thanks, and Well, good everyone. Kristina, morning,
had [Technical that intellectual longer term Difficulty] we normal through walk our in industry pre-pandemic. higher structural the Difficulty]. evidence we a [Technical is we rationale there margins up short entire do a industry for In explains deck and industry changes you really over have the there’s think we set where think headed [Technical airline the Difficulty] than the that short, Before been ample that
be to least demand the could First, while it go will specific to to at environment we different, expect the [Technical Difficulty] higher. it return
cost aggressively United back to based margins. believe we pretty the the recovery. on the of as And of jobs been take protect drive to well accurate different XX, as industry United United. onset finally, At going and macro the unique way people And structurally XXXX. like may we COVID, convergence that, acted airline did all approach pandemic, really our February and higher the has outlooks, else recovery supply about Second, a what among all than the and anyone would look airlines work the acted more impact the first, and we to at who challenges of
you’re clearly and recovery, the Difficulty] [Technical achieved to and it It start pre-tax be a plans mode. margin were response while that the had our team the rest and overreacting ahead adjusted crisis in United’s opportunity some in still were we for so industry. of At reality forward margin planning we’ve compared our fact, our was said But the of be in futures, time, already our and frankly to wouldn’t by both for first and crisis into as move investments bad. turning airline acting results confronting others leadership the schedule, able to quickly, results relative head that absolute began in big seeing in pandemic making the that and
left back XX% XXXX. here domestic industry to revenue as what has look revenues in slide, levels go you like to time. still The percentage just industry GDP can see of to a few get interesting next over growth A this On points: XXXX about
the XXXXs however, just we Our even targets X.XX%. revenue In GDP margin higher. XX% to get to and and base that XXXXs assume X% the case was back
you’ll As about And translates worth, revenues X.XX%. what cost that higher next margin of every may it’s drive think X the point United. few than increase we of for into domestic convergence for slides, single see in basis point
X is the think X, and most to to I’ll long in change address what a significant industry slides On time. I happen structural the
when alone happen X,XXX for of Delta, remain industry and pilot a X a same the we capacity. capacity supply with unachievable. on host initial planning reasons. For the to about guidance, this lower thing We’ve just is constraints. the reasons, aspirations are for and about and like was we simply that in the But, to same beyond points a significant compared this believe XXXX capacity which Southwest year than are will are industry talked XXXX, hire Pilots will shortage, believe historical X,XXX year, one X,XXX American pilots just We, and constraint along lot range. of multiple to the
including rates in that companies airlines levels new airline levels, COVID, call believe and tries to because the engines, bound all supply the to staff the the on with that We of sick. stepping it and weather airlines combined the sick constraints and tip system. there makes COVID, likely is anytime at state had elevated to Across are over run grow. limit a Post to it are to OEMs chain easier on same air ability control lower that experience board, legislation at on in are FAA lot levels are of traffic to parts. aircraft, fail need higher that stress or to meltdown behind that pre-pandemic there the in
most cannot in with of exception challenging and more Finally, the the FAA environment. network their reliably carriers outgrown and the this simply have infrastructure airlines operate technology
carry consideration, all block need pre-pandemic. than above we least hour at United, think at X% more the the to into per pilots we Taking of
traffic control mean are challenges times In and taxi and that, to air flight addition in-route our growing. elevated
it new airline. the produces XX% math not, to it same Like Put and X% need pilots ASMs. or for number to the just we hours same of all of pre-pandemic So, the produce X% and fewer more X% new number probably together, block more that’s ASMs. aircraft the reality
reality however, in guidance CASM-ex only the these we that’s think, already. airline only be also has industry complex out And this airline to harder The regulatory standards and XXXX of the is may any the in operational figured likely others. United. our country. and And than issues the probably by most of actually be clear, included safety impact the all with hit airline the industry industry that I industry that highest far our COVID this is
the and All most lost future. invest can’t That of the in us, the less experienced growth. and handle system the employees airlines much means didn’t volume anticipated today, the simply FAA,
own of ‘XX. Omicron we by target ago capacity. us year pulling Christmas spotlight challenges also At capacity XXXX. only missed system. all strains for responded proactively a during was a It our other had United, in over choice. We It hit on the down the had also hard. We our shown
make liked can’t breathing a You we’d with because infrastructure. and even room start we -- infrastructure, flew increase levels. lot in year change have flying. engines We last the started investments on most airplane fly, technology we and when compared because better And less us staffing intentionally, our did had than an we to it but to it’s head the and to gave airlines, much it technology our further start a huge
the so, changes onetime that spend by that time the to the quickly just get our do event hard straw to recovered entered and you the think or happening, got media were next weather denial get recognize they the our This I capacity change hadn’t but fully at and takes denial acceptance the can that tell big of it. airline. If structural didn’t airline the On still phase. the We most perhaps also as point, calls holidays a will accepted on time intellectually wasn’t what bulk the event, quickly and and broke again. New it about plans. also caused even we in see week real changes. about But coverage, competitors time through to good no and importantly, one the all the One despite much several. happened What their structural of I got to Year. over to moved just weather and over wasn’t we weather, It’s no keeps camel’s ULCC you for are back wrong. one And over deal, that that was
data in flight. growth are difficulties latest the proving the going the operational The numerous systemic among points challenges just limit that to are
industry, see you have on historically. in always and As on can differently slide hub worst the are of of infrastructure. the things than we a locations this, the did doing X, spite significant because pretty technology we able investments additional United’s made lead we We data mean to In much we are lot weather. that
the fly more need staffing flight We cetera That agents, are to XX% et we schedule. X% running buffers. attendants, with to gate rampers, pilots, means, same
flying We and more did than lower aircraft are utilization. we aircraft XX% are with running pre-pandemic, about spare we
we do those and of buffers guidance loyalty. but to about cetera, to cost obviously money, to just operational avoiding All we their the talk And among inevitable for utilization, that’s are the airlines thing cost expensive our of clearly but right out customers wrong. do it’s most these are important less their it’s than In can things et otherwise the believe other most much win meltdowns. -- XXXX forward efficiency, returning turning likely the to
their the don’t operating over XXXX Our and run by you and it’s like that’s airline simply the resources. industry is fail. pandemic, their it, United skis meaningfully will than is watch always Any been take can’t outgrown toughest data. the worse United word have will and operating But profoundly for changed my infrastructure airline has your you or environment. technology, out
the differently the of on to unique our international most competitors. what transitions one X Slide stark did United front. is the setup examples This than of
only the us didn’t The reverse. negotiated with can’t bounce the decisions downgrade that airline return strategic And we this we pilots our decisions. widebody bet a retire summer’s pilots make and post-pandemic. and grow, only in we our that view airline capacity of and deal pandemic, That simply made because they were were recovery, to two of the And that, keep also already around place back. because would pilot world data. that position. important in years in quickly allowed to in aircraft globe strong and the We the see to the we take the were international competitors to Over you only around union airline world with that aircraft, to retire the
the I’ve try conscious had X, hit to invest strategy in slide the I’ll but here, On use not pandemic the to theme, it on to already belabor United future. a so
Our large just aircraft example latest the were orders this. of
plans big other here point The attention. too is and we’ve of items ticket that people we technology, are unique. wasn’t that But though believed full lots even just our it drawn big haven’t infrastructure, made early. success. thing It investments they are we headlines, It result, and with to in to get New in really fact a and always a one as we invested were wasn’t the And aircraft. started recovery. invested essential just
on even everything we hopefully least. the X in targets. to think about higher, investors money slide But why gives this at X, On some deck this slide our there’s deck have margin for slide potential margins me, for comfort I making confidence go entire for
have I’m happening and matters can it’s You want whatever capacity. continue. convergence. to what is about really But already going you pretty cost sure view It’s
the were I believe ratio targets can I believe set. higher. convergence, it our actually and can than not official even at industry retain ULCCs And going possible. levels see. previous is if It’s they the clear, it’s just hit not certainly betting bet And Xs. we they But I even with and back significantly to the is still a margins be go cost I’d us, pay We’ll their the realistic will where our am, revenue with a X.XX% mid staffing to and but less expect I true, somehow if scenario. null pilots, GDP man, world operate margin guidance, to to that again, is yet, utilization a and pilots That’s hire level.
there’s But of over data demonstrating also United’s to and again. this were a the A exactly change performance because And this And recovery, than are every relative able lead so, of United The to kind team. supply-demand United to to think to in be everyone steps industry. conclude, invest in of I on advantage prepare different career. been higher investor be point, expect to to is dynamics lot in I across we skepticism structural ever the and and strong my the take took you’re a they’ve ahead are seeing pandemic the it. I entire just industry. else, it that realize saw I To going huge over already But led clear, of that. prepare keeps of to the because unique expand. airline board think thanks for we the margins
best doing United the history You’re in amazing an job biggest you making are the really the aviation. airline and and of
with operation through off explain who’ll my of that, operating And hand for investments, the it difficult in Toby, why some success career. holiday Toby? to important environment were they these the I’ll critical to most
