American’s recent drop proves what FCF has predicted.
Last month AA lowered 21-day advance purchase fares to $3,222 for First Class on JFK-Los Angeles and San Francisco for travel on Saturdays—a 33% drop. The rest of the week the fare is $4,032—a 16% drop. Seven-day advance purchase fares fell as well, from $6,708 to $5,028 (25%).
It’s just as FCF predicted: Transcon fares are falling because of increased competition and the fact that the new players have rolled out new Business Class seats.
American is the proof: It has cut First Class fares even though it has no competition on the route, as it’s the only carrier with a three-cabin (meaning a real First Class) on the Transcon. Last month, American’s Transcon Business Class fares dropped by as much as 54%.
American’s First Class Fare Evolution
In January, American started rolling out its new Transcon aircraft with a First Class cabin that has ten, 81-inch-long, lie flat seats in a 1-1 configuration on LAX-JFK. Prices started at $4,832 and increased to $6,718, with no restrictions.
I believe that First Class fares will likely drop a bit more. At this point, AA is charging double the price of Business Class for its First Class, which might work on international routes. But on the Transcon, with more flat-bed seat options now available in Business Class at half the cost, AA’s First Class product is still overpriced.