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The cancellation policy of American Airlines is based on the type of ticket booked. Non-refundable tickets typically do not provide a cash refund but offer travel credit for future use, after deducting a cancellation fee. Refundable tickets can be fully refunded if canceled before the flight. If American Airlines cancels a flight, passengers are entitled to a full refund, no matter the ticket's status. Additionally, cancellations or changes made within 24 hours of booking are free of charge, provided the departure is at least two days away.