You have documentary evidence that they confirmed your reservation on the flight? If so, I would consider small claims court. The airline are being utterly unreasonable. On this basis, the airline could randomly start just cancelled every passengers return ticket without telling them, refund the lower advance purchase rate and then demand the higher last minute rate for the flight. It is wrong and I am sure you would win in Small Claims. I would fight this, and copy your complaint to the DOT.
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