While the concept of basic economy has now been around for well over a decade in the United States, we’ve known that airlines here are planning to expand that concept to premium cabin tickets. Executives at the “big three” US carriers — particularly Delta and United — have been clear about their intentions to roll this out ASAP.
Earlier this month, United announced plans to introduce tiered fares across cabins, and that includes the introduction of “basic” premium cabin tickets. I’d like to provide an update, as these tickets are now on sale, and they’re arguably even more restrictive than we first assumed, in terms of implications for MileagePlus members.
In this post:
United wants to segment business class revenue more
United has introduced a new tiered fare structure, which is described as making it easier for customers to find the flight experience that best matches their preferences.
As part of this, the airline is offering three fare options — basic, standard, and flexible — in premium cabins for many flights, including long haul international, transcontinental, and select Hawaii flights. This change is now live in select markets, and will expand to additional markets throughout the year.
So, what new restrictions come with these basic fares? Travelers booking the basic fares in Polaris business class:
- Have to pay to select seats (compared to them being included)
- Get one free checked bag (compared to two free checked bags)
- Receive United Club access, but not United Polaris Lounge access
- Are not eligible for changes or refunds (standard fares allow changes, while flexible fares allow refunds)
- Earn MileagePlus miles at a reduced rate, similar to basic economy; without a co-branded credit card, members earn 0-6x miles per dollar spent based on their status, while with a card, members earn 3-9x miles per dollar spent
- Don’t earn any Premier Qualifying Flights (PQFs), but do earn Premier Qualifying Points (PQPs), so these fares only count toward one metric of status
- Are not eligible for paid upgrades to the United Polaris Studio
The restrictions are similar for basic Premium Plus premium economy tickets. You have to pay to select seats, have a more limited checked bag allowance, aren’t able to upgrade, tickets aren’t as flexible, and mileage accrual and elite status qualification are limited.
United claims that for now, MileagePlus and partner award tickets will continue to book into non-basic fare classes, so will still come with full perks. However, I have to imagine that it’s only a matter of time before United also introduces similarly tiered award tickets.
I suspect that before the end of 2026, we’ll see these basic premium cabin fares at all major US carriers. This announcement came just shortly after United completely changed how it awards miles for flying, as it’s now all about whether you have a United credit card or not.
It’s also interesting (and perhaps logical) to note that Polaris Lounge access is on the chopping block. United recently announced that the forward cabin on premium transcontinental flights will soon be marketed as Polaris, meaning those passengers will finally get Polaris Lounge access. One wondered how crowding would be handled in light of that, and I guess these basic fares are one way to address that.
Will customers benefit from basic business class fares?
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.
The concept of basic business class is similar. These basic fares are always framed as being good for customers, and giving them more choice, and allowing them to only pay for the services that they want. But make no mistake, that’s not actually how the implementation of these fares typically works.
I wouldn’t expect basic business class fares to be materially cheaper than previous standard business class fares. Instead, I suspect that more often than not, the previous cheapest fares are just being made the new basic fares, in an effort to get people to buy up to more expensive fares. I wouldn’t consider that to be good for consumers.
At the same time, I’m not surprised to see the trend. Premium leisure demand is strong, while business travel hasn’t fully recovered. Leisure travelers are often willing to pay a lot for business class, but they’re typically not willing to pay $10K+, as some corporate customers previously may have. So it’s not surprising to see airlines using whatever strategies they can to get people to part with more of their money when flying business class.
The thing to keep in mind is that adding basic business class fares in long haul markets requires a bit more coordination, given the joint ventures that the major airlines belong to, which create metal neutrality. So I’d expect to find these fares across Star Alliance transatlantic joint venture partners in the near future, given how these kinds of flights are sold. It’s not surprising I guess that Lufthansa also recently rolled out basic business class fares.
It is still kind of wild to me that one could book a $4K+ business class ticket, and not have it count as a qualifying flight (PQF) toward status, while a $100 short haul economy ticket would count as a qualifying flight.
Bottom line
For quite some time, United executives have been hinting that the introduction of basic premium cabin fares would be imminent. This is now official — United is introducing new fare categories across cabins, and the idea is that we’re going to also see basic premium cabin fares. These are now on sale, and will be expanding to more markets over time.
In the case of the new United Polaris business class basic fares, they only allow seat assignments for a fee, have a reduced checked bag allowance, don’t allow changes or refunds, limit mileage earning and status qualification, and only allow United Club access, rather than United Polaris Lounge access.
Make no mistake, this is a way to generate more revenue, and I’d view this as being a fare increase if you want the same as before, rather than some amazing new discount opportunity for premium cabin tickets. Expect Delta and American to also match in the very near future.
What do you make of United introducing a basic Polaris business class product?
Hopefully not a stupid question as I’ve never booked a basic fare. Would this mean that if I already get 3 checked bags for free normally I would be limited?
Time to open US to foreign carriers, enough of the dividing the pie among basically 3 carriers with a collusion appearing approach to customer fleecing without adding value, food stinks, crews mostly are a crapshoot, customer service non existing. Only thing they improved is business class seats, yet the bathrooms, even in business class stink, no pun intended.
Good timing, too. I hear Emirates, Etihad, and Qatar have a lot of spare aircraft and crew these days… would be wild to take JFK-MIA on an a380 for $50, all subsidized by oil money and migrant “labor”. Sorry, pipe-dream/nightmare.
I frequently book first instead of economy on positioning flights to get the 2 free checked bags -- difference in fare is often around or even less than the cost of the checked bags.
I guess it all comes out in the wash -- my Platinum credits will no longer work on Travel Bank, so might as well us e them on actual bag fees! LOL
First? *Three fingers inglourious basterds meme*
We're talking Polaris, which is usually 'business' class... might be the same seat for domestic, transcon, or short-haul international, but, technically, First is only the domestic recliners, and United hasn't had a separate, dedicated First class in a while (you know, like how American still has it on their 773?)
This has been... 'umm ackchualleee...'
@Lucky which market did you see the above screenshot in? I can't seem to find any basic polaris fares on the UA site
How long will it take Delta to program their Basic Business fare structure? I know they have IT issues, but they announced theirs a while ago.
United only cares about people who spend OPM. And it shows
Next up: disposable cutlery for basic business meals
Your business basic meal will be a pb&j sandwich.
I only book full fare First (when available) or Business. So this doesn’t affect me at all.
Must suck to be poor. Lol
Unfortunately, this is where the US3 are heading. Monetizing everything in all classes. Want a seat assignment? Pay up. Want a meal on your 12 hour flight? Pay up. Loyalty as we know it is dead.
I retire in three years and with it a major change in lifestyle, including more staying at home and maybe 5-6 trips a year in premium. So I'm enjoying the last gasps of the old loyalty system.
You're almost getting it, George. Like, some of us have been calling out the corporate greed for a while. It's clearly anti-consumer, and often anti-worker. These changes are also borderline deceptive, because you know folks are gonna get tripped up by this, and be disappointed when the lounge or status doesn't work out the way they were expecting.
It’s where the industry is heading, not just the US3. British Airways charges you for choosing your seat im business class. And Qatar Airways also has bassic business class fees that do not include lounge access.
Time to join the old farts who now are free agents!
A 10% discount to the standard Polaris fare seems pretty reasonable for all you give up. Or a 10% premium to the base fare to get all of the normal stuff
Oh, Tim, it's most definitely a devaluation. There is no real 'discount' here. Let's not be naive.
no earning at all unless you are elite or have the credit card. Thats not a small devaluation
It's clearly bad for consumers. We're going to have to pay more to get what we used to get for less. And, the workers who have to enforce new restrictions are gonna face the ire of passengers who don't understand the new fare types. Imagine, a bunch of Boomers who are excited for their retirement trip to Europe in business class finding out they can't get into the 'nice' lounge because of a technicality. Oof,...
It's clearly bad for consumers. We're going to have to pay more to get what we used to get for less. And, the workers who have to enforce new restrictions are gonna face the ire of passengers who don't understand the new fare types. Imagine, a bunch of Boomers who are excited for their retirement trip to Europe in business class finding out they can't get into the 'nice' lounge because of a technicality. Oof, would not want to be the lounge agents at Polaris check-in...
Well economy plus today is worse than economy in the 90s. Back then my transcon economy seat came with a meal on a widebody plane that is rarely even close to full. But gas was also 75 cents/gallon. *shrug* life.
If the hard product and the soft product are the same then it basically depends what you value. Furthermore, it also depends on the configuration of the plane. If it is a 1-2-1 business class or a 2-3-2 business class or a 1-3-1 business class your odds of getting an undesired seat are larger. Also, the customer may be screwed here because the current price may be the basic price....
They really don't understand premium.
What if Ritz-Carlton / Four Seasons / Aman hotel rates didn't include TV, extra blankets, hot water, etc.?
Absolutely going in the wrong direction. Makes choosing Singapore or Air France over United an even more no-brainer
You will be surprised. There is a whole universe of people who are price-conscious and bent on only travelling in business. They will go on about how expensive business fares are but never consider going economy or premium economy. Basic business fares might give them the illusion of being economical without having to compromise on what they see as basic comfort.
Polaris Lounge *is* basic comfort
Mary, this does feel like Ritz-Carlton, which often does not include benefits like complimentary breakfasts for Marriott Bonvoy elites, even while other 'premium' brands within that portfolio, like St. Regis, often do include breakfast. So, United has done these tiers, and yet, American and Delta have not, so far, but likely will soon. If there's a way to profit further, these companies will do it, regardless of whether it upsets consumers or workers.
I would be delighted to pay less for a room without a TV!
But I agree I want the hot water.
Opm
Basic business is such absolute BS.
The airlines that have added this are scummy, its not to offer the customer anything its so they can chharge more for proper business while having their crap version of the product at the top of the search lists.
This is going to suck for anyone still on a corporate travel policy that allows business class but requires cheapest fare.
F**k em!
This is great and sounds a lot like Zip Air from Tokyo to the US. My lie-flat seat on a 787 was only about $1,200. I had to pay for a bottle of water, there was zero service, and if I wanted to change the ticket, well, buy a new one. No changes allowed. I really care only about the seat and fitting my 6’5” frame in it.
That's good and well if the seat is $1200, putting in line with premium economy seats. I seriously doubt that United are going to offer a 50% discount on their fares to go to basic, which makes it far less preferable
I really don't understand all these comments. If UA really do have the power to raise fares by charging the same for a lesser product, why do they have to come up with these convoluted tiers in preference to charging more for the same? Do they even sell tickets for more than their CASM, or is it all cross-subsidised by credit cards?
I think this is great. If I'm going to a wedding or a meeting where i know the exact dates, I would go with Polaris Basic. There would have to be a significant discount to a Standard Polaris ticket. The Polaris Lounge is fine but it's kinda boring - at EWR there are many better places to eat. If I am not exactly sure of plans I will just purchase a standard ticket. I'm curious...
I think this is great. If I'm going to a wedding or a meeting where i know the exact dates, I would go with Polaris Basic. There would have to be a significant discount to a Standard Polaris ticket. The Polaris Lounge is fine but it's kinda boring - at EWR there are many better places to eat. If I am not exactly sure of plans I will just purchase a standard ticket. I'm curious to see this roll out on the pricing level. I rarely check a bag and even though I'm sure we all have our favorite Polaris seats, so long as it reclines flat that is good enough for me. I wasn't put on this planet to complain aboard catering it is perfectly fine as it is. I'd rather save $1000.
There will be no discount. Polaris Basic will be priced at the same level as the current lowest Polaris fare.
^bingo
How cute, you think that youll be getting the seat cheaper.
I wonder how being 1K alters the baggage limitations of a basic fare. Assume we still get our 3 bag allowance.
Obviously bad for most consumers as will lead to higher prices for same/expected services. But may be good for shareholders and executive compensation..
"Will customers benefit from basic business class fares?"
No, they will not.
Lol.... sucks if your OPM will only pay for base
Since they aren't changeable Basic most likely won't be in policy for most OPM flyers
Depends on the relative pricing.
Note they also slipped in a lower baggage weight. Polaris bags had been up to 70 lbs free. Now with this change they're down to 50 lbs unless you have elite status.
OUCH
I bet redeeming miles for UA Business now puts you in the "Base" fare just like redemptions on BA. You'll have to pay extra for seat selection if you don't have the status for it and won't have access to Polaris lounge.
Haven't flown UA internationally for years and now have no intention to!
Did you read the whole article? Of course not.
"For now, United claims that award tickets won’t book into 'basic' fare classes, so will continue to have the typical perks."
No changes is primitive. Make a punitive change fee if you wish. But no changes is BS because life happens. These aren't $ 79 tickets to Orlando at risk.
Exactly. I would want to have the "light" fare to be half the regular price to take on that risk.
With basic economy there effectively is such a fee - it's the "upgrade to regular economy fee".
I wonder what will be the fare differentials between the various tiers and how they will compare to what the business class fares are now.
If you choose a basic fare, will you be able to upgrade to a standard fare after the fact? I think they allow that with B.E.
Here I thought DL was getting bad, but UA is getting worse. Was thinking of making the switch to UA, but will stick with DL for the time being. Considering free agency if the rat race gets more expensive than the paid bags and seats.
Tim Dunn and Scott Kirby walk into a bar.
The bartender looks at Kirby and says, “That’ll be $15 for the beer, plus a $5 convenience fee, a $3 chair-usage surcharge, and a 25% suggested tip.”Kirby smiles and says, “It’s a revolutionary unbundled pricing model!”
Tim Dunn doesn’t even look at his own menu. He just stares at Kirby and says, “Actually, Scott, if you look at the Q3 CASM (Cost per Available Seat Mile)...
Tim Dunn and Scott Kirby walk into a bar.
The bartender looks at Kirby and says, “That’ll be $15 for the beer, plus a $5 convenience fee, a $3 chair-usage surcharge, and a 25% suggested tip.”Kirby smiles and says, “It’s a revolutionary unbundled pricing model!”
Tim Dunn doesn’t even look at his own menu. He just stares at Kirby and says, “Actually, Scott, if you look at the Q3 CASM (Cost per Available Seat Mile) of this bar stool, your tipping strategy is fundamentally flawed. Delta’s stools have a 4% higher reliability rating and the napkins are 10% thicker.”
The bartender turns to Tim and asks, “And what about you, Tim? Are you going to tip?”Tim slowly places a Delta Comfort+ boarding pass on the bar. The bartender says, “I can’t pay my rent with this, Tim.”Tim leans in and whispers, “It’s not a tip; it’s an operational premium. The sheer prestige of serving a Delta loyalist provides more long-term ‘brand equity’ than any cash gratuity. Plus, I’ve already factored in a 15% reliability bonus because you didn’t outsource the pouring of this drink to a regional carrier.”
Whoa. That one left a mark.
This is awesome! And believable, strangely.
I actually don't see that much of a problem. You don't get the Polaris lounge, but you get the United Club. I believe on the ME3, you don't get any lounge access.
The only one that kind of bugs me is the seat selection fee; however, I was expecting that because that's been standard with European carriers for a while.
Was in the IAD Polaris Club on Monday. Total shitshow. Crowded, furniture showing its age, dishes stacked everywhere, only 2 people working the dining room and both surly as hell. Bartender was awesome, though. Whatever the price differential will be between BVasic and Standard, it's not worth it. Eat at home or get something quick in the airport.
meanwhile, the Chicago Polaris Lounge is great. Sad that I might never enter it again.
yeah Polaris lounges are NOTHING SPECIAL. the UA Fanboys are wrong
"it remains to be seen what elite status perks will apply on these fares. Furthermore, it remains to be seen what fare bundle upgrades and awards book into."
Technically yes. But don't kid yourself. We all know the answer and where this is headed.
I think the airlines are missing a key psychological point here with the lounge access thing.
People love Polaris Lounge and it adds a halo effect to United. But no one will want to pay like $1000 extra for it knowingly. And if you blatantly advertise that that’s the cost to get in, people won’t do it. But if you just quietly tuck it into the cost of a ticket, people will be like “well that’s my vacation I’m splurging”
100%
(shrug) Let's see the prices. Once the Centurion a EWR opens, I couldn't care less about Polaris. One checked bag is fine - as often as not, we travel with carryons. No refunds may be an issue.
Any difference in mileage earning?
Why not add to Standard and Basic business class? Have Sub-Basic business class. No seat selection, cannot change assigned seats, no meals, no check luggage allowance, no carry on allowance except personal item, no lounge access, pillow or blanket is a paid extra, board last, must use economy section lavatory unless dire emergency, must remain seated and deplane last, must not speak with an FA except in an emergency, cannot use kiosk for check in...
Why not add to Standard and Basic business class? Have Sub-Basic business class. No seat selection, cannot change assigned seats, no meals, no check luggage allowance, no carry on allowance except personal item, no lounge access, pillow or blanket is a paid extra, board last, must use economy section lavatory unless dire emergency, must remain seated and deplane last, must not speak with an FA except in an emergency, cannot use kiosk for check in but must print boarding pass at home or at a hotel, save electricity by turning off IFE for your seat, etc.
I wouldn't be surprised if some of the restrictions you jokingly mentioned become reality.
@Saunders:
And to go to the toilet, that will be $10. No cash please...
" For your convenience, there's a point of sale machine mounted on the lav door which will unlock upon payment. Simply tap your credit card or use your phone wallet. Of course, there's a convenience fee for the 'door service' as well as an additional fee if you didn't prepay your (non-refundable) lav access fees at the time of booking ... We're happy to announce that you do get half mileage plan credit for using...
" For your convenience, there's a point of sale machine mounted on the lav door which will unlock upon payment. Simply tap your credit card or use your phone wallet. Of course, there's a convenience fee for the 'door service' as well as an additional fee if you didn't prepay your (non-refundable) lav access fees at the time of booking ... We're happy to announce that you do get half mileage plan credit for using the lav ! ... We are also pleased to offer our top tier elite members 1 complementary courtesy visit to the (untidied) lav ! "
And so the enshitification of air travel continues, adding $friction$ at every opportunity ..
@bossa
LOL. Well done. Thanks for the chuckle.
@bossa - you forgot the processing fee on the convenience fee :-)
(see Mariott tipping)
if the plane goes down in the Atlantic you are required to go down with it !
Regarding refunds, will basic fares allow refund to travel credit (which is fine)? Or no refund at all?
>will basic fares allow refund to travel credit
No, at least according to Ben's post. Basic == no refunds, Standard == travel credit.
Ae they say 'WFBF', now one can add "WRBR" ... 'want refund, buy refund' !
I just don't get these fares. There's almost zero marginal cost to most of the stuff they're "unbundling". I'll pick the more generous carrier. And they won't have a significantly higher cost basis for being so. I don't see how this works in competitive markets
The marginal cost of the perks is immaterial. What matters is how much people will pay for them. In addition, there really is a two-tiered market, with the traditional corporate or very wealthy customers being very insensitive in price, as well as the huge and growing market of people who want to fly business but not at the super high prices. This allows UA to take advantage of both market segments.
For example, take...
The marginal cost of the perks is immaterial. What matters is how much people will pay for them. In addition, there really is a two-tiered market, with the traditional corporate or very wealthy customers being very insensitive in price, as well as the huge and growing market of people who want to fly business but not at the super high prices. This allows UA to take advantage of both market segments.
For example, take the case of a current $1000 business class fare, and let's say the marginal cost of providing those extra services is $50. United could jack up the standard fare to $1500 and lower the basic fare to $800. Very wealthy customers will pay the $1500 (price-insensitive) and more of us plebes will be able to afford an $800 fare than a $1000 fare. If UA can sell equivalent numbers of both those fares, the average fare would be higher than $1000. So UA makes a lot more money while saving a tiny bit on the marginal costs.
I'm sure the exact math is different, but you get the idea. UA almost certainly did not do this to cut marginal costs. It did it to attract more revenue.
I get that. But my point is that unbundling only really works when it changes your cost basis. Cut food. Make people pay for it. Makes sense - you spend less on catering and operations and make revenue when people want it. Cut free seat selection - yes you get a revenue opportunity, but it’s zero marginal cost for someone else to be “more generous” and offer the bundle. This only applies where this is...
I get that. But my point is that unbundling only really works when it changes your cost basis. Cut food. Make people pay for it. Makes sense - you spend less on catering and operations and make revenue when people want it. Cut free seat selection - yes you get a revenue opportunity, but it’s zero marginal cost for someone else to be “more generous” and offer the bundle. This only applies where this is actual competition, of course. Being relatively captive in San Francisco, I can see this being pretty crap for me unless I connect. Chicago? LA? Another story.
@snic, make no mistake, that $1000 fare wont come down for a single penny, and will just become the new "basic" fare!
@Joe,
There is no competitive market if all of them do it.
The catch is there will be no 'generous' other carrier .... It's 'monkey see, monkey do'.. Airlines are all in the conspiracy together, and yet they cite 'competitive reasons' as they gaslight their customers.....
Customer friendly move. Boycott United.
So premium.
It's actually called BASIC for a reason....
We will soon have front and back sections of business section. You get economy food, angled lay flat and no service. Coming to a major us airline near you!
These bastards, US carriers, better never get another dime of taxpayer bailout.
This change doesn’t affect me at all. I always pay the highest fare. If you’re too poor , then sorry not sorry.
LOLOLOLOLOLOL!!!!!!!!1!!!1!!!!!!
WHATS YOURE PROBLEM!!!
"WHATS YOURE PROBLEM!!!"
Problem? No problem, you are amusing is all. Go on. Keep commenting. We need the laughs.
Perhaps one day you'll be the standard by which all corporate policies are evaluated. Does it work for Dave? Then do it.
United is becoming the airlines for people who spend OPM (Other Peoples Money)
No, it's for the people not-rich-enough (or not part of the government) to fly private (in the US, now 34% bigger than 2019 levels, )
One can only pity the suckers who are stuck flying UA business vs. just about any other foreign carrier's biz. UA is utterly uncompetitive, from the mid service levels to the mid food, and now, to the mid biz. packages.
“I don't want more choice, I just want nicer things!”
-Edina Monsoon, AbFab
this is correct. Why anyone would fly a US carrier internationally is beyond me. Always fly foreign flag carriers abroad.
On many routes, United Polaris business has way better hard product than BA, Lufthansa, Swiss and Virgin Atlantic because they are still flying a mix of new and dated business class configurations.
Some non stop routes are only served by one airline
Buy business on a Star Alliance carrier and then give them the finger by using the United Polaris lounge.
@TravelinWilly, here's a description of Edina Monsoon from charatour.com
"She is neurotic, high-strung, petulant, frivolous, garrulous, self-absorbed, borderline alcoholic – and, of course, absolutely fabulous."
That's why I love Edina "Eddy"
To Asia, sure. To Europe, I prefer UA over all but AF, and then I have to choose between more useful loyalty program + Polaris lounge + avoiding CDG vs slightly better product.
I'm sure when Swiss has 100% Senses coverage they will overtake UA, unless the consolidation in Frankfurt enshitifies them faster.
For me a big factor in "basic" fares is do frequent flyer perks still apply? Such as free seat selection and increased luggage allowance.
You have to appreciate that some lounge access is still included here, that's usually the first perk to get removed from basic business fares, and only makes overcrowding in credit card lounges even worse
Thanks Delta for leading the way with shitty, customer unfriendly innovations!
European and ME carriers have been doing this for years, including the ones that are consistently claimed as among the best in the world.