American Air turns cheapest seats into main draw amid virus

American Airlines Group introduced its cheapest fare class in 2017 to coax a few travellers away from budget carriers. These days, such no-frills tickets are becoming a mainstay of the company’s efforts to fill its planes. As many as 85% of passengers bought so-called Basic Economy fares during a brief uptick in travel in June, Chief Revenue Officer Vasu Raja said. The vast majority were under 30, and two-thirds weren’t enrolled in American’s loyalty program -- indicating they probably weren’t repeat travelers. Since then, such bare-bones tickets have continued to account for a majority of customers. The rare pocket of demand offers a modest lifeline as airlines grasp for ways to soften a travel collapse caused by the coronavirus pandemic. With budget-conscious younger customers more willing to fly than the business travelers American has traditionally targeted, the airline is sweetening its lowest-end offerings and trying to use them as a way to jump-start sales. “We envision Basic Economy as being much different than what we designed it as,” Raja said. “We anticipate using it quite directly as a means of getting customers who really weren’t travelers before to come to market, as an entry product into the airline, to the travel experience.”<br/>