United aims at budget travellers with 'Basic Economy' fares

United is making a pitch to passengers at both ends of the plane — budget fliers and luxury passengers — as it attempts to boost profits. The airline announced Tuesday that it will sell lower "Basic Economy" fares that don't let buyers pick seats ahead of time and limit them to a single carry-on bag that fits under the seat. They'll be the last to board. The new fares will go on sale in January for flights starting after March, a spokeswoman said. United hopes the lower fares lure passengers who pick carriers like Spirit and Frontier on price. Delta already sells a similar, stripped-down ticket for several years, and American Airlines plans to follow. Airlines don't generally speak about pricing, but Delta's basic economy tickets have been roughly $10 to $30 cheaper — sometimes more — than regular coach tickets on domestic flights. Meanwhile, the airline plans to begin a new service called Polaris for premium passengers on international routes next month, and may expand it to domestic flights. United said it expects those and other changes, coupled with cost controls, will increase profit by $4.8b between now and 2020.<br/>