In the US, if the airline cancels your flight, you're owed a full refund to your original form of payment when you choose not to travel, no matter why the flight was canceled. You can take a free rebooking instead, but the airline can't force a voucher on you.
Here's the short version: a canceled flight is one of the strongest positions you can be in as a US passenger. Under federal rules, if your airline cancels your flight and you decide not to take the new option they offer, they have to give you your money back. Not a credit. Not a voucher. Actual money, in the way you paid.
The US Department of Transportation requires airlines to automatically refund you when they cancel a flight and you choose not to fly. A few things worth knowing:
This also kicks in for a "significant change," not just a full cancellation: a schedule shift of more than 3 hours domestically or 6 hours internationally, a different airport, added connections, or a downgrade in your class of service.
A refund isn't your only option. Most people just want to get where they're going, so airlines will rebook you on their next available flight at no extra cost. If you'd rather do that, take it. When the cancellation was the airline's fault (crew, maintenance, mechanical, the "controllable" stuff), major US airlines also commit to covering meals for long waits and a hotel plus transport for overnight delays. You can compare exactly what each airline promises on the DOT's Airline Customer Service Dashboard.
Cash compensation on top of your refund. Unlike Europe, US rules don't require airlines to pay you a penalty for the inconvenience of a canceled flight. You get your money back or a free rebooking, plus care during a controllable disruption, but not a bonus payout.
If your flight departs from the EU, or arrives in the EU on an EU airline, EU261 applies. You can choose a refund, rerouting, or a return flight. On top of that, if you're told less than 14 days before departure, you may be owed cash compensation of roughly 250 to 600 euros depending on distance, unless the cancellation was caused by extraordinary circumstances like severe weather. The airline also has to feed and house you while you wait.
Don't let a gate agent talk you into a voucher on the spot. Decide what you actually want: your money back or a seat on the next flight. If you want cash, ask for a refund to your original payment and hold firm. Keep your boarding passes and receipts, and if you flew to or from Europe, check whether EU261 owes you a payout too.
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