Due to a lack of demand, an American Airlines executive informed investors that “first class will no longer exist.”
On Thursday, the airline’s chief commercial officer, Vasu Raja, made the announcement on a conference call with investors.
According to him, the evolution of business class on aircraft has diminished the distinction between it and first class, making it less appealing to customers.
Raja stated, “The quality of the business-class seat has vastly increased, and frankly, if we removed it, we could supply more business-class seats, which is what our customers most desire and are ready to pay for.”
The average cost of Thanksgiving and Christmas flights has increased by 50 percent as airlines attempt to capitalize on increased travel demand.
Thanksgiving airfares are projected to cost an average of $468 this year, a 50 percent increase from last year and a 30 percent increase from 2019.
The average price of a Christmas flight is now $574, a 20 percent increase from last year and a 50 percent increase from before the outbreak.
Experts now warn that the opportunity to get discounted holiday flights has passed.
American Airlines has revolutionized business class by introducing ‘Flagship Suites’ with sliding privacy doors and a full-size bed in September.
The new suites will be placed on multiple aircraft models beginning in 2024, with the intention of increasing the number of premium seats by 45% by 2026.
People reports that despite a 9.6 percent decline in passenger volume from the third quarter of 2019, American Airlines posted record revenues of $13.5 billion in the third quarter of 2022.
As COVID lockdowns cease, air travel has begun to recover, and American was one of the first carriers to stop requiring masks on flights.
During the call, Raja was optimistic about the business, stating, ‘The demand for travel and air travel in particular has never been higher and will remain robust in the foreseeable future.