Days after Delta Air Lines confirmed plans to introduce a “basic” business class product, United Airlines has again confirmed it is looking at doing the same thing. Will basic business revolutionize business class or simply mark an easy way to add restrictions to some premium cabin tickets, much like the cheapest economy class tickets?

United Airlines Moves Closer To Unbundling Business Class: Here’s What “Basic” Business Class Will Mean For You

During this week’s 2025 Q2 earnings call, Dawn Gilbertston of The Wall Street Journal asked United’s Chief Commercial Officer, Andrew Nocella, about whether United is “weighing barebones business class tickets?” (“like your new favorite brand loyal competitor”). Nocella responded:

Look, what I would say is over time, over the last seven or eight years, we’ve leaned heavily into segmentation of our revenues, which is really in our articulate way of saying, providing more and more choices to our customers so they can pick the

experience they would like from premium to basic economy. And we have learned through that time period that our customers really appreciate this.

Not everybody wants the full experience. Some people want other experiences. And so the value to United as an airline and to that of our customers has been proven by the segmentation of revenues that we’ve done. And we look forward to continuing to diversify our revenue base and segment it in the appropriate way, and I’ll leave it at that.

I asked the same question to Andrew Nocella at a United Airlines event in Brooklyn, NY a couple months ago and received the same response…

The answer is yes…this is coming.

Should we be fearful? Is United (and Delta) going to turn the business class experience upside down with stiff change fees and seat assignment fees and no lounge access?

Yep…that’s what I am guessing.

What Basic Business Class Might Look Like On United Airlines

The good news is that I cannot imagine a situation where the onboard product is different based on which fare class you buy. Everyone will be treated equally well (or equally poorly) onboard. “Basic” business class passengers will still enjoy the same seat, bedding, food, drinks, IFE, and other amenities.

But the ground product is a different story.

Priority check-in? Nope, though if any benefit survives, this one will.

Complimentary checked baggage? Nope. Or maybe one bag at 50 pounds instead of two bags at 70 pounds.

Lounge access? Nope.

Also, while the onboard product will be identical for all passengers, basic business class passengers will have to pay for pre-assigned seating, something British Airways has done for years.

And perhaps worst of all, I think these fares will not only be non-refundable, but also non-changeable or at least carry a high change fee.

In the case of United, it currently has premium cabin fares ranging from P – D – C – J…with P being the cheapest. I buy P fares, with transcontinental fares running $500-600 one-way.

But I can imagine P fares becoming basic fares and no longer being flexible. When it comes to intercontinental travel, we need only look at United’s joint venture partner Lufthansa. Already, Lufthansa Group carriers charge change fees of $400+ on premium cabin fares…that will surely come for United too.

Finding The Right Balance

I love playing armchair CEO and one thing that critics of this move have said is that United and Delta may be leaving a lot of money on the table by doing this. So often, people buy premium cabin tickets with “OPM” (other people’s money). The argument goes that employers will pay for these extra services whether they are used or not, so why not charge them for it instead of offering a cheaper business class product that companies will buy for employees?

I think that premise is false, because United won’t be sacrificing revenue at all. Instead, just like with basic economy, the cheapest tickets will suddenly have restrictions…it’s not like business class tickets will suddenly become cheaper. Nope, the cheapest ones will just be a lot more restricted than they currently are.

So an employer who needs flexibility will just pay more for the same thing…

I think where this might adversely impact revenue might be on travelers like me who buy premium cabin tickets for personal trips…I change and cancel trips all the time and I greatly value the elimination of change fees. For that reason, I avoid basic economy tickets. If United introduces basic business class tickets, I’ll avoid those too. But rather than paying $800 one-way instead of $550 one-way for a trip, I’ll just fly economy…

CONCLUSION

There’s little doubt in my mind that Delta and United…followed by American Airlines…will unveil a basic business class fare later this year or next year. It won’t be good for consumers, it won’t lead to cheaper tickets, but it will certainly be a revenue generator for the airlines. Enjoy free seat assignments and other perks of business class while they last…

Will basic business class impact the way you purchase airline tickets?

> Read More: Delta Moves To Unbundle Business Class, Tests “Basic” Premium Cabin Fares