Delta Confirms: Basic Business Class Fares are Coming

“Basic” fares are a scourge: Airlines offer these stripped-down tickets to lure you in with a cheaper price, then hit you with a ton of restrictions to convince you to buy a pricier option. After rebranding its stingiest economy tickets and charging more than ever to avoid them on a long flight to Europe, Delta is planning to expand its basic fares – even for high-priced business class seats.

The Atlanta-based airline has been hinting at the prospect for nearly a year, but executives confirmed to investors this week that it's in the midst of expanding basic fare options to first and international business class, Delta Premium Select, and extra legroom Delta Comfort seats. In fact, the airline said it's already testing out what it calls “segmentation” of different fare options in all its premium cabins.

“The segmentation that we’ve done in the main cabin is kind of the template that we’re going to bring to all of our premium cabins over time,” Delta President Glen Hauenstein said Thursday. “Different people have different needs. The more choices we can give customers, the more price points that provide value, the better, I think, the answer is going to be for Delta and for our customer.”

“It’s all about giving people more choice, more pricing options, and more products and services in every cabin,” Hauenstein continued.

The airline is already selling a “Delta One Extra” fare with fully refundable tickets that also earn more SkyMiles. It's only a matter of time before a basic fare option finds its way into the mix.

Hauenstein declined to comment on when travelers can expect these fares to fully roll out or what they'll look like. 

“We haven’t rolled it out yet, not because we don’t have the technological capability, but we want to make sure that customers understand what we’re putting into the market and that they find value in it,” he said when asked by a reporter. 

Why would Delta – or any airline – sell business class fares for thousands of dollars apiece yet cheap travelers out of seat selection or lounge access? Because they can … and more importantly, because it makes the airline more money.

The airline promised investors last fall that Delta would add “good, better, and best” fare types in all of its cabins in the coming years, starting with a test in economy and eventually Comfort seats sometime in 2025. 

“Pay more to get more,” Hauenstein said at the time. 

And that's the point. You shouldn't expect a bargain on lie-flat seats as a result. Unbundled fares are never really cheaper – they merely take the place of a standard fare, which go up in price. You wind up paying the same amount you used to … and get less for it.

Hauenstein said it himself: Pay more, get more. 

What Would a Basic Biz Class Fare Look Like? 

Go figure the airline that invented basic economy more than a decade ago would take it to a new low and become the first U.S. airline to sell a basic business class fare. The race to the bottom knows no bounds in the airline industry. 

But what would a basic Delta One ticket look like? The airline's executives aren't saying … but they don't have to look far for inspiration.

Lufthansa, Emirates, and even Qatar Airways have all unbundled business class tickets to sell a pared-down fare at a slightly cheaper price. Common features include: 

• No free seat selection
• No complimentary lounge access
• No free change or cancellation, even for a voucher
• Earning fewer miles on the flight

If that all sounds familiar, it's because it's borderline identical to the restrictions with Delta basic economy – sorry, I mean Main Basic. You can't get into the Sky Club with one of those tickets today, you can't change your flight, and you won't earn a single SkyMile.

There's little reason reason to think Delta will do anything drastically different when it gives business class the basic treatment. Heck, because it's Delta, maybe they'll even save the Taittinger champagne and fancy new Missoni bedding for higher-paying “Delta One Classic” passengers.

That's because the point of any basic fare isn't to cut travelers a better deal. It's to lure you in with a cheaper fare, then hit you with a bunch of restrictions in an effort to get you to pay more. That upsell has worked wonders with standard basic economy fares as a way to combat ultra-low-cost carriers while pulling more revenue. 

Bottom Line

It's only a matter of time: Delta basic business class fares are coming. 

The airline has everything it needs in place to start selling a stingy business class ticket. Now, the only question is when that happens … and just how bad they'll be.