Finally, Airlines are Dropping Change Fees

Business Wars Daily
|

Automatic TRANSCRIPT

Wars daily on this September fourth. Happy Friday friends and happy. Labor. Day. Weekend. Labor, day, marks the end of summer for many of us an occasion for one last Hurrah barbecues pool parties in one last long weekend vacation perhaps this year well, most of us are staying home and the airlines have absolutely nothing to celebrate. Passenger levels are down seventy percent from a year ago, according to figures from the Transportation Security Administration looking financial disaster in the face, the airlines are trying to woo travelers back given the safety concerns that's proving difficult. So on Monday, United Airline CEO Scott Kirby took a startling and many would say welcome step here he is in a video announcement. Permanently getting rid of change vs on standard economy and premium tickets for travel within the US. Changes inevitable these days, but it's how we respond to change. That matters most. We hear from customers about where we can improve getting rid of this feat is often offered West and for good reason until now it could set you back two hundred to five hundred dollars to change a flight on one of the Big Three Airlines, United Delta or American sometimes that fee was more than the cost the original ticket simply the existence of that fee put all three airlines at a competitive disadvantage. To Southwest Airlines, which proudly boasts that it has never charge change fees or baggage fees, either which is another story well, now, non of the other airlines will either at least for domestic flights about twenty four hours after Kirby went public. American Airlines and Delta followed suit and canceled their domestic change fees as the Wall Street reports American went even further canceling their change fees for international flights to Canada Mexico, and the. Caribbean. Now, the question is, what will it cost them? US carriers earned close to three billion dollars from changing cancellation fees in two thousand, nineteen according to the US Transportation Department. All three major airlines in hefty amounts of money. American was I with more than eight, hundred, million dollars coming from vs Delta was close behind united took in more than six hundred, million dollars one might imagine that it could be hard for. The airlines to give up these fees after all about fifteen percent of their revenues come from the fact did travelers changed their minds united is burning through about forty million dollars a day and could cut up to thirty six thousand jobs by October first that according to CNBC. So you might think that every possible penny counts but if no one traveling anyway, well, it's

Coming up next