United Airlines May Introduce Domestic Premium Economy
Skift Take
Don't criticize airlines for segmenting their product. This is a basic business principle: Airlines want to sell customers the most expensive products they're willing to buy.
United Airlines expects to add a basic economy fare to Europe and Latin America later this year, and may, at some point, introduce a domestic premium economy product, along with its previously announced international one, executives said Tuesday at an investor conference in New York.
The basic economy news is not a major surprise, as American Airlines and Delta Air Lines, along with their key European partners, have announced similar plans. The transatlantic basic economy fares tend to be slightly different than domestic one, but the overseas fares have one key feature — customers who buy them must pay for checked luggage. United expects to add its no-frills fares once it works out some technology issues, executives said at the J.P. Morgan Aviation, Transportation and Industrials Conference.
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