Delta adds stripped-down premium fares for business and first class

Delta Air Lines is adding lower-priced versions of its premium fares that come with fewer benefits, including no airport lounge access and no free advance seat selection. The change matters because Delta is bringing the kind of fare segmentation long used in coach into the front of the aircraft, where airlines have been chasing stronger spending from premium travelers.

Delta said Wednesday that its basic ticket for the Delta One lie-flat, long-haul cabin will be called Basic Business. The airline also said it will offer a similar basic option for first class, a cabin more common on shorter routes, and for premium economy.

Travelers who buy those tickets will not choose seats for free before check-in, according to Delta. The airline said seats will be assigned at check-in for customers on the new basic premium fares.

The fares also carry other restrictions, Delta said. Customers will earn fewer miles than those buying higher-priced premium tickets, and changes or cancellations will be allowed only for a fee. Delta said the tickets also will not include same-day standby or confirmed same-day flight changes.

Sales start for September travel

Delta said the new fares go on sale Wednesday for flights beginning in September. The airline said the products will be limited to select markets, but CNBC reported that Delta did not immediately identify which routes would include the basic premium offering.

The move follows a similar step by United Airlines earlier this year, CNBC reported. United added a lower-tier version of its Polaris long-haul business class and made comparable changes in other higher-end cabins.

Airlines have been trying to draw more revenue from travelers willing to pay for better seats and upgraded service, according to CNBC. Demand from those customers has helped support the industry even as carriers adjust how they sell seats across cabins.

Delta has been preparing changes to its premium fare structure for more than a year, CNBC reported. On an earnings call last July, former Delta President Glen Hauenstein said the airline’s approach to separating products in the main cabin would serve as a model for premium cabins over time because customers have different needs.

Delta, based in Atlanta, is scheduled to report second-quarter results on Friday, according to CNBC. The carrier is the most profitable U.S. airline, CNBC reported.

The new fare structure gives Delta a way to advertise a lower entry price for premium cabins while reserving some benefits for customers who buy more expensive tickets. For passengers, the trade-off is a seat in a higher cabin without some of the services typically associated with business or first class.

This story draws on original reporting from CNBC.