The global aviation industry has seen a significant shift away from first class seating in recent years. Many major airlines, including United, Delta, Turkish Airlines, and more, have phased out first class in favor of business and premium economy options. American Airlines, the only US-based airline to offer international first-class fares, announced three years ago that it would also be getting rid of first class and is currently in the process of phasing it out.
A Brief History of First Class
In the early days of aviation, all fares were essentially first class, as air travel was only accessible to the wealthy. However, as the industry grew, the introduction of economy and eventually business class catered to a wider range of travelers. More recently, the demand for a higher level of comfort without the expense of business class has led to the rise of premium economy.
The Decline of First Class and the Rise of Premium Economy
Premium economy is proving to be a popular and profitable option for both airlines and passengers. It is expected to be the fastest-growing cabin class in North America by 2025. Economy and business class seating continue to grow, while first class has seen a decline of approximately 40%. This can be attributed to the fact that flying has lost its novelty and is now seen as a mundane and common activity. Many passengers are content with the comfort of business or premium economy and are not willing to pay the premium for first-class fares.
The Phasing Out of First Class at American Airlines
American Airlines currently only offers first class on two aircraft types: the Boeing 777-300ER and the Airbus A321T. However, it announced in 2022 that it would be phasing out first class on these aircraft and replacing it with a new premium option called the Flagship Suite. The airline plans to roll out these suites on new deliveries of its Airbus A321XLR and Boeing 787-9 Dreamliner aircraft starting in 2024. The suites offer a private door, more personal storage space, and a “chaise longue seating option.
American Airlines’ widebody fleet will see an increase in upper-class seats with the addition of these new suites. Meanwhile, the airline will continue to offer lie-flat seats on its transcontinental routes departing from New York and Boston. American has already launched its new Flagship Suite on the Boeing 787-9 Dreamliner, with plans to add it to more routes in the future.
Why the Focus on Business and Premium Economy?
The decline of first class can be attributed in part to the fact that it is difficult for airlines to sell these seats. According to reports, first-class occupancy can hover around 20%, compared to the target load factor of 80-85% for other classes. Additionally, with the improvement of business class options, many passengers do not see the value in paying the premium for first-class fares. As a result, airlines are focusing on more profitable and easier to sell options such as business and premium economy.