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Refund or credit when canceling a flight? Navigating airline policies

sky harbor
Posted at 5:00 AM, Jul 28, 2023
and last updated 2023-07-28 16:00:47-04

Getting away from this extreme summer heat has become a priority for many of us.

But if you're flying, deciding on refundable or non-refundable tickets can be difficult. Airline policies can be confusing and some are changing.

If you bought the Alaska Airlines lowest-price Saver fare and canceled, it used to be that you couldn't get a refund or a credit, you just lost the money. As of July 19, that changed... sort of.

"The problem is they all do have various stipulations," said NerdWallet's Sally French.

With any airline, if you cancel within 24 hours of booking and want a refund, by law, you must get it.

If you cancel after that just because plans change, refunds come with higher-priced tickets and credits with lower-priced fares. But even that depends.

To get that new Alaska credit for a canceled Saver fare, you have to cancel at least 14 days before departure and the credit is for just 50% of the ticket price.

On Delta Airlines' low-price basic economy fare, there is no refund if you cancel and a credit would be the amount left after paying a $99 change fee.

NerdWallet ranked American-based airlines for best travel policies.

Alaska and Delta tied with American and Hawaiian Airlines for third, followed by Jet Blue. Frontier came in last.

NerdWallet says unless you buy their "works bundle", Frontier offers no refunds. To get a credit, you pay a change fee if you cancel within 60 days from departure.

NerdWallet puts United at number two on their best travel policy list.

And Southwest came out on top as the American-based airline with the best travel policies.

With Southwest, if you cancel before the flight, you can get full credit for future use with no fees.

And Southwest removed any expiration dates on when you can use those travel funds.

So, the Let Joe Know flight cancelation bottom line?

To get a refund, you'll pay more for the ticket.

If you want a credit, make sure to check cancelation time limits, change fees, and expiration dates for credit use.

You can also buy "cancel for any reason" travel insurance.

But make sure to compare prices with refundable ticket prices first.

Read online reviews and check all details so you know what's covered before you buy.

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