Is American Airlines the New Ultra-Low-Cost Carrier?

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When did American Airlines become an ultra-low-cost carrier?

That’s not meant to be snark. It’s an honest question — and maybe the better question now is whether there’s even a meaningful difference anymore between American and ultra-low-cost carriers like Spirit and Frontier.

Legacy airlines used to clearly stand apart from ULCCs with better service, more perks, and fewer gotchas. But over the years, American has stripped down its product, making Basic Economy the default for many travelers and offering seat selection, bags, and flexibility only as part of bundled upsells. Meanwhile, some ultra-low-cost carriers are adding benefits, like Spirit offering more legroom options and Frontier offering blocked middle seats.

Honestly, the biggest differences between airlines like American and the ULCCs today come down to routes and price, not the actual experience for most passengers in economy.

Award Tickets Still Offer a Bit More Flexibility

I have a stash of American Airlines AAdvantage miles, so I usually book award tickets for our flights. I only have two choices: Main Cabin or First Class. On a domestic flight, I won’t pay for First Class, so we’ll book Main Cabin — unless it’s less expensive than a Main Cabin seat, but that’s another post.

For this flight, a one-way ticket costs 11,500 AAdvantage miles plus $5.60 in taxes. For that price, I can sit for free in any seat in the back of the plane.

With my award ticket, I can also pay for a Main Cabin Extra or a Preferred seat.

Cash Fares? Get Ready for the Bundle Breakdown

But the same cannot be said if I were paying for a seat on the same flight. The cheapest option would be a Basic Economy ticket. The $115 price matches the 11,500 miles for an award seat, but you’ll get much less.

The regular ticket on the same flight costs $79 more and allows you to select a Main Cabin seat. If you’re not willing to purchase the most restrictive ticket, this would be the most reasonable option.

For an extra $47, you can get a free checked bag, an extra legroom seat, and board with Group 5 by paying up for a Main Plus ticket.

For an additional $24, you can upgrade (or downgrade?) to Main Select. You’ll get Group 4 boarding and same-day changes — but lose your checked bag. If you’re a business traveler with only carry-ons, that trade-off might be worth it.

While the prices shown may have changed slightly since these screenshots, the fare structure — and the way American packages its tickets — remains the same.

It’s worth noting that American wasn’t alone in heading down this path, but they were definitely the first to go all-in. Both Delta and United have made similar moves, most recently with Delta announcing its own bundled fare options that mimic American’s approach. The difference? American embraced the ULCC-style structure years ago and never looked back. Now, legacy carriers are starting to look more and more alike, without the budget airline price tag.

Final Thought: What’s Left to Differentiate American?

Come on, American Airlines. You offer a $115 Basic Economy fare, but the regular fare starts at $194. And the fare the business travelers want will cost $265. At this point, you’re no better than a ULCC. If that’s where you are, then own it. Start charging for carry-on bags and lower your checked baggage weight allowance.

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This post first appeared on Your Mileage May Vary