✈ Could the ‘basic economy’ fare concept expand to include biz class? Plus, over 40 new airline routes & more! ✈

July 17, 2024

Airfare basics

by Ben Mutzabaugh, Managing Editor for Aviation

Hello TPG readers!

A possible “unbundling”of first- and business-class fares. American Express’ newest Centurion Lounge is open. American Airlines added a new Caribbean destination that no other U.S. airline flies to. And there were even more new airline routes than usual.

We have a lot to catch you up on since the last Aviation newsletter, so let’s get to it.

American Express’ long-awaited Centurion Lounge at Ronald Reagan Washington National Airport (DCA) opened. TPG’s Zach Griff was there for a first look right as the curtain rose and he tells you everything you need to know about Amex’s newest location.

Elsewhere, there were new airline routes — lots of them.

We’ll lead with American Airlines’ network adjustment that included two new routes from New York’s LaGuardia Airport (LGA) — but also some cuts in Miami and London. What makes the announcement interesting, however, is the addition of an entirely new destination — one that had been so under the radar that American will be the only airline to fly this route between the Caribbean and the U.S.

Elsewhere, Alaska Airlines added 18 routes — and paused three. Allegiant Air added eight while Frontier Airlines dropped eight. Breeze Airways is adding both new cities and new routes. Fiji Airways will begin flying to American’s biggest hub on what will become the longest route in the South Pacific carrier’s network.

And we’ll close this week with the possible unbundling of premium fares. Chatter on that topic kicked off last week on Delta Air Lines’ earnings call, when company officials acknowledged that the carrier has discussed the possibility of adding what some are calling “basic business” fares.

While Delta said nothing has been decided, such a move theoretically could include things like fees for advance seat assignments or other perks currently included in first- and business-class fares. Those perks have already largely been stripped out from the coach-class cabin, where basic economy fares now exclude many things that used to be free as part of a standard ticket. Even on standard economy fares, seat assignments typically come with an additional fee for all but the least desirable seats.

Economy flyers seem to have shrugged off concerns about that particular evolution of fares over the past decade. But how might a business-class passenger react if their $5,000 overseas ticket — hypothetically — also included a $75-per-flight fee to have an assigned seat in the lie-flat cabin? For those who think it can’t happen, we’ll point to Europe — where the trend has already taken root at a handful of airlines.

It’s important to note that nothing has been announced, though TPG’s Sean Cudahy breaks down how the mere mention of the topic on Delta’s earnings call touched off the current wave of speculation among industry analysts and observers.

That’s it for now. Until next time …

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Photo Credit: BEN MUTZABAUGH/THE POINTS GUY.

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