The penalty for cancelling a flight on American Airlines depends on several factors, including the type of fare you purchased, the time of cancellation, and the specific details of your itinerary.

For non-refundable tickets, American airlines' cancellation policy typically charges a cancellation fee that can range from $0 to $750 per ticket, depending on the fare type and the length of time between the cancellation and the original travel date. The remaining value of your ticket can be held as a credit for future travel, but may be subject to additional fees or restrictions.

If you have purchased a refundable ticket, you can cancel your flight at any time and receive a full refund to your original form of payment, with no penalty or fees.

It is important to note that American Airlines may also cancel or change your flight due to unforeseen circumstances, such as weather or operational issues. In these cases, American Airlines will work to rebook you on the next available flight or provide you with a refund or credit, with no penalty or fees. If you want to know more you can read the full blog.