Air Canada Launches Basic Fares for Premium Economy and Business Class

The New Premium Fare Structure

Source: Air Canada

Air Canada is now selling its premium cabins across three tiers, which mirrors the structure it already uses in economy. The airline's existing premium fares have been renamed Standard and Latitude, and the new Basic fares slot in below them as the cheapest way into Premium Economy and Business Class.

In both premium cabins, the lineup now looks like this:

• Basic: the new, stripped-back entry fare
• Standard: the former base premium fare, renamed
• Latitude: the fully flexible, top-tier fare

What You Keep

Source: Air Canada

Both Basic fares hold onto the things that make a premium cabin worth booking:

• The larger premium seat, including lie-flat Business Class on applicable aircraft
• Your onboard meal
• Priority boarding
• Priority baggage handling
• A carry-on bag
• One checked bag

What Has Been Trimmed Back

Source: Air Canada

Here is where the "Basic" name earns its keep:

• Not refundable. Neither Basic fare can be refunded.
• Changes cost extra. You can still change your ticket, but you will pay a fee to do it.
• Seat selection costs extra. Advance seat selection is no longer included on either fare.
• Only one checked bag. Standard and Latitude fares include two checked bags. Basic drops you down to one.
• No upgrades. Neither Basic fare allows upgrades. Air Canada's fare pages list this as "no cabin upgrades" on Premium Economy Basic and as no eUpgrade eligibility on Business Class Basic.
• Reduced lounge access. Business Class Basic keeps Maple Leaf Lounge access but excludes the Air Canada Signature Suite. Premium Economy Basic includes no lounge access at all.

A Real Pricing Example

Source: Air Canada

The pitch from Air Canada is that these Basic fares will be priced below the existing premium options while keeping the premium seat and onboard service. That is true, though when we pulled up a sample Toronto to Frankfurt search, the gap was smaller than you might expect.

In Business Class, Basic came in at $3,371 CAD, Standard at $3,571 CAD, and Latitude at $5,845 CAD. In Premium Economy, Basic was $1,280 CAD, Standard $1,380 CAD, and Latitude $2,220 CAD.

So on that route, moving up from Basic to Standard cost roughly $200 CAD in Business and $100 CAD in Premium Economy. For that difference, Standard gets you back your seat selection, a second checked bag, Signature Suite access in Business Class, and the ability to change for a lower cost.

Whether that reads as a real discount on Basic or simply the old base fare being repriced upward is a fair question, and it is worth pricing out both before you book.

How Aeroplan Earning Works

Source: Aeroplan

The good news for points collectors is that these fares still earn. Both Basic fares earn 1 Aeroplan point per dollar spent on the base fare and carrier-imposed surcharges, and elite members earn between 2 and 6 points per dollar depending on their status. Both fares also earn 4 Status Qualifying Credits per dollar, the same rate as Air Canada's other Premium Economy and Business Class fares.

Most Aeroplan Elite and eligible credit card benefits will still apply, including status-based lounge access, complimentary baggage, and priority services.

The one major exception is upgrades, which do not work on either Basic fare.

Where You Can Book Them

To start, the Basic fares are being offered in the following markets:

• The Caribbean
• Latin America
• Mexico
• South America
• Transatlantic joint venture markets with United and the Lufthansa Group

Air Canada Is Not Alone Here

If this feels familiar, that is because the unbundling of premium cabins has been sweeping across the industry over the past year, and Air Canada's own joint venture partners have been leading the way. That partnership is a big part of why this is landing now. When airlines coordinate their schedules and fares across the Atlantic the way Air Canada, United, and the Lufthansa Group do, it makes sense for their premium fare structures to fall into line as well.

Here is where a few of the other major carriers already stand:

• Lufthansa Group kicked things off back in March, rolling out "light" business class and premium economy fares across Lufthansa, SWISS, Austrian, Brussels Airlines, and Discover Airlines. These fares drop you to one checked bag, add a seat selection fee, and raise change fees. The part that stung most was that even top-tier elite members have to pay to assign seats, though Lufthansa does at least keep lounge access on its basic fares.
• United followed with Polaris Base and Premium Plus Base fares, and its version is more aggressive. You pay to select your seat, you get one checked bag instead of two, changes are not permitted at all, and you lose Polaris Lounge access, though you can still use the lower-tier United Club. The rule that hits points collectors hardest is the earning structure. Book a base fare without elite status or a United credit card and you earn zero miles on the trip.
• Delta expanded its Basic tier into Delta First, Delta Premium Select, and Delta One in July, with the top Delta One version branded Basic Business. You keep the full lie-flat Delta One experience onboard, but you give up the Delta One check-in and lounge access, your seat is only assigned after check-in, you earn fewer miles, and upgrades are off the table.

For the sake of completeness, Air France and KLM belong here too. The two SkyTeam partners share the same fare rules. Their Light tickets in Business Class and Premium Comfort drop you to one checked bag, or none at all in Premium Comfort, and charge extra for seat selection. In Business Class, Light also makes lounge access a paid extra rather than the complimentary perk it remains on the Standard and Flex fares.

The reasoning is always the same: pay less by choosing only the benefits you value. That sounds reasonable on paper, but the longer-term pattern tends to be less about saving you money and more about charging separately for things that used to be included. In that context, Air Canada following its joint venture partners was less a matter of if than when.

The Bottom Line

Air Canada's new Premium Economy Basic and Business Class Basic fares keep the premium seat, onboard meal, carry-on, and priority services, while dropping refunds, complimentary seat selection, a second checked bag, and eUpgrade eligibility.

Business Class Basic holds onto Maple Leaf Lounge access but loses the Signature Suite, and Premium Economy Basic has no lounge access at all. You will still earn Aeroplan points and Status Qualifying Credits on both, and the fares are launching first across the Caribbean, Mexico, Latin America, South America, and transatlantic routes.

If you are booking a premium cabin, take a minute to compare Basic against Standard before you commit. The lowest price is not always the best deal.

Happy travels!