Miscellaneous Charge Orders (MCOs)
Eligible use of MCOs Residual Value MCO Usage Guidelines
Ineligible uses of MCOs MCO Refunds
Residual Value MCOs Validity Printing an MCO
MCOs may be used in the following situations:
· Valid on AA/001 for American Airlines, American Eagle, and American Airlines codeshare flights (AA*/oneworld or other partner airlines).
· At least one AA prime segment must be included in the itinerary.
· No point of origin or routing restrictions apply.
· MCOs are automated in the GDS when issued as a straight sale against a form of payment (credit card, cash or check)
· Accepted in any currency and must be converted to the currency of the new ticket being issued.
· Only the issuing agency may apply the MCO.
· MCOs may be used toward any fare type, subject to the applicable fare rules.
Use of MCOs in Exchanges
An MCO may be used in an exchange only when all the following conditions are met:
· The value of the new ticket is equal to or higher than the combined value of the old ticket plus the MCO.
· If the value of the new ticket is lower than the combined value of the old ticket, plus the MCO, the MCO cannot be used for the exchange.
Examples
Acceptable exchange using an MCO:
Old ticket: $500
MCO: $100
New ticket: $600
Result: Even exchange. No residual is created.
Not acceptable:
Old ticket: $500
MCO: $100
New ticket: $400
Result: The new ticket value is lower. The MCO must not be used, and no residual MCO may be issued from an initial MCO.
MCOs may not be used for:
· Optional services such as baggage, seats, upgrades, or penalty fees.
· Ticketing via any American Airlines channel.
· Offsetting any add-collect amounts or penalty fee for exchanges.
· Creating a new throw-away ticket or issuing a new MCO to extend validity.
o Debit Memos will be issued for violations.
· An MCO is valid for one year from the date of issue.
· When applied to an exchange, the MCO assumes the ticket’s one-year validity.
· If the MCO expires, its value is forfeited, even if the ticket itself remains valid.
o Example:
MCO was issued 26JUL2025
Agency applies MCO toward a new valid ticket before its expiration date.
For refund, the MCO amount is forfeited because it expired 26JUL26.
· MCOs may not be used to create a new throwaway ticket or a new MCO to extend its validity. Debit Memos will be issued for violations.
Residual MCOs are issued only when remaining value exists after the exchange of a non‑refundable ticket.
Residual MCOs may be issued when:
· A non‑refundable ticket is exchanged
· A fare reduction or downgrade creates remaining value after penalties
· The exchange falls within the validity period of the ticket/MCO
Characteristics
· Valid for one year from the date of issue.
· If used in a subsequent exchange that generates additional residual value within its validity, a new residual MCO is issued with a new one‑year validity.
· May be issued in the original customer’s name or in another customer’s name.
· Must show NONREF and reference the original ticket number in the endorsement box.
· The Type of Service or Valid For field must show “RESIDUAL” or “FUTURE”.
o Example:
Residual MCO was issued 26AUG2024.
Agency applies it toward a new ticket before its expiration date.
Agency exchanges the ticket again on 15MAY2025 with continued remaining value.
New residual MCO validity: 15MAY2025-15MAY2026
For refund purposes, any residual MCO value would be forfeited after expiration (for example, expired 26AUG25)
Residual Value MCO Usage Guidelines
A non‑refundable residual MCO may be applied toward a new ticket for:
· The same customer or a different customer.
· Any routing or country of origin.
If a residual MCO is applied to a higher‑value ticket, any additional amount or fees must be collected separately using another form of payment.
If a residual MCO is applied towards a lower‑value ticket, a new residual MCO may be issued:
o Valid for one year from the exchange date.
o Issued in the original or new ticketed customer’s name.
A non‑refundable residual MCO may be applied to a refundable ticket; however, the non‑refundable portion remains non‑refundable.
Eligibility
· An MCO is valid for refund consideration for one year from its date of issuance.
· Refund eligibility is determined by the MCO issue date, not the ticket issue date.
· If an MCO is used as a form of payment, refund eligibility is based on the type of MCO used.
o If a non‑refundable MCO is used as a form of payment for a non‑refundable ticket, the MCO remains non‑refundable and cannot be refunded once exchanged.
o If an initial MCO is exchanged toward a refundable ticket and the customer later decides not to travel, the refund is allowed to the form of payment used to issue the MCO.
If the ticket qualifies for a full refund (for example, flight cancellation):
· The refund request must be submitted via Refund Request
· The non‑refundable portion will be refunded by voucher or trip credit.
· The refundable portion will be refunded to the original form of payment.
Expired MCOs
· Expired MCOs are non-refundable.
· If the MCO is expired, the ticket may be used as credit toward future travel within ticket validity (all ticket fare rules apply).
· A non-refundable residual MCO may be applied to a refundable ticket, but the non-refundable portion remains non-refundable
For new tickets:
· A maximum of two MCOs may be applied to the purchase of a ticket.
· The first MCO is entered as the Exchange document
· The second MCO is entered in ARC/IAR REN
o For assistance in completing your transaction, you may contact ARC Helpdesk at 1-703-816-8003
· Each MCO may be issued under a different passenger name. Both may be applied towards the same ticket, provided all other eligibility rules are met.
For exchanges:
· Only one MCO may be used during an exchange transaction
· Residual MCOs may be created as allowed by the fare rules, but two MCOs cannot be applied at the same time during the exchange.
MCOs do not require a physical ticket printer.
Agencies may print MCOs from ARC for record-keeping purposes.
Updated: March 2026