5 Responses

  1. Gary Leff
    Gary Leff at |

    It seems like an interesting take to say that Basic Economy is generating a big boost for American when it’s only in such limited markets, when only 50% of customers in those markets who ultimately buy from American rather than booking away pay up, and when they acknowledge some modest gain on other markets where customers are booking to them and away from United’s broader rollout of basic economy.

    Did I mishear during the earnings call that the $23 figure was for those buying up, and not “for each passenger who ultimately chooses to not buy Basic Economy product” as you wrote above? It seemed clear the explanation was about $23 because most buy ups are being sold at $20. This wasn’t an average across all customers, it seemed an average of those customers buying up.

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    1. Gary Leff
      Gary Leff at |

      And apologies I may have been less than clear, big boost to me seemed like it meant a material amount of revenue to the airline or significant driver of ariline profit or at least revenue delta, but I don’t think that’s what you mean?

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