines to offer customers refunds for trips canceled within 24 hours of booking for flights departing at least a week later. Airlines are allowed to expand the policy for flights departing closer to the booking date.
For tickets purchased at least seven days before a flight's departure, airlines must 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," the agency's rules state. Airlines are not required to offer customers both options.
For customers whose travel plans are uncertain, American lets them hold a booking for 24 hours free of charge.
"We also offer customers the ability to get a full refund if they purchase a ticket within 24 hours and booked at least seven days before departure," the airline said in a statement to CBS News.
American's refund policy matches those in place at JetBlue, Southwest Airlines and United Airlines. Delta Air Lines has the least restrictive cancellation policy, offering refunds to customers who cancel trips within 24 hours of booking, without requiring that the flight be scheduled to depart at least one week later.
