United Airlines: Basic economy fare ensures price point for entire aircraft is not brought down

5 December, 2018

United Airlines CEO Oscar Munoz acknowledged a lot of the airline's customers "struggled" with the "initial phase" of the basic economy fare roll out, "where it was a big change" (Houston Chronicle, 30-Nov-2018). He said United and its customers have "definitely passed that point", noting it is "working great" now. Mr Munoz said the basic economy fare means the airline does not have to bring the price point down for the "entire aircraft", in a business where "we operate on very thin margins". Mr Munoz added: "So it's helping us with maintaining the rest of our cabin for the people who want to choose to fly regular coach or Economy Plus or up in the front. It's just nice to have all of those segments inside one aircraft".