The financial results of European budget leader Ryanair suggest there is more bark than bite in complaints about unbundled air fares. “Just raise my ticket price instead of loading me up with extra charges, and I’ll pay.” Evidence from the airline industry suggests this is something people say but don’t do.
The trend of “unbundling”—dividing a product up into different payable segments—has picked up pace again among carriers. It was pioneered by the likes of Southwest and European budget leader Ryanair, RYAAY +5.93% but full-service brands like Delta Air Lines, United Airlines and British Airways eventually followed suit with “basic economy” fares. Now, Lufthansa and Emirates—which focuses more than most on the luxury market—are testing the waters of unbundling in business class.
Excerpt from WSJ
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