American Airlines cancellation policy allows passengers to cancel their reservations within 24 hours of booking for a full refund, provided the booking was made at least 2 days prior to departure. After this period, cancellation fees may apply depending on the fare type and destination. Refunds may vary and are subject to the fare rules. Additionally, passengers may incur charges for same-day cancellations or changes. It's advisable to review the specific terms and conditions of your ticket before making changes or cancellations.