Last week, United Airlines Holdings Inc. began allowing its Basic Economy customers to choose seats in a section with extra space, and in 2018 let them get a seat assignment by paying a fee. Delta also allows customers to pay for a seat assignment between seven days and 24 hours prior to departure.
At American, Basic Economy will get another boost as the carrier allows elite members of its loyalty program who opt for the low fares to keep all their perks, such as free checked bags and priority boarding and security screening. That change also takes effect Oct. 1.
“This segment is real -- younger people who are not afraid of Covid-19,” said Z. John Zhang, a marketing professor at the University of Pennsylvania’s Wharton School who focuses on pricing and competitive strategies. “They want to experience the world and they have a laptop.”
--With assistance from Justin Bachman.
This article was provided by Bloomberg News.