American Airlines to Boost Boeing 777 Business Class Seats, Eliminating First Class

American Airlines is overhauling its Boeing 777-300ER long-haul aircraft to significantly increase its premium seating, a strategic move that includes eliminating its international first-class cabin to make way for more business-class suites. The reconfiguration reflects a broader industry push to cater to high-spending travelers who are a growing source of airline profitability.

Aircraft Overhaul Details

The retrofitted jets will feature a substantial increase in premium-cabin capacity, according to a Reuters report. The first updated aircraft is scheduled to enter commercial service on Wednesday, flying from New York to Buenos Aires, with the entire 20-plane fleet set to be upgraded by 2027.

Key changes to the aircraft layout include:

• Total Premium Seats: Increasing from 116 to 144, a nearly 25% jump.
• Business Class: The number of Flagship Suite business-class seats with privacy doors will rise from 52 to 70.
• First Class: The eight-seat Flagship First cabin will be completely removed. American will stop selling the product on these aircraft for travel beginning November 19.
• Total Capacity: The aircraft's total passenger count will rise from 304 to 330.

Premium Economy will remain at 44 seats, while the number of standard economy seats will slightly decrease from 188 to 186.

Strategy to Capture Premium Revenue

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This fleet modification is central to American's strategy to narrow a profitability gap with competitors Delta Air Lines and United Airlines. The airline has stated that premium travelers are a critical revenue driver, generating nearly half of its ticketed revenue in the second quarter while occupying only about 30% of its seats.

By eliminating its top-tier first-class product, which the airline said customers were not purchasing, American can install more business-class seats that are in higher demand. This move follows a 2022 announcement to phase out international first class and extends a broader push to increase premium offerings across its fleet, including on its narrowbody jets.

Broader Industry Trend

American's decision aligns with a long-standing industry trend. It was the last of the three major U.S. network carriers to offer a dedicated international first-class cabin. Delta merged its first- and business-class products in 1998, and United followed suit in 2018 with the rollout of its Polaris business class.

The focus on higher-end products is now spreading across the sector as airlines observe a divide between resilient spending from wealthier customers and more cautious behavior from budget-conscious travelers. Even carriers traditionally focused on lower fares, such as Southwest Airlines and Frontier, are reportedly evaluating or adding more premium seating and services.