United drops fees, American whacks schedule in Covid era

Bloomberg

The airline industry, yearning to bounce back from the prolonged global outbreak of Covid-19, is pulling out more tricks designed to get fliers back on board.
United Airlines spiked its loathed $200 change fee for domestic flights and said that, beginning next year, customers can fly standby for free if there’s an available seat on the same day as their previously planned flight. American Airlines took the sting out of a 55% reduction in its October schedule by adding service
to warm-weather destinations like Florida and Mexico.
“The travel industry recognises the importance of its most loyal customers,” said Victoria Walker, who writes for travel blog The Points Guy, noting that more carriers and hotels have been adding promotions. “What we’re seeing is the industry getting really creative and targeting people who are pretty set on traveling, be it for work or a change of scenery.”
Airline executives are having to innovate to get people travelling again to stave off the worst consequences for the industry, including massive job losses.
The International Air Transport Association is projecting losses of $84 billion for its travel-services members in 2020, and the situation could get worse with the end of the summer travel season — once primetime for carriers.
American Airlines Group Inc said last week it will cut 19,000 workers once federal payroll aid expires on October 1, capping a 30% workforce reduction since the coronavirus pandemic began.
American was the first major carrier to disclose how much it will shrink operations as it adjusts to passenger numbers that are down 70% from last year.
And similar cuts may happen in Europe. Deutsche Lufthansa AG, Europe’s biggest airline, is working on further belt-tightening measures that could result in the elimination of 20,000 more jobs, Swiss newspaper NZZ am Sonntag
reported.
United’s new policy makes it the first US airline to permanently end change fees, which the company and its rivals temporarily scrapped earlier this year as the coronavirus pandemic gutted travel.