Basic economy class
Basic economy class is a travel class offered by a number of airlines. The class has superseded economy class as the cheapest airfare option for passengers and generally comes with more restrictions when compared to standard economy fares. Restrictions vary between different airlines, but they generally include not allowing passengers to change or cancel tickets or select seats for free. They are seen as a strategy for market segmentation.
In the United States, Delta Air Lines was the first airline to introduce basic economy fares in 2012. Following Delta's launch of such fares, United Airlines, American Airlines, Alaska Airlines, JetBlue, Hawaiian Airlines and Southwest Airlines have all introduced some version of basic economy, though the restrictions of each airline vary. Outside the United States, several airlines have introduced fares with similar restrictions under different names, such as hand baggage only or hand luggage only fares.
The introduction of basic economy airfares has been generally negatively received. Although many airlines initially claimed that these fares were introduced as a way for them to compete more effectively with low-cost carriers, basic economy fares were gradually expanded to routes without LCC competition. Many publications instead saw them as a market segmentation strategy to encourage passengers to pay extra for standard economy to avoid the restrictions associated with basic economy, thus providing airlines extra revenue.
Purpose
Basic economy class fares have been widely described as a market segmentation strategy for airlines to upsell customers to more expensive fares, instead of a product that airlines want customers to purchase. Former British Airways pricing executive Jeremy Quek described basic economy as "just another product that airlines are using to further segment the marketplace". Writing for Bloomberg News, Justin Bachman argued that basic economy fares cause passengers to pay more to fly, and that airlines increase revenue by increasing standard economy fares while introducing basic economy, causing customers to trade up to standard economy. Bachman described this phenomenon as "sleight-of-hand marketing".In Runway Girl Network, aviation writer Seth Miller argued that basic economy is not about helping airlines compete with LCCs, but instead is a way for airlines to increase incremental revenue. As evidence of the trend, Miller pointed out that while basic economy fares were initially confined to markets where full-service carriers compete with LCCs, they were subsequently expanded to domestic flights without LCC competition. He noted that basic economy works well at pressuring passengers to spend more money for the same product.
By market
United States
In September 2018, the CAPA Centre for Aviation described basic economy fares as a "permanent fixture" in the United States market. The publication pointed out that segmented fares have been effective at increasing revenue for Delta Air Lines, American Airlines and United Airlines—three of the largest international airlines in the United States. CAPA further noted that the resulting larger pool of lower fares has placed pressure on the revenue growth of Spirit Airlines and Frontier Airlines, two ultra-low-cost carriers.Delta Air Lines
In 2012, Delta Air Lines became the first U.S. airline to introduce basic economy. Delta initially limited the availability of these fares to routes where it competed against LCC Spirit Airlines, calling basic economy its "Spirit-match fare" in its 2015 earnings call. The fares were available in 75 markets in early 2015 and 500 in early 2016. Delta subsequently expanded the fares to all 20,000 domestic markets, including routes where it faces no competition from LCCs. Delta president Glen Hauenstein noted that Delta received $20 million in extra revenue from basic economy fares from January to March 2016. Hauenstein also said that more than 50% of passengers bought up from basic economy to more expensive fares when they were presented with warnings about restrictions associated with basic economy during the sales process.In October 2017, Delta executives said that they did not want customers to purchase basic economy fares, seeing the fares both as a defensive measure against low-cost airlines offering low fares, and as a way to lure prospective customers into buying more expensive options. In April 2018, Delta introduced basic economy on transatlantic flights., basic economy passengers on Delta receive a free carry-on allowance, but are not allowed to select seats or change, cancel, or upgrade their ticket after purchase, regardless of elite status. Seats are assigned at check-in.
In 2025, Delta rebranded its basic economy fare to be called 'Delta Main Basic', while retaining the same product as the previous name.
United Airlines
United Airlines announced its basic economy fares in November 2016 and began selling basic economy tickets in early 2017. These fares do not include overhead baggage space or earn elite miles. Grant Martin of Skift described United's roll-out of basic economy fares as "the most widespread and aggressive" of the three major U.S. full-service carriers. In November 2017, United revealed plans to reduce its basic economy offerings due to revenue loss resulting from customers opting for other airlines that price-matched United without basic economy restrictions.Despite the initial setback, United announced an expansion of basic economy fares in January 2018. In June 2018, the airline introduced basic economy on transatlantic flights, together with its joint venture partners Air Canada, Austrian Airlines, Brussels Airlines, Lufthansa and Swiss International Air Lines. United aimed to generate $1 billion in additional revenue by 2020 via cabin segmentation, including its basic economy fares and premium economy. Dave Bartels, vice president for pricing and revenue management at United, said that the airline never saw basic economy as a tool to compete against discount airlines, but instead is a "segmentation tool" to split more price-sensitive customers from those who are willing to pay extra for fewer restrictions.
, basic economy passengers on United do not receive overhead space for carry-on baggage and may only bring a personal item that fits under the seat in front, except for transatlantic flights where basic economy passengers continue to receive a carry-on baggage allowance. Changes and cancellations are not allowed, and basic economy fares earn half the elite qualifying miles compared to standard economy fares. Seat assignment up to 48 hours in advance is available for a fee. In October 2018, United CCO Andrew Nocella announced that the airline had no plans to change its carry-on baggage restriction, which is more restrictive compared to American and Delta.
American Airlines
American Airlines introduced basic economy fares for 10 markets in February 2017, following Delta and United. Initially, American did not provide basic economy passengers with free overhead space for carry-on baggage, except for its AAdvantage elite members, who still receive the standard free checked bag allowance. In April 2018, the airline introduced basic economy on transatlantic flights, including one free carry-on and the ability to select seats in advance for a fee, together with its joint venture partners British Airways, Iberia and Finnair. In September 2018, American re-introduced a free carry-on for basic economy passengers in addition to a personal item, a change the airline attributed to basic economy revenue not meeting expectations., basic economy passengers on American are allowed one free carry-on and may select seats for a fee within 48 hours of departure, but are placed in the last boarding group. Basic economy fares earn half the elite qualifying miles compared to standard economy fares. Upgrades and changes are not allowed. On international flights, seat selection and changes are available for a fee at any time after booking.