What to Know About Refundable vs. Nonrefundable Plane Tickets (2024)

According to the U.S. Travel Association, air travel demand was up 12 percent in July 2023 compared to July 2022. If you’re one of the many Americans flying this year, it’s important to understand if and when you’re eligible for a refund when you change or cancel your plane ticket. I had the opportunity to speak with Stella Shon, an expert in all things travel and personal finance, to dive deep into air travel rules and regulations so you know what to do if you need a flight ticket refund. Here’s everything you need to know about booking a refundable plane ticket and how to get a credit, even if you book a nonrefundable fare.

Nonrefundable vs. Refundable Plane Tickets

Purchasing a nonrefundable plane ticket means if you cancel your trip, you are not entitled to a cash refund of the full fare of your ticket. On the other hand, a refundable plane ticket allows you to cancel your airfare and receive a refund to your method of payment. Either way, if the airline cancels your flight, you are entitled to receive a refund, no matter which ticket you have.

“Interestingly, the post-pandemic world brought forth some favorable changes if you’re looking to change or cancel your flight,” says Shon. “Pre-COVID, you had to pay a pesky change/cancellation fee that could cost upwards of $200. Now, the major U.S. airlines allow you to modify your flight for free and pay the fare difference, as long as you don’t book basic economy.”

Refundable tickets are often far too expensive to justify the added cost; a refundable ticket can cost hundreds more dollars for the same exact flight.

The 24-hour Refund Rule

The U.S. Department of Transportation has regulations to protect travelers. As long as you book your plane ticket at least seven days before the scheduled departure time, airlines are required to either allow travelers to cancel their reservation and receive a full refund 24 hours from the time of booking or allow travelers to place a hold on the fare without paying for the ticket for 24 hours. Keep in mind that airlines do not have to offer both a refund and a hold option, so it’s important to understand which option is provided before you book your ticket.

This 24-hour rule does not apply if you book your ticket through a travel agency or other third-party platform. It is only enforced with direct airline bookings, although many platforms will offer similar procedures.

What to Do if You Need to Change or Cancel a Nonrefundable Flight Ticket

Changing a nonrefundable flight ticket is simple. All you need to do is go to your booking and select your new flight (many airlines make this easy via their website or app). As noted earlier, as long as you aren’t flying basic economy, most major carriers have waived the change fee and will only charge a fare difference (if applicable).

If you need to cancel a nonrefundable flight ticket, your ability to get a refund will often depend on how you made your reservation. If you paid for your flight with miles, you usually have a much easier time canceling your trip and getting those miles redeposited into your account. If you paid for your ticket, you can typically still get a voucher for future travel, minus any applicable cancellation fees. It’s relatively uncommon to be unable to receive any sort of travel credit for a canceled trip as long as you cancel well before your flight.

Does travel insurance cover nonrefundable flight changes?

When booking a plane ticket on most of the major carriers, you will likely see an option to add travel insurance to your booking through a third party, like Allianz Global Assistance. Adding this to your reservation gives you coverage for a covered trip cancellation or interruption, along with travel delay expenses.

“If your vacation is impacted by sickness, family emergency, or other reasons, you can file a claim under your travel insurance to get reimbursed for nonrefundable expenses, including your flights, hotels, and other travel expenses,” says Shon. “Just be prepared to provide documentation to support your claim.”

Adding travel insurance is often much cheaper than booking a refundable plane ticket and gives you much of the same coverage for cancellation, assuming the reason for canceling is covered. Travel insurance will not cover your claim if you just change your mind and don’t feel like taking a trip.

Do credit cards cover nonrefundable flight changes or cancellations?

There are plenty of credit cards that offer a variety of coverage options when you’re traveling. In Shon’s opinion, “The best credit card comes from the Chase Sapphire suite of cards. Either the Chase Sapphire Preferred ($95 annual fee) or the Chase Sapphire Reserve ($550 annual fee) offer a bevy of perks for travelers in case of an emergency, including trip cancellation and interruption insurance, lost or delayed baggage reimbursem*nt, and even primary rental car insurance.” She continues, “The more expensive Chase Sapphire Reserve card may be worth footing the bill for complimentary emergency evacuation, transportation, and medical and dental coverages.”

Similarly, if you book your flight through a credit card travel portal, like Capital One Travel, you can potentially add on cancellation coverage at checkout. If you book a flight via the platform, you can pay an additional fee to be able to cancel your flight for any reason, up to three hours before departure. You may be eligible for a partial cash refund or a 100% airline travel credit for the value of the ticket.

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