United Airlines has released its Super Bowl ad, with Kyle Chandler (Friday Night Nights), promoting being a super fan – and changing your tickets at no cost. You can buy your tickets for next year’s Super Bowl now, believing your team will make it, and you don’t lose the value of your ticket if you have to cancel because they don’t. But this is super misleading because of basic economy and expiration of travel credits.
The commercial promotes “No fees to change your flight. Ever.” Here’s what United’s website has to say about that,
Changes are not permitted on Basic Economy tickets if travel begins on or after February 1, 2022. …If you’re flying on a Basic Economy ticket, you can’t change your flight unless you upgrade to Economy or a premium cabin first.
You don’t get charged a fee. You actually get charged a higher fare. And they’re technically different in the airline’s systems, but to the customer they’re being charged more to change their ticket either way.
United was first to make elimination of change fees, originally a temporary pandemic move, a lasting feature. Change fees had gone from $25 to $50 and eventually to generally $200 on a domestic ticket. Buy two one ways and you’d have $200 change fees on each to change plans. Other airlines quickly followed (even more generously, causing United to revisit some of its restrictions).
Over the course of the last 3.5 years, United reports that more than 10 million passengers changed their flights without a fee. Fees for these changes would have totaled $2 billion.
- 3.6 million switched the time of day they flew
- 1.8 million extended their trip
- 1.5 million changed their origin or destination airport
- 300,000 converted their ticket from domestic to international or vice versa
Let’s be clear. Many of these changes wouldn’t have happened if the fees were in place, so United did not give up $2 billion in revenue. And that suggests the value of many of the changes was less than the old change fee (so value to consumers was less than that $2 billion).
This isn’t all incremental changes, though, people changed their tickets in the past. United lost change fee revenue. However they kept customers. Often the new purchases were more expensive, so there’s incremental revenue to the airline. People also become more willing to purchase, hence United’s Super Bowl ad pitch that you can buy next year’s tickets now.
Always watch for the expiration date on credits. Generally speaking United requires you to travel within one year of original ticket purchase. You can’t buy a Super Bowl ticket for 2025, then roll the credit over to the 2026 Super Bowl. Southwest’s travel credits, on the other hand, do not expire.
The end of change fees on non-basic economy fares has meant that I’m more loyal to larger airlines. I know I can make a change and retain ticket value, so I want that value to be with an airline I’m likely to fly again. I’m reluctant to buy tickets with an airline that has a small presence at my home airport, especially if I’m going to have to use any credit for travel within a year of purchase.
At the start of the pandemic United along with JetBlue were the worst airlines for providing refunds to customers for cancelled flights. And it’s easy to forget that Southwest already didn’t have change fees. That used to be a differentiator. They still don’t charge for up to two checked bags per passenger. Other major airlines started charging for checked bags back in 2008.
Let’s assume, though, that the number of changes being made to tickets with U.S. airlines each year is about 5x the numbers reported by United. That’s changes that would have cost $10 billion in the past, or about $2.85 billion per year.
10 people changes their tickets costing United 2 billion? $200 million to change a ticket seems a bit extreme…
Perhaps the no change fee adaption was necessitated due to the massive amount of changes in scheduling (nearly every ticked I’ve booked 10-11 months in advance changed to a crappier itinerary). In the case of AA they listed and took bookings for a flight that has not existed for over a year.
Early posted itineraries are more like an artist’s rendition vs the reality of what gets flown. A no change/full refund policy avoids the damages caused by this blatant misrepresentation (false advertising) of their posted itineraries that can now be changed at will to maximize carrier revenue.
BTW the AA website has not been allowing award ticketing for two weeks now due to ongoing programming (new prettier pictures etc). The 4 individual tickets I’ve booked in the last 2 weeks required calling to get booked by an agent that is also experiencing issues reentering the request multiple times to book a ticket. The agent said the programming will hopefully be fixed soon. Nice if AA would tell us in advance with a message on the booking site.
The United commercial should have been produced for Southwest, whose credits do not expire.
“United was first to make elimination of change fees, originally a temporary pandemic move, a lasting feature.” This is only true if you stress the word “elimination” , since Southwest never charged for changes, nor checked bags.
Gary this site is turning into a UA hit piece machine lol. the bitterness is palpable!
@B.S. – Tell me what I’ve written that’s inaccurate – I want to make sure readers aren’t misled. As for as a grudge against United, a week ago Dennis Prager just slammed me as a “left-wing observer of the airline industry and defender of United”… go figure!
@DENIS A BEKAERT – that’s literally in the piece!
@Gary i just found it notable that it’s the second article ripping apart United for their Basic Economy product in a few days. meanwhile as you mention, I am also more loyal these days thanks to the flexibility with non-basic and award fares
@B.S. – Today’s discussion of basic economy was prompted by United making a new claim (today) about cancel fees in a Super Bowl commercial that seemed misleading.
United also sells regular (not basic) economy tickets to Japan that cannot be changed or refunded and those cannot even be upgraded first to get around that.
I HATE all airlines. There’s something wrong with each one of them. Wish I could drive a high speed car every where.
@JDawg: Good point. I saw that too. That is “Basic Economy For Japan/Connecting via Japan” fares. UA just came up with another creative way to collect fees. Readers should be aware of what you mentioned.