Well, the world as we know it is officially over. Ok fine, maybe things aren’t bad. However, as of today every legacy US Airline offers Basic Economy fares on domestic flights. Today, September 5, 2017, American Airlines launched basic economy fares on nearly every domestic route in the airline’s route network.
I first heard the news earlier today via @TheFlightDeal on Twitter. The tweet, plain and simple, explained the situation.
When I first read the tweet I couldn’t believe it. Most airlines rolled out basic economy fares slowly over time. American however seems to have simply pushed these fares nationwide earlier today. I quickly searched a few domestic routes on AA.com and basic economy showed up in nearly every search.
What Are Basic Economy Fares On American?
Since the airlines no longer have any creativity, the three legacy US carriers have launched a new fare class. Each airline (un-creatively) calls this new fare class basic economy. Airline marketing departments would have you believe these fares help the legacy carriers compete with new low-cost carriers. The idea is that the airlines strip benefits from these fares to make them cheaper. Customers can then choose to pay a little bit more for each add-on they wish to purchase.
The reality is the airlines continue to charge (in general) the same prices, but up-charge loyal customers, families and groups, and business travelers. Essentially, the airlines continue to charge the same prices for basic economy as they were charging for standard economy. In turn, the airlines now charge more for features customers are already used to getting for free.
Basic Economy fares are mostly the same between carriers, but at face value, American’s fares seem a little more generous than United’s.
With American Airlines Basic Economy customers:
- Are not allowed a full size carry-on item,
- Can’t pre-select seats.
- Will not be eligible for upgrades.
- Can’t change flights or receive a refund.
- Board last
Customers can buy out of Basic Economy fares for a fee. As you can see from the above picture, it costs an extra $25 to buy out of Basic Economy between Chicago and St. Louis. Keep in mind, it costs $25 to check a bag (which you’ll have to do) each way. If you have to check your carry-on you’ll end up saving $25 if you pay for “Main Cabin.”
Do Basic Economy Fares Earn Elite Miles?
Unlike United, American’s Basic Economy fares earn some Elite Qualifying Miles and Dollars. AAdvantage members earn full Elite Qualifying Dollars (EQD) based on the the price of the ticket, but only earn 0.5 Elite Qualifying Miles (EQM) and Elite Qualifying Segments (EQS). All in all, if you’re concerned about earning AAdvantage status Basic Economy fares aren’t quite kryptonite as they are with Untied. AAdvantage members continue to earn EQD at a rate of 1:1 and should earn 1 Million Miler mile per mile flown (tongue twister).
Honestly, I’m against basic economy fares simply because it’s essentially up-charging customers for a product they’ve been enjoying for years. I also dislike the timing of the release of these fares. US airlines are recording record profits in 2017 and rather than giving back to loyal customers are making them pay more.
With that being said, I like that American is allowing elites to earn EQM and EQD when purchasing basic economy. I personally think it’s a slap in the face to United loyalists to not give out any elite credit when buying basic economy fares.
How To Avoid The Pitfalls Of Basic Economy?
Perhaps the only positive aspect of American Basic Economy fares is how easy it is for customers to avoid the restrictions. Below are a few ways to avoid the restrictions imposed by American Basic Economy fares:
Co-Branded Credit Cards
AAdvantage co-branded credit cards come with a slew of benefits which override the limits of these fares.
If you carry either of these cards, you’ll instantly move up to either boarding group 5 or 4. When you’re in any boarding group other than Group 9 you’ll be allowed to bring a full size carry-on into the main cabin. Additionally, if you do have to check a bag, you’ll avoid the checked bag fee if you carry an eligible card.
AAdvantage Status
If you maintain AAdvantage status you’ll also avoid many of the restrictions that come from these fares. AAdvantage Elite members maintain their current boarding group when flying on a basic economy ticket. That means AAdvantage Elites can still bring a full size carry-on into the main cabin. Also, AAdvantage Elites still get at least one free checked bag when traveling domestically.
This all sounds great, but there are still some major restrictions for elite members when purchasing basic economy fares. Elite members lose their ability to pre-select seats, standby on a different flight, and aren’t eligible for upgrades. Upgrades include “upgrades” to Main Cabin Extra regardless of elite status.
Why You Should Still Avoid Basic Economy Fares!
Although you can bypass many of the limits associate with basic economy fares through a credit card or elite status, you should still be very careful booking a basic economy fare. Customers who purchase these fares won’t be eligible for re-accommodation on other airlines during IROPS (irregular operations). Usually during extreme delays, American can put passengers on another airline to get them to their destination in a timely fashion. Basic Economy passengers won’t have this luxury and will have to wait until American is able to get them to their destination. Additionally, Basic Economy passengers will be at the bottom of the lists for re-accommodation on American flights.
This means that if you’re once a day flight is canceled, you won’t make it to your destination until the next day. During extreme IROPS it may take several days before American is able to get you to your destination.
Final Thoughts
It’s sad to see American follow the herd and roll out these restrictive fares nationwide. It’ll be even worse when these fares start showing up on international routes as well. These fares aren’t as restrictive as United’s but they still impose enough restrictions that I’ll avoid them when booking domestic travel. I simply can’t afford to miss a trip simply because I tried to save a few dollars.
Additionally, I value the benefits I earn from AAdvantage Elite status and by booking a Basic Economy fare I lose many of those benefits. If the price difference continues to only be $25 round trip, I’ll continue to pay for Main Cabin fares. However, if the price differential grows with time I may re-evaluate my travel plans. Either way, I believe I’ll continue to chose OneWorld carriers for my long-haul travels, but that could change in 2018 as well!
