Delta introduced ‘basic economy’ fares to compete against Spirit Airlines where Spirit is offering super low fares on non-stop routes Delta is flying. They introduced fares that stripped out things like advance seat assignments and used those fares when matching Spirit’s prices. Customers could spend more to get more, or spend less and get something akin to Spirit but still with better legroom and free carry on bags.
United and American will follow suit this year while Delta spreads use of the fares beyond routes where they compete with ultra low cost carriers and into international markets even.
The Economist calls this “a class below economy and tries to tie it into issues of class divide. But there’s a ton of misinformation out there about these fares.