Published on : Saturday, January 28, 2017
On the carrier’s second quarter earnings call Friday, American chairman and chief executive Doug Parker said that, they are back in consideration for being one of the greatest airlines in the world.
Passengers now travelling by American Airlines will be able to buy “basic economy” tickets starting next month that will be similar to bare-bones fares already offered by Delta Air Lines and soon to be matched by United Airlines.
American didn’t describe prices for its version of basic economy, which will begin at 10 U.S. airports and later be expanded nationwide and to close international destinations such as the Caribbean.
The basic economy is a discount fare class that exists with an airline’s economy cabin. As a result, the in-flight service and experience will be the same for basic economy as it will be for someone who purchased a pricier main cabin economy ticket. This means passengers who go to basic economy route will sit in the same seats, enjoy the same in-flight perks and amenities as everyone else in coach.
In the next couple of years American, the largest airline by traffic wants to get its margins closer to the high profits reported by Delta, the second-largest U.S. airline by traffic.
Parker said that the gap between American’s profit margins and Delta’s can be entirely made up by boosting its revenue.