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Delta Caps Payments To Travel Agencies

Fri., Feb. 10, 1995

Delta Air Lines dropped a bombshell on travel agents Thursday, announcing a cap on commissions as part of its cost-cutting campaign.

Delta traditionally has paid agents 10 percent of the price of a ticket. Beginning Friday, the Atlanta-based airline will cap payments at $50 for a round-trip domestic ticket costing more than $500, and $25 for any one-way domestic fare of $250 or higher.

Delta officials acknowledged that the move would anger travel agents. But they said it was a necessary part of the financially troubled airline’s effort to become profitable again.

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