United Airlines will eliminate its $ 200 fee to redeem domestic tickets with immediate effect, eliminating a perennial source of customer anger as airlines try to convince people to get back on airplanes.
Also, starting next year, passengers will be able to fly in standby mode for free if a seat is open the same day as their planned flight, United said in a statement Sunday. The airline currently charges $ 75.
United’s new policy makes it the first American airline to permanently end exchange rates, which the company and its rivals temporarily eliminated earlier this year when travel was destroyed by the coronavirus pandemic. United raised $ 625 million in ticket cancellations and exchange fees last year, behind Delta Air Lines and American Airlines, according to the U.S. Department of Transportation.
“When we hear about customers where we can improve, getting rid of fees is often the number one request,” United CEO Scott Kirby said in a video message to customers. “After the first difficult times, airlines took drastic decisions to survive, sometimes at the expense of customer service. United Airlines will not follow the same playbook when we emerge from this crisis. “
The decision brings United’s policies closer to those of rival Southwest Airlines, which has never charged customers for changing tickets and is likely to put pressure on American and Delta to weigh the future of their fare structures. Even with the suspension of change fees this year, travelers on all US airlines must pay any difference in fees if they change to a different flight.
In all, 10 US carriers reported a combined $ 2.8 billion in rate revenue last year. United will retain international exchange fees ranging from $ 150 to $ 400.
US airline passenger counts are still 70% below last year’s levels.
