American Airlines started flying its new Airbus A321 neo aircraft, outfitted with 196 seats, including 20 in first class. It also offers new Airspace XL overhead luggage bins, for which AA is the launch customer.

The bins can hold 40 percent more luggage, and will be installed on more than 200 of the carrier’s existing A321 planes. The airline said the bins can carry larger pieces of luggage (up to 24 inches by 16 inches by 10 inches), which means carry-on bags can be stored on their sides, creating room for up to four bags per bin instead of the current three.

American said this would significantly reduce the number of bags it needs to gate check.

The new plane also boasts LED mood lighting, and a free WiFi in-flight entertainment system that lets passengers stream content to their personal devices.

American ordered 100 of the new A321 neos, certified for lengthy over-water flights. The plane can carry larger loads on routes like Los Angeles (LAX) and Phoenix (PHX) to Orlando (MCO), as well as from the West Coast to Hawai’i.

“We are very pleased that American Airlines’ first A321neos with the Airspace XL bins are now entering service,” said Ingo Wuggetzer, vice president of cabin marketing, Airbus. “We constantly work with airline customers to improve our aircraft cabins, and American in particular played an instrumental role with us in developing our biggest and best overhead bins to date.”