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Delta just made basic economy tickets fully flexible once again, but why?

July 28, 2021
4 min read
Delta Airbus A220-100
Delta just made basic economy tickets fully flexible once again, but why?
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This is shaping up to be an amazing week for Delta flyers.

On Tuesday afternoon, the Atlanta-based carrier became the first U.S. airline to extend all Medallion elite status for another year, through January 2023. The airline added some perks, like a higher upgrade priority, for frequent flyers who manage to requalify for status the "hard way" this year.

But buried in the news was a major change to the airline's fare structure and change-fee policy. Effective immediately, all basic economy tickets for flights through Dec. 31 can be changed or canceled for free.

Before the pandemic, these deep-discount tickets were the most restrictive you could find — they were "use it or lose it." If you needed to modify your flight, you'd be forced to purchase a whole new ticket.

When COVID-19 came stateside in early 2020, all major airlines adopted global travel waivers that allowed all tickets, including those booked in basic economy, to be modified without the standard $200-or-more change fee. (You'd still be on the hook for a possible fare difference though.)

Those global waivers lasted just over a year. In recent months, all major U.S. airlines have replaced this unprecedented flexibility with a new, permanent policy — there are no longer any change fees on most tickets, with one major exclusion: basic economy fares.

When the airlines transitioned to this "new normal," one of the goals of the policy was to seemingly convince flyers to buy up to a standard coach ticket. With concerns about the pandemic and changing entry and testing regulations, there's been an increased emphasis on flexibility. So, instead of sticking with the cheaper, unchangeable basic economy fare, carriers expected more people to upgrade to coach tickets that include fee-free changes.

Well, on Tuesday, Delta totally upended this buy-up strategy.

(Photo by Zach Griff/The Points Guy)

By allowing free changes on basic economy tickets through the end of 2021, there's much less of an incentive to upgrade to a main cabin ticket. Sure, you'd get a free seat assignment and be eligible for first-class bumps as a Medallion member, but for many passengers, that's likely not enough of a reason to shell out an additional $20 (or more) per person for the upgrade.

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As for why Delta's throwing in the towel on its fare bands, the carrier cited increased call hold times — which have stretched over a day in certain cases — as the reason for the move. Ed Bastian, the airline's CEO, wrote on Tuesday that the goal is "to help address call wait times as we increase staffing."

By allowing travelers to make changes to basic economy fares, the airline's hoping it'll free up call center agents to handle other inquiries. In the memo sent to flyers on Tuesday, Delta even linked to a how-to guide on changing or canceling a reservation using the mobile app or website.

In Delta's case, the airline clearly made the calculation that it'd be worth losing out on a potential upsell opportunity in exchange for a better customer experience.

As for Delta's competitors, it'll be interesting to see what happens next. Earlier in the pandemic, it was a game of "monkey see, monkey do." Every time one of the Big Three extended the global waiver, the others quickly matched within a matter of days.

This time, things might pan out differently. If American, United and the other major U.S. airlines want to continue improving their yields and maintain the integrity of their fare bands, then they might not match Delta's unprecedented flexibility.

If they do, well, then we're right back to where we started in March 2020.

Featured image by ZACH GRIFF/THE POINTS GUY
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
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Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.