American Airlines CEO Robert Isom wants more high-end seats on board. He told a Morgan Stanley industry conference that 30% of American's seats generate half of the carrier's revenue, referring to its premium products.
"Those 30% of seats, they're only going to grow in our fleet as the reconfigurations come on board as the new aircraft deliveries come on," Robert Isom said.
Earlier this month, American showed off a business-class cabin with 70 suites on its largest jet, a Boeing 777-300ER. Additional aircraft are still waiting on remodels to add premium seating.
Isom said American will refurbish its Boeing 787-8 Dreamliners and install new interiors on its 777-200s. He added the airline intends to place an order for new wide-body aircraft this year.
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American, based in Fort Worth, Texas, has fallen behind large rivals in profitability, which is pushing a focus on higher-spending travelers. Isom called premium demand a strong area and tied the shift to offsetting this year's surge in fuel costs, the airline's second-largest expense after labor.
Smaller and low-cost carriers, including Allegiant Air and JetBlue Airways, are also rolling out upgraded options to attract premium-paying passengers.
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