Flight Cancelled: Voucher or Cash Refund? Know the Difference

Flight Cancelled: Voucher or Cash Refund?

When your flight is cancelled, the airline's website will cheerfully offer you "travel credit." It looks like the easy option. It's also worth less than what you're legally owed — and in the US, it's not even the default anymore.

The US rule (since October 2024)

Airlines must issue automatic cash refunds for cancelled or significantly changed flights — to your original payment method, within 7 business days (credit card) or 20 days (other payment). A voucher is only acceptable if you affirmatively choose it. "We've issued a travel credit" is not compliance if you didn't agree.

Why airlines prefer vouchers

Breakage: a meaningful share of vouchers expire unused — pure profit.
Lock-in: credit forces you to fly with them again.
No interest, no flexibility: your money, their terms.

EU flights

EU261 gives you the choice: full ticket refund or re-routing — plus the €250–€600 compensation on top. A voucher is neither. If the airline's rebooking doesn't suit you, take the cash refund and the compensation, and book what you actually want.

What to say

If an agent or website pushes credit: "Under the DOT automatic refund rule, I'm entitled to a refund to my original payment method. Please process that instead." Get the confirmation in writing. If they refuse, that's a DOT complaint.

Already accepted a voucher? You may still be able to convert it — contact the airline, cite the DOT rule, and ask for the cash refund instead. Not guaranteed, but worth one email.