United Airlines, American Airlines are increasing business-class seats

DALLAS — Armed with dollops of caviar and handfuls of Bang & Olufsen headphones, U.S. airlines are duking it out for international business-class dominance. There are even differences between seats in the same cabin.

Next week, American Airlines plans to start flying its upgraded business-class “suites” that feature today’s premium-class must-have — a sliding door — and other features like a “trinket tray” and a wireless charging pad.

Within the cabins on its subset of Boeing Dreamliners, which American is calling the 787-9P (the P stands for premium), there will be eight “Preferred” suites that the airline says will have 42% more “living area.” They’ll be first come, first serve with no upcharge, at least for now.

United Airlines is hoping to outdo its rivals by putting doors on its Polaris long-haul business class seats; creating a new option at the front of the cabin called “Polaris Studio,” which has an ottoman (for a visitor); and installing 27-inch 4K screens. The studios are 25% larger than regular suites, United says. It hasn’t yet said how much more it will charge for the studios over the standard suites.

Having an even-higher tier of seats within long-haul top-tier classes has been catching on.

Virgin Atlantic has the “Retreat Suite” at the front of Upper Class on its Airbus A330s and Lufthansa is offering a two-person suite in its new Allegris first class that can be converted into a double bed. Etihad has a three-room option called “The Residence” on Airbus A380s, which can cost $20,000 or more for a one-way ticket between New York and Abu Dhabi, though the airline varies how it uses those jets.

“The experience here is a way to give not only our existing customers a wider range of products to pick from,” Andrew Nocella, United’s chief commercial officer, told reporters earlier this month. “We just didn’t have something better, and now we do.”

American and United took a page from Delta Air Lines, the most profitable U.S. carrier, which already offers suites with sliding doors in its Delta One cabin. The Atlanta-based carrier, in turn, last year opened a dedicated lounge for the highest-tier customers, a move American and United had already made.

Getting more customers to pay up for pricier seats is key for an industry with high costs and thin margins. Delta had a 7.6% pretax margin last year, United had 7.3%, while American’s was 2.1%, and the broader S&P 500‘s was 12.8%, according to FactSet data.

Airline executives are banking more than ever that consumers will continue to splurge on better travel experiences despite weaker-than-expected demand for lower-priced tickets like