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American Airlines to Upgrade 777-200 Fleet Instead of Retiring It

American Airlines to Upgrade 777-200 Fleet Instead of Retiring It
American Airlines has announced plans to upgrade its fleet of Boeing 777-200 aircraft, choosing to invest in significant improvements rather than retiring the aging jets. According to aviation industry sources, the airline will replace the existing Panasonic wifi systems on these planes with faster ViaSat connectivity and introduce refreshed cabin interiors. This initiative aligns with American’s broader strategy to enhance passenger experience and operational efficiency across its long-haul fleet.
Enhancing Connectivity and Cabin Comfort
The upgrade comes as American prepares to launch free wifi for customers in 2026, a benefit that will be available only on aircraft equipped with ViaSat or Intelsat systems. By phasing out the Panasonic wifi, the airline ensures that its 47 Boeing 777-200s—delivered between 1999 and 2006—will eventually offer the same complimentary internet access as the rest of its long-haul fleet. Currently, the 777-200s feature two types of business class seats: the ‘Concept D’ seats, some of which are backward-facing and lack privacy dividers, and the more generic Super Diamond seats, which fall short of the privacy and style found in American’s latest business class suites. The wifi upgrades are expected to begin in fall 2026, with interior retrofits to follow shortly thereafter, although timelines remain subject to change.
Strategic Implications Amid Industry Challenges
American’s decision to invest in its 777-200 fleet comes amid ongoing speculation about a potential widebody aircraft order. While some analysts anticipated the airline would retire these older jets in favor of newer models, American appears committed to extending their operational life. This approach suggests a strategy focused on widebody growth rather than merely replacing aircraft with existing Boeing 787 orders. However, the upgrade program faces challenges, including recent Federal Aviation Administration (FAA) mandates for expanded inspections related to lightning protection failures on older aircraft, including the 777-200. These regulatory requirements could increase maintenance costs and cause operational disruptions during the retrofit process.
Market analysts have expressed skepticism regarding the financial prudence of investing heavily in older aircraft rather than retiring them. The substantial costs associated with upgrading aging jets raise questions about whether the returns will justify the expense, especially as competitors modernize their fleets. For instance, Korean Air recently announced a major order for 103 new Boeing jets, including the advanced 777-9 model, intensifying competitive pressure on American Airlines to accelerate its own fleet renewal plans.
Historically, American has favored higher frequencies with narrowbody aircraft over expanding its widebody fleet. However, the pandemic-era retirement of Boeing 757s, 767s, and Airbus A330s has reduced its options for long-haul routes. By upgrading the 777-200s, American aims to restore some of that lost capacity and maintain competitiveness in the international market.
American Airlines’ decision to retrofit its 777-200 fleet underscores a commitment to enhancing passenger experience and maintaining operational flexibility, even as it navigates regulatory, financial, and competitive pressures in a rapidly evolving industry.

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