Delta Air Lines and American Airlines said on Monday they are permanently dropping domestic change fees, mirroring an announcement by rival United Airlines on Sunday in a push to woo back travelers.
U.S. airlines are burning through millions of dollars daily as the coronavirus pandemic hits passenger air travel, which is hovering around 30% of what it was a year ago, forcing more customer-friendly policies to encourage people to start traveling again.
Atlanta-based Delta said the elimination of change fees is effective immediately and includes tickets purchased for travel within the United States, Puerto Rico and U.S. Virgin Islands. American’s change also covers flights to Canada, Mexico and the Caribbean.Low-cost rival Southwest Airlines has never charged a change fee for its tickets.
Delta, United and American were already waiving change fees through the end of the year to give travelers more flexibility in an uncertain environment. The fees represented around 2% to 3% of their total revenues in 2019, though analysts said the overall financial impact going forward will be limited as focus remains on generating bookings.
Delta collected $830 million in ticket cancellation and change fees last year, American $819 million and United $625 million, according to the U.S. Department of Transportation.
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United, Delta, and American all drop change fees to woo back fliers - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
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United, Delta, American Say They Are Dropping Change Fees For Domestic FlightsUnited Airlines is getting rid of its $200 flight-change fee as it tries to coax back customers wary of flying during the COVID-19 pandemic. In 2019, U.S. airlines took in more than $2.8 billion in these fees.
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American, Delta End Domestic Change FeesAmerican Airlines Group and Delta Air Lines said they would remove change fees on most domestic flights, as the levies emerged as a competitive battleground among airlines.
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United, Delta, American Say They Are Dropping Change Fees For Domestic FlightsUnited Airlines is getting rid of its $200 flight-change fee as it tries to coax back customers wary of flying during the COVID-19 pandemic. In 2019, U.S. airlines took in more than $2.8 billion in these fees.
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