American Airlines unveils luxury, premium upgrades to win back customers

American Airlines is betting big on luxury to regain altitude.From lie-flat seats and Bollinger champagne to Lavazza coffee and ultra-fast Wi-Fi, the carrier is rolling out a premium makeover to claw back ground lost to Delta Air Lines and United Airlines.The break from years of cost-cutting and volume-driven strategy has been dubbed a “customer reimagination” plan by executives.

It will focus on high-end products and loyalty perks, including privacy suites on long-haul jets, refreshed regional cabins, and richer credit card benefits.The urgency is clear: American trails rivals in profitability and customer satisfaction.Tensions with labor unions are rising.Investors have turned bearish, sending American’s stock price down about 6% this year, while Delta shares have risen 20% and United’s are up 18%. Short interest in American’s shares is notably higher than its peers.In the third quarter — typically the industry’s most lucrative — American posted a loss while Delta and United reported strong profits.

Through the first nine months, American earned just $12 million, compared with Delta’s $3.8 billion and United’s $2.3 billion.With premium travelers driving industry margins, upgrading cabins and services is no longer optional; it’s a strategic imperative.“We think investing in customer experience will help us grow the top line,” said Nat Piper, American’s newly appointed Chief Commercial Officer, in an interview with Reuters.American’s plan counts on new Boeing 787-9 and Airbus A321XLR aircraft to open new routes and capture higher-yield revenue.The 787-9, with 51 lie-flat seats and privacy doors, is now American’s most profitable widebody.

It is flying competitive transatlantic routes such as Chicago–London, where United is strong.On Thursday, American will debut its Airbus A321XLR on the New York–Los Angeles route, one of the nation’s most competitive corridors and a market where Delta holds a strong ...