Airlines love this product because many passengers don't
Many customers don’t want basic economy “when they see what exactly it is,” Delta’s president, Glen Hauenstein, told investors Wednesday.
“Really the success of that product isn’t how many people buy it, in our mind, but how many people don’t buy it and choose another product,” he said, after the company reported better-than-expected profits for a quarter plagued by deadly hurricanes. “And that’s really where we’re focused.”
The upsell is important for airlines because they are trying to at once compete with low-cost carriers such as Spirit and wring more money from passengers. U.S. airlines took in more than $4 billion from checked-baggage fees last year, for example.
On the other end of coach, Delta is also offering premium economy seats, which offer more legroom and Tumi amenities kits.