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.