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Delta Follows United Airlines in Eliminating Change Fees

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Delta Air Lines Inc (DAL - Free Report) has permanently eliminated change fees for travel within the United States, replicating a similar move by United Airlines (UAL - Free Report) recently.
The change, effective immediately, is applicable on Delta’s First Class, Delta Premium Select, Delta Comfort+ and Main Cabin tickets except for Basic Economy on travel within the United States, Puerto Rico and U.S. Virgin Islands.

As coronavirus continues to ravage the aviation industry, airlines are trying hard to encourage wary customers to start traveling again. To this end, they are offering customers with flexibilities to make changes to travel plans, besides boosting safety measures. On the removal of change fees, Delta’s CEO Ed Bastian stated, “We want our customers to book and travel with peace of mind, knowing that we’ll continue evaluating our policies to maintain the high standard of flexibility they expect.”

Delta also plans to extend its waiver on change fees for new tickets purchased for international flights through the end of this year. This would include Basic Economy tickets as well. To ensure safety of passengers, the carrier is blocking middle seats through Jan 6, 2021.

Apart from Delta, American Airlines (AAL - Free Report) has followed in United Airlines’ footsteps in eliminating change fees permanently. Effective immediately, customers flying to any of the 50 U.S. States, Canada, Mexico, Caribbean, Puerto Rico and U.S. Virgin Islands will not have to pay fees for ticket changes when traveling in the main cabin (except Basic Economy), Premium Economy, Business Class and First Class. Additionally, beginning Oct 1, 2020, customers will be able to fly standby for free on earlier same-day flights. Low-cost U.S. carrier Southwest Airlines (LUV - Free Report) never had a policy to charge for ticket changes.

All the companies mentioned above carry a Zacks Rank #4 (Sell), except for American Airlines, which carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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