RESOLVING THE LEDGER
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See the full story · 11 sourcesAmerican is revamping its seating with more tech and more premium seating options. Robert Alexander/Getty Images
American Airlines is reversing course on its seatback entertainment.
The company told BI that travelers — especially young ones — wanted in-plane screens.
American is also dedicating more space to its premium seating.
For years, American Airlines bet that travelers would rather watch in-flight movies on their own phones or tablets.
No more.
On Tuesday, the airline said it plans to install seatback entertainment screens on around 800 single-aisle jets. New Airbus and Boeing jets with the screens will begin arriving in 2028, with retrofits on its existing planes starting the same year and continuing into the early 2030s.
American said the screens will have built-in movies, television shows, games, and music content. They'll also include Bluetooth connectivity, so passengers won't have to rely on those cheap wired headphones handed out before takeoff.
The move reverses a strategy American embraced nearly a decade ago, when it began moving away from seatback screens and instead offered entertainment that passengers could stream on their own devices. The company told Business Insider it's adjusting the in-flight entertainment after customer preferences evolved.
"In the years since, and particularly following COVID, it has become increasingly clear that customers, especially younger generations, value having access to multiple devices and larger screens throughout their journey," a spokesperson said.
The company added that high-tech satellites in low-earth orbit have also "changed what is possible onboard." American already offers free WiFi to AAdvantage members, sponsored by AT&T, and plans to begin installing SpaceX's Starlink service on more than 500 narrow-body aircraft in 2027.
The airline said combining faster connectivity with seatback screens and passengers' personal devices could create new opportunities for both the customer experience and revenue.
Premium gets a higher priority
American is allotting more room for its premium seats. : Jeffrey Greenberg/Universal Images Group via Getty Images
American is also making more room for premium passengers . About 25% of seats on its narrow-body departures are premium today, a figure the airline says will rise to roughly 40% "in the coming years."
That continues a trend across the airline industry as more affluent travelers stretch their legs and order cheese boards during their flights.
Delta's premium products generated $6.92 billion in revenue in the second quarter, up 17% from a year earlier. For the first time, Delta's premium revenue surpassed its main-cabin revenue. United's revenue from premium seats was also up 16% during the last quarter.
American Airlines is no different.
The company — which has lagged Delta and United in profitability as the industry has chased higher-spending travelers — has revamped its high-end offerings, partnering with brands such as Champagne Bollinger and Lavazza coffee. It's also adding more cushy in-airport lounges at the Dallas-Fort Worth and New York JFK International airports.
"Our premium traffic continues to outpace the rest of the business," chief financial officer Nat Pieper said on the airline's most recent earnings call. "That's demand that's more likely to hold up through economic uncertainty. We're making investments in premium in terms of taking new deliveries with richer configurations."
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