Tag Archives for change fees.
American Airlines announced today that they’re eliminating change fees for all international tickets other than Basic Economy tickets that originate in North or South America. They’re taking it much farther than other airlines had when the first round of change fee eliminations were announced at the end of August.
American Airlines announced this morning that they’ll no longer charge telephone booking fees on award tickets, and no longer charge fees to cancel an award ticket and redeposit miles into a member’s account. Those are both real improvements to the program. They are also extending their pause in mileage expiration through June 30, 2021.
Delta is out with changes to its SkyMiles program that are positives for members. They’re building on elimination of domestic change fees by exempting award changes and redeposits as well, excluding Basic Economy fares, and extending airline club memberships and credit card companion tickets and travel credits.
The popular narrative seems to be that United, Delta, and American ‘eliminating change fees’ hurts Southwest Airlines. Southwest hasn’t had change fees, and this takes away one of Southwest’s advantages.
Other airlines still have their advantages over Southwest, from premium cabins to lounges, but those are the same as before. What’s different in the new environment is a growing cost advantage for Southwest, and most people misunderstand what ‘no change fees’ on United, Delta, and American means anyway.
The change isn’t about being ‘customer friendly’ and it wasn’t about share shift – which won’t happen, because major airlines quickly matched each other on this – it’s about modernizing the pricing model and getting rid of a tool that wasn’t relevant anymore, while at the same time making those non-basic economy fares more attractive to less price-sensitive buyers.
It isn’t often that Delta copies United but, like American, they’re also going to waive change fees. All three of course are copying Southwest Airlines – which doesn’t charge baggage fees either.
While Delta’s announcement was rushed out because of United’s move, they’ve actually been considering doing this for some time. They were talking about rethinking change fees at the beginning of 2020.
United announced an end to change fees on most domestic tickets. American matched in less than a day, including more destinations. They’re extending change fee waivers on international, basic economy, and award tickets to the end of the year. And they’re letting Basic Economy customers have elite benefits again, too.
United Airlines is offering free same day standby starting January 1, and eliminating change fees on domestic tickets (including Puerto Rico and the U.S. Virgin Islands but not other territories) effective immediately though this excludes basic economy tickets. A waiver of change fees for basic economy and international ticket purchases is being extended through the end of the year.
All MileagePlus elite members can confirm same day changes at check-in provided the same fare class is available. Currently complimentary same day changes are only available to Gold members and above.
It’s been clear for months that airlines need to continue waiving change fees in order to convince customers to buy tickets. Otherwise their plans are just too uncertain to pull the trigger on travel.
American’s policy has been extended, applies to award travel even next year, and the airline will allow name changes on business travel tickets.
At the end of May things were looking really good for summer travel, and American tried to place limits on its change fee waivers. Since the beginning of the pandemic airlines have allowed a change fee waiver on ticket purchases, so that customers faced with uncertainty would have greater comfort buying travel.
As forward bookings have softened, though, and competitors haven’t followed American’s lead in restoring the ‘no changes’ rule to Basic Economy fares American too has backed off.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
