Travelers across the globe are increasingly facing complex terms and conditions when dealing with airline-issued travel credits, as exemplified by one New Jersey couple’s recent experience with United Airlines. The couple, seasoned passengers and MileagePlus loyalty members, found themselves in a protracted dispute over nearly $1,000 in travel credits after canceling a long-anticipated trip due to concerns over the destination’s political climate.

Context: Unused Credits After Trip Cancellation

Bob and Marge Farrell, longtime United customers from Florham Park, New Jersey, planned a special getaway to the Dominican Republic in celebration of their 50th wedding anniversary. With first-class seats booked and travel insurance secured, their excitement was quickly subdued by warnings about the region’s stability. Choosing caution over adventure, the couple canceled their trip in November 2024, fully aware that their travel insurance—like many policies—would not cover cancellations due to political unrest.

Airlines worldwide have grappled with a surge in booking changes and cancellations since the COVID-19 pandemic, leading to billions of dollars in travel credits being issued. United Airlines, the world’s third-largest airline by fleet size, has issued over $2 billion in credits since 2020, according to financial disclosures through 2024. For customers like the Farrells, this system is both a lifeline and a labyrinth.

United’s Complex Credit System Explained

The Farrells assumed their credits would be straightforward to use. Bob had already applied a portion toward a Florida trip, leaving him with $259. Marge booked a trip to Seattle, but still retained $716 in credit as of July 2025. When their plans shifted again—this time for Bob’s golf club honors event in Scotland—he hoped to consolidate and use both credits.

However, United’s policies threw them off course. The airline divides credits into two main types:

• Future Flight Credits: Issued following cancellations of nonrefundable tickets, these are non-transferable and must be used by the original ticket holder within one year of the ticket purchase (not cancellation) date.
• Travel Certificates: These can be used by anyone, are transferable, and also expire one year after issuance—but require only that the booking is made before the expiration date, not the actual travel.

This nuance caught the Farrells by surprise. Credits tied to Marge’s name and ticket couldn’t be transferred or pooled for Bob’s overseas adventure. The money was locked in, potentially to expire unused—a predicament faced by untold numbers of travelers nationwide. This challenge has become more common over the past three years as travelers navigate rebooking arrangements altered by the pandemic and natural disasters, such as the record hurricane activity affecting flights in 2024.

Industry Trends: Airline Revenue and Credit Expiration

Major U.S. airlines, including United, American, and Delta, have reported increased income from unused travel credits and gift cards—a so-called “breakage” revenue stream, which totaled over $870 million industry-wide in 2024 according to the U.S. Department of Transportation. Class-action lawsuits and regulatory scrutiny have increased as disgruntled passengers challenge what they perceive as unfair or opaque credit expiration policies. In response, some carriers have extended credit expiration since 2022, especially for tickets impacted by COVID-19 or booked before key cutoff dates.

United, for its part, maintains that credits for tickets purchased post-August 2021 remain non-transferable, though exceptions are made for unique cases—a category to which the Farrells would ultimately belong.

Resolution: Persistence Pays Off

Bob Farrell took his case public, reaching out to NJ Advance Media’s Bamboozled consumer help column, joining a growing number of fliers challenging airline credit rules. United reviewed the case and, after media inquiry, converted Marge’s remaining credit into a transferable travel certificate, merging both balances to fund Bob’s Scotland trip. Bob expressed relief and gratitude, but noted the process was far from user-friendly.

“They were holding $975 of my money that I already paid out—it’s not like I was trying to get away with anything or ask for a refund. That’s all I wanted: the service for what I paid for,” Farrell said.

United’s decision was an exception, not the rule. The airline confirmed that, in most cases, credits must still adhere to their original issuance terms.

Lessons and Best Practices for Business Travelers

• Confirm Terms: Always review the airline’s policy on credits before booking and after any itinerary change. Pay attention to when credits expire and who can use them.
• Ask for Accommodations: If strict policies would result in significant loss, reach out directly to airline customer service or escalate to a consumer advocate. Exceptions are rare but possible.
• Use Credits Promptly: The surge in travel during 2025, driven by rebounding international demand (with IATA projecting a 9.5% increase in global bookings over 2024), means credits may expire quickly amid changing schedules.
• Document Everything: Keep receipts, cancellation records, and any communication with airlines. This can speed up resolution if disputes arise.

Travel experts recommend utilizing credits well before expiration or seeking alternative uses—such as gifts for family, if allowed. The U.S. Department of Transportation is considering further regulation on credit expiry disclosure, but no rule changes have yet passed as of June 2025.

The Future of Airline Credits

With leisure and business travel seeing a record resurgence post-pandemic, flexible rebooking and clear communication will remain hot issues. Airlines are under pressure from both customers and regulators to offer greater transparency. Experts predict that further changes will arrive by 2026 as government and consumer advocacy groups demand fairer practices, and airlines seek to balance operational stability with maintaining customer loyalty.

For now, the Farrells’ experience underscores an urgent lesson for all travelers: Know the difference between vouchers, flight credits, and certificates, and don’t be afraid to advocate for your fair share of the skies.