When American Airlines launched its Flagship Suite in 2022 the carrier’s goal was to have them flying by 2024. That expectation has now slipped to 2025, and CEO Robert Isom put the company’s suppliers on notice that he expects them to meet the new targets.
Speaking on the Q3 earnings call, Isom pointed out that the 777-300ERs will likely not go in for their refresh until after the Summer 2025 peak, meaning the existing first class cabins will be around for next year’s high season. But he also emphasized “[W]e are dependent on the supply chain. And right now that supply chain, especially in regard to seats, is very tight. Our message to our suppliers, our partners, is to work with us to make sure that we get those that equipment on dock as expected. We’re really pushing to make sure that that’s the case.”
Those supply challenges also cover American’s A319 and A320 family retrofits, with expanded premium cabins due.
Given the industry-wide trend towards faster growth in premium cabin revenue (up 8% on 3% capacity increase in Q3), it is no surprise that the company is keen to get those aircraft updated, as the overall effort results in roughly 20% more premium seats flying for the airline.
Will Wi-Fi be free?
Separately, the carrier also addressed the competitive trend towards free Wi-Fi on board, as United’s Starlink deal will see it transition to that approach and Delta is already there. Rather than commit to a similar approach, however, Isom chose to highlight American’s progress in fitting its fleet with high-speed internet.
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They couldn’t retrofit even if they wanted to as they have not a single plane to take out of service. I’ll go out on a limb and say American takes delivery of a new 787 before retrofit sometime fall next year.
Separately on the call Isom said there was some flexibility in utilization that could be used, but I agree probably not enough to do full retrofits.