American Airlines brings back seatback screens as premium strategy grows

American Airlines is expanding its focus on higher-paying passengers, announcing plans to increase premium seating and bring seatback entertainment screens back to its narrowbody aircraft as it seeks to improve profitability.

The airline said on Tuesday that premium seats will eventually account for about 40% of seats on narrowbody flights, up from approximately 25% today. The expansion will include additional first-class seats and extra-legroom options in the main cabin as aircraft are refurbished and new planes are added to the fleet.

The move is part of Chief Executive Robert Isom's strategy to strengthen American's financial performance and close the profitability gap with rivals such as Delta Air Lines and United Airlines, which have been competing aggressively for lucrative premium customers.

Premium travelers already represent a significant source of revenue for American. During the second quarter, they generated nearly half of the airline's ticket revenue while occupying about 30% of available seats.

Despite the strategy, American continues to lag behind Delta and United on profitability. The airline is expecting roughly break-even financial results this year, while both rivals have forecast solid profits.

Pressure has been building on American's management team. Flight attendants called for a leadership change earlier this year, while the pilots' union has questioned whether the current leadership can deliver the improvements needed. Isom recently reshuffled senior management and acknowledged that there was a "meaningful gap" between American's current performance and where the airline should be.

The return of seatback entertainment represents a significant change in strategy for the carrier. American began removing the screens from many aircraft nearly a decade ago, betting that passengers would increasingly use their own smartphones, tablets and laptops to watch movies and television.

The airline now says passenger preferences have shifted. Younger travelers in particular are increasingly seeking larger onboard screens that can complement their personal devices.

American also said improvements in high-speed satellite Wi-Fi have changed what is possible during flights, allowing the airline to offer a more connected and personalised entertainment experience.

More than 800 narrowbody aircraft are eventually expected to be equipped with seatback screens. Retrofitting existing aircraft is scheduled to begin in 2028, with the work expected to continue into the early 2030s.

New Airbus and Boeing aircraft fitted with the technology will also begin joining American's fleet in 2028. The airline already operates more than 140 widebody aircraft and Airbus A321XLRs equipped with seatback entertainment systems.

The changes underline American's broader effort to attract passengers willing to pay more for comfort, space and onboard services as it seeks to strengthen revenue and improve its competitive position against the industry's most profitable airlines.