The main cabin of a modified American Airlines Boeing 777-300ER used on long-haul flights (undated photo).
American Airlines | via Reuters
The K-shaped economy is taking off.
american airlines Chief Executive Officer Robert Isom said Wednesday that just 30% of the airline’s seats account for half of its revenue, at a rate the Fort Worth, Texas-based airline and competitors large and small are tearing apart existing aircraft configurations to add first class and other higher-revenue options.
“30% of seats will only grow in our fleet as we reconfigure them as new aircraft are delivered,” Isom said at Morgan Stanley’s industry conference, referring to Morgan Stanley’s premium seating options.
Earlier this month, the airline unveiled a monster business class cabin with 70 suites on its largest aircraft. boeing 777-300ER, and many more planes are waiting for modification.
American Airlines was lagging behind its major airline competitors in terms of profits. Isom said adding premium seats is important to take advantage of air travel’s resilience and bright spots among high-spending customers, especially as airlines seek to cover this year’s rising fuel costs, their second-largest expense after payroll.
Even small, budget airlines such as: Allegiant Air and jet blue airlines is adding upgraded seating options to appeal to these flyers.
Isom told CNBC in June that the airline also plans to upgrade its Boeing 787-8 Dreamliner and is preparing new interiors for its 777-200 aircraft. Isom said the airline plans to order new widebody aircraft this year.
