Delta and United Domestic First Class Fares Dip Below Premium Economy

March 2015
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Some, are now not much more than coach

Over the past year domestic First Class fares have been losing altitude. They’re now much lower than historical norms.

Add that to recent loyalty program changes, such as United and Delta basing miles earned on the fare paid, and it calls for a fresh look at how much more (or less) First Class really costs than other seats.

Example Cost Comparison: United Upgrade Houston - Newark

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In fact, on some routes First Class now costs less than economy. If you factor in all the “paid upgrade options” airlines now offer, such as Premium Economy (PE) Lite (for more on FCF’s last Premium Economy Ratings), which gives you an economy seat with up to six extra inches of legroom. But, when you do the math, often those add-ons—which many, many bite at—can make PE Lite cost more than First Class.

Which undermines the idea of being an Elite. Why pursue involved upgrade strategies, or wait in line for a confirmed upgrade, or pay extra just to upgrade to PE Lite?

When you can just book a low First Class fare?

First Class Fare Mirage: United First Class at $154 Less than PE Lite

Example: Houston-Newark is not a trivial route; United averages about ten flights daily between the two cities. Round-trip, it’s seven hours of living in a tin tube—just enough time to discourage many from booking coach. The First Class fare is just $455 (KEA21AXS/UPDI basis code), while the lowest economy fare is $256 (GEA21AXS basis code).

That’s only $199 more round-trip to fly First Class—just $99.50 each way—or only $28 more per-flight-hour. (There are lots of similar examples, and not only on United.)

But, if you factor in all the various upgrade options United pushes heavily to economy class travelers (seat upgrades, checked bags, priority boarding, etc.), the potential cost of economy is actually $154 more than First Class. Say what?

A Few Example Routes That Are:

  1. More than six hours R/T, and
  2. Have a published fare under $700:

From Chicago

(R/T Flight Hours / R/T Fare / Fare-Basis Code):
Salt Lake City: 6.5 / $541 / LEA21TKN/UPDI
Miami: 6.5 / $652 / LAA21AKN/UPDI
Phoenix: 7.5 / $674 / LAC00AWS/UPDI

From Houston

(R/T Flight Hours / R/T Fare / Fare-Basis Code):
Detroit: 6 / $483 / KEA21AXS/UPDI Salt Lake
City: 6 / $504 / LEA21AXS/UPDI
Minneapolis: 6 / $538 / LEA21AXS/UPDI

From Newark

(R/T Flight Hours / R/T Fare / Fare-Basis Code):
Houston: 7 / $456 / KEA21AXS/UPDI
Minneapolis: 6 / $521 / LEA21AXS/UPDI
Denver: 8.5 / $580 / KEA21AKN/UPDI

From Washington, DC

(R/T Flight Hours / R/T Fare / Fare-Basis Code):
Minneapolis: 6 / $494 / TEA10ARS/UPDI
Dallas: 6 / $536 / V2UP14N3
Oklahoma City: 6 / $654 / LEA21AFN/UPDI

First Class Fare Mirage: Delta First Class at $38 Less than PE Lite

Atlanta-Denver is not a trivial route, Delta offers about eight flights daily. Round-trip, it’s over six hours. The First Class fare is just $384 (XE21A0SD/WNUPL basis code), while the lowest economy fare is $166 (VE21B3SG basis code).

That’s $218 more round-trip to fly First Class—just $109 more each way—or only about $36 more per-flight-hour

But, if you factor in all the various upgrade options, the potential cost of economy is actually $38 more than First Class. Look at the numbers below.From Chicago

(R/T Flight Hours / R/T Fare / Fare-Basis Code):
Salt Lake City: 6.5 / $541 / LEA21TKN/UPDI
Miami: 6.5 / $652 / LAA21AKN/UPDI
Phoenix: 7.5 / $674 / LAC00AWS/UPDI

From Houston

(R/T Flight Hours / R/T Fare / Fare-Basis Code):
Detroit: 6 / $483 / KEA21AXS/UPDI Salt Lake
City: 6 / $504 / LEA21AXS/UPDI
Minneapolis: 6 / $538 / LEA21AXS/UPDI

From Newark

(R/T Flight Hours / R/T Fare / Fare-Basis Code):
Houston: 7 / $456 / KEA21AXS/UPDI
Minneapolis: 6 / $521 / LEA21AXS/UPDI
Denver: 8.5 / $580 / KEA21AKN/UPDI

From Washington, DC

(R/T Flight Hours / R/T Fare / Fare-Basis Code):
Minneapolis: 6 / $494 / TEA10ARS/UPDI
Dallas: 6 / $536 / V2UP14N3
Oklahoma City: 6 / $654 / LEA21AFN/UPDI

First Class Fare Mirage: Delta First Class at $38 Less than PE Lite

Atlanta-Denver is not a trivial route, Delta offers about eight flights daily. Round-trip, it’s over six hours. The First Class fare is just $384 (XE21A0SD/WNUPL basis code), while the lowest economy fare is $166 (VE21B3SG basis code).

That’s $218 more round-trip to fly First Class—just $109 more each way—or only about $36 more per-flight-hour

But, if you factor in all the various upgrade options, the potential cost of economy is actually $38 more than First Class. Look at the numbers below.

Example Cost Comparison: Delta Upgrade Atlanta - Denver

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A Few Example Routes That Are:

  1. More than six hours R/T, and
  2. Have a published fare under $700:

From Atlanta

(R/T Flight Hours / R/T Fare / Fare-Basis Code):
Minneapolis: 6 / $493 / XE21A0UA/WNUPL
Boston: 6 / $466 / XE21A0UA/ WNUPL

[aside headline="American/US Airways: Merger Hectic?" alignment="alignright" width="half" headline_size="default"]FCF also ran the numbers for American and US Airways and found that their First Class fares have not dropped as much as Delta and United’s. That’s probably because they’re so distracted with the merger. But to stay competitive, their First Class fares will have to come down, too; and they will, before long, we think.[/aside]

From Detroit

(R/T Flight Hours / R/T Fare / Fare-Basis Code):
Denver: 6 / $430 / XA21A0UA/WNUPL
Miami: 6 / $434 / TD21A0NQ/WNUPL
Salt Lake City: 7.5 / $678 / XE14A0QQ/WNUPL

From New York

(R/T Flight Hours / R/T Fare / Fare-Basis Code):
Houston: 8 / $494 / XG14A0UP/WNUPL
Minneapolis: 6 / $540 / XD21A0QX/WNUPL
Denver: 8.5 / $598 / UA21A0SD/WNUP

Forget About Using Free or Upgrade Awards

Why try for a free award? The value is often less than 1¢ per mile on United, given the 50,000-miles needed R/T.

Delta’s Transcon Business Class Fare Takes Another Nose-Dive; see 2/13 alert.

Don’t do it: Save the miles for high-priced international destinations. (Or, if you’re earning miles to redeem for domestic travel, reconsider.)

Why bother with an upgrade award? On United you have to buy an economy ticket, and then pay $150 plus 40,000 miles for the upgrade—that can be more than the published premium fare, especially once you add in the replacement value of the 40,000 miles used for the upgrade (about $1,000 when on sale). Don’t do it. United domestic upgrades, except for the transcon strategies, have been dead for years, and many don’t realize that.

Forget About Elite Upgrades

They’re a lose-lose strategy when airlines are selling domestic First Class so cheaply so often—especially for bottom-tier elites, who are last on the priority list and facing a lot of competition. Why play upgrade roulette when a low First Class fare is a sure bet?

[["Round-Trip:","First Class","Premium Economy Lite<sup><span style=\"color: #6699cc;\">1<\/span><\/sup>","Economy Class"],["Published Fare","$455","$256","$256"],["<span style=\"color: #6699cc;\">Flight Time<\/span>","<span style=\"color: #6699cc;\">7 hours<\/span>","<span style=\"color: #6699cc;\">Feels like 9<\/span>","<span style=\"color: #6699cc;\">Feels like 11<\/span>"],["PE Lite Upgrade","","$165",""],["One Checked Bag<sup><span style=\"color: #6699cc;\">2<\/span><\/sup>","$0","$50","$50"],["Premier Access<sup><span style=\"color: #6699cc;\">3<\/span><\/sup>","$0","$83","$83"],["Avg. Meal \/ Drink","$0","$30","$30"],["Miles Earned<sup><span style=\"color: #6699cc;\">4<\/span><\/sup>","2,275","1,280","1,280"],["Miles Earned Value<sup><span style=\"color: #6699cc;\">5<\/span><\/sup>","($57)","($32)","($32)"],["<span style=\"color: #6699cc;\">Net Cost<\/span>","<span style=\"color: #6699cc;\">$398<\/span>","<span style=\"color: #6699cc;\">$552<\/span>","<span style=\"color: #6699cc;\">$387<\/span>"],["<span style=\"color: #6699cc;\">Cost Difference<\/span>","<strong>First Class $154 <u>less than<\/u> PE Lite<\/strong>","#colspan#","#colspan#"],["#rowspan#","<strong>First Class <u>only $11<\/u> more than Coach<\/strong>","#colspan#","#colspan#"],["<span style=\"color: #6699cc;\"><strong><em>Upgrade Cost to First Class:<\/em><\/strong><\/span>","#colspan#","#colspan#","#colspan#"],["From Economy","<span style=\"color: #6699cc;\">$1.50 more per flight hour<\/span>","#colspan#","#colspan#"]]
<small><em>*Fares are based on April 15 to April 22 travel. <sup><span style="color: #6699cc;">1</span></sup>United calls its PE, Economy Plus. <sup><span style="color: #6699cc;">2</span></sup>First Class, two free bags. <sup><span style="color: #6699cc;">3</span></sup>Priority boarding, check-in, security. <sup><span style="color: #6699cc;">4</span></sup>Now based on base fare (miles shown based on NO elite status bonus); Premier Silver earns 7x, Gold 8x, Platinum 9x, and 1K is 11x. <sup><span style="color: #6699cc;">5</span></sup>Value of miles = average cost of miles when purchased on sale (average 30% discount).</em></small>
[["Round-Trip","First Class","Premium Economy Lite<sup><span style=\"color: #6699cc;\">1<\/span><\/sup>","Economy Class"],["Published Fare","$384","$166","$166"],["<span style=\"color: #6699cc;\">Flight Time<\/span>","<span style=\"color: #6699cc;\">6.5 hours<\/span>","<span style=\"color: #6699cc;\">Feels like 9 hrs<\/span>","<span style=\"color: #6699cc;\">Feels like 11 hrs<\/span>"],["PE Lite Upgrade","","$108","$0"],["One Checked Bag<sup><span style=\"color: #6699cc;\">2<\/span><\/sup>","$0","$50","$50"],["Priority Boarding","$0","$30","$30"],["Avg. Meal \/ Drink","$0","$30","$30"],["Miles Earned<sup><span style=\"color: #6699cc;\">3<\/span><\/sup>","1,920","830","830"],["Miles Earned Value<sup><span style=\"color: #6699cc;\">4<\/span><\/sup>","($67)","($29)","($29)"],["<span style=\"color: #6699cc;\">Total Cost<\/span>","<span style=\"color: #6699cc;\">$317<\/span>","<span style=\"color: #6699cc;\">$355<\/span>","<span style=\"color: #6699cc;\">$247<\/span>"],["<span style=\"color: #6699cc;\">Cost Difference<\/span>","<strong>First Class $38 <u>less than<\/u> PE Lite<\/strong>","#colspan#","#colspan#"],["#rowspan#","<strong>First Class <u>only $70<\/u> more than Coach<\/strong>","#colspan#","#colspan#"],["<strong><span style=\"color: #6699cc;\"><em>Upgrade Cost to First Class:<\/em><\/span><\/strong>","#colspan#","#colspan#","#colspan#"],["From Economy","<span style=\"color: #6699cc;\">About $10 more per flight hour<\/span>","#colspan#","#colspan#"]]
<small><em>*Fare based on April 15 to April 22 travel. <sup><span style="color: #6699cc;">1</span></sup>Delta calls its PE, Economy Comfort. <sup><span style="color: #6699cc;">2</span></sup>First Class, three free bags. <sup><span style="color: #6699cc;">3</span></sup>Miles Earned Value: Now based on base fare paid; miles shown based on NO elite status bonus; Silver miles is 7x (per $1), Gold by 8x, Platinum 9x, and Diamond is 11x. <sup><span style="color: #6699cc;">4</span></sup>Value of miles = cost when purchased at regular price: 3.5¢.</em></small>