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Change in American Airlines Downgrade Policy

Aviation News reports a change in American Airlines downgrade policy that could potentially impact fliers from the forum. I’ve shared part of the article below.

American Airlines updated its Contract of Carriage in mid-May 2025 to cap downgrade refunds at 40% of the ticketed fare — on both domestic and international routes.

'Refunds are issued at 40% of the ticketed fare on the affected segment.' — American Airlines Contract of Carriage
A DOT complaint filed by Ben Edelman and Mike Borsetti exposes the math: a one-way JFK-LHR business class fare sampled on three days' notice ran $10,644, against a lowest coach fare of $949 on the same date.

'It would be unfair for AA to require the passenger to travel in coach for $6,386 on a seat that AA itself sells for $949.' — DOT complaint
Under the 40% rule, a downgraded business class passenger on that route receives roughly $4,258 back — and absorbs a $6,386 net loss for a seat priced at $949 in open sale.

Posted by
19138 posts

The thing I have found with one way tickets across the Atlantic in business class is that it is sometimes cheaper to buy a round trip ticket than one way. By quite a bit.

Posted by
96 posts

As an aside and eye opening, I used Bing to search for the full article being referenced "Aviation News american downgrade policy" and and would you believe Bings Co Pilot(AI application) lifted Carols original verbatim content from this site and used it to cobble together as fact a Co Pilot content answer to my query explaining the policy and the source cites for the response were Carols post to this forum with links back to her posting. That's messed up IMHO.

Posted by
979 posts

"...would you believe Bings Co Pilot(AI application) lifted Carols original verbatim content from this site and used it to cobble together as fact a Co Pilot content answer to my query explaining the policy and the source cites for the response were Carols post to this forum with links back to her posting. That's messed up IMHO. "

That's (currently) Ai.

Posted by
13618 posts

Sure gives AA an incentive to downgrade someone who bought early at a lower cost and when it gets closer to flight time and someone else is willing to fork over more to really make a killing by selling the same seat twice.

I wonder how many other airlines have such an unfair policy?

Posted by
12458 posts

dootle, why wouldn't it? It's trained to pull from current articles and information that it finds online. AI just does it a lot quicker than us.

At any rate, here's a full article that covers this: https://viewfromthewing.com/new-american-airlines-policy-says-it-can-sell-you-first-class-give-you-coach-and-keep-most-of-your-money/

And if you feel strongly about this, I'm leaving a link that shows the actual complaint that was filed by the DOT. The general public is encouraged to leave comments there to be reviewed by the DOT. I never fly American Airlines, so it doesn't affect me at this point, although if one airline does it, I could see all the others jumping on the bandwagon.

At any rate, here is the link. There are thirty-three comments as of this moment, most of them posted by "Anonymous." https://www.regulations.gov/document/DOT-OST-2026-2377-0001

Posted by
979 posts

"dootle, why wouldn't it?"

I assumed it was all that it gave dootle. Versus your AI (actually intelligence) much better response. Perhaps it did and dootle didn't mention it.

Posted by
8444 posts

That's outrageous. If someone had told me that was the policy I wouldn't believe it was the case. I can't remember the last time I've flown American, oh wait, our honeymoon 43 years ago when our luggage was delayed a few days. Both directions.

Posted by
96 posts

Correct RobertH, that was the extent of the content. Eye opening for me with 38 years in IT. . I'll stop there so as not to side track the original post.

Posted by
545 posts

@ Joe32F

The policy is called “involuntary downgrade.” My research shows that United, Delta and American have it clearly listed in their conditions of carriage. (Alaska did not allow me to interrogate their conditions. Needed to create an account and I am too lazy to do that.)

The three majors’ policy on refunds, monies and points is set out. Perused briefly and they all seem similar.

Qantas, Cathay, Emirates, Qatar, and Singapore all have similar details in their conditions of carriage. Over the years I have found myself frustrated in not being able to help people who have entered contracts, ticked the box that they have read all conditions and assumed the other party will look after them if things go wrong. They were dreaming. Moreso in the home of capitalism.

Read a few insights on causes. They seem to revolve around needing to rearrange pilots’ schedules together with agreements with local and international pilot federations. An obvious question: what is it worth to you to have happy and alert pilots up front?

Mardee has so generous researched and provided the actual complaint lodged by Edelman and Borsetti. (Professionally prepared though no solicitor is referenced). I could not find a record of a written decision handed down by the DOT tribunal yet. My opinion: if considered a contractual dispute by the tribunal, I would back the airline. If Edelman and Borsetti are hoping for mercy and equity, they are in the wrong country, Go to their nearest church.

Motivated me to reread Qantas current conditions of carriage. Inter alia may be entitled to a refund of 75% of the ticketed coupon value. My readings suggests that Qantas point bookings could be messy.

Regards Ron

God is love. Jesus of Nazareth