United To Charge For Overhead Space

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Key Takeaways:

  • United Airlines is introducing a "Basic Economy" fare class that will charge passengers for the use of overhead bin space, making it the first major airline to do so.
  • This new pricing tier, effective early 2017, restricts passengers to one carry-on that must fit under the seat and assigns seats on the day of the flight.
  • While discount airlines have previously charged for overhead space, United's decision marks a significant step in the trend of major carriers unbundling basic fare services.
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As airlines continue to unbundle what’s covered by a basic fare, United Airlines announced this week that it will begin charging for the use of overhead space in its cabins. While discount airlines such as Spirit have charged for the overhead for several years, United is the first major airline to do so.

The Washington Post reported this week that as part of a new pricing tier, United is introducing Basic Economy for passengers who purchase the cheapest fares. They’ll be allowed only one carry-on that fits under the seat. The fare class also restricts seat assignment until the day of the flight. Passengers who purchase higher class tickets will be allowed to stow carry-ons in the overhead, but will still be charged for checked bags. Also, Basic Economy passengers will still be allowed to purchase overpriced food onboard the aircraft. The new fares take effect in early 2017.

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