Airline ticket cancellation fees are deducted by the airline from the originally paid airfare amount after you cancel a reservation and apply for a refund. Therefore, the refund you receive equals the total amount you paid for the airline ticket less the applicable penalty.

Airline cancellation fees themselves are technically non-refundable, meaning that once an airline charges you a fee to cancel a flight, you do not get that money back. However, in 2026, the industry has largely shifted away from these fees for "standard" economy tickets on major US carriers. If you cancel a non-refundable ticket, you typically receive the remaining value as a Flight Credit rather than a cash refund. The "fee" is usually deducted from the total ticket price before the credit is issued. Note that under the 24-hour rule, if you cancel a flight within 24 hours of booking (for travel at least a week away), the airline must refund the entire amount, including any potential fees, to your original form of payment.