American Airlines Cites the Competition in Forcing Basic Economy Changes
Skift Take
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.
American Airlines will begin allowing a free bag as part of its Basic Economy fare as CEO Doug Parker obliquely referenced the competition — most likely meaning Delta — as the rationale for the change, and directly mentioned Google as factors in the decision.
Until now, passengers who bought a Basic Economy fare, which was rolled out about a year ago in the United States and in the second quarter on transatlantic flights, could only bring one personal item on board without an extra fee. But beginning September 5, a free bag will likewise be permitted in the cabin without charge.
Speaking during American's second quarter earnings call Thursday, Parker said the airline's Basic Economy fare had become uncompetitive, and implied that American has been losing market share to Delta, which has long allowed a free carry-on bag as part of its Basic Economy fare.
Parker said "there's a big airline"
