As airlines battle for passengers on the high end and the low end, Delta Air Lines (DAL) on Thursday said business hadn't been affected by American Airlines' (AAL) decision last month to allow its Basic Economy fliers to bring a free carry-on aboard flights.
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The remarks were in response to a question from a reporter during the carrier's conference call to discuss third-quarter earnings.
"We don't sell an incredible amount of basic economy," Delta Air Lines CEO Ed Bastian said during the call, "because most of our customer base chooses ... to sell up into the main cabin. It's a very small percentage of our total sales and we haven't seen a change in that since American's new policy."
The big U.S. airlines have introduced cheap "basic economy" fares that carry enough restrictions — on when passengers can board and what they can bring aboard — that passengers will pay more to avoid those limitations.
At the same time, airlines have carved up their flight cabins to offer different fares that offer differing degrees of amenities on domestic and international flights.
On one end, basic economy seats test what restrictions passengers will tolerate for a cheap seat. Meanwhile, on some flights, premium seats on airlines come with lie-flat seats. Some offer champagne, toothbrush-and-comb kits and meals that do a reasonable imitation of restaurant quality.
'Most Humane' Basic Economy
Amid that so-called cabin segmentation, Delta Air Lines said its basic economy was the "most humane" in the airline industry. Delta's basic economy fares allow a free carry-on. But seats get assigned after check-in. No upgrades are allowed. Basic economy passengers on Delta flights still receive the legroom and amenities of other main-cabin passengers. Those include free snacks and drinks.
American announced its carry-on plans in July, when the company reported second-quarter earnings. The carrier said removing the bag restriction would make it more competitive.
"Basic Economy is working well in the markets where we offer it, and we continue to see more than 60 percent of customers buy up to Main Cabin when offered a choice," American Airlines President Robert Isom said in the carrier's second-quarter earnings release.
Delta Air Lines Stock, Other Airline Stocks Rebound
Delta jumped 3.6% to close at 51.48 in the stock market today. American Airlines fell 1.1%, and United Airlines (UAL) rose 1.5%.
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