American Airlines ending flagship first class, prioritizing business class

Oct. 20 (UPI) -- American Airlines is phasing out its premium first-class cabins amid declining demand, the company said during a call with its investors Thursday.

The world's largest airline based on fleet size will instead shift its focus to its business-class section.

The Texas-based carrier also released its earnings on Thursday, with higher-than-expected adjusted profits expected in the fourth quarter.

"Yes, the first class will not exist on the [Boeing 777] or for that matter at American Airlines, for the simple reason that our customers aren't buying it," Vasu Raja, the company's chief commercial officer, told investors on the earnings call.

"The quality of the business-class seat has improved so much, and frankly by removing it, we can go provide more business-class seats, which is our customers most want and are most willing to pay for."

The move only applies to the airline's Flagship First Class, available on its international and transcontinental flights. It does not apply to its domestic first-class seating.

Last month, the airline introduced its new Flagship Suite that will be available on new deliveries of its Airbus A321XLR and Boeing 787-9 aircraft, beginning in 2024. The suite includes privacy doors and lie-flat seat controls.

American will also reconfigure its current fleet of Boeing 777 aircraft to include the offering.

"We are enhancing the customer experience across their entire journey with American," Vice President Julie Rath said in a news release at the time.

"The arrival of new long-haul aircraft and the customized seat design of the Flagship Suite seats will offer customers a truly private premium experience on our long-haul fleet."

The end of Flagship First Class will also result in more premium economy seating on the airline's long-haul fleet.

Shifting demand means the airline is seeing more leisure passengers and fewer traveling for business.