American Lowers Travel Agent Commission

AMR Corp.’s American Airlines said it is reducing payments to travel agents on domestic tickets costing more than $400 round trip on American or TWA. The company said it would still pay travel agents a base commission of 5%, but payments would be capped in the U.S. at $10 for a one-way ticket and $20 for a round-trip flight, instead of $25 and $50, respectively.

The change goes into effect today, and other carriers are expected to mimic it.

Richard Copland, president of the American Society of Travel Agents, said travel agents will be forced to make up for the reduced commissions by charging clients a higher fee. About 80% of all tickets are sold through travel agents, and about 90% of them charge transaction fees.

Fort Worth-based American said it would have no further comment on the action, which was announced in a news release. Other major carriers also refused to comment.