2 More Carriers Cap Travel Agent Payments

Delta Air Lines Inc. and AMR Corp.’s American Airlines capped commissions that travel agents earn for booking international flights, following the same move by UAL Corp.’s United Airlines last week. Delta and American said they will cap the 8% commissions paid to travel agents in the U.S., Puerto Rico and the U.S. Virgin Islands at $100 for round-trip international flight bookings and at $50 for one-way flights. The moves by the three largest U.S. carriers are part of an industrywide trend toward paying travel agents less as the carriers reach out to customers by other means, such as the Internet. United said the cap will save $100 million annually, and Delta projects $40 million to $45 million in savings. Travel agents, upset about their declining income, are lobbying against such cuts in Washington. Last year, most U.S. carriers cut the amount they pay U.S. travel agents for booking airline tickets from 10% to 8%. Some airlines also recently lowered the commissions agents can earn for tickets they book over the Internet.