Over time, we’ve seen the concept of “basic economy” become pretty widespread, whereby the cheapest economy fares include the fewest perks. The purpose of this is twofold — to expand a carrier’s potential customer base, and to get existing customers to “buy up” to a higher fare, in order to avoid punitive restrictions.
Internationally, we’ve also seen some airlines introduce basic business class. Up until now, it’s not really a concept we’ve seen at one of the “big three” US airlines. However, that’s almost certainly going to change in the near future.
For some time, Delta has been dropping some hints about introducing basic business class. While there still hasn’t been a formal announcement, executives at the airline once again (indirectly) confirmed these plans, during today’s Q2 2025 earnings call.
In this post:
Delta planning basic business class rollout
Over the past year or so, we’ve seen several hints that Delta may be planning an unbundled business class product.
What would that mean? Well, it would entail more options when booking a business class ticket — the most “basic” business class would probably just include a seat and some limited amenities, and then customers could pay extra for fare bundles that include more things, whether it’s seat assignments, lounge access, or flexibility.
Let me share some background on how commentary about this has evolved. Going back a year, during the Q2 2024 Delta earnings call, JP Morgan Analyst Jamie Baker asked the following question:
“This concept of unbundling the front cabin is one that I’ve been thinking about in part because unbundling and segmenting the rear cabin has been such a success for Delta and a few others. I want to be careful about asking about future pricing and all that, but I’m curious what the pros and cons are in terms of possibly going down this path, or is one price for all how we should continue to think about the D1 cabin?”
Delta President Glen Hauenstein responded with the following:
“We’ve talked conceptually about that. I think we’ll be giving you more details as we go, but we’re not ready to talk about the details of those plans moving forward.”
Today, during the Q2 2025 earnings call, Leslie Josephs from CNBC asked the following question:
“Just curious on the segmentation at the front of the plane. Is that something that you plan to roll out in 2025 or 2026? And would it look something more like a basic business where you the customer doesn’t have a seat assignment or something like that?”
“Or do you plan to have kind of a fancier or more desirable seat within Delta One or one of the other first class cabins?”
Delta President Glen Hauenstein responded with the following:
“I think we’re gonna reserve comments on that until we roll it out. I think we’re testing it with customers today, and we’re doing a lot of surveys. And we haven’t rolled it out yet, not because we don’t have the technological capability, but we wanna make sure that customers understand what we’re putting in market and that they find value in it.”
Jospephs followed that up by asking the following:
“Could you tell us what, you’re testing exactly currently?”
To which Hauenstein responded as follows:
“No. No. We can’t. But thank you for the question.”
Lol…
So at this point, unbundling premium cabins is clearly a question of “when,” and not “if.” During Delta’s 2024 Investor Day presentation, the company emphasized the importance of “empowering customers with choice,” specifically in the context of cabin segmentation.
Then in May 2025, we saw Delta update its fare merchandising, clearly in preparation for bigger changes with premium unbundling.
Outside the United States, there are quite a few airlines that have unbundled business class, ranging from Emirates, to Finnair, to Qatar Airways. In general, I would expect that “basic” business class could include some of the following restrictions, based on the precedent we’ve seen at other airlines:
- Fees on seat assignments
- Fees to change tickets
- No lounge access or restricted lounge access
- Restrictions on priority check-in, priority security, and priority boarding
My take on Delta unbundling business class
Since the start of the pandemic, we’ve seen strong leisure demand for premium cabin travel, while business travel hasn’t fully recovered. This combination is a double-edged sword — it’s easier to fill premium cabins, but airlines aren’t seeing as many of the super expensive premium fares as they saw before the pandemic.
I would think that Delta’s primary goal with unbundling business class would be to get people to buy up to more expensive premium fares to avoid certain restrictions. I know airlines try to market unbundling as intending to offer a better value option to more travelers, though in reality, I suspect the cheapest current fares would simply become the new “basic” fares, where fewer perks are included than now. So consumers likely wouldn’t come out ahead.
Personally, I think the most logical implementation of an unbundled premium cabin would be in domestic first class, at least to start. I hate to say it, but this could be a way for Delta to reimpose change fees on tickets, by making these tickets not changeable or cancelable without paying a fee. Maybe the airline wouldn’t include seat assignments in advance for non-elite members, or something, but I wouldn’t expect it to be too draconian beyond that.
Unbundling business class on long haul flights is a bit trickier, as it’s a coordinated effort. That’s because so many long haul markets are dominated by joint ventures, which coordinate fares, schedules, and restrictions. Delta has a joint venture with Air France-KLM and Virgin Atlantic across the Atlantic, and with Korean Air across the Pacific, so we’d likely see this implemented on a wider scale.
In addition to the potential above restrictions, I wonder if we could maybe see the airline offer Sky Club access on basic business class tickets, while restricting Delta One Lounge access to non-basic business class tickets.
Keep in mind that Air France-KLM have already added seat assignment fees in business class in many markets, and in some ways, perhaps that’s one form of unbundling business class. I mean, I guess by that criteria, British Airways’ business class has been unbundled for a very long time.
Bottom line
While nothing is official, Delta clearly has plans to unbundle business class in the near future, and likely before the end of 2025. We’ve seen the concept of basic business class at some foreign carriers, and you can expect that this will include restrictions related to change fees, seat assignments, priority services, etc.
I think Delta is most likely to use this as a way to reimpose change fees on many premium tickets, in order to get people to book more expensive fares. I also think it’s safe to say that if Delta does go this direction, American and United will almost certainly follow.
So for now we’ll mark this as “developing,” but it’s something to keep an eye out for…
What do you make of the prospect of Delta unbundling business class?
I suspect there is also a loyalty play here. I think airlines have historically struggled to give reason for premium passengers to care about loyalty when either they (or their firm) consistently pay for business. It's not fun to lower the standard for everyone (and the truly wealthy will just continue to pay up when flying commercial) but there is some segment that will likely take a bit more note of their status when it starts to matter in the forward cabin
I fly Delta a lot and like the airline, management team, etc. I must say I am not sure this idea will work. Who is the market, and what is the motivation? Are enough business class seats going unsold to motivate Delta to find a way to discount them? Are they actually trying to cut costs in the lounge? Are enough customers saying I don’t want lounge access?
port is right,
this is about lowering the fare in competitive markets where AA and UA aggressively upgrade passengers and DL is much less inclined to do so.
AA and UA are both putting in larger business class cabins which they intend to use to cut fares in competitive markets.
DL's answer is to offer a smorgasbord of choices, one of which is to find a price point that is enough to...
port is right,
this is about lowering the fare in competitive markets where AA and UA aggressively upgrade passengers and DL is much less inclined to do so.
AA and UA are both putting in larger business class cabins which they intend to use to cut fares in competitive markets.
DL's answer is to offer a smorgasbord of choices, one of which is to find a price point that is enough to at least keep AA and UA from raiding competitive markets and perhaps doing the same in some of their major markets.
My issue with unbundling or "basic" is it doesn't give you an opportunity to pay cheaper. It makes you pay more for the same as what you're already paying.
The whole idea of buying a business class ticket is to get a premium experience, not a basic economy coach experience. I hope this doesn't catch on but it probably will.
Delta. 63 years old and have not and never have flown them. I’m so happy.
I would pay up on domestic first and D1 to be able to have drinkable wine
You know you could buy a lot more high quality wine with that money, while not on an airplane right?
I don't book J on airlines that do this unless I have a status that gives me those perks anyway. The whole principle of showing me one price but then asking me for more money just to get essential features such as lounge access pisses me off and I move on even if the price is right. I recently chose not to book LHG J to BKK because they wanted extra 300€ to let me...
I don't book J on airlines that do this unless I have a status that gives me those perks anyway. The whole principle of showing me one price but then asking me for more money just to get essential features such as lounge access pisses me off and I move on even if the price is right. I recently chose not to book LHG J to BKK because they wanted extra 300€ to let me choose a decent seat (still worse than the current industry standard), with EY to TPE because they just increased the originally advertised price by 150€ for lounge access and seat selection and many times with AFKL because of their 200€ surcharge for lounge access (now I have FB Gold so I'm back to flying with them. In all those cases I went for something more expensive but fair.
You can treat me like a fool and insult me with these games when I'm buying a 150€ ticket. Not when I'm buying a 3000€ ticket. That's enough money for me to care who I give them to.
As someone who often needs to buy flights within a week or two of departure, I'd welcome these potential changes so I can have a selection rather than just being stuck with whatever seat is left. I don't care as much on domestic flights but I'm constantly stuck with a middle seat on the A350 (no bins so no air vents), which I greatly value to sleep comfortably.
Perhaps elites get selection 96h before departure,...
As someone who often needs to buy flights within a week or two of departure, I'd welcome these potential changes so I can have a selection rather than just being stuck with whatever seat is left. I don't care as much on domestic flights but I'm constantly stuck with a middle seat on the A350 (no bins so no air vents), which I greatly value to sleep comfortably.
Perhaps elites get selection 96h before departure, potentially staggered by elite tier, then all others at check in.
Yes they are doing a study with “customers”! Sample size or selection of that customer pool will be in a way to affirm the direction they already decided on!
Simple, will fly other airlines when they force me to pay for lounge access or seat assignment while paying thousands for delta one.
I love Air France but I don’t book when concur offers me basic biz, I just go somewhere and will do the same with Delta.
While still Diamond, I’m also Elite (Gold) with Star Alliance and 1World.
You’re not paying for Delta One (and all the associated perks) if you go for Basic. You’re just buying the big front seat.
@UnleRonnie
For $20 less like they did with economy basic?
It is freakin unbelievable that they charge you $5,000 for a ticket and still have the gall to expect you to pay additional for services that were already costed and priced in the $5,000. I for one will not be doing it. And when all carriers do this, that will be the end of my flying days except for family emergencies.
Ahhh... the SPIRITualization of the "Big Front Seat" contagion is invasively spreading to DL and most likely the other 'monkey sees, monkey doos' !!
Nothing like that " customer choice and/or feedback " while peeing on my leg and telling me it's raining !
Charging an extra fee for seat assignment, after you've just dropped 4 figures or more per person, is an incredible slap in the face. Always have avoided long-haul on airlines who do that, and will continue to do so.
Whole family have been Diamond for over a dime. We're status matching, likely with United. Got no time for this foolishness.
They'll be charging for food and drinks.
Hopefully they'll offer economizing, 'super sized' food & drink bundles for purchase up front in the pointy end !
Terrible idea. Insane nickel and diming. Seem like a good way to piss off your best customers.
I purchased 2 British Airways business class tickets a number of years ago. At the end, I discovered that I would have to pay for a seat assignment after paying thousands of dollars. I thought it was a mistake. I called British Airways. They told me it was true. I cancelled the tickets (less than 30 minutes after buying them) and purchased tickets on United if I remember correctly. I haven’t considered buying BA tickets for any class since then.
@JohnB
This is exactly the reason why I stopped flying BA years ago. I only do so now if I purchased the ticket via AA as a last resort and BA happens to be the operating carrier.
Most premium unbundling ever!
PREMIUM™
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Charging for seats that cost thousands of dollars is infuriating. The ultimate example of nickel and dime BS, especially when all of the seats are the same.
always leading the pack in putting a Premium on contempt for loyal/high value passengers! :'D