American Airlines launched more high-end products and services, from amenity kits to serving Champagne Bollinger, as the industry continues to court premium travelers.
As demand for economy seating continues to lag, airlines are pouring resources into upgrades for business and first-class to maximize returns from travelers willing to pay more. Over the past year, many of the major U.S. carriers, including American, announced plans to upgrade their suites with a variety of new amenities from extra room to 27-inch 4K OLED seatback screens, Ossetra caviar amuse-bouche service and luxury skincare amenities.
To get ahead of competitors, American Airlines secured several partnerships with luxury brands to boost its offerings.
AMERICAN AIRLINES LAUNCHING LUXURIOUS NEW FLAGSHIP SUITE THIS SUMMER
Last week, American Airlines launched new limited-edition amenity kits for premium cabin customers on select international and transcontinental flights.
Passengers will get a range of small leather bags from the brand Raven + Lily that are filled with ear plugs, eye masks, as well as skincare products exclusively from celebrity facialist Joanna Vargas. This marks the first time that Joanna Vargas products will be made available for passengers on all premium flights.
The kits will roll out at the end of September, marking the latest in a string of enhancements their carrier has been making to elevate the travel experience for higher earners.
The carrier also solidified a partnership with Bollinger. American announced on Wednesday that it will greet guests at its American’s Flagship lounges across the system with a glass of Champagne Bollinger Special Cuvée. Flagship lounge customers at Dallas Fort Worth International Airport, Miami International Airport and O’Hare International Airport will be the first to get the perk.
AIRLINES ARE IN ‘ARMS RACE’ TO UNVEIL UPGRADED LUXURY SUITES
In the coming weeks, customers at lounges at Los Angeles International Airport and Philadelphia International Airport will be privy to the perk as well. Starting in October, it will be served exclusively on Flagship Business on all flights to and from Paris-Charles de Gaulle Airport, followed by a broader rollout across international Flagship flights in the months ahead.
American Airlines Chief Customer Officer Heather Garboden told FOX Business that while demand for economy has been muted, they have continued to see a surge in demand for premium seats.
“We are in a pretty uncertain economic environment right now, I think, since the beginning of the year and even through all of that, our premium demand, not just for American, but I think for the entire airline industry, has continued to remain strong, and so I think that is something that we’re really focused on, and we want to make sure that we are delivering for our customers,” American Airlines Chief Customer Officer Heather Garboden.
The airline just launched its new Boeing 787-9 aircraft, which has more premium seating compared to its other wide-body aircraft.
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“I think you’re going to see this trend continue, certainly in the near term,” Garboden said. “A larger part of our demographic is the younger generation now, and that will only continue to grow. And we know that younger generations prefer to have experiences, and they’re willing to pay for experiences.”
Garboden said the airline is planning to have 50% more premium seats by the end of this decade. While the company is honing in on first and business class passengers, those flying premium economy on certain international widebody flights will also get an amenity kit.
This marks the latest in the ongoing “premium arms race with airlines falling over themselves to add more high-end seats on many of their planes,” Clint Henderson, managing editor at The Points Guy, told FOX Business.
Henderson said the premium market has been a “real bright spot for airlines since the pandemic” as more passengers are willing to pay more for bigger perks.
“First and business class used to be the purview of business travelers, with airlines giving most of the front seats away to their most loyal customers. Those days are done,” Henderson said. “Leisure passengers are buying up now with airlines getting better about selling those bigger seats at a discount. People are also just outright buying first class tickets.”
The trend is even forcing discount carriers to step up their game. He noted that airlines like Southwest, Frontier and Spirit are adding premium seating in order to try to gin up profits.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAL | AMERICAN AIRLINES GROUP INC. | 11.31 | -0.08 | -0.70% |
| UAL | UNITED AIRLINES HOLDINGS INC. | 97.91 | -1.24 | -1.25% |
| DAL | DELTA AIR LINES INC. | 57.19 | +0.46 | +0.81% |
“As far as who will win the race? Right now, Delta and United have done a great job of capturing the premium passenger, but American’s recent moves to refresh planes, adding premium economy to some jets, add suites with closing doors to more of its jets and the announcement that they will retrofit some older planes means they are still in the race,” Henderson said, adding that the new planes coming for American on routes like New York to San Francisco and Los Angeles could be another escalation in the battle for the premium customer.
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