American Airlines, under pressure to increase profits, has opted to add more premium seats and restore seatback entertainment screens on its narrowbody jets, intensifying its focus on higher-spending travelers in an effort to close the earnings gap with Delta Air Lines and United Airlines.
CEO Robert Isom’s decision to increase premium upgrades to boost American’s earnings comes at a time when the carrier’s domestic peers are competing more aggressively to get the largest share of the premium revenue segment.
American’s ratio of premium seating will rise to about 40% on narrowbody departures in coming years from the current capacity of roughly 25%. The “Big 4” carrier will add more first-class seats and main cabin seats with extra legroom as the existing aircraft get reconfigured and new jets join the fleet.
At American, premium travelers generated nearly half of ticketed revenue in the second quarter while accounting for roughly 30% of seats. Despite that, the airline has continued to trail Delta and United in profitability, adding to pressure on Isom, who faces the investors’ and stakeholders’ heat to close the gap.
The company’s flight attendants earlier in 2026 called for a leadership change, while the pilots union has questioned whether the current management team can deliver the improvement.
American expects roughly break-even results this year, while Delta and United have forecast solid profits. Isom recently shook up the senior management while acknowledging the “meaningful gap” between American’s performance and where it should be.
The return of American’s seatback screens also marks a reversal of American’s previous inflight entertainment strategy. The airline began moving away from the screens nearly a decade ago, betting that passengers would instead watch movies and television on their own devices.
However, the airline has taken note of the recent behavioral changes among the customers, especially younger travelers, who increasingly want access to larger screens alongside their devices.
“Advances in high-speed satellite Wi-Fi have also made it possible to offer a more connected and personalized onboard experience,” American said.
The carrier expects more than 800 narrowbody aircraft to ultimately have seatback screens. Retrofits will begin in 2028 and are expected to be completed in the early 2030s, while new Airbus and Boeing aircraft with screens will also begin arriving in 2028.
American already has more than 140 widebody and Airbus A321XLR aircraft with seatback screens.