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.

Usually you earn fewer miles for your trip (if any) and won’t get all of your money as a credit towards future travel if you have to change plans. If you want to select your seats you have to pay, versus being assigned a seat at check-in (though available fee-free seat selection is usually pretty limited for most customers anyway). And you board last.

However United takes their basic economy to extremes, and this was specifically a choice made by their CEO Scott Kirby when he came over to the airline from American.

• You aren’t permitted to bring a full-sized carry on bag on board. American Airlines (where Kirby came from) started there, but got rid of that restriction. That means you’re more likely not just to be inconvenienced, but also to have to pay to check a bag.

• And if you’re flying on a basic economy ticket without a checked bag, you’re not allowed to check in online or via the airline’s mobile app So all basic economy customers are forced to wait in the line of shame at the airport. Their travels are slowed down and what they save in airfare they pay in time.

@united now makes checking in for a flight harder – unless you spend more on a ticket or in checking a bag.

Adding additional discomfort to extract higher prices is a @united foundational principle. pic.twitter.com/ujuBTMEmdq

— alexander ooms (@axooms) January 19, 2024

This isn’t a new restriction. It’s been the case for seven years. The airline both inconveniences the customer and also has the restriction in place to see that the bags you’re bringing are small personal items only.

United is the only airline that restricts full-sized carry on bags on basic economy fares. American and Delta offer better value that United on their cheapest tickets. And of course Southwest Airlines doesn’t have basic economy, and includes two checked bags at no extra charge on all tickets.

United Airlines elites and co-brand credit card customers get earlier boarding as a benefit – even on basic economy tickets. And since carry on restrictions are enforced based on boarding group, those restrictions don’t apply to these customers. But for the vast majority of people with a choice between airlines for their itinerary, where price and schedule are similar, they’re probably choosing United out of ignorance that they’re getting less for their money.

Starting August 6th, United’s basic economy customers can use online check-in. But in order to do this they’ll need to provide a credit card to pre-authorize for $65 that the airline charges if you bring a carry-on bag to the gate.

• $40 checked bag fee
  
• $25 extra gate handling fee

Basic economy customers will need a credit card on file. Presumably they think if you’re flying Basic Economy United figures you’re poor and might not be good for the bag fee?

This is being called “customer friendly” and “a positive change.” And for some customers it’s better than the punitive policy is replaces, but it still feels problematic.

• Someone may buy an airline ticket for you. You aren’t required to have a credit card to fly.

• If you bring a bag and want to check it, you’re required to pay the fee for the bag. But if you aren’t bringing a bag, there’s no requirement to have the funds for a bag or even have a debit or credit card.

• United is requiring passengers to have $65 more than the cost of their ticket to check-in online. That sounds like a DOT complaint to me. Anyone without the funds available, not bringing a checked bag, is forced to stand in line to prove it.

Major airlines Delta, followed by United and American, launched basic economy fares supposedly meant for ‘competing against ultra low cost carriers’ like Spirit and Frontier. The idea was that they wanted to offer the same prices, to not lose on ticket sales, but had been offering better value. So they made their product worse to compete.

However these fares changed, so that they weren’t just offered where they compete with Spirit and Frontier, and also not just to get people to ‘buy up’ an extra $20 or $30 for their tickets, but to segment customers.

• Leisure travelers would buy basic economy fares, worry about their seat assignments later, and be stuck with non-refundable tickets or only partial credit if they had to change plans.

• Business travelers, spending other peoples’ money, would pay traditional fares. Where the airlines were employing this strategy, the price difference between basic economy and regular fares could be several hundred dollars (sometimes even $400).

Airlines used to use Saturday night stay and advance purchase requirements to separate price-sensitive leisure customers from higher fare business customers. They don’t want to sell tickets for less than someone is willing to pay. But often those advance purchase and Saturday stay requirements no longer worked, because low cost carriers didn’t impose those restrictions and eventually they fell away from the majors too. Basic economy became the new advance purchase restriction on the lowest fares, making the travel experience worse.

United says though that their basic economy revenue is driven by customers who usually book Frontier or Spirit. Outside of Frontier customers based in Denver, for whom United is a reasonable choice though Southwest might be better, this is a poor and ill-informed choice – even if they can preauthorize a $65 charge to use online check-in – because of the carry-on policy.

If you’re connecting, such that other airlines are reasonable options, most customers are better off flying Delta, American or Southwest when lowest-fares are equal and United’s lowest is basic economy.