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Both Delta Air Lines (DAL) and United Airlines (UAL) saw their stock prices decline on Thursday, August 21, 2025, amid a broader market selloff that affected airline stocks. Delta shares dropped 2.17% to $57.77, while United fell 2.49% to $97.36 as of 10:43 AM EDT. While general market conditions likely contributed to the decline, the timing coincides with significant legal challenges facing both carriers over alleged deceptive practices regarding seat selection fees.

Class-Action Lawsuits Target Airlines’ Window Seat Practices
 

On Tuesday, August 20, 2025, both Delta and United Airlines were hit with separate class-action lawsuits in federal court over allegations that they charged passengers premium fees for “window seats” that actually have no windows.

The lawsuits, filed in Brooklyn federal court for Delta and San Francisco federal court for United, seek millions of dollars in damages for more than one million passengers at each carrier. The complaints specifically target certain Boeing 737, Boeing 757, and Airbus A321 aircraft that contain seats positioned where windows would normally be located, but lack them due to air conditioning ducts, electrical conduits, or other structural components.

The legal action alleges that unlike competitors Alaska Airlines (ALK) and American Airlines (AAL), neither Delta nor United properly flag these windowless seats during the booking process, even when charging tens or occasionally hundreds of dollars in premium fees.

Passengers argued they selected window seats for various reasons including addressing fear of flying, motion sickness, keeping children occupied, or simply enjoying the view during flight. The lawsuits claim that had customers known the seats were windowless, they would not have selected them or paid the additional fees.

Delta and United Shares Struggle to Take Off in 2025
 

Both airline stocks have shown mixed performance year-to-date, with Delta down 3.66% while United has managed a modest 0.26% gain. However, both companies have significantly outperformed the broader market over longer time horizons, with Delta posting a 45.49% one-year return and United delivering an impressive 131.85% gain over the same period. The current legal challenges add uncertainty at a time when airlines are benefiting from strong travel demand and rising airfares.

From a valuation perspective, both stocks appear reasonably priced with Delta trading at 8.40 times trailing earnings and United at 9.76 times.

Analyst price targets suggest potential upside, with Delta’s average target of $65.87 representing a 14% premium to current levels, while United’s $107.55 target implies an 10% gain. The windowless seat controversy, while potentially costly in terms of settlement payments and reputational damage, is unlikely to fundamentally alter either airline’s business model or long-term growth prospects, though it may pressure ancillary revenue strategies that have become increasingly important to airline profitability.

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