United Airlines Says It Is Permanently Dropping Change Fees For Domestic Flights
As airlines try to coax back customers wary of flying during the COVID-19 pandemic, United Airlines is bowing to consumer demand and permanently getting rid of many change fees.
"It's no secret that the coronavirus pandemic has had a historic economic impact on airlines," United CEO Scott Kirby said in a video statement. "When we hear from customers about where we can improve, getting rid of this fee is often the top request."
Previously the standard domestic change fee for the airline was $200. United said Sunday that it was "permanently getting rid of change fees on all standard Economy and Premium cabin tickets for travel within the U.S."
As of Jan. 1, 2021, the carrier also will allow customers to fly same-day standby for free – a service that used to cost $75 for people who didn't have status in its rewards program.
The company said last month that the previous quarter was the worst in its 94-year history. It lost at least $1.6 billion and burned cash at an average of $40 million a day.
United is one of many airlines that offered increased flexibility for changed flights as the coronavirus pandemic led many customers to rejigger their plans.
American Airlines and Delta Air Lines have both previously extended waivers of their change fees. It's not clear if United's announcement will prompt either airline to drop the fees for good.
"American and Delta don't have much of a choice," Henry Harteveldt of Atmosphere Research Group, told The Points Guy. "Southwest and United have boxed them in a corner. If they don't match, they risk losing customers to Southwest and United. If they do match, it's a zero-sum game."
Southwest does not charge change fees, a policy that has long been popular with its flyers.
This type of fee brings in huge amounts of money for many airlines. According to the Bureau of Transportation Statistics, United collected more than $625 million last year in fees for changes and cancellations. In 2019, U.S. airlines took in more than $2.8 billion in these fees. [Copyright 2020 NPR]
