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How would you like to pay the same amount of money to receive fewer benefits when you fly? This seems to be the latest trend in the aviation industry.
Airlines are all about profits. Basic economy fares originated because airlines needed a way to compete with low-cost carriers like Spirit (which isn't competition anymore) and Southwest (which has since given up its competitive advantages).
However, it seems airlines recently realized that adding basic economy-style restrictions to premium cabins under the guise of “more affordable fares for all” can actually let them charge the same price for a premium seat while offering fewer perks.
The latest airline to introduce basic fares in premium cabins is Air Canada, and fares are already live. Here's what to know about Air Canada's fare class overhaul.
Air Canada Introduces Basic Fares in Premium Cabins on Select Routes
Air Canada joins fellow Star Alliance member United Airlines and SkyTeam member Delta Air Lines to offer passengers far too many options when booking a plane ticket. Now, you have 11 different fare options to choose from:
- Economy: Basic, Standard, Flex, Comfort, and Latitude
- Premium Economy: Basic, Standard, and Latitude
- Business: Basic, Standard, and Latitude
Luckily, at least for now, Business Class Basic and Premium Economy Basic are only available on flights within Canada, to the U.S., and on international itineraries to and from Central America and South America.
That's still plenty of routes, but you won't be offered a Business Class Basic ticket on a 7,000-mile flight from Montreal to New Delhi.
How the benefits of each fare stack up
What's the difference between each of these options? Well, that depends on where you're flying.
The good news: Premium Economy Basic and Business Basic will continue earning 1 Aeroplan point and 4 Status Qualifying Credits (SQCs) per $1 spent.
Here's a look at what you get with each Premium Economy fare:
| Fare Features | Premium Economy Basic | Premium Economy Standard | Premium Economy Latitude |
|---|---|---|---|
| Refundability | No refund or future travel credit | No refund on flights within Canada or to the U.S. Fee applies for international flights | Refundable |
| Changes up to 2 hours before departure | $200 charge for flights within Canada or to the U.S. $500 charge on international flights | $100-$120 charge for flights within Canada or to the U.S. Fee applies for international flights | Fare difference only |
| Same-day airport change | Not permitted | $100-$120 charge for flights within Canada, to the U.S., and international flights | Included |
| Same-day standby | Not permitted | Free on select routes within Canada and to the U.S. Not permitted on international flights | Included |
| Priority check-in and baggage handling | Included | Included | Included |
| Access to Maple Leaf Lounges | Not available | $49.00 - $94.80 | $49.00 - $94.80 |
| Carry-on baggage allowance (flights in Canada and to the U.S.) | 1 personal article and 1 standard article | 1 personal article and 1 standard article | 1 personal article and 1 standard article |
| Checked-baggage allowance (flights in Canada and to the U.S.) | 1 bag | 2 bags | 2 bags |
| Advanced seat selection | Fee applies | Included | Included |
| Upgrade using eUpgrade certificates | No | Yes | Yes |
And what you get with each Business Class fare:
| Fare Features | Business Class Basic | Business Class Standard | Business Class Latitude |
|---|---|---|---|
| Refundability | No refund or future travel credit | No refund on flights within Canada or to the U.S. Fee applies for international flights | Refundable |
| Changes up to 2 hours before departure | $200 charge for flights within Canada or to the U.S. $700 charge on international flights | $100-$120 charge for flights within Canada or to the U.S. Fee applies for international flights | Fare difference only |
| Same-day airport change | Not permitted | Included | Included |
| Same-day standby | Not permitted | Free on select routes within Canada and to the U.S. Not permitted on international flights | Included |
| Priority check-in and baggage handling | Included | Included | Included |
| Access to Maple Leaf Lounges | Included | Included | Included |
| Carry-on baggage allowance (flights in Canada and to the U.S.) | 1 personal article and 1 standard article | 1 personal article and 1 standard article | 1 personal article and 1 standard article |
| Checked-baggage allowance (flights in Canada and to the U.S.) | 1 bag | 2 bags | 2 bags |
| Advanced seat selection | Fee applies | Included | Included |
What's most notable is that these policies could actually be significantly worse. Even if you book a Business Class Basic ticket, you'll still be able to visit the Maple Leaf Lounge before your flight, and you'll be able to earn Aeroplan points and Status Qualifying Credits (SQCs) on your booking.
However, the difference between the fares comes down to refundability and changeability. If you're booking an international Business Class Basic flight, you cannot cancel your flight for a refund or travel credit. If you wanted to change your flight, you'll be hit with a $700 CAD (~$496 USD) fee. That's a pretty substantial fee, so you'll want to think carefully before booking a basic ticket.
You can see all the details on Air Canada's fare options and fees page.
Related: A Complete Guide to the Air Canada Aeroplan Program
Example price difference between fares
Here's a look at the price difference. On a five-hour flight from Toronto (YYZ) to Mexico City (MEX), you can book a Business Class Basic ticket for $1,022, Business Class Standard for $1,093, or Business Class Latitude for $1,256.
At least for now, there isn't a huge difference in cost. Jumping between Basic and Latitude is a $234 difference, while Basic and Standard are just $71 apart. My guess is that Air Canada is pricing Basic just below Standard to make it seem like fares are actually cheaper than they were before, and to encourage people to pay slightly more for slightly better benefits.
It's not hard for travelers to use the “it's only $71” logic to choose the Standard option over Basic, ultimately leading to more revenue for the airline.
How To Get Around Air Canada’s Premium Cabin Basic Policies
Unfortunately, there's not much you can do to get around rigid change and cancellation policies. However, one of the limitations of both Premium Economy Basic and Business Class Basic is that you're only allotted one checked bag instead of two.
If you hold the Aeroplan® Credit Card (Rates & Fees), you get an additional free checked bag. You'll receive a variety of other benefits that will help elevate your travel experience, like Aeroplan 25K status for a limited time as a new cardholder and a path to Aeroplan 35K status.
- Earn 60,000 bonus points
- Earn 60,000 bonus points after you spend $3,000 on purchases in the first 3 months your account is open.
- $95 Annual Fee
- Redeem points for both international and domestic flights with the Aeroplan® Credit Card.
- Fly to another continent and travel the world with the Aeroplan® Credit Card.
- Earn 3X points for each dollar spent at grocery stores, on dining at restaurants, and Air Canada directly. Earn 1X point for each dollar spent on all other purchases.
- 500 bonus points for every $2,000 you spend in a calendar month - up to 1,500 points per month.
- Member FDIC
- 3x points directly with Air Canada
- 3x points on dining, including takeout and eligible delivery services
- 3x points at grocery stores
- 1x point on all other purchases
Bottom Line
It's not surprising that Air Canada announced basic fares for premium cabins. United and Lufthansa both offer basic premium products, so now you can book a consistent level of service on tickets operated by more than just Air Canada.
However, credit where credit is due: Air Canada could have been a lot more punitive in what benefits are extended to passengers flying on a basic fare. The ability for Business Class Basic passengers to access lounges is great. That said, don't expect to be able to select your seat or change your flight for free, even if you spend $2,500 on a ticket.
For rates and fees of the cards mentioned in this post, please visit the following links: Aeroplan® Credit Card (Rates & Fees)
