American expects Philly Flagship Lounge opening in May, logs 'historic' first-class bookings — and big losses
American Airlines’ new business-class lounge at Philadelphia International Airport (PHL) is on track to open next month, the airline’s top executive confirmed Thursday.
Philly’s Flagship Lounge is expected to open sometime in May, American CEO Robert Isom said on the company’s first-quarter earnings call.
The premium outpost, which was first announced last summer, will be in the airport’s A-West terminal — not far from where many of the carrier’s international flights depart.
The new club will be more upscale than American’s Admirals Club portfolio and will offer premium-cabin passengers and higher-level elite-status members a place to relax before one of the airline’s many flights from its Philly hub to Europe.
It’ll be a welcome addition. This summer, American’s total number of seats from the airport to Europe is set to increase nearly 15% over last year, according to data from aviation analytics firm Cirium. That includes new nonstop routes to Milan and Edinburgh set to launch in late May, on the Friday leading into Memorial Day weekend.
The Philadelphia Flagship facility will be the ninth premium lounge for the Fort Worth, Texas-based carrier, but “with more to come,” Isom said.
American technically operates Flagship-branded lounge locations at four airports: O’Hare International Airport (ORD), Dallas Fort Worth International Airport (DFW), Los Angeles International Airport (LAX) and Miami International Airport (MIA).
It also offers what it considers an international first-class lounge inside Terminal 3 at Heathrow Airport (LHR), along with a trio of more upscale facilities operated in conjunction with British Airways at John F. Kennedy International Airport (JFK) Terminal 8.
Notably, the airline's Charlotte Douglas International Airport (CLT) hub remains its biggest international gateway without an open or planned flagship facility.
How to get into the American Airlines Flagship Lounge
As a reminder, a standard Admirals Club membership won’t get you into a Flagship Lounge.
Generally speaking, you need a Flagship-branded ticket in first or business class on a long-haul international route or on a select number of premium domestic routes. Plus, AAdvantage members with Platinum status can enter when flying on an eligible same-day, long-haul international trip.
American Airlines elite status: What it is and how to earn it
The airline also extends benefits to Oneworld alliance members with a comparable status or ticket.
Read more: 9 domestic lounges that are worth going out of your way for
Big losses, but premium and international resilience
The impending opening of American’s new premium-focused lounge comes as the carrier, like top competitors Delta Air Lines and United Airlines, reports continued strength in its international portfolio and suite of premium seats — despite a general slowdown in travel demand amid economic uncertainty.
A recent downturn in sales
American lost $473 million during the first three months of 2025, the company revealed Thursday.
Like competitors, American reported a sizable drop-off in its coach sales on domestic routes.
“Domestic main cabin is weak, and that’s what’s driving, I think, the overall demand numbers that you’re seeing,” Steve Johnson, American Airlines vice chair and chief strategy officer, told analysts Thursday.
If the slowdown continues, the carrier could cut routes, retire aircraft early, or push back deliveries of new planes, Isom said.
Silver linings: frequent flyers
Still, American’s most loyal customers continue to book high-end seats and international flights. They haven't pulled back much on overall spending, either, the airline reported.
The portion of premium-cabin seats booked by paying customers remains “historically high,” Isom said.
I wrote about this industry-wide phenomenon last year, which is good news for the airline's bottom line but is a less welcome trend for frequent flyers hoping their complimentary upgrade clears.
Specifically, American travelers with an AAdvantage loyalty account made up more than three-quarters of the revenue the airline earned on premium cabin seats during the first quarter of this year.
Meanwhile, AAdvantage members with a cobranded American credit card spent 8% more between January and March than they did last year.
The revenue American pulls in through that card program — and from its AAdvantage members when they're flying — is a reminder of why American (like its competitors) made a loyalty sign-up the lone requirement to access its soon-to-be-free Wi-Fi, starting in 2026.
A longer wait for the XLR?
One additional nugget that came out of Thursday’s earnings call: It appears travelers may have to wait several more months to see American’s new long-haul capable aircraft sporting lie-flat suites.
In answering a question about American’s stance on paying tariffs on new planes, Isom seemed to suggest it could be late 2025 before the carrier receives its first Airbus A321XLR. This is the long-range, narrow-body jet that will sport lie-flat Flagship Suites with sliding privacy doors and a bona fide premium economy cabin.
“We have deliveries at the end of the year that would potentially be subject to tariffs, the [A]321XLRs that are built over in Europe,” he said.
The airline had previously only said it would get the jet at some point in 2025, which itself was later than initial projections when the carrier ordered 50 of the XLR planes.
“We can’t get it soon enough,” American’s top network planner, Brian Znotins, told me last October.
American plans to deploy its XLR on premium transcontinental routes, replacing its current “A321T” jets that sport Flagship First, business, premium economy and economy — the latter of which offers a heavy complement of extra-legroom Main Cabin Extra seats.
Eventually, though, the aircraft could be used on routes across the Atlantic and deep into South America, the airline has said.
About tariffs...
The question of tariffs is a key source of the economic uncertainty that loomed over Americans' forecast for 2025 amid President Donald Trump’s global trade war.
“Certainly, this is not something we would intend to absorb, and, I’ll tell you, it’s not something I would expect our customers to welcome,” Isom said, alluding to the notion of companies passing along the cost of tariffs to consumers.
“So, we’ve got work to do on this,” he added.
Related reading:
- Your ultimate guide to American Airlines AAdvantage
- Best credit cards for American Airlines flyers
- What is American Airlines elite status worth?
- Maximize your airfare: The best credit cards for booking flights
- The best credit cards to reach elite status
- Everything you need to know about flying basic economy on American Airlines
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.