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You have always been able to go up to the desk at the gate and purchase an upgrade, but you would be charged the difference between the fare you paid, and the cost of a full-fare business class seat at that moment. In other words ridiculously expensive. But with this new announcement, although no pricing examples were mentioned, it appears that the costs of the upgrade will likely be fairly reasonable.
As with all promotions or offers there is some fine print, such as having to be departing from a US or Canadian airport, be ticketed on a Tango Plus or Latitude Fare, and it looks like you have to decide at time of check-in, either on-line or at a self-serve kiosk.

