American to sell no-frills 'Basic Economy' tickets on Europe flights

Passengers buying the cheapest fares to Europe may soon have to start paying to check a bag on some American Airlines flights.

That comes as the carrier announced plans to expand its “Basic Economy” fare class to European routes, taking the fight to overseas low-cost carriers like WOW Air and Norwegian that have grown rapidly in the U.S. this decade.

So-called “Basic Economy” fares give fliers a seat on “full-service” carriers like American, Delta and United, but the cheaper fare types strip out some frills that used to be standard travel perks.

American, Delta and United have already rolled out such no-frills fares on routes within the U.S., especially in markets where they compete with “ultra low-cost carriers” (ULCCs) Frontier, Spirit and Allegiant.

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The fares come closer to the low base fares offered by those ULCCs, but they come with restrictions. Among them: no advance seat assignments, carry-on limitations and a use-it-or-lose-it change policy.

Delta has already begun selling its Basic Economy fares on international flights. Now American says it will do the same starting in April. The carrier did not detail the international markets where fliers would first see the fares, but it hinted at a phased-in roll-out.

“We're following the same playbook in this latest expansion as we did for the initial rollout of Basic Economy,” American said in a statement. “That includes training that began this week for airports and reservations team members and making it available in a limited number of markets first to make sure we get it right.”

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“Much like we and other airlines have done in the United States, we know that there is a large segment of the flying population that cares almost entirely about price,” American CEO Doug Parker told Paste BN on the sidelines of the U.S. Chamber of Commerce’s annual Aviation Summit in Washington on Thursday.

“We want to give those customers a choice on American,” he added.

Parker said the initiative was to help the carrier compete with budget rivals for the most price-sensitive customers. European low-cost carriers WOW, Norwegian and others have offered U.S.-Europe fares for as little as $65 one way. But fares on some of those tickets often come with extra fees. On Icelandic-based WOW, for example, customers must pay extra for nearly everything beyond boarding the plane when booking its cheapest fares. Seat assignments, food and drinks – even some carry-on bags – cost more.

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It’s been hard for “full-service” carriers like American, Delta and United to compete with those types of no-frills carriers on price alone. The big U.S. airlines say the Basic Economy fares have helped make them more competitive against domestic ULCCs, something that’s now prompting them to expand the effort internationally. 

The traditional full-service carriers hope that the lower fares will lure price-conscious travelers for an experience that they argue is more upscale than what they’ll get on a budget carrier.

“We have other customers that are willing to pay higher fares for a different level of service,” Parker said.

But, for Basic Economy, “it’s service on American Airlines, which means it’s going to be better than service on low-cost carriers, but it matches the low-cost carrier fares,” he added. “But it doesn’t provide all the amenities that the next fare up would provide. You don’t have the ability to get a seat assignment until the day before departure. You don’t have the ability to upgrade the fare. Things like that.”

For Basic Economy customers connecting on a trip to Europe, the international Basic Economy rules will apply to all their flights – even domestic legs.

Here’s a breakdown of what American’s Basic Economy fares will mean for fliers traveling on domestic and European itineraries.

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Seat assignments

Domestic: Assigned at check-in.

Europe: Assigned at check-in. Advance assignments available at any time, for a fee.

Carry-on bags

Domestic: One personal item that must fit underneath the seat in front of the passenger.

Europe: One carry-on and one personal item. One item can be stowed in an overhead bin.

Checked bags

Domestic: Fee for all checked bags

Europe: Fee for all checked bags

Upgrade eligibility

Domestic: Not offered

Europe: Not offered

Flight change/Same-day standby

Domestic: Not offered

Europe: Not offered

Earns frequent-flier miles

Domestic: Yes

Europe: Yes

Flights count toward elite status

Domestic: Yes, but at a reduced level

Europe: Yes, but at a reduced level

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