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American Airlines offers two primary types of travel credits: “trip credits” and “flight credits.”

Given that the names are practically synonymous, we understand if you’re confused. But American Airlines trip credits and flight credits are actually very different animals, so it’s important to know which types you have and how you can use them. Let’s dive into the nuts and bolts of both.

Related: How to Earn Miles in the American Airlines AAdvantage Program

American Airlines Trip Credits

American issues trip credits for things like Flight cancellations, significant delays, compensation and refunds.

You can redeem trip credits for airfare including taxes and fees, but not for extras such as baggage fees or seat upgrades. This applies to flights operated by American or American Eagle; It also applies to flights marketed and sold by American but operated by one of American’s codeshare or oneworld partners. However, you can only use your Trip Credit within the US. And only for flights originating in selected countries.

According to AA’s website: “If you cancel your trip on aa.com before departure, we will cancel your ticket and issue a trip credit. Your trip credit will be valid until the date listed on the credit.” Note that you must cancel before the first flight departs, or you will lose the value of the ticket and it will not be redeemable for future travel.

If your trip credit isn’t enough to cover the full cost of your flight, you can pay the difference. On the other hand, if the cost of your flight is less than the value of the credit, you will be given a new credit for the difference.

Although Trip Credits are not transferable, you can use them to book travel for anyone, not just yourself. You can redeem up to eight trip credits in a single transaction.

It is important to note that you must go through this American website or the reservation phone line to redeem your trip credit. You cannot redeem it through any other channel including airport ticket counters.

Trip credits have an expiration date listed on the credit, typically 12 months for AAdvantage members and six months for nonmembers.

Related: How to keep your airline and hotel points and miles from expiring

American Airlines Flight Credits

Flight Credits are similar to Trip Credits: they are redeemable for airfare on both American and partner carriers but not for add-ons like seats or bags. However, there are some key differences.

Flight credit is issued when the customer is cancel their ticket through “any channel other than AA.com”. To receive a credit, you must cancel your flight prior to the departure of the first segment of your journey — otherwise, you may forfeit the full price of your original ticket.

When redeeming flight credit, there is no limit to where your journey can start. However, when you book your new trip American websiteYour flight credit can only be applied to flights within the US, Puerto Rico and the US Virgin Islands. You can book other tickets over the phone.

You can redeem flight credit online or through the reservation phone line, but you can also do it in person at the airport. When booking online, you can only use one flight credit at a time; Contact Reservations to use more than one.

Unlike trip credits, flight credits can only be used to book travel for the passenger named on the credit. Flight credits also have a different expiration policy. In most cases, the new trip you book with your flight credit must begin within one year of the original ticket date.

And just to make things a little more confusing, if you use part of your flight credit on a trip, American will issue you the rest. Trip creditNo flight credit.

Related: Best Credit Cards for American Airlines Flyers

The bottom line

American Airlines issues trip credits when an airline cancels a ticket, experiences a significant delay, or has outstanding value when exchanging a ticket; It gives flight credit when you cancel the ticket yourself. Both can come in handy for future travels as long as you know how to use them. Also, keep in mind that you cannot combine flight credit and trip credit on the same booking.