By Rajesh Kumar Singh
CHICAGO, Sept 2 (Reuters) – American Airlines is adding more premium seats to its Boeing 777-300ER planes used on long-haul routes as U.S. carriers increasingly chase higher-spending travelers.
The airline is also phasing out first class on the aircraft, while increasing the number of business-class seats.
The U.S. carrier, which is expanding its premium offerings to improve profitability, said the first retrofitted aircraft will begin commercial service on Wednesday from New York to Buenos Aires. American expects to complete upgrades of all 20 of its 777-300ERs sometime in 2027.
The revamped aircraft will have 144 premium seats, up from 116 under the current layout, with the total percentage rising to about 44% from 38%. That includes 70 Flagship Suite business-class seats with privacy doors, 44 Premium Economy seats and 30 Main Cabin Extra seats, American’s extra-legroom economy product.
The current 777-300ER has 52 business-class seats and eight Flagship First seats, American’s top-tier international first-class cabin. The airline is eliminating Flagship First as part of the retrofit, with the product no longer sold on 777-300ER flights for travel beginning November 19.
Among the big three U.S. network carriers, American is the only one that offers a separate international first-class cabin.
Delta Air Lines combined its international first- and business-class cabins beginning in late 1998, while United Airlines stopped selling international first class in 2018 as it transitioned its long-haul fleet to Polaris business class.
American said in 2022 it would phase out international first class because customers were not buying the product and removing it would allow the airline to add more business-class seats that travelers were more willing to pay for.
The retrofit extends American’s bet on premium travel as it tries to narrow a profit gap with Delta and United.
Premium travelers generated nearly half of American’s ticketed revenue in the second quarter while accounting for about 30% of its seats. American said last month that premium seating on its narrowbody flights would rise to about 40% in coming years from roughly 25% now.
PREMIUM PUSH SPREADS
American’s move is part of a wider push by U.S. carriers toward premium travel. Revenue from higher-end products has been growing faster than from more price-sensitive offerings at some of the largest airlines, reflecting a widening divide as wealthier customers keep spending while budget-conscious travelers pull back.
The shift is also reaching airlines traditionally built around lower fares. Southwest Airlines said on Wednesday it will launch its first-ever airport lounges in an effort to attract more higher-spending travelers. The airline plans to open its first lounges in Austin, Baltimore, Honolulu and Nashville beginning in late 2027.
Frontier is adding first-class-style seats, while JetBlue is expanding its premium offering with airport lounges.
The retrofit will also increase the aircraft’s capacity to 330 passengers from 304. The number of standard economy seats will edge down to 186 from 188.
American’s 777-300ERs serve long-haul markets including London, Tokyo, Sao Paulo, Buenos Aires and Sydney. The retrofitted aircraft will also offer upgraded in-flight entertainment, while members of American’s AAdvantage loyalty program will have access to free high-speed Wi-Fi.
(Reporting by Rajesh Kumar Singh; Editing by Jamie Freed, Rod Nickel and David Gregorio)
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