United Airlines (UAL) stock hit turbulence today despite trying to slam shut a potentially damaging lawsuit about when a plane’s window is not a window.
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Dismiss Plea
The U.S. flyer has asked a federal judge to dismiss a lawsuit from passengers claiming it unfairly charged them to sit in “window seats” which in the end to their surprise lacked windows.
They said that this information was not flagged to them when they booked their flights. They wanted these seats because of fear of flying or traveling with children.
Passengers filed proposed class actions in August against both United and Delta Air Lines (DAL). They are seeking millions of dollars in damages for more than a million customers of each airline.
However, United said in its filing to the San Francisco federal court that it never contractually promised that seats in the window position would have views, even when it used “window” to label those seats on seat selection screens and boarding passes.
“The word ‘window’ identifies the position of the seat—i.e., next to the wall of the main body of the aircraft,” United said. “The use of the word ‘window’ in reference to a particular seat cannot reasonably be interpreted as a promise that the seat will have an exterior window view.”
United also said courts have repeatedly held that federal law generally prohibits passengers from pursuing breach of contract claims concerning airline fees and surcharges, including the cost for more desirable seats.
Empty Promises
Carter Greenbaum, a lawyer for the United plaintiffs, said in an email that United’s position was “contrary to the reasonable expectations of countless passengers who unknowingly paid extra money for windowless window seats. Consumers deserve better than empty promises and United’s word games.”
Greenbaum also represents Delta passengers suing that carrier in Brooklyn, New York federal court.
The plaintiffs said they would have chosen different seats, and not paid extra, had they known United and Delta would seat them next to blank walls.
It is understood, however, that other flyers like American Airlines (AAL) do flag this issue up to passengers.
This case targets some of the key risks faced by airline stocks and their investors. The ability to sell tickets to customers either because of the reputation of the airline or the state of the economy, as well as legal and regulatory matters play a huge role in determining success – see below.
It also comes at a pivotal time for United, Delta and the U.S. airline sector, which has been under huge pressure this year as a result of economic uncertainty both at home and abroad, volatile oil prices and the potential impact of Trump’s tariffs. More recently the industry has been battered by the U.S. government shutdown and subsequent shortage of air traffic control staff.
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