Berkshire Hathaway Inc.

Cheap fares with no perks, not even a carry-on: The latest squeeze from airlines

Cheap fares with no perks, not even a carry-on: The latest squeeze from airlines

United Airlines' new "basic economy" fares, a no-frills ticket strategy aimed at luring thrifty fliers, could heap more riches on Warren Buffett, the superwealthy investor who recently bought stock in the carrier.

OK, that may be an overstatement. But one of the world's savviest financiers does stand to make a tidy profit should United, and other airlines in which Buffett recently invested, succeed in their quest to sell enough customers the cheapest seats on their flights.

Yet despite Buffett's investor karma, there's always a chance this emerging strategy could backfire and become just another troubling example of the airline industry's often confusing and...

34°