American Airlines gets half its revenue from 30% of seats

  • American Airlines plans to expand premium seating through aircraft reconfigurations and new deliveries.
  • Roughly 30% of American’s seats generate half of its revenue.
  • American unveiled a 70-suite business class cabin on a Boeing 777-300ER earlier this month.

American Airlines Group Inc. generates half of its revenue from roughly 30% of its seats, Chief Executive Officer Robert Isom said at a Morgan Stanley industry conference. The Fort Worth-based carrier expects that share of higher-yielding seating to grow as it reconfigures existing aircraft and receives new deliveries. American earlier this month introduced a 70-suite business class cabin on its Boeing 777-300ER and plans to revamp Boeing 787-8 Dreamliners and update interiors on 777-200s. The airline also plans to order new wide-body aircraft this year. The strategy is aimed at improving American's profitability as fuel costs rise, while airlines including Allegiant Air and JetBlue Airways add upgraded seating. Growing demand for premium layouts has also contributed to production delays at Boeing and Airbus, while increasing airlines' exposure to weaker corporate travel or discretionary spending.

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