American touts the revenue momentum of Premium Economy

American Airlines continues remain bullish about its premium economy product that should be available on its Boeing widebody fleet by summer 2019.


Summary:

  • American Airlines remains bullish about its premium economy product;
  • The airline debuted premium economy in late 2016, and it is now available on 92 aircraft;
  • American Airlines executives are encouraged with the cabin’s performance which is yielding an average fare double its coach fare.

The airline debuted premium economy in late 2016, and it is now available on 92 aircraft. Company executives recently noted American continues to be encouraged with average fare differential, which is double the coach fare.

American’s management pledged that “as we look into 2019, we’ll further monetise this product with new revenue management and merchandising capabilities. Once the installations are complete, Premium Economy will be a available on all of Americans 777s and 787s.

The company relaunched its Main Cabin Extra product in Jun-2018 with enhancements including free alcohol and easier overhead bin access. Since that time, Main Cabin Extra revenues have increased 24%, said American, “but we see that we actually have more opportunity beyond that”, said company SVP of revenue management Don Casey.

Mr Casey explained American has not yet built out its infrastructure with an ability to push offers out to customers effectively between time of booking and time of check-in.

He believes attaining the capability to push those offers to customers should bolster American’s ancillary revenue. “We have a project underway. We expect to be able to be more effective in doing that in 2019,” Mr Casey said.