On low-fare routes, the travelers who win understand why First Class can cost almost the same as economy.

How many travelers belly up to an airline search engine and go for coach fares because:

• They think First Class tickets are always too expensive.
• They are steeped in Elite Status Delusion and only think about playing upgrade roulette.
• They think flying First is the best way to burn miles.

Conventional Think Will Cost You Comfort

At various times over the years, domestic First Class fares have been high; whereas now they are priced so low on many routes that it often makes sense to pay the published fare.

The reasons have to do with better yield management by the airlines and excess inventory on many routes. The airlines would rather sell the seats at a discount than give them away to elites.

So the questions travelers should be asking are:

• How much more will First Class cost than economy?
• Does my loyalty program give me elite upgrades when I need them?
• Should I use my miles now or hold them to use when ticket prices go back up?

The Great First Class Fare Illusion: It’s Too Expensive

The main reason for being an elite and using miles is the belief that domestic First Class is too expensive. Most travelers believe that First costs four to five times economy (or more), which is true, in many cases, more so on long-haul, international flights than domestic ones.

I believe in always checking the published First Class fare— first—and, how it translates into the “Cost-per-Hour to Upgrade.” Once you know that figure, which includes nuisance economy charges (baggage fees, better economy seats, meals, etc.), it often makes sense to buy a First Class fare.

The Upgrade Math

Here’s a side-by-side comparison of New York-Houston on Delta, which has the lowest First Class fare on this route.

As you can see from the chart below, the First Class fare is $496, and the economy fare is $284, a difference of $212, or $26.50 per flight hour.

However, once you figure in all the extra costs economy class can incur, such as bags and economy comfort seats, that difference is reduced to only $84, or $10 per-flight-hour.

In fact, on this route, if you figure in other extras such as meals and drinks ($30) and the difference in miles earned ($49), the difference almost all but disappears.

Comparing Cost-per-hour to Upgrade New York - Houston on Delta

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Fare Rules for Low-Priced First Class Fares

Low-cost First Class: FCF’s refers to these as EasyUp fares because they often have a built-in upgrade surcharge, meaning that the fare basis is a low economy fare with a paid upgrade to First. The upgrade surcharge varies by route and airline, ranging from about $73 to $599 one-way.

Comparing Cost-per-Hour to Upgrade (Not ncluding Off-set Cost for Economy Extras*)

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Forget Elite Upgrades

They’re a lose-lose strategy when airlines, such as American, Delta, and United, sell domestic First Class routes cheaply, especially for bottom-tier elites who are last on the priority list. If you are an elite flying a low-cost First Class fare route, you’ll have a lot of competition. Why play upgrade roulette when a low First Class fare is a sure bet?

When Not to Use Miles

On many domestic routes, it doesn’t pay to use miles for an upgrade or free mileage award, given the cost to replace or re-earn them. Unless you have them to burn.

Staying with the New York-Houston example on Delta, the First Class ticket price is $496 and earns 4,245 miles, whereas a free low-cost First Class ticket on miles with Delta costs 50,000 round-trip, but earns zero miles. Spending 54,245 miles to save $496 gives you a return of less than 1¢ per mile.

Upgrades are no better. Delta requires an economy K fare or higher plus 25,000 miles round-trip. On the New York-Houston route that means buying a $910 ticket plus miles. Which is crazy: The First Class fare is only $496.