Whilst I do not think it is illegal to propose a fare during the purchasing process, it is utterly ridiculous. I would invite any Delta employee to say how they would respond if they bought something from WalMart and whilst the going through the checkout were advised that the bill was going to be 12% more expensive than the till register showed, as the price had gone up before you could swipe your credit card to pay. If you complained, the WalMart staff responded "we are entitled to make a profit". Ludicrous and no other business would even attempt to get away with this nonsense.
There is a potential legal issue, which is that once you have clicked the button to state that you have accepted their offer at the price of $407, and Delta had accepted your method of payment, can Delta withdraw from the deal. It is a fine line when you can say definitively when the deal is struck. They may well have a T&C which states that the deal is not struck until payment has been received by them, in which case you are out of luck on the legal front. However, if only to test the waters and to irritate them, you might try writing a letter of complaint about them to the local Office of the Attorney General in your state accusing them of sharp practice, bait and switch and questioning if Delta had accepted your offer and were therefore in breach of the law.
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