American Airlines (NASDAQ:AAL) plans to significantly expand premium seating and restore seatback entertainment screens across its narrowbody fleet as the carrier seeks to improve its competitive position against Delta Air Lines (NYSE:DAL) and United Airlines (NASDAQ:UAL).
The Fort Worth-based airline said premium seats are expected to account for around 40% of capacity on narrowbody departures in the coming years, up from approximately 25% currently.
The expansion will include more first-class seats as well as additional main cabin seating with extra legroom, achieved through a combination of aircraft reconfigurations and deliveries of new planes.
Premium Travellers Become Increasingly Important to Revenue
American’s decision reflects the growing importance of higher-paying passengers to its financial performance.
Premium travellers accounted for nearly half of the airline’s ticketed revenue during the second quarter despite representing only around 30% of available seats.
Increasing the proportion of premium capacity could therefore provide American with an opportunity to capture more higher-margin revenue as it works to narrow its profitability gap with its largest U.S. rivals.
American currently expects to deliver roughly break-even results this year, while Delta and United have projected solid profits.
CEO Robert Isom restructured the airline’s senior management last week and acknowledged a “meaningful gap” between American’s current performance and its objectives.
Seatback Entertainment Screens Make a Comeback
American is also reversing a major element of its previous inflight entertainment strategy by bringing screens back to narrowbody aircraft.
The carrier began removing seatback displays almost a decade ago on the assumption that passengers would increasingly prefer watching entertainment on their own smartphones, tablets and laptops.
Customer preferences have since evolved, according to American, particularly among younger travellers who increasingly want access to a larger onboard display while continuing to use their personal devices.
Improvements in high-speed satellite Wi-Fi have also created opportunities for a more connected inflight entertainment experience.
More Than 800 Aircraft to Receive Screens
American expects more than 800 narrowbody aircraft eventually to feature seatback entertainment systems.
Retrofitting of existing planes is scheduled to begin in 2028 and continue into the early 2030s. Newly delivered Airbus and Boeing aircraft equipped with screens are also expected to begin joining the fleet in 2028.
The airline has not disclosed how much it expects the premium seating expansion and entertainment programme to cost.
Together, the initiatives represent a significant overhaul of American’s narrowbody passenger experience as the airline seeks to attract more premium customers and strengthen its financial performance relative to Delta and United.
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