Delta Air Lines to Add Basic Business and First-Class Fares This Year

Delta Air Lines is bringing its main cabin unbundling to the front of the plane.

Delta unveiled this week that it is launching tiered fares in both business and first-class cabins later this year, the first major U.S. airline to do so (some international carriers, like Qatar Airways, Emirates, Finnair, Air France, and Etihad, already offer a pared down first or business fare).

The move will turn “Basic” into a third cabin category for Delta—the airline already has a Basic Economy fare, which it launched more than a decade ago, and is currently testing a “Basic” version of Comfort+ —along with an “Extra” fare.

Delta hasn’t yet unveiled the details of what the fares will look like or when they will launch. However, judging by how it operates in the Main and Comfort cabins, “First Basic” or “Business Basic” will give flyers a lower price point into those cabins, while also likely taking away some level of ticket flexibility, seat selection, lounge access, and SkyMiles accrual.

“Extra” fares will exist on the other end of the spectrum, adding perks for flyers in those cabins and likely providing more flexibility than a standard ticket. Delta currently has an Extra fare in economy, which offers higher zoned boarding, better SkyMiles earning, and same-day confirmed changes.

Delta President Glen Hauenstein spoke about the move during the company’s fourth-quarter conference call last week, telling analysts that the airline’s goal is to have “three categories for every product, which is basic, main, and extra.”

Here is how he described Delta’s thinking:

“I think that if you were offered a $500 ticket, there was no reason for you to ever want to pay more than $500 because it was fully loaded. Now that seat is $500, but you can buy it for $450 if you’re willing to get the seat assignment at 48 hours, if you’re willing to have it non-refundable, and then all the way up to extra where it’s fully refundable and you get the best seats unlocked at that time,” he said.