American Airlines will phase out first-class seats on transcontinental routes as part of its efforts to expand the business-class cabin.
First-Class Is Being Phased Out
Beginning November 19, American Airlines passengers will no longer be able to buy first-class seats, dubbed as Flagship First, on Boeing 777-300ER planes. These are the aircraft used for its long-haul flights from Sao Paulo to Tokyo. Meanwhile, the airline will also stop selling first-class seats on the Airbus A321T starting March 28, 2027.
As part of its overhaul, American increased the number of premium seats on its Boeing 777-300ERs from 116 to 144.
Of these, 70 are Flagship Suite business-class seats with privacy doors and lie-flat beds. The aircraft will also have 44 Premium Economy seats and 30 Main Cabin Extra seats, American’s economy product that offers passengers extra legroom.
A full retrofit of the 777-300ER aircraft is expected sometime in 2027.
A Long Time Coming
American’s decision to discontinue first-class has been a long time coming. Four years ago, during American Airlines’ Q3 2022 earnings call, a reporter asked whether the airline was retiring its first-class seats on 777s.
Chief commercial officer Vasu Raja responded, “The first class will not exist on the 777 or, for that matter, at American Airlines for the simple reason that our customers aren’t buying it.” Raja then explained that removing first-class seats can provide “more business class seats, which is what our customers most want or most willing to pay for.”
Redefined Premium Experience
Airlines are increasingly embracing the “premiumization” trend as travelers show a greater willingness to pay for enhanced experiences. Southwest, for example, is planning to introduce lounges, while Frontier has first-class-style seats. These moves signal a broader shift toward premium offerings across the industry.
It shows how affluent travelers are increasingly willing to pay for a premium experience, incentivizing airlines to pursue high-value customers. In August, American said premium travelers generated nearly half of its ticketed revenue in the second quarter while accounting for about 30 percent of its seats. In other words, roughly three in 10 seats categorized as “premium” generated nearly half of the airline’s ticket revenue.
