United Airlines announced on Tuesday, Nov.15, that it would limit low-fare customers to one carry-on bag that fits under the seat as part of its new “Basic Economy” fare class, which the airline will roll out in early 2017 in order to compete with the likes of Allegiant, Frontier and Spirit Airlines.
Delta already rolled out a similar fare type and American is also planning to launch a lower cost option in 2017. However, most news outlets agree that United’s one carry-on rule is the most restrictive yet. United also revealed that its low-fare customers will not be assigned seats until the day of departure.
Reuters reported that United expects to add $4.8 billion to its annual operating income by 2020, though it noted that the figure does not include rising wages. Fare initiatives will account for $1 billion of this.
More details are provided in this article from Reuters that was published on Tuesday.
