The new Basic Economy — should you book it?

Earlier this month, American Airlines announced a new seat class: Basic Economy. The seats will be physically the same as other economy seats, but the terms of the seat purchase are significantly different from regular economy seating.
American joins Delta Airlines and United Airlines, three of the four largest U.S. airlines, in offering the “no-frills” economy seating. At this time, Southwest Airlines has announced no plans to institute Basic Economy themselves.
Before an air traveler purchases a Basic Economy seat, understand the rules for the seat class. While travelers can save significantly by purchasing a Basic Economy versus a regular economy ticket, its restrictions may not be a good fit.
Don’t purchase a Basic Economy ticket unless you’re fully versed about it.
Let’s take a look at what you get with a Basic Economy ticket.
• Seating
You won’t be able to choose a specific Basic Economy seat until shortly before the flight, if at all. At American, for a fee, you can choose your seat from some of the unassigned seats up to 48 hours prior to your flight’s scheduled departure. Otherwise, the seat will be assigned to you at check-in. At Delta and United, all Basic Economy seats are assigned at check-in.
This generally means you’ll be stuck in a middle seat. You might not want that if you’re on a long flight. If you’re traveling with someone and need or want to sit together, Basic Economy is not for you, as the likelihood of getting seats together is extremely low. Delta specifically states “group and family seating is not available.”
• Upgrades
Despite having elite status with the airline you’re flying, you won’t be eligible for a seat upgrade from a Basic Economy seat, even if you’re willing to purchase the upgrade.
• Luggage
For American and United, Basic Economy has a major carry-on restriction. The airlines only allow Basic Economy passengers to have a single personal item which must be stowed under the seat in front of them. If you have other luggage, it must be checked, even a full-size carry-on. Checked bag fees are the same for all economy passengers.

You don’t want to be wrong about the size of your personal item on American or United. If it won’t fit under your seat, the airlines won’t permit you to stow it in the overhead bin. They’ll require you to check it at the standard fee, plus a $25 penalty.
On American, Basic Economy luggage restrictions are waived for AAdvantage elites and some American credit card holders. The same is true for United’s MileagePlus Premier members, some United credit card holders, plus Star Alliance Gold members or higher. They get to take a personal item and a full-size carry-on on board their plane. Elite frequent flier and airline credit card membership luggage cost benefits are available to Basic Economy ticket holders.
Delta has no baggage restrictions for Basic Economy.
If you’re flying either American or United with the carry-on restriction and need to take expensive or breakable items on your journey, you’ll have to carefully consider purchasing a Basic Economy ticket.
Valuables and breakables packed in your luggage are excluded from airline liability. For example, if you pack a camera, computer, jewelry or other valuable and/or breakable items in your luggage that are damaged, lost, missing or stolen, the airlines will not cover your loss. If you’re not permitted a full size carry-on and can’t fit all your valuables and/or breakables in your personal item, then Basic Economy would be a poor choice on American or United.
• Boarding
When it’s time to board your flight, if you’re flying Basic Economy, unless you have an exemption as an elite frequent flier or airline credit card holder, you’ll be boarding last.
On American or United, it’s not a big problem. The big advantage in boarding early, as far as I’m concerned, is you’ll most likely have room in the overhead bin for your roller bag. Since Basic Economy passengers who have the carry-on restriction can’t use the overhead bin, early boarding gives little advantage. On Delta, where you’re permitted to use the overhead bin, if you board last, be prepared to gate check your full size carry-on if the flight is full.
• Ticket Refunds and Changes
Non-refundable tickets on the airlines are generally at least changeable/reusable, for a hefty fee. When it comes to Basic Economy, however, 24 hours after you purchase your ticket you won’t be able to get a refund or make a flight change, even for a hefty fee. If you can’t make your flight, you’ll lose the entire purchase price of your ticket.
• Frequent Flier Miles Credits:
The rules for miles and credit toward elite status are complicated for Basic Economy passengers. Contact your airline directly to determine what you’re entitled to earn if you purchase a Basic Economy ticket.
Before deciding to save money by purchasing a Basic Economy airline ticket, understand its seating, luggage, boarding and ticket refund/change restrictions. In many circumstances Basic Economy will be a poor choice.