United, Delta Reduce Agent Commissions
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UAL Corp.’s United Airlines and Delta Air Lines Inc. reduced the maximum commission paid to travel agents to $20 from $50 on round-trip travel in the U.S. and between the U.S. and Canada.
United, the second-largest U.S. airline, and No. 3 Delta followed the lead of AMR Corp.’s American, which made the same change Friday. Each of the carriers kept the commission rate at 5% of the ticket price, up to the $20 maximum. Delta’s change took effect immediately and United’s will take effect today, the companies said.
Airlines have been lowering commissions for several years as they sell more tickets on the Internet at lower costs. Travel agents, who still sell about 80% of airline tickets, have been angered by the cuts.
The American Society of Travel Agents said it plans to ask the Justice Department for antitrust immunity next week so the agents can discuss a collective response to the airlines’ reductions.
Chicago-based United and Atlanta-based Delta declined to comment on their changes.
On the New York Stock Exchange, UAL fell 65 cents to $33.40, Delta rose 6 cents to $39.26 and AMR rose 27 cents to $32.40.
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