American Airlines plans to phase out its first-class seating cabin to focus on business class, the airline said Thursday.
Vasu Raja, American's chief commercial officer, informed investors of the move during a third-quarter-earnings call on Thursday.
"Yes, the first class will not exist on the [Boeing 777] or for that matter at American Airlines, for the simple reason that our customers aren't buying it," Raja said, The Hill reported.
"The quality of the business class seat has improved so much, and frankly by removing it, we can go provide more business class seats, which is what our customers most want and are most willing to pay for."
Raja added that American Airlines increasingly has been selling premium seats to passengers traveling for leisure rather than to corporations for business travel.
Last month, the airline unveiled a new "Flagship Suite" option, which includes privacy doors and lie-flat controls, on Airbus A321XLR and Boeing 787-9 aircraft deliveries beginning in 2024.
American said it planned to renovate its Boeing 777 aircraft to include the new offering, which will replace the carrier's existing exclusive Flagship First cabin.
"We are enhancing the customer experience across their entire journey with American," Julie Rath, American's vice president of customer experience, said in September.
"The arrival of new long-haul aircraft and the customized seat design of the Flagship Suite seats will offer customers a truly private premium experience on our long-haul fleet."
American said it also would add more premium economy seats to its long-haul aircraft, The Hill reported.
Flagship First customers have been offered access to certain premium lounges, and it remains unclear how the new plans will impact those spaces.
American introduced its premium economy cabin, which includes wider seats and more amenities than a regular economy seat, in 2016.
United Airlines and Delta Air Lines are among competitors that have followed suit with similar new offerings between economy and business cabins.
American Airlines said Thursday that it earned $483 million in the third quarter, as revenue during a hectic summer travel season topped pre-pandemic levels.
The Associated Press contributed to this story.
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