American Airlines is reconfiguring its Boeing 777-300ER aircraft to include more premium seats, a move aimed at capturing more revenue from affluent travelers. The airline is phasing out its first-class cabin on these planes, opting instead to expand its business-class offerings.
The first retrofitted aircraft is scheduled to enter commercial service on Wednesday, flying from New York to Buenos Aires. American anticipates completing the upgrades on all 20 of its 777-300ERs by 2027.
Increased Premium Capacity
The revamped planes will feature 144 premium seats, an increase from the current 116, boosting the premium seat percentage to approximately 44% from 38%. This includes 70 Flagship Suite business-class seats, which offer privacy doors, 44 Premium Economy seats, and 30 Main Cabin Extra seats, the airline's extra-legroom economy option. The current configuration has 52 business-class seats and eight Flagship First seats.
American announced in 2022 that it would eliminate international first class on these aircraft, citing a lack of customer demand and the opportunity to add more sought-after business-class seats. The Flagship First product will no longer be sold on 777-300ER flights for travel beginning November 19.
Among the major U.S. network carriers, American is the only one that maintains a separate international first-class cabin. Delta Air Lines merged its first and business-class cabins in 1998, and United Airlines discontinued international first class in 2018 in favor of its Polaris business class.
Industry-Wide Premium Push
This strategic shift reflects American's broader effort to enhance profitability and narrow the profit gap with competitors like Delta and United. In the second quarter, premium travelers accounted for nearly half of American's ticketed revenue while occupying about 30% of its seats. The airline also plans to increase premium seating on its narrowbody flights to roughly 40% in the coming years, up from approximately 25% currently.
American's initiative aligns with a wider trend among U.S. carriers to focus on premium travel. Revenue from these higher-end products has grown faster than from more price-sensitive options across several major airlines, indicating a divergence in travel spending as wealthier customers continue to spend while budget-conscious travelers reduce their expenditures.
Even airlines traditionally known for lower fares are adapting. Southwest Airlines announced plans to launch its first airport lounges in late 2027 in Austin, Baltimore, Honolulu, and Nashville, aiming to attract higher-spending travelers. Frontier Airlines is introducing first-class-style seats, and JetBlue is expanding its premium offerings, including airport lounges.
The retrofit of American's 777-300ERs will also increase the aircraft's total capacity to 330 passengers from 304, with a slight reduction in standard economy seats from 188 to 186. These aircraft typically serve long-haul international markets, including routes to London, Tokyo, Sao Paulo, Buenos Aires, and Sydney. The retrofitted planes will also feature upgraded in-flight entertainment systems, and members of American's AAdvantage loyalty program will have access to free high-speed Wi-Fi.