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American Airlines will restore seatback screens and add premium seats to its profit-driven push.

American Airlines announced on Tuesday that it will add more premium seats to its narrowbody aircraft and bring back seatback entertainment screens. The airline is focusing on the higher-spending traveler as it attempts to close a large profit gap between Delta Air Lines (DAL) and United Airlines.

Robert Isom, CEO of American Airlines, has increased the number of premium upgrades in order to boost earnings. U.S. carriers are competing more aggressively with each other for premium revenue.

American Airlines said that premium seating will increase to about 40% of seats in narrowbody departures from the current 25%. As aircraft reconfigure and new jets are added to the fleet, American will add more 'first class seats' and main cabin seats that have extra legroom.

Premium travelers accounted for nearly half of the revenue generated by?American in the second quarter, while occupying roughly 30% of seats.

Isom is under pressure to prove that the strategy will close the gap. Flight attendants called for a change in leadership earlier this year, and the pilots' union questioned whether or not the current management can bring about the improvements.

Delta and United expect solid profits this year. American is expecting a break-even result. Isom, who reshuffled senior management last week, acknowledged that there was a "meaningful difference" between American's results and what it should be.

SEATBACK SCREEN? RETURN

Seatback screens are also a return to American's former in-flight entertainment strategy. The airline started moving away from screens almost a decade earlier, betting that passengers would watch movies and TV on their own devices.

American Airlines said that customer preferences have changed, especially among younger travelers. They want larger screens to go with their devices. The airline said that advances in high-speed satellite Wi Fi have made it possible to provide a more personalized and connected onboard experience.

Seatback screens will be installed on more than 800 narrowbody aircraft by the end of 2028, according to the carrier. Retrofits are scheduled to begin in 2028, and should be completed by the early 2030s.

American has already ordered more than 140 Airbus A321XLR widebody aircraft and seats with screens. It refused to reveal how much money it planned to spend on this program. (Reporting and editing by Jamie Freed; Rajesh Kumar Singh)

(source: Reuters)