As ultra-low cost airlines like Spirit began to expand rapidly over the last decade, large U.S. airlines found it difficult to compete at their price point. They could offer the fare, of course, but their cost structure made it difficult to be profitable if they sold too many seats at that price. Delta Airlines was the first to offer a Basic Economy fare — basically a cheap fare that costs the airline less to offer since it takes away some product content. This structure, now in place at American and United, creates a sell-up opportunity as it gives some people a reason to pay the airline more even when
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