In yesterday's Business and Finance section, it was incorrectly reported that a settlement with the Air Line Pilots Association would end a strike against Hughes Airwest . The strike against Hughes Airwest was called not by the pilots, but by members of the Air Line Employes Association, who remain on strike.

Any change in a discount airline ticket purchased from Trans World Airlines will cost the traveler an extra $20 if its latest proposal is accepted by the Civil Aeronautics Board.

TWA told the board Monday that it wants to impose the $20 penalty any time a passenger wants to change a time, date or destination for a ticket purchased at a promotional fare or any time a person just wants to turn in the discount ticket for a refund. The charge would be made for all changes in tickets for domestic trips beginning Dec. 1.

TWA also proposed a $25 charge for altering or cancelling a discount ticket on its international routes, effective on all tickets issued after Sept. 15, or tickets in hand for travel after Nov. 4.

Until now, airlines in the United States generally have allowed the return of any tickets without any penalties or cancellation fees, although there are some exceptions. Braniff International, for instance, had a cancellation fee on its "Home Free" promotional fare. Also, World Airways was imposing a fee for changes in its cross-country tickets within a certain number of days of the planned departure.

Michael E. Levine, general director of the CAB's Office of International and Domestic Aviation, said Monday he had not seen TWA's proposal but noted that the CAB in general hasn't opposed penalty or cancellation fees. "We have nothing against them in principle; we just object to surprises," he said. "They are acceptable if they are fully disclosed to the consumer ahead of time."

Levine noted that the CAB has asked -- and again could ask -- an airline to submit examples of the advertising and literature it would distribute to make sure disclosure is adequate before approving such a plan.

No other airline has followed TWA so far.

In other aviation developments:

President Carter approved a CAB decision rejecting some proposed increases in international air fares and approving others. Approved was Pan Am's proposal to restructure normal economy fares on many routes by reducing such things as stopover privileges and to add a new, higher-priced business class fare with unlimited stopovers and amenities.

The president's decision suspended many fare increases proposed by TWA, Pan Am and foreign airlines, but a CAB spokesman said the two American flag carriers came in with acceptable revised proposals leaving the disputed fares unchanged or lowering them. Normal economy fares were allowed to rise generally in transatlantic markets where Pan Am restructured its fare offerings or where open competitive fares are available.

Flight attendants for Ozark Air Lines struck last Friday at 12:01 a.m. over wages and working conditions, shutting down operations in 67 cities and 21 states. Ozark canceled all of its 195 daily flights which carry about 15,000 passengers a day. The shutdown leaves 21 cities, mostly in the Midwest, without any regularly scheduled commercial airline service. The attendants had been working without a contract for 13 months.

Hughes Airwest announced it had reached a contract settlement with its 700-plus pilots that will end a strike that began on Sept. 10 when union members walked off their jobs after rejecting the company's last contract proposal. The walkout forced the airline to ground all its flights to 45 cities in 12 states, Mexico and Canada.

Clerical employees at Northwest Orient Airlines have ratified a new three-year contract with the carrier by better than a 2-1 margin, the Brotherhood of Railway and Airline Clerks announced yesterday.

The union said the contract, covering 3,000 ticket agents and other office personnel, was ratified at union meetings last week by a vote of 1,355 to 589. The contract, which is retroactive to July 1, will boost wages by at least 33.3 percent over three years, with a 22.2 percent raise coming in the first nine months.

United Airlines announced it intends to eliminate its deeply discounted New York-California one-way fares. United had planned to raise the $108 "super coach" fare on Oct. 1 to $139 to Los Angeles and $149 to San Francisco and to add numerous restrictions. United said it would offer its Super Saver discounts on those routes, but the normal coach fares nearly will double.

Reversing an administrative law judge, the CAB said it would allow Federal Express Corp., the enormously successful all-cargo airline, to begin passenger service. The CAB disagreed with the law judge's finding that Federal Express wasn't "fit" to offer the proposed flights on 24 routes out of Chicago's Midway Airport. Federal Express said it was gratified by the board's decision but doesn't plan to implement its newly granted authority in the foreseeable future.