American Airlines to Phase Out First-Class Seats on International Flights

Due to a lack of sales, the airline will replace first-class seats with more business-class options. American Airlines announced on October 20 that it would be discontinuing first-class seats on all international flights, replacing them with more business-class seats.

The plan was shared by American’s chief commercial officer, Vasu Raja, in a conference call with investors.

“The first class will not exist . . . at American Airlines for the simple reason that our customers aren’t buying it,” he said. “The quality of the business-class seat has improved so much. And frankly, by removing [first class] we can provide more business-class seats, which is what our customers most want or are most willing to pay for.”

Raja was talking specifically about flights departing the United States—Americans will keep first class on domestic flights, though those seats aren’t lie-flat.

Last month, American Airlines shared details on its reimagined business class, dubbed the Flagship Suite Seats, which will be available on international flights starting in 2024. The Flagship Suite seats feature privacy doors, the option to make the seat into a chaise lounge or a lie-flat bed and double the amount of personal storage space.

The airline also announced plans to add more Premium Economy seats on its international flights. The seats feature six additional inches of legroom and a deeper recline than regular Economy and include complimentary alcoholic drinks and an amenity kit including items like socks, an eye mask, and lotion.

In a press release, American said it plans to increase the number of business and premium seats by “more than 45 percent by 2026.”

American’s new Boeing 787-9 aircraft will have 51 Flagship Suite seats and 32 Premium Economy seats, and the airline’s Airbus A321XLR aircraft will hold 20 Flagship Suite seats and 12 Premium Economy seats. The airline also plans to retrofit its Boeing 777-300ERs with the new Suites in 2024.

American isn’t the first airline to drop first-class offerings on international flights instead of more business class. Compared to its “Big Three” competitors, Delta and United, it’s the last to the party. Delta dropped international first class in 1998 and United eliminated it in 2016.

The news is just the latest in America’s new premium offerings. The Fort Worth-based carrier is also launching a series of reimagined Admirals Club Lounges. The first, at Ronald Reagan Washington National Airport, opens this month. Other redesigned lounges in the works include Newark Liberty International Airport, Austin–Bergstrom International Airport, and Denver International Airport, though the airline hasn’t yet given a timeline on when those will open.

In a strategic pivot to better meet customer demands, American Airlines announced on October 20 that it would discontinue first-class seating on all international flights. This significant shift reflects the evolving preferences of travelers, who are increasingly opting for the improved comfort and amenities of business-class seats. American’s chief commercial officer, Vasu Raja, conveyed the rationale behind this decision during a conference call with investors, emphasizing that first-class seats were no longer being purchased at a level that justified their existence.

“The first class will not exist at American Airlines for the simple reason that our customers aren’t buying it,” Raja stated. “The quality of the business-class seat has improved so much. And frankly, by removing [first class], we can provide more business-class seats, which is what our customers most want or are most willing to pay for.”

As part of its revamped business-class offering, American Airlines introduced the Flagship Suite seats, set to debut on international flights starting in 2024. These suites are designed with privacy doors, the option to convert the seat into a chaise lounge or lie-flat bed, and double the personal storage space compared to previous designs. This redesign underscores American’s commitment to providing a premium experience tailored to the needs of modern travelers.

In addition to the Flagship Suite, American Airlines is also expanding its Premium Economy section on international flights. These seats will feature six additional inches of legroom, a deeper recline, and come with complimentary alcoholic beverages and amenity kits that include items such as socks, an eye mask, and lotion. This upgrade aims to cater to passengers who seek a more comfortable and luxurious experience without the full cost of business class.

Expanding Premium Seating

American Airlines has ambitious plans to increase its number of business and premium seats by more than 45 percent by 2026. This expansion includes the introduction of 51 Flagship Suite seats and 32 Premium Economy seats on the new Boeing 787-9 aircraft. Additionally, the airline’s Airbus A321XLR will accommodate 20 Flagship Suite seats and 12 Premium Economy seats. The airline also plans to retrofit its Boeing 777-300ERs with the new Flagship Suites starting in 2024, ensuring that a wider range of aircraft is equipped to meet the enhanced demand for premium seating.

A Competitive Shift in the Industry

American Airlines is not the first major carrier to eliminate first-class seating in favor of enhanced business-class options on international flights. This trend has been gaining momentum among the “Big Three” U.S. airlines. Delta Air Lines phased out its international first-class seats back in 1998, while United Airlines followed suit in 2016. American Airlines, being the last of the three to make this transition, underscores a broader industry movement towards optimizing aircraft interiors to better align with customer preferences and profitability metrics.

The shift reflects a broader trend in the aviation industry where airlines are increasingly focusing on the quality of business-class seats, which offer significant revenue potential. By removing first-class seats and increasing the number of business-class seats, airlines can cater to a larger segment of the market willing to pay a premium for enhanced comfort and service.

Enhancing the Ground Experience: Admirals Club Lounges

In addition to upgrading its in-flight experience, American Airlines is also investing in the ground experience for its passengers. The carrier is launching a series of reimagined Admirals Club Lounges. The first of these redesigned lounges will open this month at Ronald Reagan Washington National Airport. Future locations include Newark Liberty International Airport, Austin–Bergstrom International Airport, and Denver International Airport, although the airline has not yet provided a timeline for these openings.

These redesigned lounges are part of American Airlines’ broader strategy to enhance the overall travel experience for its passengers. By offering more luxurious and comfortable spaces for travelers to relax and work before their flights, American aims to differentiate itself from competitors and attract more premium customers.

Financial and Operational Implications

The decision to phase out first-class seating and expand business-class and premium economy options is expected to have significant financial and operational benefits for American Airlines. First-class seats, while luxurious, have traditionally occupied a small portion of the cabin and generated less revenue compared to business-class seats. By reallocating this space to business-class and premium economy seats, American can increase its revenue per flight and better meet the demand for premium travel experiences.

Moreover, the new seating configurations are likely to improve operational efficiency. The Flagship Suite seats and enhanced Premium Economy sections are designed to offer more comfort and privacy, aligning with the preferences of modern travelers. This focus on comfort and privacy is expected to attract more high-paying customers, particularly business travelers who value these features and are willing to pay a premium for them.

Looking Ahead: American Airlines’ Vision

American Airlines’ decision to phase out first-class seating on international flights and focus on enhancing its business-class and premium economy offerings is a bold move that reflects the evolving dynamics of the aviation industry. As passenger preferences shift towards more comfortable and luxurious travel experiences, airlines must adapt their offerings to stay competitive.

By investing in new seating configurations and redesigning its Admirals Club Lounges, American Airlines is positioning itself to capture a larger share of the premium travel market. This strategic shift is expected to improve the airline’s financial performance and enhance its reputation among travelers seeking a superior travel experience.

American Airlines’ decision to eliminate first-class seating on international flights and expand its business-class and premium economy options is a strategic move that reflects the changing preferences of modern travelers. By investing in new seating configurations and enhancing the overall travel experience, American Airlines is positioning itself for long-term success in the competitive aviation industry.