American Airlines to Retrofit Aging Boeing 777-200 Aircraft for Premium Offerings

American Airlines has announced plans to retrofit its aging Boeing 777-200 widebody aircraft in order to expand its premium offerings and manage capital costs. The decision was revealed by American Airlines CFO Devon May during an earnings discussion on October 23.

The retrofit will involve a nose-to-tail overhaul of the aircraft, resulting in a 25% increase in lie-flat and premium economy seats. In addition, a new in-flight seatback entertainment system will be installed. Currently, the 777-200 aircraft are configured with 273 seats, including 37 Flagship Business, 24 Premium Economy, 66 Main Cabin Extra, and 146 Main Cabin seats.

American Airlines CEO Robert Isom described the 777-200 retrofit as a significant development for the company, as it will extend the aircraft’s lifespan and provide a “capital holiday” in terms of fleet replacement. The average age of American’s 41 777-200s is approximately 25 years, according to Aviation Week’s Fleet Discovery database.

The airline also plans to expand its Flagship Suite on its 20 777-300ER widebody aircraft, resulting in a 20% increase in premium seating. The 777-300ERs are currently configured with 304 seats, including eight in Flagship First, 52 in Flagship Business, 28 in Premium Economy, 28 in Main Cabin Extra, and 188 in Main Cabin.

American’s premium-heavy 787-9P aircraft already feature the Flagship Suite, and the new Airbus A321XLR aircraft, set to be delivered in 2025, will also have a single-aisle version of the suite. Tickets for the inaugural A321XLR flight on December 13 from New York JFK to Los Angeles (LAX) are already on sale.

The retrofit of the 777-200 and expansion of the Flagship Suite are part of American’s efforts to align its premium products across its various fleet types. In the third quarter, the airline’s premium unit revenue outperformed main cabin performance by five points, and its paid load factor in premium is now nearly 80%, compared to mid-60s before the pandemic.

American’s Chief Commercial Officer Steve Johnson attributed this improvement to strong consumer demand for premium products. The airline’s year-over-year premium unit revenue grew by two points, and Johnson expects this trend to continue as the company works to close the margin gap with its competitors.

In addition to the retrofit and expansion plans, American has also appointed industry veteran Nathaniel Pieper as its new Chief Commercial Officer. Pieper, who has held positions at Northwest Airlines, Delta Air Lines, and Alaska Airlines, will join American on November 3. Johnson will then return to his previous role as the company’s Vice Chair and Chief Strategy Officer.