American’s recent drop proves what FCF predicted.
Last month, AA lowered 30-day advance-purchase Business Class fares to $1,196. Now it has done the same for First Class by 30%. The fare had ranged from $3,222 to $4,032 round-trip; now it’s down to $2,816 on JFK-Los Angele’s and San Francisco any day of the week. But the fare has to be purchased 30 days in advance, up from 21 days.
Seven-day advance purchase fares fell again as well, from $5,028 to $4,596 ($432).
It’s just as FCF predicted: Transcon fares are falling because of increased competition, plus the fact that the players have all rolled out new seats (minus Virgin America)
American is the proof: It has cut First Class fares even though it has no First Class competition on the route, as it’s the only carrier with a three-cabin (meaning a real First Class) on the Transcon. American also reduced Transcon Business Class fares to $1,196 from $1,609.
The three major Transcon players (American, Delta, and United) are now matching Jet Blue’s Business Class fares.
American’s First Class Fare Evolution
In January 2014, American started rolling out its new Transcon aircraft and a First Class cabin with ten, 81-inch-long, lie-flat seats in a 1-1 configuration on LAX-JFK. Prices started at $4,832, and went to $6,718 (no restrictions). I believe that First Class fares will likely drop a bit more. At this point, AA is still charging more than double the price of Business Class for its First Class, which might work on international routes, but not so well on the Transcon, given how many more flat-bed seat options are now available at half the cost, AA’s First Class product is still overpriced a bit.