--- title: "Flying first class is getting cheaper - if you don't mind giving up some perks" type: "News" locale: "en" url: "https://longbridge.com/en/news/295782048.md" description: "U.S. airlines like Delta and United are introducing 'basic' first-class tiers, unbundling premium perks such as lounge access and flexible tickets to offer lower prices. This strategy aims to maximize profitability by catering to diverse customer needs without discounting full-fare premium seats, though it risks alienating traditional luxury travelers." datetime: "2026-08-13T10:30:46.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295782048.md) - [en](https://longbridge.com/en/news/295782048.md) - [zh-HK](https://longbridge.com/zh-HK/news/295782048.md) generator: "portal-rs" --- # Flying first class is getting cheaper - if you don't mind giving up some perks By Claudia Assis 'Basic first class' is here as airlines move to create multiple tiers of their most premium seats After slicing and dicing economy fares, U.S. airlines are moving to create new segments within the first-class cabin. Your first-class ticket could soon be second class as U.S. airlines add to their dizzying roster of seating options. Borrowing from a playbook that worked well for economy tickets, airlines are starting to create multiple tiers of their most expensive seats. By unbundling fares for business and first class, carriers are offering coveted seats for less money - assuming some buyers are willing to give up a few of the perks that came to define luxury travel. Wall Street likes that approach, particularly as the industry's margins are under pressure from high jet-fuel prices. But the move risks alienating customers who already may be grumbling about the complex array of ticket options when it comes time to book a flight. Gone are the days when there was first class, business class and then the rest of the cabin, and airlines had to manage supply and demand for any given route by simply adding and subtracting flights, said Keith Buchanan, a fund manager at Globalt Investments. "I don't think we're done with segmentation across the industry," he said. "Now they have an entirely different lever to pull to maximize profitability," which is a positive development for their business. Delta Air Lines (DAL) last month announced a "basic" fare option for some of its premium tickets. On a call with analysts following quarterly results, CEO Ed Bastian highlighted that shift. "Ten years ago, we were a blunt instrument," he said. Delta had only a handful of price categories on the shelf. "Today, we're continuing to add to that," Bastian said. And when United Airlines (UAL) reshuffled its fare structure earlier this year, the changes also included adding a "base" fare tier to premium seats in some flights, such as long-haul international trips. Such fares come with fewer perks. They are usually non-refundable, with limitations on checked-luggage allowances and the opportunities to collect miles. Access to an airline's top-tier airport lounge may be restricted or not included at all. The new fare options allow airlines to offer more choice to consumers without discounting their premium fares. Premium seats are better profit-makers, and airlines can still offer extras for a price. Other airlines are expected to follow suit. Delta and United have been among the pioneers of segmentation in economy, and they've also focused on attracting richer flyers. That cafeteria approach to fare pricing came out of post-pandemic air-travel lessons, at least in part. Airlines noticed an uptick in what customers were willing to pay as they came to view travel as an experience rather than a means of getting from point A to point B. The carriers invested money in reconfiguring their cabins to offer more spacious economy seats. The further segmentation is "really a way for them to try to make sure that they've gotten this enormous gamble in reconfiguring the aircraft cabin right. It's expensive to do this," said Rob Britton, a professor at Georgetown University and a former executive at American Airlines (AAL). Britton thinks American is likely to follow Delta and United in bringing fare segmentation to the front of the plane, and says Alaska (ALK) could do the same eventually. JetBlue (JBLU) late last month unveiled a new fare structure in which a basic fare will apply to some of its premium offerings. The airline is rolling out domestic first class later this year. The airlines did not immediately return requests for comment. For customers, the unbundling of premium seats might offer a few advantages. Some passengers may want to pay just for a lie-flat seat, for instance, and not care about visiting the most exclusive lounge, said Ahmed Abdelghany, a professor at Embry-Riddle Aeronautical University. "It's an opportunity for airlines to get additional customers for that seat," perhaps someone willing to upgrade from economy and pay $2,000 for a better seat, but not $3,000 for perks they might not care for, he said. "It's good for the airline and good for the customer - the customer gets the seat, and airline gets the revenue," Abdelghany said. "We are seeing that we have different types of customers, with different kinds of needs." Segmentation, however, works better if airlines deeply understand customer behavior, he said. That's where technology has played a part. Airlines have found finer ways to slice and dice passenger data to sift for trends, modeling passenger behavior and storing historical trends about what people tend to buy, which generally helps them better understand different facets of demand, Abdelghany said. Airlines have good insight on what people want, what they can afford and what they are willing to pay, he added. To be sure, there's the potential for backlash from air travelers, who are already awash with several fare classes. One way to minimize that is "communicating the product in the best, clearest way possible," Abdelghany said. Britton, the former American Airlines executive, drew a comparison with checked-luggage fees. Two decades ago, customers grumbled about U.S. airlines charging for checked bags, which was the start of all the unbundling that followed. "Within a year or two, they got used to it," he said. You get blowback every time something changes in the airline industry, he added. "At the end of the day, it's a mass industry. It's how people get around this big country of ours." -Claudia Assis This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal. (END) Dow Jones Newswires 08-13-26 0630ET ### Related Stocks - [UAL.US](https://longbridge.com/en/quote/UAL.US.md) - [DAL.US](https://longbridge.com/en/quote/DAL.US.md) - [AAL.US](https://longbridge.com/en/quote/AAL.US.md) - [ALK.US](https://longbridge.com/en/quote/ALK.US.md) - [JBLU.US](https://longbridge.com/en/quote/JBLU.US.md) ## Related News & Research - [American Airlines to add seatback screens, bigger first class in race to catch up to Delta and United](https://longbridge.com/en/news/296233714.md) - [Aeromexico Wins Appeal Striking Down U.S. Move to Block Joint Venture](https://longbridge.com/en/news/296545698.md) - [Delta, Aeromexico win court battle to keep joint venture](https://longbridge.com/en/news/296530746.md) - [06:00 ETHEART AEROSPACE COMPLETES FIRST FLIGHT OF WORLD'S LARGEST ELECTRIC AIRCRAFT](https://longbridge.com/en/news/295778223.md) - [Delta investigating after someone set up fake Wi-Fi network mid-flight](https://longbridge.com/en/news/295557663.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**