Help! American Airlines gave me travel credit instead of $5,075 in cash

American Airlines left Brooke Krukenberg and 24 family members stranded in North Carolina after canceling their flight home to Iowa. As the group scrambled to find alternative transportation, airline agents assured the displaced passengers their refunds were on the way.

Krukenberg calculated that American Airlines owed each family member $223 for the canceled flight – around $5,600. That refund factored into the group’s plans as they booked rental cars and hotels for the unexpected 18-hour road trip back home. 

But weeks after Krukenberg and her clan had returned to Iowa, American Airlines still hadn’t processed the refund. Curious about when they would receive their reimbursement for the canceled flights, she called the airline. 

That’s when an AA agent informed a stunned Krukenberg that it had already issued all the refunds owed. Each family member had been “awarded” a $50 American Airlines travel credit, which they could apply to a future flight.

Krukenberg was sure that something had gone wrong. American Airlines owed her family much more than a small travel credit for the canceled flights. Despite escalating her complaint to multiple agents, the response from AA remained unchanged. 

After American Airlines officially closed her case with the travel credit as the final answer, Krukenberg turned to Consumer Rescue. She hoped we could convince AA of its mistake and make the missing refund appear. 

Here’s her frustrating tale. 

A giant family reunion to celebrate a special birthday

Nearly a year in advance, Krukenberg began helping her in-laws plan a special birthday party. Her father-in-law would be turning 80-years old and he wanted to gather all his family together to celebrate. But there was a logistical problem. He and his wife live in North Carolina and most of the extended family live in Iowa. 

“So my in-laws decided they wanted us all to come to the beach in North Carolina,” Krukenberg told me. “To make sure everyone could come, they offered to pay for everything.”

But Krukenberg’s mother-in-law was unsure how to book all those airline tickets. 

“I took the lead and I called American Airlines,” Krukenberg told me. “Because there were 25 airline tickets to book, AA said I had to go through their group travel department.”

The planning was further complicated because there were no direct flights from Cedar Rapids, Iowa, to Wilmington, North Carolina. The giant group of parents and kids would need to first fly to Charlotte and then make a connection to Wilmington. 

The total cost for the 25 tickets came to $11,362 or $455 per passenger — all charged to Krukenberg’s mother-in-law’s Visa credit card. 

With the airfare confirmed, they next turned their sights to booking beachside accommodations for the late July celebration. The entire extended family wholeheartedly looked forward to the adventure for months. 

American Airlines cancels the return flights for two days

On departure day, the entire clan made their way to the Cedar Rapids Airport. They boarded the plane and soon arrived in Charlotte, where they connected to their flight to Wilmington, where the elder Kruckenberg was excitedly waiting. 

By all accounts the family union and birthday party at the beach was a rousing success. 

But on the last day, everything went wrong. Tropical Storm Debby was heading toward North Carolina, and it was impacting flights into and out of Wilmington. 

First American Airlines said our flight was delayed. But then, after a long wait, AA announced that our flight to Charlotte was canceled. The flights from Charlotte were impacted by the weather too, and the agents told us it would be at least two days before we could be rebooked. We couldn’t wait that long. So we decided to drive back to Iowa. Luckily, there were rental cars available, but we had to wait two hours there as well.

Once the group finally had their rental cars the giant caravan began their 18-hour road trip journey back to Cedar Rapids and out of the reach of Tropical Storm Debby.

The surprise road trip was an unplanned expense, but the family assumed the refunds from the canceled flights would cover the cost. 

But then American Airlines hit the Krukenbergs with another surprise. 

American Airlines: “Sorry we canceled your flights, but your tickets are nonrefundable.”

A few days after the Kruckenberg family arrived home, each traveler began getting emails from American Airlines. 

“I got this confusing email that American Airlines was giving me a $50 travel credit for our experience,” Kruckenberg recalled. “Then other family members got the same email. I thought it was just a gesture of goodwill because of what happened.”

Although it was a confusing email, Kruckenberg never imagined that the $50 travel credit was the extent of what American Airlines was intending to provide for the canceled flight. That is until about a week later when she contacted the airline to ask when it would process the refund. 

“The agent told me that the airline only owed us the $50 travel credits,” Kruckenberg told me. “She said we bought nonrefundable tickets, and American Airlines doesn’t refund those even if it cancels the flight.”

When Kruckenberg told me that bit of information, I knew she’d been talking with someone who wasn’t familiar with Department of Transportation rules. 

The Department of Transportation requires airlines to refund canceled flights

Fact: When an airline cancels your flight, the Department of Transportation requires that the carrier refund your unused ticket if that is your preference. 

In the Kruckenbergs’ case they wanted a refund so that they could minimally cover the cost of their road trip home. 

But there in Kruckenberg’s paper trail was proof that she’d received incorrect refund eligibility information from not just an AA phone representative. In a lengthy email, an American Airlines customer relations supervisor reiterated that the airline doesn’t refund nonrefundable tickets even in the case of a flight cancellation. That stance goes directly against DOT rules. 

I know that at that moment, you wanted [American Airlines] to put you on a different flight that could get you to your destination as scheduled. However, due to weather-related issues, no other flights were available at the time. While we don’t want you to have that kind of experience with us, safety is our top priority.

I offer my heartfelt apologies if we were unable to serve you throughout the wait. We are unable to offer lodging or meals in the event that weather or other unforeseen occurrences cause flight disruptions. However, we regret any inconvenience this situation caused you.

Although I know it doesn’t change the circumstances, I genuinely hope [the $50 travel credit]  helps to make amends.

Regarding your tickets, while I understand your request for a monetary refund, please know that you originally purchased a nonrefundable fare. 

This means that we can’t issue a refund in the original form of payment. I regret any further disappointment this may cause.

Our nonrefundable ticket policy allows you to rebook your travel if the reservation is canceled before your scheduled departure. 

Sincerely, 

“I**** *** (American Airlines customer relations)”

At that moment, Kruckenberg realized that talking with any other agents at American Airlines was a waste of time.

Her next stop: Consumer Rescue.

Asking the Consumer Rescue team for help

When Kruckenberg’s request for help landed in our inbox, she was beyond frustrated. She was sure that the various American Airlines representatives she’d spoken to were wrong about what the airline owed her family for the canceled flight. But she’d been unable to find anyone who agreed with her at the airline.    

I’ve contacted American Airlines multiple times. As you can see, [what the airline offered] is not going to be sufficient considering we did not get the service we paid for after AA canceled the flight – plus we had to spend hundreds of dollars on rental cars to drive 18 hours home.

Can you help us? All we’re asking for is for the return flight to be refunded back to my mother-in-law’s credit card. Isn’t that fair?  Brooke Krukenberg

After I went through Krukenberg’s paper trail, I could tell her with 100 percent certainty that what she was asking for was more than fair. 

The Department of Transportation required it.

Asking American Airlines to correct this refund oversight

I found Krukenberg’s case puzzling because it seemed so straightforward. I wondered why multiple agents had given her the same incorrect information. Of course, American Airlines owed the family a cash refund for the two legs of their itinerary that the airline canceled. This is Basic 101 Airline Rules.

It was time to ask our always helpful executive contact at American Airlines to have a look. 

And the mostly good news came back within 24 hours for the Krukenbergs. 

Hi Michelle,

Thanks for sending this. You are correct that this is an error. There are 25 passengers on two record locators – all with unused returns. Since these tickets were purchased using trip credits, that is how the refunds will come through. Each in the amount of $203/ticket. Refund confirmation emails are going to *******. They were just processed so it may take a minute for the confirmation to come through.

Thanks for bringing this to my attention! (American Airlines executive contact)

Since Krukenberg had never mentioned that her mother-in-law had paid for any part of the tickets with travel credit, I sensed that something still might be amiss. And soon she confirmed.

“Michelle, my mother-in-law didn’t use any travel credits for these flights,” Krukenberg told me. “We paid American Airlines the entire $11,362 with her Visa.”

Krukenberg sent me a copy of her mother-in-law’s credit card statement, and I headed back to American Airlines.

Finally really good news: American Airlines refunds these canceled flights

Hi ***

I just heard from this family and they say that these tickets were not paid for with trip credit. They say they paid for them with a credit card and they provided a credit card statement this morning so I think there still may be some confusion about these tickets.  The family would like American Airlines to refund the return canceled flight to the original payment form, which should be in the record. It’s a Visa credit card. I’m attaching the receipt for the final payment for the 25 tickets under my signature. Thank you! 

Michelle (Consumer Rescue)

And that did the trick. I soon heard back from our executive contact at American Airlines who confirmed that issuing the second set of travel credits was also a mistake. Her team corrected that error and finally after much effort by Krukenberg to get her mother-in-law the refund, a $5,075 credit appeared on her Visa card from American Airlines. 

I gave Krukenberg the good news and a short lesson on airline math. 

“Each segment of an airline ticket is priced dynamically,” I explained. “Your mother-in-law is getting a refund of the canceled legs of the itinerary. Those are each priced a little differently, so the total refund is $203 per passenger (instead of $223).” 

Krukenberg was thrilled to finally emerge victorious in this battle for the refund she knew the airline owed her family. Now, instead of ruminating about the negative and expensive ending of their family reunion, she could focus on the good parts. 

Thank you so much, Michelle. My mother in law has the credit on her card as of today! We got email confirmations from American Airlines on Saturday and she checked her statement today and they are all there! 

I can’t thank you enough for all that you did for us and for helping us through this. We are so thankful we had you advocate for us.

We’re telling everyone about you and Consumer Rescue!   

Brooke Krukenberg

Aw! And we’re so happy you found us and that we could help.   😃🛟

How to get what an airline owes you after a flight cancellation or delay

The Department of Transportation requires that airlines promptly refund passengers after a flight cancellation. (Of course, that’s only if the traveler chooses that option.) Recent regulations define “promptly” as seven days. However, many passengers still struggle to get the airlines to pay them what they’re owed for a flight disruption.

Here’s how to ensure you get what an airline owes you if it cancels or significantly delays your flight.

Let the airline know your preference

If an airline cancels your flight, it owes you a refund. Full stop. You are not required to take a substitute flight the airline offers after a cancellation (Although the airlines would love it if you do). Passengers can also receive a full refund if an airline shifts the arrival or departure by more than three hours for domestic flights and four hours for international flights. 

• Related: Air passenger rights in the U.S. just got way better. Here’s what to know. (My article on the topic at Fodor’s Travel)

However, travelers must inform the airline of their desire for a full refund. Preferably, you should do this in writing.

Otherwise, the airlines will typically assume you’re agreeable to their schedule change. 

In the case of a flight cancellation, most airlines have rebooking systems powered by – you guessed it — artificial intelligence. Those programs will take over and automatically put you on a replacement flight that sometimes only makes sense to a computer bot. That rescheduled flight may be very unappealing and may even include ground transfer to additional airports and long layovers. 

So, as soon as you are alerted to a flight cancellation, make sure to contact the airline and either attempt to rebook yourself for a flight of your choosing or request a refund. Remember, it’s up to you, not the airline, whether or not you accept a replacement.   

You’re owed a refund back to the original payment form

Here’s where it can get a little tricky. According to the Department of Transportation, airlines must refund the passengers back to the original payment form. 

But no rules prohibit your carrier from offering you travel credit instead of a refund. As a result, sometimes airlines will “award” you future travel credit after a flight cancellation in the hopes that you’ll accept it. The flight credit may even be for more than what the airline owes you. 

You should always keep in mind that you’re under no obligation to accept a flight credit in place of a cash refund. If your carrier attempts to bestow anything except cash back to your original form of payment, reject the offer (unless, of course, that’s what you prefer). But remember, cash will not expire on you – travel credits always come with restrictions and an expiration date. 

Don’t expect a cash refund if you paid with travel credits, gift cards, or if someone else paid for your ticket. All refunds go back to the original form of payment without exception. So it’s also vital not to close down a credit card you’ve used to pay for your airline ticket until travel is complete. 

Warning: Airline math is fuzzy

Unfortunately, airline math isn’t like regular math. Don’t expect the math you know to be the math the airline uses to calculate your refund. 

Many travelers are surprised when they receive their refund for one canceled leg of their itinerary when it isn’t what they expected. 

When you book a round trip or multi-leg flight, each segment has its own fare code. So, if one of those portions of your trip is canceled, you’ll be refunded based on the fare code only for the unused portion of your trip. Many travelers erroneously assume that if they book a round-trip flight and half of it is canceled, they’ll receive a refund equal to half the fare, but this is rarely the case. 

Incidental expenses aren’t covered

This little detail is one that travelers continue to be shocked and amazed by (in a negative way) even in 2025. The fact is that no airlines anywhere around the world guarantee their flight schedules. International and domestic regulations limit the airlines’ liability for delivering you late to your destination. 

That means sending demands to your carrier asking for compensation when you incur additional expenses (such as for hotels and rental cars) is generally a waste of time. 

Instead, before your trip begins, you should invest in a comprehensive travel insurance policy that will protect you against the financial impact of a flight delay or cancellation. Use a website like insuremytrip.com to compare various policies and ensure you read through all the parts of the policy documents before the lookover period is over. 

In general, you have 14 days to review your travel insurance policy and make sure it includes protection for everything you need. After that time, the policy becomes nonrefundable. 

The bottom line: Ask Consumer Rescue for help

Of course, there are times when, despite your best efforts, an airline might not see things your way, as with Brooke. In that case, you can first request help from our research valet, Just Ask Meera. She can give you the name and contact of someone at the company you’re struggling with – someone we know has a history of helping customers. 

If that doesn’t work, it’s time to bring out the “big guns.” Dwayne Coward and I have been fixing problems for consumers free of charge for the past decade. So send your request through to our consumer advocacy helpline, and we’ll be happy to investigate and resolve your issue, too, if we can. 

Our rescues for consumers are always fast, friendly, and, best of all, free of charge! (Michelle Couch-Friedman, Founder of Consumer Rescue)