Is Southwest Considering a Basic Economy Fare?

Is Southwest Airlines considering joining its peers at American, Delta and United by adding a Basic Economy fare?

Aviation observers and fliers are seeing signs – including a survey of Southwest’s Customer Advisory Council and online chatter – that seem to indicate such a move is pending.

Although Southwest didn’t use the phrase ‘basic economy,’ USA Today reported that the survey sent to members of Southwest’s customer advisory council asked travelers about proposed names for four fare categories, according to a summary of the names posted on the online frequent flyer forum FlyerTalk.

Southwest already has three different types of fares – Wanna Get Away, there’s AnyTime, and Business Select. In that order, they range from least expensive to most expensive. And, at the moment, all three fares include two huge benefits that allow Southwest to differentiate itself from the Big Three – two free checked bags and no fees to change a ticket.

But many in the industry, frequent fliers included, believe the array of names Southwest offered up in the survey for a fourth type of fare equates to adding a basic economy fare.

Basic Economy is loosely defined as the lowest fare possible, but with passengers forced to give up amenities such as taking carry-on bags on board and being able to utilize overhead bin space.

According to Inc. Magazine, Southwest did not respond to questions asking about the proposed fourth fare. Inc. also said that Southwest, while profitable, is under pressure from Wall Street to increase its revenue and profits.

“The whole psychology of Basic Economy was to get passengers to dislike the concept so much they’d pay more to get merely the same as they did before,” the writer noted. “… If, even for a second, it feels as if the airline is trying to worsen its essential product, it could have a painful effect on the brand as a whole. One of the most difficult maneuvers in business is trying to make more money while keeping your customers emotionally on your side.”