Air Transport World

Faced with climbing.

Faced with climbing fuel prices, stagnant yields, aggressive labor demands and overcapacity in many markets, US airlines sought savings by further squeezing the agency distribution system. Following United Airlines' lead, major US carriers reduced the base commission rate from 8% to 5% for tickets purchased in the US and Canada for all domestic and international travel, while maintaining previously announced commission caps for US domestic ($25 one-way/$50 roundtrip), transborder (C$35 one-way/C$70 roundtrip) and international ($50 one-way/$100 roundtrip) travel. …

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