American Airlines is reshaping its long-haul cabins around a simple calculation: premium travelers are generating an outsized share of revenue. However, traditional international first class is no longer the product most people want.
The airline started rolling out a new configuration for its 20 Boeing 777-300ER aircraft that increases premium seating while eliminating its Flagship First cabin. The first retrofitted jet entered commercial service on Sept. 2 between New York and Buenos Aires, with the full fleet expected to be upgraded during 2027.
Under the new layout, the 777-300ER has 144 premium seats, compared with 116 previously. That includes 70 Flagship Suite business-class seats, 44 Premium Economy seats and 30 Main Cabin Extra seats. The Flagship Suites include privacy doors, increased storage and a chaise-lounge seating position. American says the aircraft now offers more premium seats than any plane operated by a US carrier.
(Source: American Airlines Newsroom)
The overhaul also takes the total capacity to 330 passengers.
Why American Is Betting Heavily on Premium Travel
The economics behind the decision are becoming more clear. Premium passengers accounted for around 30% of American’s seats in the second quarter but generated nearly half of its ticketed revenue. The airline also reported a 26% year-over-year jump in managed corporate revenue during the quarter, its fifth consecutive quarter of double-digit growth in the category.
That helps explain why American is expanding premium cabins elsewhere as well. It plans to increase lie-flat seats across its international fleet by more than 50% by the end of the decade, while premium seating on narrowbody flights is expected to rise from roughly 25% to around 40%.
Flagship First will no longer be sold on 777-300ER flights for travel from Nov. 19. American also plans to stop selling the product on its transcontinental routes from March 28, 2027, as more Airbus A321XLR aircraft enter service.
That effectively brings American closer to Delta and United, which abandoned separate international first-class cabins years ago. Rather than competing at the very top of the luxury market, American is betting that a larger, more private business-class cabin can produce better returns.
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