Alaska Airlines is joining Delta, American, and United and launching a basic-economy class - but the cheap tickets come with a catch (ALK)




 

AP


Alaska Airlines announced on Monday at that it is going to begin selling discount no-frills tickets called Saver Fares.

The low-priced tickets are not changeable or cancellable and will not be eligible for upgrades, Alaska Airlines chief commercial officer, Andrew Harrison announced on the company's Q1 2018 earnings call.

Those traveling on Saver Fare tickets will also board last and will be seated at the back of the plane. Alaska Airlines expects Saver Fares, which will go on sale this fall, to drive as much as $100 million in revenue in 2019.

Alaska's Saver Fare tickets will function in a similar manner to the unbundled no-frills basic economy fares offered by American, Delta, and United Airlines. However, Alaska was not immediately available to comment on whether carry-on bags will be allowed on board for Saver Fare tickets holders.

Alaska Airlines is also going to implement several new product and policy changes between now and June. Changes include offering exit row seats for sales, dynamic pricing for premium seatings, implementing new technology to better manage revenue, and the elimination of fee waivers for reservation changes made more than 60 days before a trip.

These additional changes are expected to drive $20 million in revenue this year and another $50 million next year.

On Monday, Alaska Air Group announced a Q1 profit of $18 million, down from the $124 million the company reported last year during the same period. On April, 25, Alaska Airlines and Virgin America will complete the merger of their operations at which point the Virgin America brand will be retired.

NOW WATCH: A Wall Street chief economist explains what could be the saving grace for mega-cap tech companies

See Also:

SEE ALSO: The airline famous for its $55 international flights is launching an affordable business class

FOLLOW US: on Facebook for more car and transportation content!

COMMENTS

More Related News

United Airlines passengers stranded over 15 hours at frigid Canadian military base
United Airlines passengers stranded over 15 hours at frigid Canadian military base

United Flight 179 passengers leaving New Jersey were stranded for nearly a day in Canada and then sent back to Newark Liberty International Airport.

Winter storm forces airline cancellations, road troubles
Winter storm forces airline cancellations, road troubles

DETROIT (AP) - A plane carrying 129 people skidded Saturday from a slick Chicago runway and a plow driver was killed when his truck rolled over outside Kansas City following a winter storm that covered many parts of the Midwest in snow and ice.

United Airlines Ends a Spectacular 2018 With a Flourish
United Airlines Ends a Spectacular 2018 With a Flourish

But the outlook for the first quarter shows that United is still a work in progress.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.