- United Airlines Holdings Inc (NASDAQ:UAL) announced an improved family seating policy that makes it easier for children under 12 years old to sit next to an adult in their party for free - including customers who purchase Basic Economy tickets.
- United's new policy is made possible through a series of investments in a new seat map feature that dynamically finds available adjacent seats at the time of booking.
- The online seat engine reviews available free Economy seats and then opens complimentary upgrades to available Preferred Seats if needed.
- Customers traveling with children under 12 will start to see more adjacent seat options immediately, and the complete policy change will go into effect in early March.
- The company said United Polaris, United First Class and Economy Plus seats remain separate products and are excluded from this family seating policy change.
- Wall Street Journal writes the U.S. Transportation Department issued a notice to airlines last summer, urging them to make sure that children 13 years old and younger can sit next to an accompanying adult without any extra charge.
- "We'll prohibit airlines from charging $50 round trip for a family just to be able to sit together," President Biden said during his State of the Union address this month. "Baggage fees are bad enough. Airlines can't treat your child like a piece of baggage."
- Major airlines often match competitors' moves, so attention will likely turn to Delta Air Lines Inc (NYSE: DAL), American Airlines Group Inc (NASDAQ: AAL), and other airlines following United's announcement.
- Price Action: UAL shares closed at $49.63 on Friday.
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