United Airlines (UAL) 22 Jan 202019 Q4 Earnings call transcript

Company Profile

Participants

Michael Leskinen	Vice President of Corporate Development and Investor Relations
Oscar Munoz	Chief Executive Officer
Scott Kirby	President
Gregory Hart	Executive Vice President and Chief Operations Officer
Andrew Nocella	Executive Vice President and Chief Commercial Officer
Gerald Laderman	Executive Vice President and Chief Financial Officer
Brandon Oglenski	Barclays Capital
Hunter Keay	Wolfe Research
Darryl Genovesi	Vertical Research Partners
Jamie Baker	JPMorgan
Andrew Didora	Bank of America Merrill Lynch
Catherine O’Brien	Goldman Sachs
Duane Pfennigwerth	Evercore ISI
Myles Walton	UBS Securities
Helane Becker	Cowen and Company
Savanthi Syth	Raymond James & Associates, Inc.
Joseph DeNardi	Stifel Nicolaus
David Vernon	Bernstein
Daniel McKenzie	The Buckingham Research Group
Michael Linenberg	Deutsche Bank
Justin Bachman	Bloomberg
Alison Sider	Wall Street Journal

Call transcript

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Operator

Good morning, and welcome to United Airlines Holdings Earnings Conference Call for the Fourth Quarter and Full-Year 2019. My name is Brandon, and I’ll be your conference facilitator today.

Following the initial remarks from management, we will open the lines for questions. [Operator Instructions] This call is being recorded and is copyrighted. Please note that no portion of the call may be recorded, transcribed or rebroadcast without the company’s permission. to of consent call. your implies our this recording Participation

terms, agree off If not these simply you do with drop the line.

I to your Leskinen, the sir. presentation today’s go Relations. turn Corporate Mike Investor of Vice will call, President ahead, and Please host now for Development over

Michael Leskinen

and issued Brandon. you, our and investor update. quarter earnings everyone, earnings conference to United’s and release Thank XXXX welcome call. morning, fourth Good full-year Yesterday, we separate

are All we morning, to a on three ir.united.com. of at issued documents call. this Additionally, accompany these presentation available website our this

Information in current presentation forward-looking during call yesterday’s concerning release update, company’s the and contain or expectations and this and accompanying investor events statements, may the performance. future made the represent beliefs which remarks financial conference

available factors from our number the to the United more statements thorough United other forward-looking refer description expectations. XX-K All company. for and Airlines could a Holdings differ filed materially actual reports these currently of results our to factors. current release, Form of to Please with are based earnings information Airlines by cause A SEC and upon

call, Also will the our measures. we of course financial discuss several during non-GAAP

For the our comparable are at refer of please GAAP end most to our website. copies on a available the update directly measures, these non-GAAP measures of and investor earnings reconciliation which release, the presentation, tables to of

And now, I’d like to turn the Oscar. call over to

Oscar Munoz

one $XX by of $XX at This to highlighted EPS you $XX morning. margins. of schedule. to XXXX this allowed United, us to four-quarter was growing all ahead share, Mike, year to XXXX you, reach join a banner for it’s – adjusted streak per Thank us pleasure and streak target full-year winning a our profit a of

of the possible would finest not dedication professionals have world. in This airline the the without incredible performance been of collection

sharing than year. who hard work So I that XX% were higher profit-sharing on family, they serve XX,XXX customers. I’m the last want of to also success payment so that’s our with average our thank the United members a pleased to

that of deserving. all there’s the we’ve no group is With in more overcome in XXXX, employees that airline had to world

about I also want performance You’ll quarter Scott our more quickly financial fourth and details results. from hear our to I’ll on touch include, Gerry, but

earnings adjusted year. adjusted XX I consecutive of basis pre-tax last expansion as quarter in quarter reflects the fourth was fourth basis. adjusted share grown, the and than consecutive higher XX% fourth an last quarter, Our This our pre-tax per the quarter points of mentioned, $X.XX margin of on that margin has this fifth is which

employees we and year, made includes the mind. leadership end about quite customers, you’ll we’re this of today, what of last I’m most this what also bright about keeping deliver our future that And announcement to for in accomplished ability long-term. As the hear it XXXX the excited all means the we but and with for that our proud of at company, over plan

strength of ago. Thinking and company is I judged, in finds every proved as power are today United United to benchmark back to our the to where than health much our success testament today, position a of by four By in long-term took commitment a of company’s not CEO we the over and XXXX September this United where was when of which measured philosophy. promise is and years stronger the the metric and itself

to it in investors bench give deep guarantee direction made and and talent confidence customers, assembling to of I personal a base a by future our employee our priority leadership. our order in

as doing exactly and of hands do experience when my and initiating confident new best between have and assume May, I’m what that a taking the deliberate, any Executive team now by cumulative companies role transition of advantage I’ll talent absolute we’re what that Chairman. is well-planned and down, we leadership Today, that’s XXX% the transparent end airline healthy

continuity this just my the preserving continue March that It and XXXX, decade. that in was head, Investor work future new with but capitalizing us Scott together long-term why get for chance about partnership share lays in bright to to Day That’s not more the we’ll means eagerly the for anticipating to through on to important we’re strategy.

over Scott, that, with to So you.

Scott Kirby

of like you, than for we United in Oscar where the airline totally the at for as made for better together of his to United team. was people I’d the innovative, mission make CEO. way. culture done bringing airline every Oscar fast-paced last created change it to personally the United that all Thanks. you’ve every start and an is a thanking customer He a the by decision-making me years. seek the in of became when and United to put and by different center Oscar, environment, the it five our today day

importance the lives it, For also more doesn’t has he but direct, talk been a and and much Oscar will our person, CEO Oscar employees me of about friend. importance was customers. not me Oscar a XX/X. talk there was our to day mentor focusing of personally, and than that it employees just the only Oscar numbers, the From a reminding better numbers. Many I because and executives one, about be reinforced corporate customers. business

fortunate as to as I’m a big part a Chairman, step world. the to And the even Leading of building make best truly airline won’t toward have example, we as has, the Executive difference. thoughtful shoes opportunity on away, the by culture and path after Oscar a transition. in change is to the Oscar’s be way into as planned only and continue Oscar far

in creating the metrics be company XXXX adjusted achieved reached our our for the our doing right path a We’ve done prouder thing guidance that great what team and year EPS by again and early. customers. goal the focusing a I That by teamwork – and of is delivering once across couldn’t accomplished focus on XXXX. We culture results, entire of

some our then the more we’re things Andrew improve Nocella, the hear who and Operating our Officer, today; customer experience. Hart, Toby, on who’s for ill from – today You’ll to Chief doing Greg Chief Officer, Commercial Customer of our pinch-hitting is Chief

Pakistan, government started headwinds XXXX issues the team Rather potential those use and a Iran didn’t United the China, bad as use places out of with a of others. grounding wasn’t however, simply in down geopolitical like stuff we excuse. year, than resilience excuses, demonstrates United but persevered. and the the We and It buckled shutdown; and longer-than-expected of faced perfect, we among as Airlines. the MAX; – headwinds last and number weren’t easy significant the an

a of by despite XXX where its all by will those EPS with come points, grow I pre-tax point reason one view To full-year able the know adjusted challenges. is XXXX basis headwinds remarkable. margins We be unique adjusted set good of That’s to really is XXXX. headed in pretty proof own we’re XXXX XX%,

cropped couple up last in just excuses a fact, hours. won’t XX make the We for those In have either.

exactly coordinating coronavirus travel our MAX also concern. of the we’re We impact with necessary of ensure been will can what or be We’ve long the safety coronavirus our know and to Asian ensure and that the closely of course, employees the taking can’t is, we customers that grounded the would sit safely. that CDC how foremost the tell steps impact you to all here economic The be.

are we’ll because advice agencies some situations health follow not with we have closely, and restrictions, they recommending their public like experience point, this any At travel but this.

safety we’ve keep put in in United, closely managed demand so, past, our situations every people formula back. effectively isn’t airline And to the this world By one safe. our And at is working customers. the complicated, uncertainty doing have, through bounce delivery like seen for has first to something focus we on together, do. that in our Managing and here

strategy that in and part what year, beautifully executed last we’re so it’s important confident XXXX of why team Our lies and about ahead beyond.

team. lead chance be given closing, great In honored truly this I’m to the to

at to the are best airline making All United us committed of the world. this in

in about You’ll hear Investor better what’s the our and on we’re and the customers, Day day of excited getting March all in in committed and long-term. employees to call But our every for shareholders. some more ahead today

over that, to turn it with And Greg. I’ll

Gregory Hart

experience you’re around We key, whether you business over to to well-deserved vacation. deliver know journey. to choose like as customers a United, United that business. on a our mind, across customer in I’d With service important At personal world, day. we trip from, customers is their caring Scott. flight our Thanks, to ensure travel every airlines have or is focus every million multiple from Consistency your XXX thank have entire our great every an taking appreciate and the truly we with

growth within travelers. Improving our strengthening customer loyalty increasing experience hand hand feel customer our with in and works our strategy,

tell investing scores. satisfaction customer positive the customers and returns on that seeing we’re areas us matter We’re in our most,

and More and increasingly that importantly, customers family recommend their willing bottom is United line. to to friends good for the are

CoreX commitment he all in investments As service Chicago. Scores. year, as several with we’ve series, XXXX our to event of Perhaps than through year-over-year ever various the improvement In where and more this XXXX, we over Backstage such our employee XX,XXX saw progress engagement investments. products, from? our our investments, attendants brought in Where we’ve to Promoter did caring United’s hard we come you flight any past Net foundational continued made important largest shared customer

offering flying our We a the expanding customers selection tight hold to launched free elevated new that connections. We ConnectionSaver, for experience economy system for DIRECTV. flights by set making identifies snack all and travelers

And XX-seat on carry-on operating on aircraft. Plus plenty storage feedback scores satisfaction offering well sitting of been our the routes. Economy the customer fantastic. began CRJ-XXX, seating, delivering is since short-haul its all XXX our launch, as and – first-class We as has Customer a space, highest

with our easier, all offering benefits an discounted hubs. our for introduced We our new MileagePlus or predictable, on secure free dates miles to expiration experience and CLEAR at provide memberships of more no members

portfolio upgrade we interiors, investments about as that aircraft meeting our customer overhead announced We’ll customer-focused year are day. more bins begin new our offer even X:X at forward, to bag to storage planned excited Looking ratio. featuring this our of

We’re seats aircraft adding single-class regional device and personal with new updating our XX-seat entertainment.

food our We’ll airport facilities line large at and capabilities. also enhancing offering, our upgrading hubs our of stations. includes be preorder some We’re which

of center we’ll and customer caring service for representatives experience customer improving on bring Finally, immersive our Backstage Starting contact commitment continue we’ll week, customers. service. airport an focused two-day all this XXXX, our to our to

markets, roll broadly. best planned XXXX and impactful The try in are to many customer is our to on investments touch what customers we more key across of points. We’ll improving ideas entering broad, quickly plan the experience ideas the out number then new focused have a

more pass Andrew talk that, it to initiatives. With off our commercial I’ll about to

Andrew Nocella

initiatives and year be Thanks, gain critical our will consistency. and of many Greg. commercial XXXX where a customer mature

start. is rest to the fact, Ticketed already first two an indicator of full of In nice the year, strong encouraging revenue the this year a is year. business per off the weeks for for

XXXX, early Before our let’s quarter. details last a review going the about into in expectations few for performance

one with the at year PRASM part in which fourth our plan grew moment. about quarter, the Performance today, really met in For strong X.X%. speak the and was a at exception, I’ll end globally PRASM of

In our the Thanksgiving day was MAX fact, PRASM capacity which the in our for where limited one a our system quarter. for PRASM XX% Sunday grounding, increase connectivity on despite in increase X.X% after day plans. best network was our best up – domestic was record performance the PRASM increased X.X% This realized ever. year-over-year, in books, XXX Mid-Continent the

was than International PRASM the X.X% in increase even capacity. domestic in better on X.X% performance increase in quarter a a with

really We’re last industry international the relative few results momentum we’re the with to pleased over seeing months.

PRASM that Almost was America capacity. a X.X% Hong improved on was quarter quarter. fourth a all in best decreased in capacity. the in in occurred negative. relative Kong, Latin region the and X.X% our third sequentially the weakness decrease across Performance increased Beijing X.X% still Pacific international Shanghai. PRASM X.X% Latin on to the in increase has the performing

of drag X.X X.X – point on these were point three system these a on Pacific of and All performance. performance drag all

for Atlantic increase continued PRASM the manufacturing soft, on X.X% in was be down a premium weakness Germany quarter sector, to point-of-sale particularly Due business. X.X% capacity. to in the in demand

was that by U.S. demand. All partially offset point-of-sale strong of

for quarter predict. up we expect flat the passenger be remains ahead to revenue Looking our X%. Kong unit first to difficult XXXX, Demand to consolidated Hong in

quarter. XXXX. Kong stabilize recent will We’ve expected of also Germany which been strong weeks on results in say see is unit started to in be to the for a for industrials, most trends Hong that first has demand book with PRASM demand However, from I PRASM sluggish not drag for

and On customers. the impacts to like out each few their business initiatives call, have rolling and point a conference out on I our we

in our While we’re of our improving capturing all markets initiatives customers, in for on United demand experience commercial focused premium of many the and beyond. are flying hub of high our XXXX

great in premium second are the business important Business Travel than United. finished corporate distinguishing survey for and and ourselves how in in BTN, our to listening to and before is Congratulations of a News this key This is assessment United effectively place of happen. and sales more buyers’ empowered our to competitors. The both we’ve survey, of a of global really perceived airlines source by frontline XXXX year, primary responding travel in needs. buyers make a agencies, this from many corporate staff single late ever team our proven example survey,

Premium new tailwind system hub wide-body QX, acceleration and mid-tier most ideally point that trend a expect for Plus, is and markets slight for our suited product X.X QX PRASM versus XXXX. of a our to for a jet created in continue we

Premium seats New great seeing and are between LA flights York Plus selling and select now San on also We’re results. and Francisco

business Plus seats. Premium minimal that class suggests analysis Our having for demand on Polaris is impact

undersized Atlantic by many markets past, XX%. business cabins first-half like London of seats. expect cabin the economy and had, business Switzerland, key XXXX, the while class to offering Heathrow class the For grow in across too in almost We business capacity we

rightsizing class initiative now cabins. our us premium More is We’re full yet size capacity achieve to proven of our help the network business potential. another

clubs. XXXX be most finish our we year and seating Polaris a will big planned of expect to Polaris installations as

have scheduled year, our XX% Dulles XXXs of of the to to of our wide-body including spring. the seats, all club is Our are And Polaris this by Washington jets Polaris XXX-XXXs. and the new open end anticipated

loaded past this weekend, our we fact, In schedule.

For and Polaris May beyond of all our and as of seats X Premium new Plus XX selling ERs have May new this of year. for XXX-XXX

America. to system We The – time upgrade upgrades create time late Polaris our a skip-the-waitlist simple different automate also we geographies. is in XXXX. Currently, it’s goal created upgrades. that’s South to launched also in We feature for PlusPoints available cabin new from in called available

CRJ-XXX. in growth to maximize We addition again. Mid-Continent designed connectivity progress resuming plan the with Even of smaller we’re the to making MAX, flying communities look the the forward without max once our is

our modified it’ll change. seeing positive that already We bank in response structure bookings Denver our also fact, this and in recently we’re and be, February, for

also moment wanted to revenues. and our talk take ancillary I a growth about of

over X.X% the For by revenues more XX% ancillary year, on we grew a capacity.

we focus a highest better As shelves as this we better more product we and first on step. one ways Plus. united.com, which this in a to distribute testing XXXX, to Getting is our into momentum display on look Economy deeper on priorities continue expect is already is beta of

for of is in milestone which I channels, record as performance XXXX. And for fixed wanted of note and XX% United united.com bandwidth grown direct tickets usage problems. of then that another to XXXX, also in important the that many other has now the account Wi-Fi XX% by we

United and While for when domestic will for day XXXX. we’re the the technology customers. entire for the Thanks doesn’t free great our be Wi-Fi yet exist, team to a bandwidth getting ready

I’ll that, discuss to results. it With turn to over our Gerry financial

Gerald Laderman

Update. full-year afternoon, and you everyone. morning, Week, Good quarter for in Investor fourth those release Andrew. our Aviation Dublin XXXX of first and afternoon. Thanks, good Yesterday And for quarter XXXX full-year our issued we and earnings

to documents refer for can those You detail. additional

XX XX summary our GAAP a results. of Slide Slide non-GAAP highlights, financials the adjusted and shows our For is

adjusted pleased XX% earnings for report the versus up $XX.XX share are We of per to XXXX. full-year,

and year, the income year-over-year. For X.X%, pre-tax pre-tax was was billion X.X up adjusted adjusted $X.X margin points

adjusted fourth was expansion. was up of marking the pre-tax margin Our margin X.X%, quarter fifth adjusted X.X%, pre-tax consecutive up quarter

improvement. margin As and helped resilience across Oscar challenges year our throughout earlier, the us drive offset to the and system Scott mentioned

XXXX cost and Slide XXXX. shows first XX the and fourth our of our the for quarter quarter growth total unit for full-year forecast

CASM to better various expectations unit team quarter ex our This full-year cost Turning came our than basis. work X.X%, Slide pressures. around relentlessly our X.X% to a increased to This in up the brought XXXX offset Non-fuel X%. XX. costs original on year-over-year fourth in as

before, ex the X%. I’ve impacted of grounding least at MAX the As said by CASM

in better this excluding or XXXX year-over-year. impact, So have unit cost would been flat

be Looking year-over-year. up expect first to quarter we ahead, XXXX to ex CASM X% X%

nine you as well see four aircrafts. during of quarter, aircraft, new As the regional we XX, can mainline delivery used Slide as on took to and a new

in XXXX. which XLR delivery announced to AXXX of order aircraft, in Airbus XX we plan take also purchase new We beginning to

XXX-XXXs XLR destinations globe. travel them last range customers aircraft potential will the approximately us The replacing fuel finish XX% the new open addition, provide efficient. allow more But to network to and route further develop capabilities XLRs that Boeing will with more only remaining in our by with our options retiring not are also to

fourth the the billion. $X.X full-year we shares in at repurchases share million quarter, Also repurchased for worth $XXX of share, an of of stock average our common price our per to bringing $XX.XX

had we in left our year-end $X.X in continue As billion purchase authorization and sharing be of XXXX, to opportunistic strategy. will

above $X.X for ended CapEx announced incremental anticipate quietly This of billion Our December, payments. guidance drove in that adjusted some $X XXXX pre-delivery Airbus XXXX. approximately at in billion, our $X in for our we currently spending expenditures billion. adjusted came capital as order We

CapEx expect be this XX this by of to driven the continue year. a We largely year, to peak acquisition wide-body aircraft

a Greg not as we’re will will experience, but profitable Andrew addition, we In help only before, customer and more lot a us mentioned improve high-return that expect customer-centric will investments of making be airline.

we tremendous of continue capital structure. of our a maintain. plan and and access are has we as attractive and discipline their on impact very maintain a we we very and schedule financing unencumbered large balance about to CapEx pool As of debt share strong The think program, we debt have repurchase established been manageable shown our assets throughout to sheet to that cognizant have growing fortress repayments rewarded both liquidity, with our

financial recognized. balance managing in our be risk addition, reducing In sheet and the success continues to

Moody’s to upgrading credit ratings our in Just joined S&P positive last outlook. week,

a and XX guidance XXXX. the current for of Slide Lastly, our summary full-year has quarter first

quarter longer full-year. CASM for no ex or guidance providing will or we the capacity As the full-year you be see, for can guidance

will that plan earnings our as those at we long-term we move targets. us to allow capacity is for And levels focus achieve forward, targets. Our

expect per We adjusted currently between be share and XXXX $XX full-year to earnings $XX.

weeks be While up. and guidance year timing and are of conservative, facing uncertainty our view associated little which at will into capacity this the some still we the only three of ramp MAX new may a to speed the reintroduction are both in

the we and plan to all that as initiatives update absolutely as a on we throughout higher routinely to of As always, to and this regardless in year, execute known target of end headwinds our aspire we the unknown face. continue range, we industry an year

the MAX around and yesterday examples recent the coronavirus of on most The uncertainty Boeing’s in the Asia. announcement

We And Day in to items our in will on to we Investor March, will an come. at these clarity the our outlook. gain weeks more provide update

our Day, In provide addition to again Investor at EPS we multi-year plan once guidance.

With we’ll begin the now that, Mike, Q&A.

Michael Leskinen

Thank you, Gerry.

First, we’ll limit Please procedure take if follow-up will Operator, we questions and the from question analyst from please yourself ask questions media. question. take describe a to then the one needed one community, question. to

Operator

Thank [Operator Instructions] Oglenski. Barclays, ahead. go will question-and-answer you. have conducted be And electronically. And off the first session Brandon from we Please

Brandon Oglenski

congrats what – and Hey, a was hindsight, on good challenging everyone, morning, year XXXX. in in

because guess, billion on billion at is maybe $X if to go back was I we pretty like CapEx, range. your the XXXX, $X incrementally So a to slides billion. more think looks $X it the year And this in I expected big of

talk behind non-aircraft year? deeper as little there to the go can bit willing side that put to you this capital So maybe And that you see on even opportunities the well? of some you’re a

Gerald Laderman

plan, peak time said, to for – it’s CapEx to over aircraft. the more to really, you And of as – really look have is run at sort a when of So, number. fleet that. wide-body rate you’re at aircraft spike I year our year to take kind was the XX of just horizon those several it in attributable looking

that year. nothing more for So it’s this really than

some in number, MAX assuming delivery I would that that we the also are point aircraft. of out

would a that so no I expect end And down come with MAX aircraft, little number bit. up to we

projects side, right the non-aircraft is get of attributable bit to modifications this say some finishing On little number customer-centric year done have seeing last the really other would from the the now, what I finished. that to a we the I’m various that and than is Polaris modifications But year. reconfiguration higher all

Brandon Oglenski

I quick a follow-up, I appreciate that Gerry. Scott. And guess

should to lot on opportunities do cash here, over the Or transformation free United there focus take is should Is for there’s thinking a so As we you like still focus mode right focus think of revenue. you earnings out more investors that something we on? it What on? what be in metric flow? this

Scott Kirby

are the all metrics correlated Well, of highly earnings. with

metric principal flow, earnings cash drive higher earnings. earnings margins, so invested drive capital. higher free And Higher higher earnings is I return think probably the higher higher on drive

head we’re we of they’re as think, because And highly And correlated, so when I I try a on focus correlated. are because distinguish earnings. all they’re our to kind we’ll think all of in so on the pin we highly those, between more dancing guidance

Brandon Oglenski

you. Thank

Operator

Keay. From Wolfe Research, Hunter Please go have ahead. we

Hunter Keay

never about opinion, not we in long get price even enough of providing of anchored sort good blanket actually the run? win to where long on I now that certainly very if Hey, if not in the you’ve to a feel your everybody. you matching match brand, harmful to Scott, not but been tactical the market sort outdated. Hey, of good you’re pricing, lowest your the service in years morning, but the one, philosophical the becomes clear about game. fares to know point there’s wondering becoming quality only question your a – a need that’s wondering the unnecessary, I’m just over I’m where

Scott Kirby

Airlines the we customers. perception improving on So increasingly the at brand and amongst focused are United

a investments and making increasingly segment Greg based quality of is customer of the that. about We’re the the of that a significant choose of We’ve about customers experience. Backstage large number clear and it’s there And talked who talked in quality product investments. the on those

try is focused create out customers, also basic focused to can be on for. sets offer tends product less we choose what are being who there can on the segmentation, more our And their they what to of as I are rest based both price our looking be product competitive. of And where economy what price. products we’ve still say on price customers really would is, a There done

Hunter Keay

premier of one percentage to your credit Where codes and want holders, city your you do catchment of before where spurt either then areas? was what zip be? card outside or has And recent hub thanks. this it status growth holders Okay, it

Andrew Nocella

say, have it’s I off head. the top don’t of Andrew. I’d number the my Hunter,

think XX% in my from the it’s I neighborhood memory. of

Hunter Keay

Excuse me, XX%?

Andrew Nocella

XX%, X-X.

Hunter Keay

X-X, okay.

Andrew Nocella

continue like outside think hubs. I we’d And our diversify Yes. to to of

a We’re more doing you contact have – details. give few we’ll but Kristina you to

Hunter Keay

Thank right, you. All guys.

Operator

we Vertical go Please Darryl Genovesi. have ahead. Research, From

Darryl Genovesi

Hi, ex capacity everyone. the some good that, explicit ex what I want define it the CASM not XXXX that flat? morning, Thanks want can For associated then? changed for instance, of back since you help time, understand percentage realized Gerry, an October relative to CASM XXXX provide your please guide. what’s then of your to any the however, period time. represent us did it? don’t guided you MAX CASM of ex XXXX But And what’s you having for call to when hit you with

Gerald Laderman

Sure.

Let put it this me way.

would but We the XXXX, to commitment been MAX, And in ex. not CASM on the XXXX, next me our at color a actually And and that little we the have I over same least changed give generally you as several our remains of true. flat let said bit MAX. flat years have goal the is

at points of Looking about CASM MAX today, currently X to we the ex X pressure. creates it anticipate

deliver ex points MAX than EPS worst target. that the to full-year, we on if But less X let you remains this pressure. me even case, remind commitment from deviates of none our out taking expect to the of CASM our for So that the be

Darryl Genovesi

non-op. anything see probably follow-up year-over-year – the that. a the driving for quarter? a just assume else, if down decline in if first little through that carrying and bit, pension on And there’s but the Thanks then year? Okay. the also, What’s then is do you I quick

Gerald Laderman

benefits, made post-retirement we without where That’s benefits some money some some some actually, generally, that’s changing save there. able medical really the plans, our at driver principal our we’re to So post-employment in of changes of all. the

Darryl Genovesi

very you Thank Okay. much.

Operator

we go Please Jamie ahead. JPMorgan, have From Baker.

Jamie Baker

good everybody. Hey, morning,

First probably Gerry. for one

time it $XX As that more for this was $XX evolved? when move it could talk a could how relates There might was have you to suggested guide a that about to higher. year, hoping I’m the bit it

Clearly, this being how for conditions way not What puts to to four came I fact. a this whether think five that model as from just pondered. your I’m I’m a say, ever and evolved the that $XX months. surprise. $XX to happening, of in critical over, various as and last the prevented evolved XXXX curious were was takes don’t

Gerald Laderman

it tell and looking have could weeks Jamie, been $XX. January, the first at just to $XX I let So, Yes, price the perspective, at jet my of for look me you. two fuel From spot the you it so forward it, of the on rest the every if and a have volatility. seen the would has impact look you lot And day curve at year. of for

aspire impact And the So, given happens that, what see to over we’ll that that’s out the year, months. of to to as they’re given unknowns I some being range of and we course out. few where have course earlier, conservative us, know knowns a mentioned, my the of there of absolutely as some over how next raise of going the I don’t yet came little the other but the the we mentioned just we and general nature

Jamie Baker

to And more looks book to MAX, rescheduling SIM it. monetize global like, in deliveries, other Denver. the be has SIM order operators, I importantly, an one opportunity the tell simulator Okay, I’ve shift skyline, never as Boeing interest of second, your inevitably to desperation would whether and asked related you just the before? presumed what Could access? that’s given there’s around in have you us believe And helpful. the I something appreciate what

Gregory Hart

Greg. is Jamie, this Hey,

Jamie Baker

Greg. Hi,

Gregory Hart

the and training running I training weeks, of to eight in two we’ve one How and next, more want are running. full MAX the coming fix currently delivery SIM device to got up fix you? up take we’ll Hey, and device, months, We’ll say, SIMs. six motion have a over

So quicker feel of a are we stream. what we’ve in more for terms relative simulator we’re delivery and where than delivery assumed really seen come capability. of comfortable in stream amply than Obviously, we Boeing we terms from might actually prepared to whatever

Jamie Baker

monetize that capacity? for that to Opportunity access

Gregory Hart

too the here much. at that plans, that something to it’s we United make about actually in plans we been the delivery haven’t it aircraft. we’ve We’ve third-party would on something activity We too much Jamie, focused in Yes, could stream to our on sure meet SIM It’s sure internal past. have thought whatever about. But obviously think I have our expect done we’ll Boeings.

Jamie Baker

And a back it. from appreciate I Guam. on welcome personal note, Excellent.

Gregory Hart

Jamie. Thanks,

Operator

America, From ahead. Bank have go Didora. of we Andrew Please

Andrew Didora

of for kind we thinking the better But the everyone. morning, were up question. the than outlook. and follow-up back-half not what X% and better good XXXX had guide giving Hi, a the a I unit X.X%. of taking just Thanks on was know cost, XQ you’re Gerry, to of full-year than X%

or Just for to this some the is color quarterly X% could Or you about to we provide sense guess, the X%, year run would a throughout should was out? here? Thanks. MAX cadence any there the cost I be can rate, while consider could we – get is basically, helpful. trying timing

Gerald Laderman

Sure.

may identified, timing of you’re there’s events year. you Last were there always the looking quarterly back-end at when the more you towards CASM remember, As maintenance year, heavily numbers. some weighted

than But at when CASM the take always flat CASM commitment So to and at that look we the or the better our deliver. first-half year account for ex was of the We back-half. year, look better MAX, the into full- ex.

Andrew Didora

is any for think we way is Is back that the the once now thunder plan to CASM? flat is sort out about March? right should from the years without – MAX the that kind of of Is what stealing down

Gerald Laderman

a years the that. tailwinds on commitment. little We’ve It’s in That’s now our which for gauge. mind, have, been to going bit on is been we’re public been delayed has of Keep one our several commitment.

to in MAX have our delivery and those you growth would If at MAX smaller replacing addition what coming the aircraft, aircraft. – gauge in would have seen our XX look been you schedule,

over still years. that’s terrific that have next a tailwind few head So we the –

Andrew Didora

I Gerry. Thanks, right. All appreciate it.

Operator

we Please From have Goldman Sachs, ahead. go Catherine O’Brien.

Catherine O’Brien

Good Thanks morning, the everyone. for time.

just, alluded impact to ceases year, commendable the question I headwind? think earlier? you that a trying us we performance could a about despite on and to So I headwind help ex to think this negative core MAX, your MAX the thus appreciate above of really headwinds and Just beyond far? mentality. any that produced have can the you business your without CASM But the about handle get impact is note Should the what think

Gerald Laderman

Well, had MAX, benefited who did both side keep a side revenue other the as have and the as – lost mind, on have we the as income CASM not result. But the in the we well. MAX, the would carriers on have we

Catherine O’Brien

Right.

on So it’s maybe margin color any guess share? like to I a like like or EPS maybe willing you’re detrimental

Gerald Laderman

we’ve not start to getting using we’re EPS early as to a careful on use the delivered going been as and $XX to Look, events that year excuses. to $XX now happened say, any not them excuses. of We our have goal, I’d

we’ll So the with leave our what conversations think private was on Boeing it we that. impact keep just and at

Catherine O’Brien

fair one then And ask enough. quick follow-up. maybe Okay, just

continue strong had domestic a to last the network. your always change, Thanks. the to really years. strengthening that we’re course, booked you still network of over the or as of you your been that’s international strengthen international and, think couple part it think see of network? on you’ve passenger on going United So has you’ve right to focused highest its But revenue domestic percentage Do mix, do

Andrew Nocella

have really And There’s where these greater domestic. time. greater. talk Clearly, that regularly here It’s margins domestic fix over last period at cycle obviously, that Mid-Continental years international few we time think to And the still our good priority. been United It’s pivoting question. things of Andrew is a we’ve over than definitely been about we a are margins gaps speaking. a long and

has connectivity Unfortunately, fix delayed our ability in the hubs. to the MAX properly Mid-Continental delay our

we to is of that of of and really States that proud that global focused going and it we’re But best United the years. from the forward think be next as network a few think, go really, opportunities. we’re we so of all has any lot two airline, I on And the underlying for

now We do see is optionality right going be think network. of where we’ll profit these did some better come things future. But that momentum lot late we better, even but are in higher. And is in on cycle in have last strength focused the I and year, international domestic, international think we to when we day have our a and ready and and fact, margins, the of a lot international environment strong that’s environment

Catherine O’Brien

you. Great. Thank

Operator

ahead. Please Evercore, Duane go have we From Pfennigwerth.

Duane Pfennigwerth

about you of of co-brand those going kind agreements about not thanks. to talked expansion at ask kind timing. you where to a On certainly time, potential, points were Hey, United close in were were But and rates to. gap market

that before commentary with Some of AmEx. was expansion Delta’s

the reset bar question is, my for so And did opinion, Delta already in up to the where your just catch market or the was? market

Gerald Laderman

new and advertise we see their with lot deal a Delta’s it. AmEx Obviously,

sure continue years. and the We’re is can that best been be. and program in them growing few on card over It’s our Chase, the it making we close lot work last to contact a our biggest with with partner,

of. In a we’re proud new business launch really which fact, we’re to about card,

would is, are there’s So others we this you exactly tell I market to come where think I are. a today, where more where space, and is in what lot the

I really the sometimes continue think we sure co-brand a based reported make what But United not can it to and bit best is be. to is it’s tell that reported. the difficult on what’s will little

Duane Pfennigwerth

the about just then the premium presentation taking for follow-up, making for represents wonder quantify points could ramped? RASM to you’re potentially Thanks premium you seating the easier how across of if And Economy. when it talking you’re Thanks. came a expansion that many I questions. upsell in clearly

Gerald Laderman

we coming well, think, I Investor more at I definitely Day But capacity Sure. about up. talk actually, as XXXX. have that tilted our enter we –

save But for expect from We weeks meaningful we’ll bigger expect revenue really RASM. have impact a now. to premium be that we to proportion on a of products those few our pie year for and details the all a

Duane Pfennigwerth

you Thank

Operator

go Walton. ahead. From Please UBS, we have Myles

Myles Walton

you they’re I’m conversion the it years? united.com give the point-of-sale direct looks also reaching what to XX%. that Good rate you at of argument Andrew, you the I how morning. think like the next the think direct talked channels? and of some greater Thanks. the curious, on couple get ancillary, for the around ancillary channels, tied And over XX% high direct when channel about maybe you can about you can meat growth and

Gerald Laderman

hard – number to It’s a it’s big a move.

that’s few mid-XXs there. not XX the get But to next towards and overnight. direct XX from if It’s a getting over going see to We’ll something channels big united.com happen years. we can the is our goal. So, we see move to would like

That exact to on We united.com numbers, rates the for are because doubt dramatically ancillary move being motivated higher. higher. no we’re simply conversion direction, but that there’s the said, won’t revenues in give they are

as in also make products continuing to those and So work we’re distributors how that we changing higher are with are make by united.com to partners numbers the see working get and offer. third-party show our that we to we number how things can well. we better display And

there’s that. I Economy And sales think on think displaying didn’t more about meaningful upside, properly I Plus talked could displayed tests beta we the but properly this we with Economy the fact a a was on the have Economy So I think lot earlier was put have that we and shelf impact seat, being united.com. the In forward. United on Plus going going that Plus on – seat new past,

We products on to have them to our shelf for get the sell properly.

Myles Walton

one was in that our a and to growth clarification, per of Dash metric about departure. part think further I XXXX? XX the think still X% the out I upgauging valid had departure. talked you that previous And seat I Is just seat given per the pushed growth question, in for previous you response about being

Gerald Laderman

QX. number. want get in I that not valid to Simply

Myles Walton

Yes.

Gerald Laderman

a negative can on the get in number gauge which annual by, but somebody That number. you is disappointed we’re QX,

not longer think it’s it’s I – no valid, unfortunately.

Myles Walton

Okay. Thank you.

Operator

have ahead. we go Company, and Becker. Please Cowen Helane From

Helane Becker

ago that Hi, answer so key actually question. aircraft XXXX When couple very capacity larger very when growth at you is look much you you the about Like, you’re team, look in that who and be dots? in in anybody had you you much, can talked going with update us answer. operator. just now? to or new knows the that where Scott, And is what years this program the taking a thank of at markets. about and my all smaller Thank connecting – you replacing stands in the Can aircraft doing on markets completely for done?

Oscar Munoz

upgauge play. setback. upgauged that. nowhere We a of that The it, close to number Well, let markets year MAX to began that Andrew that and done big Andrew a it big I’ll would because been I’ll setback. behind MAX let was last to this been year. There a the add has would add are it’s following have upgauged being the be are year of but

Andrew Nocella

Yes.

I where think point. just absolutely we’re hoped we Yes, be at correct. this we’d that’s – not we’re

our but look more the depth. to We at, going the hinted come scheduled gauge have way a – forward, maybe lot also as is other it Gerry to at

direction. of to to delay where XXXX, trying and and for boarded also competitive we be on not that progress engage correct that And we’re in trying this point. like XXXX least chunk big right kind at the at just We’re our MAX and the for to is depth a of we’re on front, need looks schedule

Helane Becker

Okay, thank appreciate I time. you. the

Operator

have we go James, Raymond Syth. Please ahead. From Savanthi

Savanthi Syth

on being a what on know of pressure this you bit today a will generally, on Hong Kong that on kind morning. that a or rebounding. of good more I ask bottoming Could front? trends you’re about. little little you a maybe follow-up Hey, mentioned were give stop Andrew, if color – and seeing the bit you might just talking entity kind of regional I Germany is

to that it fair should any see just assume be we helpful? improvement, additional those is color would entities, sequential So a

Andrew Nocella

All right.

I quarter, rank and entities to at expect for same in a the order. level, basically I macro the the think, come

I second, division the Latin domestic be our third, So then expect and and last American again. that Europe best, will Asia I think

demand and I expect you weeks But to In Beijing and and drag on terms no the Beijing still just be do Shanghai Shanghai has on can was of actually the over see. will Beijing we’re color, tell situation current Kong trends is eight longer that in more PRASM. a little drag is bit Hong We PRASM, think a and what watching I China, that Hong a very slight Kong, carefully. also nice to last Shanghai which that on do based increased.

perspective, XX X%. ticketed last revenue down they’ve X%. have been the been and over months, last revenues for a Shanghai up from our the So eight Beijing But weeks, to

the turned any arise So I do Shanghai. in significant corner we’ve absent there particularly and China, think situations that Beijing other

good So progress there.

The wildfires some demand. We’re have watching on had really Australia impact very carefully.

looks Japan well. of very eye Asia, all that. rest But keep a So and the good Taiwan on close as we’ll

think South is kind leading well Mexico as the charge, Central America, of and I America. as

And good. to Europe, Heathrow. looks, our that we’ve all new XXX So I very high-J been in deploying think London

of XX months Germany the clients offset in from some that positive last nice I our agency weakness. a on think numbers. go we tailwind pretty of key the Germany, that’s the see is corporate over see and to which nice much really the of having did demand system sales after But has negative travel weeks, few case

direction, to the So on industrial. do we’re is least at moving right Germany in the and with mend which optimistic point, that lots this has at

the but overall few spots, there trends. So a see encouraging globe, generally we definitely across are

Operator

Joseph have we Stifel, ahead. DeNardi. Please go from And

Joseph DeNardi

Good thanks. October, in Airbus down bit just billion a and can the you little If a but more year-over-year, decline that the color morning. commitments before aircraft XXXX? order was CapEx shows in you it around XX-Q last from purchase the about step look provide Gerry, you Yes, expecting I referenced. $X.X you’re at guess

XXXX? on Thank what like XXXX looks that us now So can you maybe verses just update in you.

Gerald Laderman

tough. be little is give early It’s like. able look because to you MAX schedule to delivery us a to tells good a It’s number going until Boeing the what largely, just

a know a have little MAX We of happen yet on significant been deliveries. would don’t premature. those. to It’s year going year what’s Next

We also how this the that get we pushed. MAXs of assumed many don’t might know for year

to aircraft were there But up today and having I other XXXX that facilities. CapEx those start to a Boeing that slots the line, to tell going We’d mean, built. Boeing delivering. all get particularly XX with sitting is in need will lot we like They’re and aircraft number. they’re they know us shutdown drive the to everybody, to of customers, when how allocate

tell. So to too soon it’s just

Joseph DeNardi

Okay.

millions step is is down billions? – the of So is or hundreds of it it function Gerry, a

Gerald Laderman

too that. tell Again, on just soon to it’s

Joseph DeNardi

Okay.

Gerald Laderman

tell. billions to be but to soon too plural, really it expect don’t I it’s

Joseph DeNardi

on just percent Maybe order a which the the fares, said that’s and you. were Scott. I market was in what for sold and stump or a in fare? Thank try were Okay. Andrew fares tickets to Scott the of tickets in question what of competitor’s XXXX were versus percent Jim right match sold What

Scott Kirby

I question, but… I’m not understand sure the

Joseph DeNardi

worst you is just understand, best with revenue much to kind how you competitor you to your often have versus in that the Try the to of what at point? go how do fare match theirs is can of the think often Scott, subject market? How

Scott Kirby

would to fare way And the lowest is, time, available matching guess. Well, question we typically, are market. the There’ll is the multiple often how at fares market in lowest selling fares right are the I guess fare a were of I be our your ask the of the don’t in really something. single-digit market. all in percent I It’s the question. know at percentage seats the sold our the

Gerald Laderman

forecast I – and in down. close I demand mean, would Jim that. with agree terms or I is of the what us open I Yes. to gives the up guidance

market, And so by day, by – by and that said, everything.

So, sure I’m that. not how else is

Scott Kirby

single-digit lowest – the in absolute seat of the But market probably I selling our market. is at lowest fare we’re think the what the you’re is selling at in like fare quite really getting percent

Operator

And from have Bernstein, ahead. go we Please Vernon. David

David Vernon

time. bps out you XX XX kind or product to the guys the Hey, of Andrew, XQ. roll for X grew thanks out, just premium to start Premium cited tailwind from the on to from Plus your guys,

going base to as ladder think, as I that XXXX just looking roll how of broader Just we in roll sense the is of what the really product. trying not business? in, that a that you increase a should assuming guidance, for to make out for year be to stable trying get get through the tailwind conditions, I Should understand out sure benefit affect sort

Andrew Nocella

maybe little And I therefore, inch have we optimistic product. as little as later there’s in particularly even of QX say that Then see that. and we’ll and QX, into than number get into head is to bit more roll will the critical a QX. QX and a we up – mass, I’m what the bit we’re QX really all XXXs start gaining when parts out we and continue the lap different the would Yes. and there’s

whether a can we think or number. it our be manage beyond it, in big expand that and product will not driver I expertise how

that lot that enter there’s it out to flight-to-flight. can keep so, from learn that we But there to I fourth and it as pace. optimistic say manage day-to-day as a we’re hesitate that, And quarter how at we same we of still better XXXX,

David Vernon

little that to bit should XXXX. expand And a even more

So to I XXXX, think right? to of you said, ASMs by X% we’re going get

Scott Kirby

the it on. of have by maturity on XXXX all early going we The airplanes we’re the Yes. product have it to really,

but going to aircraft one In is be think intercontinental we at the this and on XXX-XXXs, fact, XX with of very, our I every point, to plan bodies it have have of to exception consistent. it’s going it other every very wide

taken think to seems whether the so it a get points. excited out there, But first-class XX half flying we out. a point do and we’re front, on a the there’s XXX, continued or or think that continuing were our along the as actions you Switzerland. seats where it on is far to with more that XX this were get That it’s high-J – London Heathrow tailwind, that points- a XXXs other aggressive So basis provides tailwind and we

a at there’s United So two, that least. front to this roll that’s out continue expect a or provide tailwind of unique initiatives on lot for we year next to that the

Operator

Dan line from Dan we McKenzie, And Buckingham ahead. is Please McKenzie. go open. your have Research,

Daniel McKenzie

can Hey, us if help think shock guys. news weekend, Oh, you revenue morning, wondering Andrew, given I’m the about thanks. yep. absorbers. Good this the

telling demand aside see you about today? there could Is are in that a from the setting in needs So travel that volatility trade world. just come wondering I’m demand international preliminary news can’t thought first, the to this some data? corporate does weekend, clients international And the acceleration we the revenue be in what embed deal outlook some then post their

Andrew Nocella

and have most I last of weeks relative last few we think that’s where for the case. We Shanghai the and increased demand in just actually were Beijing – to year. seen

it, demand by Pacific the around what of So divisions demand part. globe, corporate we year, But I was an last you was, corporate for official at healthy. on world the I in find rest look don’t think it from But say, is will different look the Asia have where fact, the that divided when as corporate you really I clients our positive. readout negative, at was

comp. an easier provides just it So

the So to Asia see last as we the had days in results, relates to that. that that particularly we’re this stronger absent Pacific I’m issue few going optimistic region that

clearly bit a that will be look there’ll to of, regards happen, in wiggle unknown a we pretty we forecast any quarter it’s numbers unknown something we globe. – things little of to where In as out, will each – the like at and will assess really, the tendency put and have think in part room, turn we I been things the for to that happen predictable that say, because think

point. track you do record of But we so that for we this unfold And at how on the the will guys, we’ve current And to to relates comfortable trends and see week have RASM, over be to room believe But in whether with room today over left the China happening least at and what’s exactly left in. able things so do think the only really years we’ll enough we how room, firmly next wait or last I can tell. two time plus that that. feel to that our see answer

Daniel McKenzie

so the perfect. much for That’s guys. time you Thanks

Operator

Deutsche Please Linenberg. from have And Bank, Michael we ahead. go

Michael Linenberg

non-aircraft? billion ones Oh. of Gerry, rough everyone. aircraft Hey, just split versus $X two Hey, here. the CapEx, what’s the quick Gerry, thanks, on

Gerald Laderman

non-aircraft. call $X roughly, billion is It it, $X aircraft, roughly billion

Michael Linenberg

and if go a And it down, to premium that more your Xs what I Thanks. XXX, is configuration? great. that Xs. just seating And heard – it you to a had were happens airplanes considering Okay, then true? does those that different Is in somewhere on adding it through? just Andrew, question coming Does the seats Andrew. your to – or is

Andrew Nocella

Sure.

our So heart XXX is of the the XXX fleet.

on goes it as seats back get I most you, the to we of have That’s reconfiguration of so. will next not aircraft. that didn’t class the business configuration case, relates XXX somebody through think And its remains over the change identical. We on but aircraft it the business months XX the or number those to seating classes, as the

the a we’re So find fine in bit did We coach room cabin. of little there.

up a So did the number of the little go bit. on aircraft density, seats

lose more that. J but seats on aircraft we any the in So seats didn’t has total,

Michael Linenberg

Okay.

Andrew Nocella

said, the of on of don’t I my we XXX, the top J-Class reduce size number I the cabin. know the Like off head. did the

We think class to I are are think on is going relative to seats. which that that XX the it’s today, be XX leisure-oriented missions the more using did where that, we’re business demand. have likely XX because lower to seats be to I we XXX

in units. bodies types. aircraft all with particular We getting very which large XX have J-Class type, other literally wide XXX-plus really cabins, aircraft this have bigger on cabins the fact, some On

of has did the a segmentation it’s will We again, cabin right use to tilt given the reduce in was reflect the of onboard almost wide-body the a aircraft. have the seats business aircraft that size and be we which It leisure-oriented tilt, how how than used. numbers. But doesn’t it’ll we aircraft thought of XX aircraft, that more the fleet move that XXX future,

Operator

questions take go Please And Thank ahead. you. we Justin And the media. from [Operator we’ll have Bloomberg, Instructions] now Bachman. from

Justin Bachman

things if that’s did I the if to decision time that share United of regained the about sort for the guidance function or Mid-Continent Thanks. your of is rid a just in at that uncertainty, of not today. MAX slowing you thanks of a growth see Oscar capacity and terms ask the or that get Hi, over next you’re and or down, will where both because Yes. period in have year wanted United or you’ve three Scott. the now what This question, two feel the I for think, to past? you’re

Scott Kirby

targets our well, earnings focus mean to our do. our what that what have on. that then we’re then should hit to we’ll on earnings focus So That’s our grow to – want do. if that’s key And It we efforts grow we X% targets, X% metric earnings. trying decided to and get growth means guidance growth we’ll we the we should

We’re really focused on earnings.

towards a But year stop always capacity to hitting guidance early. our MAX, have the And given credibility thing increasing of did driving But we have with uncertainty given had metrics having so all that next are numbers because a focus only metric. to year early, intended guidance MAX do it’s competitor it the our because on always one target and us this as it lot we the earnings as and we giving we’ve we earnings a we right full-year a and uncertainty with have with really we do intended changing to the we beginning really, did on of the actually built do focused already year. that year. But it

Justin Bachman

where your get strategy, far had as MAX? But back the that you the talked does when resume? given that comfort a Andrew thanks. Great, about MAX. the of as Mid-Continent halt, coming with sort Is

Andrew Nocella

it’s just we I of halt. This because otherwise I of wouldn’t the say would lack we’re a like not be say would Andrew. where What is, is MAX. to

So we We have in in Denver. built focused, connectivity. fact,

does the growth actually continue. that Denver So

we’re have where be – like we’d to Houston in We not Chicago. or

So only time will tell.

I’ll and the is ingredient also our or aircraft far does the But thing not other which we’d success foreseeable a therefore, activity. we’re otherwise we’re the behind they’re a to key trying latest schedule future, given And on I And Boeing. to schedule available to CRJ be help we’re XXX, that the a for where announcement Mid-Continent has to think add the what likely and MAX been from – so really fly smashing is doing accomplish to and like behind well be.

Justin Bachman

Okay. Thank you.

Operator

ahead. Wall Street go Journal, Please Alison from And we have Sider.

Alison Sider

Hi, about the the of great? think have you cadence might a long you requirements color could kind wondering take, you likely to that be do how competitions sort introduce? if and was how And pace eventually. thanks. service return would of any talk training What affect I simulator it’ll could of little bit

Gregory Hart

talked simulator on to as guidance Greg. allow divide by for we us working the the We, capacity if required issues anticipate simulator about Thanks and we we’re don’t FAA. This training by FAA to whatever question. plans earlier, We ample is Thanks. have is any the issues.

Alison Sider

you Got Thanks. there And just kind if of a thinking it. just a of I the MAX if worst-case fly could doesn’t sort is any there Is I’m I wondering in play guess like scenario, have follow-up. or if how just again. on like is back of that consider out? to that, even somewhere, something give if MAX up that contingency or a the for plan might the would possibility you room

Oscar Munoz

what more assume we realistic pushback that be of the timeline is actually Boeing give – time pilots us including before a to return encouraged continue We there’ll for time saying gives at classroom airplane training MAX we’re a service the now return of will own and they soon us hope from about more to and back be our is we up announcing safe what training the MAX. to And service time running, and simulator get to our for and target fly.

Andrew Nocella

the summer. At this MAX this impact of point, the not But assessing do anticipate schedule. flying we the we’re

Operator

question-and-answer turn concludes now Leskinen closing Thank it remarks. Michael you This We’ll our portion. for to back

Michael Leskinen

if you have talking today. Please questions, thanks the joining Brandon, we forward you to media call further to and to all and relations contact you for next look any quarter. Thanks, of

Operator

you. concludes you Thank conference. today’s this for gentlemen, Thank Ladies and joining.

may now You disconnect.

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