American Airlines to End Standby Option for Most Passengers

(Bloomberg) -- American Airlines, the world’s second-biggest carrier, will stop letting most passengers stand by for a different flight on their day of travel without paying a fee.

The free standby option will remain for higher-level members of its frequent-flier program, first- and business-class travelers, those paying military fares and some coach passengers, the Fort Worth, Texas-based carrier said in a statement today.

All customers will be able to pay a $50 fee for a guaranteed same-day flight change if space is available for a switch. That charge has been in place since 2005. Previously, any passenger was eligible for standby without charge.

American, an AMR Corp. unit, said it expects to reduce congestion caused by large numbers of travelers seeking such changes. The fee adds to the list of goods and services coach passengers can elect to buy as carriers try to raise revenue separate from ticket sales. AMR sales from such sources were $2.3 billion last year, rising 5.4 percent from 2008.

“It’s not driven just by revenue, but by the fact that on many, many flights we see large numbers of people trying to stand by for a flight,” Tim Smith, a company spokesman, said in an interview. “That requires a huge amount of time, effort and distraction to the boarding process and gate agents trying to keep track of it.”

The fee is effective for tickets bought on or after Feb. 22. The amount of revenue expected to be raised by the change hasn’t been determined, Smith said.