Search Travel Market Report

algv HPTO
algv
mainlogo
www.travelmarketreport.com
  • News
  • Tours & Packages
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Niche & Luxury
  • Well-Being Travel
  • Training & Events
  • Who We Are
    • Anne Marie Moebes
    • Brian Israel
    • Dan McCarthy
    • Denise Caiazzo
    • Dori Saltzman
    • Kelly Fontenelle
Sponsored By ALG
Sponsored By ALG
algv

American Airlines Is Dropping First Class Cabins on International Flights

by Daniel McCarthy / October 21, 2022
American Airlines First Class Business Class Travel

American Airlines is dropping first class. Photo: Markus Mainka / Shutterstock.com

American Airlines will soon no longer offer first class on international flights.

The carrier this week said that it was opting to expand its business class section on its aircraft, retrofitting its aircraft to replace first class with an expanded business class on long-haul international service.

According to Chief Commercial Officer Vasu Raja, who spoke during the company's third-quarter earnings call, American is making the move because of changes in consumer demand.

“Yes, 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 said.

“The quality of the business class has improved so much. And frankly, by removing it, we can go provide more business class seats, which is what our customers most want or most willing to pay for.”

According to Raja, American’s customers have shifted from business travelers to “blended demand” travelers, or those who are traveling for both work and leisure at the same time (United mentioned a similar trend in its earnings call earlier this week). Those blended demand travelers are willing to pay up from main cabins to business class, which is where the heightened demand for business, and the desire to increase its capacity onboard, is coming from.

In fact, American’s contracted corporation business is only 80% recovered from 2019 levels. Still, the airline has reported its highest-ever revenues for the second quarter in a row, and Raja said that is “on the strength of this blended demand that’s there and unmanaged business-related demand,” which produces higher yields for American.

Raja added that the airline does expect business travel to recover fully “as more countries open up” and visa “inefficiencies” get sorted out.

American was essentially the last U.S. airline that was offering a separate first-class cabin from its business-class offerings. Delta Air Line had rolled first class into business class in the 1990s and United Airlines stopped selling first-class flights in June 2019.

It’s worth noting that American’s business class offerings are still high-touch experiences, which include a Flagship Suite unveiled in September. That suite, which will feature on the carrier’s new  Boeing 787-9s and Airbus A321XLRs from 2024, is highlighted by a lie-flat bed and privacy door

  83
  0
alg HPTO
Related Articles
United Airlines Promises to Keep Families Together with New Ticket Policy
FAA Proposes a $1.1 Million Fine Against United Airlines for Skipping Safety Checks
American Airlines Drops Service to Three Cities Over Pilot Shortage and ‘Soft Demand’
The Iconic Boeing 747 Ends Its 50-Year Run
Four Changes from American Airlines’ AAdvantage Update
United Airlines Places Largest Wide-Body Order for Any U.S. Carrier Ever
JetBlue and American Airlines Expand Northeast Alliance with 11 New Nonstops
First Look: JFK International’s New Terminal 8, Set to Open Tomorrow
United Airlines Boosts Pilot Pay During Labor Negotiations
United Airlines Pilots Overwhelmingly Reject New Contract

MOST VIEWED

  1. Why Travel Advisors Need to Learn to Say No to New Business
  2. U.S. Passport Renewal Processing Time Now 8 to 11 Weeks
  3. Government of Canada Updates Its Mexico Travel Advisory
  4. European Union Delays Launch of ETIAS Until At Least 2024
  5. U.S. Passport Renewal Waiting Time Could Soon Get Even Worse
  6. Here’s What the U.S. and Canada Are Saying About Travel and Crime in Mexico

MOST EMAILED

  1. U.S. Passport Renewal Processing Time Now 8 to 11 Weeks
  2. U.S. Passport Renewal Waiting Time Could Soon Get Even Worse
  3. Why Travel Advisors Need to Learn to Say No to New Business
  4. European Union Delays Launch of ETIAS Until At Least 2024
  5. What Travel Advisors Need to Know about the Florida Seller of Travel License
  6. 9 Travel-Advisor Friendly Paris Boutique Hotels to Know About
TMR THIS WEEK
Sponsored by Explora Journeys
//services.travelsavers.com/AMGService.svc/REST/GetImage?ImageID=78f79d51-15c7-ed11-b00b-005056a8720b&Width=350&Height&250

All About Culinary Immersion at Sea

Travel advisors can help their foodie clients enjoy true immersion experiences by booking them on culinary-focused cruises.

Read More...
alg
TMR Subscription

Subscribe today to receive daily in-depth coverage, analysis of industry news, trends and issues that affect how you do business. Subscribe now for free.

Subscribe to TMR

Top Stories
Travel Agency February Air Ticket Sales Up 54% Over 2022
Travel Agency February Air Ticket Sales Up 54% Over 2022

Travel agency air ticket sales continue to trend upward.

Read...
U.S. Embassy in Mexico Issues Travel Warning for Spring Breakers
U.S. Embassy in Mexico Issues Travel Warning for Spring Breakers

The Embassy recognized that thousands of U.S. citizens visit Mexico each year without issue during spring break. 

Read...
Hundreds of Flights Cancelled Friday Due to Strike at Four German Airports
Hundreds of Flights Cancelled Friday Due to Strike at Four German Airports

There’s another round of significant flight disruptions due to union action in Germany on Friday.

Read...
Air Canada Adds Summer Service to Amsterdam from Montreal
Air Canada Adds Summer Service to Amsterdam from Montreal

The new service will kick off on June 2.

Read...
U.S. Passport Renewal Waiting Time Could Soon Get Even Worse
U.S. Passport Renewal Waiting Time Could Soon Get Even Worse

It could be the highest demand year ever for passport applications. 

Read...
Royal Caribbean Pulls Erroneous "Premier" Offer
Royal Caribbean Pulls Erroneous "Premier" Offer

A system glitch caused Royal Caribbean to publish and pull a promotion. 

Read...
TMR OUTLOOKS & WHITE PAPERS
river cruise 2022
group outlook 2022
lux cruise outlook
CP White Paper
Multi-Gen Outlook
River Cruise Outlook 2019
View All
Advertiser's Voice
https://img.youtube.com/vi/BDz_-mzUmZA/0.jpg
Meet South Africa with Your Local Guides
About Travel Market Report Mission Staff Advisory Board Advertise
TMR Resources Webinars Calendar of Events Outlook/Whitepapers Previous Sponsored Articles Previous This Week Articles
Subscribe to TMR
Select Language
Do You Have an Idea Email
editor@travelmarketreport.com
Give Us a Call
1-(516) 730-3097
Drop Us a Note
Travel Market Report
71 Audrey Ave, Oyster Bay, NY 11771
News |Tours & Packages |Cruise |Hotels & Resorts |Destinations |Retail Strategies |Niche & Luxury |Well-Being Travel |Training & Events |Who We Are
© 2005 - 2023 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | 243 South Street, Oyster Bay, NY, 11771 USA | Telephone (516) 730-3097| Terms and Conditions
Cookie Policy Privacy Policy