American Airlines will outfit its narrowbody jets with more premium seats and entertainment screens, the company announced Tuesday — a major strategic bet on high-spending travelers aimed at narrowing the earnings gap with Delta Air Lines and United Airlines.

American Airlines CEO Robert Isom has ramped up amenities on its flights to compete more aggressively for premium revenue — acknowledging the significant gap between American’s performance and where it should be compared to competitors Delta and United.

“The integration of seatback screens and the addition of premium seating represent the latest milestones in American’s ongoing…

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