Etihad Made Its Convoluted Award Cancellation Policy Even More Punitive — Here’s How It Works Now Etihad Made Its Convoluted Award Cancellation Policy Even More Punitive — Here’s How It Works Now

Etihad Made Its Convoluted Award Cancellation Policy Even More Punitive — Here’s How It Works Now

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Ever since making changes to its Guest loyalty program in early 2024, Etihad has held the title of having the most punitive award cancellation policy in award travel. The airline arguably still holds that title today, even after a two adjustments to these policies over the course of 2025.

Here’s what you need to know about Etihad’s award cancellation policy and how it works.

Etihad Has a Confusing and Punitive Award Ticket Refund Policy

We like it when airlines keep it simple. Etihad's award cancellation policy is anything but.

Before overhauling its policy in early 2024, you’d forfeit just 10% of the miles redeemed to cancel an award ticket. Nowadays, it’s far less clear-cut. What you’ll pay to cancel depends on several factors.

So, let's introduce you to the new policy — and go over the older policies that you might be beholden to instead depending on when you booked your ticket.

Side-view of an Etihad 787 at ZRH.
Credit: Tyler Glatt/AwardWallet

For tickets booked on or after November 13, 2025

Etihad made its most recent revision to its award change and cancellation policy on November 13, 2025.

Under the new policy (for tickets issued on or after November 13), Etihad made it nearly impossible to cancel a Guest award ticket and get anything back.

There are a lot of Xs on the table below, which apply to both saver economy and business class awards. This is code for “this award cannot be canceled for a refund.” And that's still the case even on tickets that are supposed to come with more flexibility, such as Deluxe award fares.

Etihad award change/cancel policy for tickets booked on/after 11/13/2025.
Credit: Etihad

You'll note that Etihad mentions the cancellation fee for Comfort award tickets cancelled more than 72 hours from the time of departure is 25%. However, “fare” doesn't mean what you think. Keep this in your back pocket for now, and we'll explain how it works down below.

Etihad also posted a new chart for first class award changes and cancellations. These awards are only available in Comfort and Deluxe, but they're equally punitive to cancel.

Etihad award change/cancel policy for first class tickets booked on/after 11/13/2025.
Credit: Etihad

For tickets booked on or after June 19, 2025

If you booked an award ticket using Etihad Guest miles on or after June 19, 2025, the cancellation fee depends on how close to departure you are and what fare class (Value, Comfort, or Deluxe) you’re booked in. It breaks down like this:

Etihad award cancellation policy effective June 19.
Credit: Etihad

At first glance, this version of the policy doesn't look as punitive as the new policy, since you can cancel more types of awards (and do so closer to departure) and get something back.

For tickets booked before June 19, 2025

Lastly, if you booked an Etihad Guest award before June 19, 2025, you’re eligible for a refund up to 24 hours before your scheduled departure. Like the updated policies, the amount of miles and taxes and fees you get back depends on how early you cancel. But under these rules, your fare class doesn’t matter.

The closer to departure you cancel, the less you’ll get back, based on the following structure:

  • 21+ days before departure: Forfeit 25% of the fare
  • 8–21 days before departure: Forfeit 50% of the fare
  • 1–7 days of departure: Forfeit 75% of the fare
  • Within 24 hours: Not allowed

Now, what exactly is a “fare?” We'll explain.

How Etihad Defines the “Fare”

Etihad’s definition of “fare” requires the use of a calculator. It is the sum of the miles plus the cash you pay in taxes and fees, all calculated based on the 2¢ “purchase rate” Etihad assigns to its Guest miles, which fluctuates with currency movements.

To make this clearer, let’s look at an example.

Suppose you book an award ticket on December 10, 2025, in the Comfort fare class that costs 50,000 Guest miles plus $400 in taxes and fees, and then need to cancel one month before departure. Etihad will refund 25% of the “fare” according to its fee structure. However, that does not mean you will receive one-fourth of the miles and one-fourth of the taxes and fees back.

Etihad First Class Residence
Credit: Etihad

Instead, Etihad will multiply the 50,000 miles by its 2¢ per mile purchase rate. That gives your miles a “monetary value” of $1,000. Etihad then adds the $400 in taxes, assigning a total value of $1,400 to your booking. That's the “fare.”

The airline will then refund 25% of the $1,400, or $350. The refund comes out of the cash portion first, then the miles. So, you'll get $350 back on your card, but you'll forfeit $50 and your 50,000 Etihad Guest miles.

Nope, don't like that at all.

Related: Do Etihad Guest Miles Expire?

Final Thoughts

To put it bluntly, Etihad's cancelation policy is among the worst award ticket change and cancellation policies we track. And it gets worse each time the airline makes a revision to its policy.

It's still unnecessarily confusing, and the math borders on illogical. Why refund a proportional amount of miles and cash when you could have customers break out a calculator instead?

The policy is also objectively punitive. If you book an award with Etihad Guest miles and your plans change, you will pay a hefty price, even for cancellations made well before departure. For some award travelers, this policy alone is reason enough to avoid the Etihad Guest program entirely.

Of course, that’s assuming the airline doesn’t suspend your Etihad Guest account before you even have the chance to book anything.

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