Canceled Flight: Refund or Airline Credit?

This comparison concerns an unused domestic U.S. itinerary bought directly from an airline with a credit card.

When the airline cancels, DOT says a refund is available regardless of the reason, including for nonrefundable tickets, if you decline the alternatives offered. Rebooking and getting your ticket money back are different choices.

Choose before accepting airline credit

For the refund route, do not accept rebooking, a voucher or other compensation instead. DOT’s refund guidance says the refund is automatic. For credit-card purchases, it is due within seven business days after you reject an alternative-flight offer.

The refund returns to the original payment method. Credits or vouchers offered instead of a refund must be valid for at least five years, with material restrictions disclosed. That does not make every voluntarily canceled ticket’s credit a five-year credit.

Keep the cancellation notice, offer, your response and refund confirmation. Check the amount and destination rather than treating a travel-credit email as a refund.

Check paid optional-service fees too: DOT requires refunds when those services were unavailable through no fault of yours.

Read the particular credit’s terms

American’s travel-credit terms illustrate why the label matters: a Trip Credit holder can book travel for someone else, while Flight Credit is limited to the named passenger. Both generally cannot be redeemed for cash, except where required by law.

American Trip Credit can cover eligible flights and online bag payments, but not extras such as seats. If an eligible ticket costs less than the Trip Credit, the remainder becomes another Trip Credit, not cash.

Before choosing credit, verify the expiration shown, eligible routes, permitted traveler, booking channel and treatment of unused value. American’s page expressly preserves the special five-year rule for eligible cancellations; ordinary credit deadlines are not the whole answer.

Keep meals and hotels separate

The DOT cancellation dashboard describes airline commitments for disruptions within their control, such as crew or maintenance problems. These commitments do not change the refund entitlement. A refund decision alone does not tell you whether the airline will cover a hotel or meals.

Check the airline’s customer service plan and ask staff what they will provide before budgeting for that help. Policies differ; do not assume every cancellation produces the same amenities. If a promised commitment is not honored, contact the airline first, then consider a DOT complaint.

Agent bookings, voluntary cancellations and card payment obligations are outside this comparison. Checked October 24, 2026.