What is fare construction?

What are the parts of a constructed fare?

Fare basis. The fare basis code is the label under which one price is published in its market, and it is the handle that ties an itinerary to a single set of conditions. Two seats in the same cabin on the same route can sit on different fare bases, which is how one city pair ends up with several price levels.

Fare rule. Each basis comes with a rule that sets the conditions of use: how far ahead the ticket must be bought, how long the traveller must stay, whether dates can be changed, whether the money is refundable and which flights may be used. Rules are organised in categories, which is why one fare can be described in a dozen separate clauses. The fare rule and its categories are what make one cheap fare stricter than another.

Routing and mileage. A fare is published for a defined set of paths, not for every conceivable route between two cities. The rule may allow stated intermediate points, transfers or open segments, and it may cap how far the itinerary can wander through a maximum permitted mileage. Inside those limits the published amount holds; outside them the itinerary has to be repriced or extended.

Add-ons and through fares. Where no single published amount covers the whole journey, the price is extended with amounts for the segments the base fare does not reach. An add-on fare carries a fare beyond its own points, and a through fare prices a multi-leg journey as one unit. The output is a constructed fare: a price that exists for this itinerary instead of standing alone between two cities.

These principles are documented at industry level: the PTCCM includes definitions, mileage, fare and currency principles and interline baggage rules. [1]

Published fare or a fare built for one itinerary?

A published fare already exists between two points and can be sold as it stands. A constructed fare is assembled for a particular itinerary, usually because the journey does not match a single published entry or because the traveller needs segments in different markets. The building blocks are the same in both cases; the difference is whether the amount already exists or has to be put together.

The distinction keeps mattering after ticketing, because the conditions travel with the ticket. United Airlines treats its fare rules as binding: failing to follow United's fare rules is listed among the conduct that can trigger remedies, and accrued miles can be forfeited under United's fare rules as well as under its programme rules and Contract of Carriage. [5]

How do currency and mileage principles enter fare construction?

Fares are quoted in a currency, and the industry maintains two separate rate products for handling that. The IATA Rates of Exchange (IROE) provides monthly updates of IATA currency rates of exchange used by the industry for fare and rate construction. [1] The IATA Consolidated Exchange Rate (ICER) provides daily updates of exchange rates for conversion of fares, taxes and fees to alternate currencies of payment. [1] The two work on different clocks and for different stated purposes: construction rates updated monthly, payment conversions updated daily. [1]

The same tariff reference also covers the mileage side of pricing, listing mileage principles alongside fare and currency principles and interline baggage rules. [1] The documentation of the ticket itself is handled separately, with the Ticketing Handbook described as the official guide to worldwide airline passenger ticketing. [1]

How does the fare basis change what a ticket earns?

Fare construction does not stop mattering once the ticket is issued, because earning is often tied to the fare rather than to the seat. United Airlines credits class-of-service bonus miles and any Premier Qualifying Credits according to the fare paid, not the cabin flown, and does not credit them on an upgrade. [5]

United also reserves the right to exclude specific fares and ticket types from benefits, Premier status, mileage accrual and Premier Qualifying Credits, naming special promotional accommodations, rentals, industry discounts, consolidation tickets, group rates and special promotional rates such as PassPlus among those it may exclude at its discretion. [5] Under the terms of the 2026 MileagePlus Premier Status Match Challenge, for which applications run from 8 January to 21 December 2026, Basic Economy and base fare tickets earn Premier Qualifying Points (PQP) but do not earn Premier Qualifying Flights (PQF), and PQP earned on the base fare and carrier-imposed surcharges count toward that offer. [6]

Exceptions and limits

• Scope. This page covers how published and constructed fares are assembled for scheduled revenue air tickets. Award pricing set by loyalty programmes, hotel pricing and rail pricing sit outside it.
• Discretionary exclusions. United's list of fares that may be excluded from earning is expressly non-exhaustive, and United reserves the right to establish, delete or modify the means of accruing mileage and Premier Qualifying Credits with or without notice. [5]
• Upgrades. Class-of-service bonus miles and Premier Qualifying Credits are not credited on an upgrade at United, whatever the fare paid. [5]
• Different clocks for rates. IROE is updated monthly for fare and rate construction, while ICER is updated daily for conversion of fares, taxes and fees to another currency of payment. [1]

Frequently asked questions

Does the fare I book change how many miles I earn?

At United Airlines, class-of-service bonus miles and Premier Qualifying Credits are credited according to the fare paid rather than the cabin flown, so two passengers in the same cabin can earn differently. [5]

Can a cheap fare earn no miles at all?

United may exclude specific fares and ticket types, including consolidation tickets, group rates and special promotional rates, from benefits, Premier status, mileage accrual and Premier Qualifying Credits at its discretion. [5]

Do fare conditions still apply to an award ticket?

United says MileagePlus award tickets may be subject to the taxes, fees, tariffs, Contract of Carriage, ticket terms and re-accommodation policies of the carrier flying the journey, and that miles are redeposited after a cancellation under the programme rules and the ticketed fare rules at that time. [5]

Which exchange rate is used when a fare is converted?

The IROE supplies monthly rates used by the industry for fare and rate construction, while the ICER supplies daily rates for converting fares, taxes and fees to another currency of payment. [1]

Related pages

Fare basis code, fare rule, fare rule categories, add-on fare, constructed fare, through fare, maximum permitted mileage, booking classes and fare brands.

Sources

Sources checked on 18 October 2026. Other airlines' fare construction practices are not covered here, and neither are award pricing or hotel and rail pricing.

1. IATA manuals, standards and regulations index (including the Passenger Tariffs Conference Composite Manual, IATA Rates of Exchange and IATA Consolidated Exchange Rate), checked 18 October 2026
2. United Airlines MileagePlus programme rules, checked 18 October 2026
3. United Airlines MileagePlus Premier Status Match Challenge terms, checked 18 October 2026