Posted on 10/20/2022 9:00:02 AM PDT by ChicagoConservative27
American Airlines is shaking up its premium cabin offerings, phasing out its first-class cabin to instead focus on business-class seats in response to shifting consumer demand.
Vasu Raja, American’s chief commercial officer, confirmed the move to investors on a Thursday morning earnings call.
“Yes, the first class will not exist on the [Boeing 777] or for that matter at American Airlines, for the simple reason that our customers aren’t buying it,” said Raja. “The quality of the business class seat has improved so much, and frankly by removing it, we can go provide more business class seats, which is our customers most want and are most willing to pay for.”
Raja went on to note that the airline is increasingly selling premium seats to passengers traveling for leisure rather than to corporations for their employees’ business travel.
(Excerpt) Read more at thehill.com ...
But how much do those first class passengers subsidize the others? I suspect now airfares will go even higher.
:: All first class is about food and a bigger seat ::
And, at some point, folks will realize that it’s the better food that gives them the bigger seat!
When I lived in Japan and got to fly business class on multiple Asian airlines, Thai, All Nippon, Cathay Pacific, Singapore etc., any one of them provided far better business class service than first class on any crappy airline like American.
If a destination requires getting on a flying cattle car, I ain’t going. Period.
FC generates most of the profits. Other airlines have done this, and ended up restoring FC after a while. AA is not a world-class airline, though, so I guess they don’t care.
Stands to reason with the past year’s increase in air fares, that airlines can, based on fare prices, attract more business class ticket buyers from the former 1st class ticket buyers. The main agenda of air fares is to as much as possible fill the plane. The more the plane is filled, the greater the net profit and net revenue benefit against all the fixed costs for a flight regardless of how many passenegers it has. I think the net benefit will be, as I said, a shift of willing buyers from 1st class to business class - not more net buyers merely due to an expanded business class.
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Southwest does OK without First Class.
Perhaps first class used to drive profits, but American said those seats are going unbought, so they’re not bringing in anything.
People aren’t passengers anymore.
They’re cargo.
No matter which class they sit in.
Rule of Thumb: If the flight is going to last 4 or more hours, fly First Class. Your body will thank you.
It’s really the business travelers that drive this, because clients and companies are more willing to pony-up for business class than they are for the perceived luxury of first class.
Yeah...if only that were global corporate travel policy for all pay-levels that are required to travel.
Lufthansa.
Swiss Air.
KLM.
Beats any domestic carrier.
Delta use to be good.
5.56mm
I would imagine most first class seats are not even purchased—they are often upgraded frequent fliers.
Cutting out the rows, and adding Business Class would simply increase the percentage of paid butts in the seats.
Caveat.
I haven’t flow internationally since 2010.
5.56mm
I’m pretty much indifferent to where I sit on an airplane unless I’m flying across an ocean. Then it IS nice to be able to stretch out and sleep. If the company is paying for it. I wouldn’t pay for business or first class myself, and I’d save my miles for other trips.
Food? Don’t really care. A bigger screen to watch movies? On a scale of one to ten, maybe a two. More room to store carryon luggage? I figured out how to pack a long time ago, and any trinkets I’m bringing home have to fit in the existing luggage.
So the way I read this American Airlines is phasing out first class service but maintaining First Class prices.
You nailed it.
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