The main reason for removing first class is financial. Airlines aim for load factors between 80% and 85%, but first-class occupancy can be as low as 20%. This makes it difficult to justify keeping these seats when they could be replaced with more profitable options. In addition, improvements in business class—such as lie-flat beds, better entertainment systems, and enhanced service—have made it harder for passengers to see value in paying extra for first class.
American’s new strategy focuses on expanding its premium offerings without maintaining a separate first-class product. The airline announced that "with the introduction of new interiors on the long-haul aircraft, premium seating on American’s long-haul fleet will grow more than 45% by 2026." The retrofit plan includes all 20 Boeing 777-300ERs, which will feature 70 business class suites (up from 52) and 44 premium economy seats (up from 28), while keeping a similar number of economy seats.
This reconfiguration removes eight first-class seats per aircraft but adds more overall premium capacity. Lavatories and galley space are being reduced to make room for additional seating, business class pitch will decrease slightly from 43 to 42 inches, and amenities like walk-up bars are being removed.
American’s new Flagship Suite product offers features such as privacy doors, added storage space, chaise lounge seating options, a sliding privacy door, wireless charging pads, multiple USB ports, enclosed storage areas, an adjustable headrest pillow, Bluetooth audio pairing with a large screen display—and increased personal space in certain rows.
The Flagship Suite has already debuted on American’s new Boeing 787-9 Dreamliners; each plane carries 51 suites—a significant increase over previous configurations—and serves both domestic and international routes such as Chicago O’Hare–London Heathrow and Philadelphia–London Heathrow. More routes will be added later this year.
Additionally, American plans to introduce Flagship Suites on its upcoming Airbus A321XLR narrowbody jets arranged in a single-seat configuration across ten rows. This move allows American to compete directly with JetBlue’s Mint Suites or United’s Polaris products on similar aircraft types. The airline has ordered fifty A321XLRs; deliveries began this year but entry into service awaits seat availability.
As these updates roll out across its fleet—including retrofitting older A321T jets—American aims to offer competitive premium cabins while phasing out underperforming products like Flagship First. Industry observers note that modern business classes now include amenities once reserved for first class; thus airlines find it easier to sell upgraded business or premium economy tickets instead of traditional first-class fares.
By focusing investment on improved business suites rather than maintaining separate high-cost cabins with lower occupancy rates—and responding to evolving passenger expectations—American hopes to strengthen its position among global carriers serving key markets such as London or Tokyo.
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