[1] Restrictions vary between different airlines, but they generally include not allowing passengers to change or cancel tickets or select seats for free.
[2][3][4] Former British Airways pricing executive Jeremy Quek described basic economy as "just another product that airlines are using to further segment the marketplace".
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.
[6] In September 2018, the CAPA Centre for Aviation described basic economy fares as a "permanent fixture" in the United States market.
[13][14] 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.
[5] As of April 2019[update], 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.
[19][20] 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.
[22][23] As of April 2019[update], 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.
[29] In July 2021, JetBlue stopped allowing carry-on bags for customers in its Blue Basic class,[30] but later reversed this decision in June 2024.
Main Cabin Basic passengers receive complimentary meals and are allowed to bring a standard carry-on bag and a personal item.
In addition to being a segmentation strategy, the introduction of such fares to transatlantic flights are also viewed as a way for full-service airlines to more effectively compete with long-haul LCCs such as Norwegian and WOW air.
[36][37] In 2016, British Airways introduced its basic economy fares, which do not include checked baggage, on European routes.
These fares include in-flight meals, allow two pieces of hand baggage and offer advance seat selection for a fee.
[44] Abu Dhabi-based airline Etihad Airways introduced hand-baggage only fares on limited routes in September 2018, following a successful trial in late 2017.
These fares do not allow refunds, changes, upgrades, advance seat assignments, online check-in or checked baggage.
For example, when cancellations occur, business travelers on basic economy cannot change to another flight and may have to purchase expensive last-minute tickets, eliminating any potential savings from the lower fares.
Scott McCartney of The Wall Street Journal compared basic economy fares to other pricing strategies used by airlines to charge more from corporate travelers, such as Saturday-night stay requirements, advance-purchase requirements and frequent-flyer programs switching to giving miles based on airfare rather than distance traveled.
[3] In response to a freedom of information request, the United States Department of Transportation released nearly 50 pages of customer complaints between May and September 2017, during which airlines widely rolled out basic economy fares.