United Airlines had a strong second quarter, benefitting from high demand for international travel, a resurgence in corporate travel and increases in revenues for their basic economy and premium products.
Who's in and who's out of American Airlines' new preferred agency program to date? The deadline extension seems to indicate their are some hiccups along the way.
Southwest has known for years that there is money to be made in differentiation and protecting your brand identity regardless of what Wall Street thinks. That's a factor in its decision not to launch basic economy or bag fees.
This is how competition should work. American, Delta, and United have been poaching customers from discount airlines with their no-frills basic economy fares. Frontier doesn't like that, so it has come up with a new passenger-friendly policy to try to sway potential passengers.
Travel managers are avoiding basic economy fares, and rightfully so. The consensus is that travelers end up paying more over the course of a trip if they go basic economy and have a worse flight experience to boot.
When Delta Air Lines launched Basic Economy, it allowed a free carry-on bag. When American Airlines subsequently launched a similar fare type, it barred free carry-ons, and that has turned out to be a poor decision because American has been losing market share to Delta.
On the one hand, airlines are improving the flying experience — at least for business class — so much that passengers want to take a piece home with them. On the other, blanket theft is bad for the bottom line. We're pretty sure carriers don't have this problem in coach.