Delta Air Lines and United Airlines stocks have fallen amid a broader market downturn and new legal challenges. Both carriers are facing class-action lawsuits regarding the charging of fees for window seats that lack windows.
Class-Action Lawsuits Against Airlines
On August 20, 2025, Delta and United Airlines were hit with separate class-action lawsuits in federal court. The lawsuit challenges the practices of charging fees for 'window seats' that actually do not have windows. These cases are filed in Brooklyn and San Francisco courts, with representatives seeking damages for over one million passengers. The lawsuit claims that Delta and United did not properly flag windowless seats during booking, even while charging customers significant amounts for their selection.
Stock Performance of Delta and United
As of August 21, 2025, Delta shares fell by 2.17% to $57.77, while United shares declined by 2.49% to $97.36. Year-to-date performance shows Delta down 3.66%, whereas United has managed a modest 0.26% gain. Nevertheless, both companies demonstrate strong results over the long term amid rising demand for air travel.
Prospects and Impact of Legal Challenges
Analysts suggest that both Delta and United stocks are reasonably priced, with an average target of $65.87 for Delta and $107.55 for United. Despite potential financial implications from lawsuits, such as settlement payments and reputational damage, experts believe that these issues are unlikely to fundamentally alter the business model or long-term growth prospects of the airlines.
The decline in Delta and United Airlines stocks amid legal challenges may pose temporary difficulties for the airlines. However, with strong demand for air travel and positive long-term forecasts, both companies may navigate current issues successfully.
