British Airways plans 106-seat business class on Airbus A380 jets

British Airways is building what it calls the "world's largest" business-class cabin and ripping out dozens of coach-class seats, the starkest example yet of how airlines are betting their future on high-spending travelers.

The changes are part of a massive overhaul of the British Airways fleet and its ground services, including lounges at its London Heathrow hub.

British Airways said the 106 business-class suites, with sliding doors, will take up the entirety of the A380's upper deck.

Airlines have been spending years and hundreds of millions of dollars to expand their pricier seats, capitalizing on demand for roomier options and travelers' appetite for more luxurious trips.

British Airways' joint-venture partner, American Airlines , last month debuted a 70-seat business class on its largest Boeing aircraft. Qantas CEO Vanessa Hudson told CNBC in a recent interview that customers are seeking high-end options on long flights, like its Perth-London nonstop.