Delta to Expand Basic Economy Fares That Generated $20 Million in Extra Revenue
Photo Credit: Delta passengers who purchase Basic Economy fares get the same types of seats as these Main Cabin seats, shown in this 737-900ER, but the perks are fewer. Delta Air Lines
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If you take Delta at its word, then fears that the introduction of Basic Economy fares to compete with the ultra-low-cost carriers on price would dilute the spend of usually higher-paying passengers haven't been borne out. Still, the situation is fluid as other legacy carriers are set to introduce these discounted fares, as well.
Delta reported today that its new Basic Economy fares, which offer lower prices, no ticket changes, and seat assignments only after check-in, generated $20 million in incremental revenue in the first quarter, and the airline plans to expand the service to new U.S. markets.
The Basic Economy fares, geared for passengers who care mostly about price and as a hedge against no-frills carriers such as Spirit Airlines and Frontier Airlines, currently only appear in about 4,000-5,000 of Delta's 20,000 domestic markets.
But Glen Hauenstein, who becomes Delta president May 2, said today during the airline's first quarter earnings call that the rollout will soon be expanded.
For critics who thought that Basic Economy would be counterproductive for Delta in that it would be purchased by passengers who otherwise would have purchased higher fares, Delta is saying that didn't happen -- or if it did the Basic Economy fares still kicked in $20 million of
