United's New No-Frills Fare Won't Even Include Free Carry-ons
Photo Credit: United on Tuesday announced its new Basic Economy product. Customers who buy it will not even be able to choose their own seats. United Airlines / United Airlines
Skift Take
During Jeff Smisek's reign, industry insiders used to poke fun at United for copying Delta on key decisions. But with its new Basic Economy product, United is thinking outside the box. United's new fare may not be great news for flyers, but investors should be happy.
United Airlines on Tuesday unveiled a new, no-frills fare designed for the most cost-conscious customers that will come without many goodies passengers expect, including the right to choose a seat and put a suitcase or small duffel bag in the overhead bin.
The new fare, which United will sell in January for fights starting this Spring, is the carrier's response to competition from discounters Allegiant Air, Frontier Airlines, and Spirit Airlines. The three airlines often undercut legacy carriers on price, but they charge for nearly everything, such as seat assignments, carry-on bags, and even sodas.
About 85 percent of United's customers fly the airline once per year, President Scott Kirby said in October, and those passengers account for roughly half of company revenue
