4 things to know about United’s new cheaper fares

Delta already has done so, though the only amenity its basic passengers give up appears to be seat selection; they aren’t subjected to additional baggage restrictions and still are entitled to overhead bin space.

United Airlines on Tuesday unveiled a new, no-frills fare designed for the most cost-conscious customers that will come without many goodies passengers expect, including the right to choose a seat and put a suitcase or small duffel bag in the overhead bin.

The airline offers two free checked bags, as well as two carry-on items, for budget prices.

Yep, no rolling carry-ons.

As for United, its Basic Economy fares will roll out next year in select markets, presumably where United faces significant ULCC competition.

And some fliers won’t like this latest trade-off in return for a cheaper ticket – unless you’re an elite status member with United, you won’t be able to bring a full-size carry-on bag on the flight.

United’s Basic Economy tickets will include snacks and basic beverages, according to the company, but users will be allowed to neither reserve seats nor alter their flight schedules.

The practice of marketing cheap tickets that become expensive once add-ons like carry-on bags are included had helped companies like Spirit Airlines Inc (SAVE.O) and Frontier Airlines undercut their bigger rivals, until the likes of Delta borrowed from their playbook.

Among the full-service carriers, Delta was the first to introduce what it called Basic Economy, citing the need to compete with the likes of Spirit and Frontier. It did not identify the markets.

United’s shares rose as much as 7.6 per cent to US$67.70 in early trading, their highest in more than a year. American, Southwest and Delta are the top 3, with American No. 1 at almost 16 million passengers.

United passengers will soon have a cheaper airfare option when booking their next flight – but they better pack light.

Travelers don’t get a seat assignment until they check in or arrive at the airport, greatly increasing the likelihood of getting a middle seat.

If you feel you’re being nickel and dimed by airline fees, get used to it. The new fare will become the benchmark, and today’s economy fare is nearly certainly destined to rise.

The Chicago-based airline isn’t alone in its quest to snare price price-conscious travelers who might otherwise choose low-priced carriers such as Spirit Airlines and Frontier Airlines. Seats will be assigned on departure day along with boarding group five. That means families and groups on the same Basic Economy itinerary won’t necessarily sit together.