- In its Q3 earnings conference call, American Airlines Group Inc AAL Chief Commercial Officer Vasu Raja provided some detail about replacing its first-class international flight seats with new business-class suites, announced last month.
- “And frankly, by removing [first-class seats], we can provide more business-class seats, which is what our customers most want or are most willing to pay for.”
- International flights from Delta Air Lines Inc DAL and United Airlines Holdings Inc UAL have already supplanted first class.
- Last month, American Airlines said it would phase out the first-class product offered on certain long-haul flights.
- Instead, the airline will replace its long-haul fleet with new “Flagship Suites,” increasing premium seating on those planes by more than 45% by 2026, Wall Street Journal reported.
- The new suites will be included on newly delivered Boeing Co BA 787-9 planes and Airbus SE EADSY A321 XLRs starting in 2024. American will also retrofit its Boeing 777-300ER planes to include the new suites.
- Thursday, the company reported Q3 FY22 operating revenue growth of 50.1% Y/Y to $13.46 billion, beating the consensus of $13.25 billion. Adjusted EPS of $0.69 beat the consensus of $0.31.
- Price Action: AAL shares are down 1.56% at $13.25 during the premarket session on the last check Friday.
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