United Airlines’ decision to eliminate flight change fees three years ago has come back to haunt them, resulting in a significant financial setback. The airline announced on Tuesday that it had incurred an estimated loss of $2 billion since waiving the $200 change fee for economy and premium ticketed passengers, although basic economy passengers are still subject to the fee.
Linda Jojo, United’s chief customer officer, acknowledged the impact of this policy change on both customers and the overall flying experience, stating, “This simple policy change has had a dramatic impact on our customers and the overall experience of flying United. You can book with confidence knowing that even if your – or your team’s – plans change, United has your back.”
Since the implementation of the new policy in 2020, over 10 million customers have taken advantage of this new freedom. This includes 3.6 million passengers who changed the time of their flight and 1.5 million who changed their departure or arrival airport.
However, amidst this setback, United Airlines reported strong earnings for Q4 2023, with a nearly 10% increase in operating revenue compared to the previous year. CEO Scott Kirby expressed confidence in the company’s future prospects, stating, “Our plans really came together in 2023, and I want to thank the United team for all of the hard work it took to get us there. Looking ahead, we expect these trends to continue, and United is incredibly well positioned to capitalize on them and to deliver on our short and long-term financial targets.”
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