Tag Archives for basic economy.
American Airlines is not just raising bag fees. Basic economy fares matter to elites because business travelers are also leisure travelers, and they’re also stripping away some of the most important status benefits on these fares.
American Airlines already cut basic economy mileage earning to zero, and it is a classic penny-wise move with a bigger hidden cost. The airline is giving up the cheapest hook it has to get price-sensitive flyers into AAdvantage and, ultimately, into its credit card funnel—the business that actually drives profits.
American just flipped basic economy with no warning: starting today those tickets earn zero AAdvantage miles, zero Loyalty Points, and no status credit for flying. It’s a sharp break from how American has used basic economy as the on-ramp into AAdvantage—and it’s likely to push price-sensitive flyers to stop engaging with the program entirely.
American Airlines has improved its basic economy fares. And I already like their version of basic economy better than other airlines. As a frequent American Airlines flyer, I can still assign extra legroom seats and I’m even eligible for upgrades.
Someone buying a basic economy ticket far in advance, and cancelling travel six months later, will literally receive no credit at all. The validity of the credit is based on when you buy the ticket, not when you cancel travel and get a credit.
Between Alaska or JetBlue or even Delta, and Southwest, I had more confidence buying from Southwest. They’ve given up that advantage. But expiring flight credits is better for the balance sheet, since it writes off a liability, even though expiring flight credits is worse for incentivizing repeat business.
Airlines used to treat award travel customers better than customers on paid tickets. After all, passengers traveling on points had shown a lot of loyalty to get there. It was their reward, and the trip was something to be celebrated!
That’s not really true anymore, but until now only Delta has been willing to say so explicitly.
Members with status can still book preferred and extra legroom seats for free on basic economy fares. But seat coupons will no longer work for other members to save money on seats when buying the cheapest fares.
In yesterday’s announcement about airport lounges, JetBlue’s benefit cuts got short shrift in coverage. The airline’s elite members will no longer receive seating benefits or flight changes on basic economy fares, and they’re dropping the BLADE helicopter transfer partnership.
United Airlines offers less value on a basic economy ticket than competitors do. They don’t allow basic economy passengers to bring a regular carry-on bag on, and they haven’t allowed basic economy passengers to check in online, wasting passengers’ time. Fortunately they’re relaxing the online check-in rule but they’re doing it in a strange and troubling way.
Most people don’t realize that basic economy restrictions aren’t the same across airlines and that United Airlines offers much worse value than competitors.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
