No-frills flying took off in the Nineties when low-cost airlines such as Ryanair in Europe and Southwest in the US promised us seats to the sun for the price of a meal deal. The key difference between these budget airlines and premium carriers such as British Airways and American Airlines was — apart from the price — that there would be no perks.
That distinction lasted for two decades or so. But over the past ten years, the so-called full-service airlines have introduced a basic economy fare that looks very similar to what you might get on a budget airline. It’s typically the very cheapest option — meaning no luggage, no seat selection and no flexibility. The point? To tempt budget-conscious travellers who might otherwise book a low-cost flight and then upsell them to a more lucrative fare.
• easyJet is turning 30 — here’s how it has changed the way we travel
Since the UK flag carrier British Airways introduced its basic economy fare in 2018, I’ve bought them a handful of times, flying to cities including Hong Kong, Bordeaux and Venice for short trips when I didn’t need any flexibility and nothing more than a carry-on bag. A one-way British Airways economy basic from Heathrow to Inverness recently set me back £62 — roughly the same as the easyJet fare, but with a more generous hand luggage allowance.
What you need to know
But while these cheap tickets are competitive, there are also downsides. The main thing being that in the US a handful of airlines have removed the ability to earn loyalty points on a basic economy ticket.
American Airlines recently scrapped loyalty points for travellers on its cheapest fares
ALAMY
In December American Airlines became the latest airline to axe the ability to earn loyalty points on its cheapest tickets. It quietly announced to its frequent flyers that it would no longer award status points or air miles to those who bought these basic economy fares — regardless of how much they spent — in a move that has irritated regular travellers. One commentator on Reddit called it “a kick in the teeth”; another argued that a bum on the seat “ought to count for something”.
The airline, part of the Oneworld alliance that also includes British Airways and Qatar Airways, said it would “routinely evaluate” its fares to “remain competitive”, arguing that those who bought the cheapest economy tickets can still bring two cabin bags, and like those on more expensive tickets, they will still get free snacks, soft drinks and inflight entertainment.
This idea of stripping loyalty points away from the cheapest fares isn’t new in the US. American Airlines follows Delta, which introduced its main basic fare (then called basic economy) in 2012 and stopped awarding loyalty points to passengers on these fares in 2022. Delta also bars travellers flying on its main basic fare from using its airport lounges, regardless of their status, which is a much-loved perk of frequent flyers.
At the start of this year Delta went a step further, announcing a basic business and first-class fare that would be rolled out in 2026, which would work in the same way as the no-frills economy fares. In a recent earnings call with investors, Glen Hauenstein, the Delta president, said: “We’ve talked about really having three categories for every product, which is basic, classic and extra, and that continues to evolve.”
• The billion-dollar business behind your airline luggage fees
Other examples include Alaska Airlines, which is expanding into Europe this year and has neutered the earning potential on its saver fares; and United, which has partly restricted how status is earned on the cheap seats.
The trend is slowly inching across the Pond, although at the moment Air France–KLM is the only carrier to remove loyalty points for flyers on its basic fare for short and medium-haul flights. When the change was introduced last July, the airline alliance also removed the second larger cabin bag for those on the cheapest tickets, meaning only one small underseat bag would be included — the equivalent of what you’d get on a low-cost carrier.
Delta bars travellers flying on its basic fare from using its airport lounges — regardless of their status
RANK STUDIOS
But will this move towards an even more basic economy affect the British airlines? The worry is, a year after British Airways announced it would revamp its loyalty scheme to focus on higher spending customers, that more European airlines will stop awarding loyalty points to those on the lowest fares. However, it’s understood that unlike its American Oneworld cousin, BA is not considering stripping basic economy customers of their miles. Neither is long-haul airline Virgin Atlantic, which tells me that removing Virgin Red points from its lowest economy light fare (which only offers one piece of hand luggage) is not something it’s thinking about. However, it is worth keeping in mind that the number of loyalty points awarded for basic economy flights will be negligible anyway, given the low fare.
• Fancy a seven-hour Dubai flight minus baggage and food? Wizz Air does
Away from a lack of loyalty points, those on the cheapest tickets will also board last, and therefore be most likely to have their cabin bag snatched at the gate if the overhead bins are full. They will pay for seat selection, if they want it. Note that these basic fares are inflexible, and will usually be non-refundable, much like tickets on a budget airline.
Rob Burgess, the editor of UK loyalty site Head for Points, tells me that basic economy is a way for the legacy carriers, particularly in the US, to “appear competitive in flight searches”.
He adds: “The aim is to make it so unattractive that none of their regular passengers will trade down to it, and the only people who pay for it are those who are exceptionally price sensitive. It doesn’t even make sense to anyone who needs to check in a suitcase or who wants to pay for seat selection — you’d usually be better off buying a more expensive ticket initially.”
Share your thoughts in the comments
