American Airlines CEO says shift to premium continues

Investing.com -- American Airlines Group Inc generates half of its revenue from just 30% of its seats, CEO Robert Isom said Wednesday at a Morgan Stanley industry conference.

The Fort Worth-based carrier plans to expand its premium seating options across its fleet through aircraft reconfigurations and new deliveries. Isom said the proportion of these higher-yielding seats will grow as the changes take effect.

American Airlines unveiled a 70-suite business class cabin on its largest aircraft, a Boeing 777-300ER, earlier this month. Additional planes are waiting for similar modifications.

The carrier had lagged behind its large-airline competitors in profitability. Isom stated that adding premium seating to attract higher-spending customers is essential, particularly as airlines work to offset this year's increase in fuel costs, which represents their second-largest expense after labor.

The trend extends beyond major carriers. Smaller airlines including Allegiant Air and JetBlue Airways are also adding upgraded seat options.

Isom told CNBC in June that American Airlines is planning to revamp its Boeing 787-8 Dreamliners and update interiors on its 777-200s. The airline plans to order new wide-body aircraft this year, according to Isom.

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