On April 25, it will have been 10 years since DOT published it's crystal clear ruling:
See Enhancing Airline Passenger Protections, 76 Fed. Reg. 23110-01, at 23129 (Apr. 25, 2011) (“We reject . . . assertions that carriers are not required to refund a passenger's fare when a flight is cancelled if the carrier can accommodate the passenger with other transportation options after the cancellation. We find it to be manifestly unfair for a carrier to fail to provide the transportation contracted for and then to refuse to provide a refund if the passenger finds the offered rerouting unacceptable (e.g., greatly delayed or otherwise inconvenient) and he or she no longer wishes to travel.”) 2 U.S. Dept. of T
I have yet to hear of AA persisting in denying refund claims or in contesting chargebacks for cards issued by US financial institutions when they are both timely made and properly documented. In fact, the DOT website now summarizes the whole issue in one sentence.
- Cancelled Flight – A passenger is entitled to a refund if the airline cancelled a flight, regardless of the reason, and the passenger chooses not to travel (emphasis mine).