The economy class cabin of an American Airlines Boeing 737 MAX
Basic economy class is a travel class offered by a number of airlines. The class has superseded economy class as the cheapest airfare option for passengers and generally comes with more restrictions when compared to standard economy fares.[1] Restrictions vary between different airlines, but they generally include not allowing passengers to change or cancel tickets or select seats for free. They are seen as a strategy for market segmentation.
In the United States, Delta Air Lines was the first airline to introduce basic economy fares in 2012. Following Delta's launch of such fares, United Airlines, American Airlines, Alaska Airlines, JetBlue, and Hawaiian Airlines have all introduced some version of basic economy, though the restrictions of each airline vary. Outside the United States, several airlines have introduced fares with similar restrictions under different names, such as hand baggage only or hand luggage only fares.
The introduction of basic economy airfares has been generally negatively received. Although many airlines initially claimed that these fares were introduced as a way for them to compete more effectively with low-cost carriers (LCCs), basic economy fares were gradually expanded to routes without LCC competition. Many publications instead saw them as a market segmentation strategy to encourage passengers to pay extra for standard economy to avoid the restrictions associated with basic economy, thus providing airlines extra revenue.
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