United Airlines (UAL) 19 Oct 222022 Q3 Earnings call transcript

Good morning, and welcome to United Airlines Holdings’ Earnings Conference Call for the Third Quarter 2022. My name is Candice, 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.

consent recording your this implies participation to of our call. Your

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

I over presentation call, of turn host Relations. now Investor ahead. today’s Director Kristina to go Please for Munoz, will your the

conference everyone, morning, yesterday’s made we quarter website Yesterday, the welcome to our at may on release our earnings remarks release, call ir.united.com. Good XXXX Candice. events United’s this or statements, conference in earnings and and forward-looking you, the which during current and performance. Company’s Thank available beliefs Information call. issued future third contain concerning which financial is represent expectations

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

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

to For measures, end most these release. of our non-GAAP the a the refer measures at earnings to directly please comparable the reconciliation tables of GAAP

today Financial Chief Officer, call and Gerry Laderman. President, Chief the our on outlook Officer, discuss Andrew are Commercial Chief us Joining Hart; Executive and Vice Executive Executive and President results Kirby; Scott President Officer, to Brett Vice Nocella; and

line with available In addition, assist on we have to team of other Q&A. executive members the the

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

Kristina the everyone call on good today. great It’s having Thanks and morning.

your and throughout hard by a congratulating and dedication the I half everyone perseverance and thanking United start want for years. at to last two work,

the beginning differentiated focused strategy, unique long-term strong and stayed we’re to now people our and on results. Our see

on operation all cylinders. is firing Our

performance to the isn’t for just fact, airline. In to world’s positions financial United for that That strong It it’s reduces costs than be on better customers. and creates United better and that the really also most metrics ever. running foundation leads based best

that airlines recognize the macroeconomic near-term growth economy, pessimism and unusually including and right are geopolitical now. overall global We high facing the

are three in overcoming and those recovery the COVID continue do so aviation that there headwinds However, prevailing we and industry believe are to United XXXX. tailwinds will currently macro for

of Take order COVID is business turn travel example, opened still last Japan First, is for And ultimately from in something here. whether demand almost increasing the aviation certainly XXX% recovery In you uniquely to higher less, it one importance: week. or regardless of phase. think will going just

the flexibility to the With want has September, be is them hybrid been because third of weekend. office Second, today from many them a permanent the This work couple days. a an flexibility hybrid untethered in experiences, work in to our those year hybrid found can change was and for of travel the history. every a this People have normal. there weekend work, It’s far allows. month and you normally demand, off-peak listening more new have of pent-up new That’s before. travel extra environment that structural often than month or gave not remotely could two bet demand. trip a work you and because taken why I’ll leisure strongest holiday a

will XXXX relative shortages, supply backdrop constraints. demand has constraints XX% Airbus, fully and traffic GDP third, constraints and against smaller And the multiple is environment happening industry shortages Boeing air and they resolve. it Pilot to control the are than take strong airport from the XX% the are the that and that world delivery all to in years both real currently infrastructure was around aircraft saturation

challenges. I the to upside, revenues we airline and what be which benefit those the longer also are them in so estimates about it’s trends to all is any go surprising are all that to is one you believe though but economic keep are the positioned do, environment, would optimistic need why why durable, of of XXXX worth, the for are they sustainable. real And and term, United trends uniquely three despite These were strong confident probably to industry for already long that to And happening happen term. up, are three all three and

own experience United the real investments airline. and the more international airline growth be decisions, innovative in and newer cultural increased training path for efficiently, technology gates, really building the customer simulator different founding to and academy the to our pilot and did changes such growing as growth to than a chart to creative, pandemic focused. markets, long-term pandemic, due during exposure infrastructure or transformation other a any additional bays fleet needed change Differentiated XX fast, customer run

It with and is relative a know we lot And our absolute prove. both and XXXX and just margins quarter guidance operating margin one we quarter fourth of to are early third indicators the quarter results have above proud the I the well that, go after executing are team very the to of success Airlines. for years confident year of United incredibly next United that. I’m and new positioned potential for we and am well

it hand to Brett. over I’ll that, With

also to entire by the start Thanks, recognizing in want work United quarter. the hard their I family Scott. for

be Our more never fails pull and team to proud. together couldn’t we

our quarter, performance the operational During records. set

during best history, flying quarters and third when the quarter arrival for company on-time pandemic. misconnection excluding were the the Our low in rates

saved with connections and ConnectionSaver customers innovation daily United. time. for X,XXX a is on ConnectionSaver average additional our XXX,XXX tool. This means their benefit customer to unique on We destinations over got over

seamlessly addition, did In a destination possible. customers job helping team and get bags fantastic our their as their our to as

September bag was levels. mishandled our fact, ratio better in than XXXX In

over which a September customers, alone, of cancels, were cancels in add driven January. XX% experience or cost-efficient what to able are they quarter. were in the these much for incremental dropped third by This but to a also With to more maintenance reduction challenges, provides crew versus better we capacity our controllable daily leads X% Our flying.

the challenges final the together, trends kudos around third quarter part industry, team. into best post-merger schedule these to Putting for operationally the United’s in of the continuing this was the to the despite forward that a history. full all all year. look We Huge and

United most operationally One the and the Boeing the Pratt for of & significant cost has Whitney return of been XXXs. for changes

With their make to had schedule operation. adjustments suboptimal more have burden to organization. operation return a the on complex change to led required aircraft work service, And grounding, a heavy our with that tech-ops created we’ve these to

to negative returned part first work aircraft hours which Victorville, the to over dedicated Great technicians back our year, spent is fleet XXX metrics. This over into of performance to has the and have their these inefficiencies in to impacts. in improvement us with our and of get news technicians For drove led XXX,XXX this service. work operational of bases, we had staffing cost this our California, with technician this is behind in that these

the aircraft I’d these in and thank like service, to to both, for operation effort fully tech-ops our our aircraft their positioned for our service. With fleet these significant in customers. back organization be can more entire efficiently returning

high a flight proud This airport United hire track remains high. to on X,XXX we’re pilots Momentum in career We’re year, is demand. that technicians. and X,XXX attendants, at X,XXX X,XXX personnel,

next support announcement team Next another to openings Ultimately, we XX,XXX applications flight recent hours. just members a to new attendant X,XXX our XX,XXX example, expect welcome United plan. year received XX over year For for this in and

about I’ll revenue the And detail. with that, to environment it in Andrew hand talk off more to

days many peak. in on our a were quarter third are that, where XX% September capacity. we more ways, operated hybrid excluding indicative best new that up finished turn September, XX.X% third XXXX versus we the to an TRASM work revenue same weekend in Brett. the flexibility with for stronger. about In Thanks, months. where of September TRASM our X XX% the off record off-peak to peak what be believe less low a summer number than because flying ‘XX, gives was saw customers than normal believe periods the of any trip. month into points a pandemic passenger load period short now typical we factor, And period better history, was the of We of the of

of quarter. the in All performed parts network the well

versus quarter the XXXX, third increased First, across XX adding of Atlantic, XX by new the cities new United capacity and routes. XX%

Africa into We also relevant for a first pushed regions, competitor to the new time. becoming

later in subject government begin and to approval. Town service year between will nonstop Washington that’s New Cape fact this

A XX% we significant local quarter hub now airline increased announced a massive partnership of few announced consider than with a and Lufthansa which Canada also outstanding. yet Dubai, East unique to the largest ago, and as to large plan premium connectivity. This nine seven-year United better the we as ever. a allow Middle ‘XX, the PRASM in the new is we and in of Air demand, Emirates. our working United expansion another region, strategic weeks for new partnership Atlantic is of hub routes. after versus is where third across resume a XXXX week, partnership Atlantic both Last the largest has service it the best Dubai will amount absence. markets with but Atlantic,

versus Pacific XX% capacity we our region Overall stronger far in economies down least the capacity continue to so flying Pacific continue our much While and cargo yields. the pandemic, increased experience as open. and from recovered PRASM XXXX, is to expand was versus we XX% XXXX,

resuming is next the on now excluding We’ll open year, bulk Pacific be for the Japan our in business. China of focused that fully capacity,

in weeks. Brisbane build from service with few our partnership to Virgin Australia. begin continue to We’ll We new Francisco non-stop San a

the that U.S. expects only for and the the Australia maintained We’re service winter during this the pandemic. to first from from And airline time to ever. be United Australia largest airline operating to now continued the

PRASM on XXXX. capacity less was XX.X% more X% up versus American XX.X% PRASM up than capacity Latin was XX% to on Domestic ‘XX.

impact XX% with being Gauge versus gauge on much negative ‘XX jet domestic Our a increases regional to of flying without PRASM. we well as absorbed jets. are replace also continue mainline increased

strong Cargo pandemic did volumes to capacity. to and relative in competitive quarter continue were consistent we with faced than XXXX. our much were more the XX% even highs greater expectations Yields fall, as

the about over volume quarter corporate of travel XX% of stable business the and recovery was The quarter. ‘XX in

While and and larger offsetting impacts on environments corporations lagged rate, recovery clearly positive work believe having, we network patterns new are revenue. hybrid the

segments also less continue We is domestic. Atlantic will for our traffic a optimistic It’s pace have that observation remain It’s to worth faster global than forward. setting. at long Zoom recovered get that traffic simply point from noting in meeting haul that business the this better business a a across practical

now and may often in rates changes trips Our XXXX in be environment are or recovery customers to obsolete traditional relative view business how combined. the given work a measurement, remote now on leisure travel traffic business

haul Premium efforts long the producing New ‘XX cabin. main successful. long twice increasingly our revenue have global mid-tier versus is our now new of yields capacity, that segmentation product been of X% Plus, are that haul

main from per passenger seats revenue results seat market cabin better XX% to efforts have and up with Our sell strong produced also XXXX.

and momentum, to September was month, September is are entering quickly revenue we on third the low to and month fourth of track quarter strong our funds. replace flying excluding with as best lot October the TRASM a ever, a pandemic date

currently in X% anticipate the a XX% between capacity. in increase as In on quarter less XX% saw fact, fourth the we XX% TRASM we between third and similar of and

be would should revenue to While this puts otherwise I our faltering, recognize indicate performance I rest. hope revenue thoughts recent headlines those strong outlook

wanted operating address on costs. the briefly RJ changes I to some of recent

balance these years, for able expect that probably to at a given our We pilots a time, United do changes be United Express in may pilot program to a operate best Express at utilize costs. job higher United and for United our with making to our ULCC partners. Express until non-legacy today, in albeit United the joined transition operation, to fully shortage the to and XXX four short-term choosing at versus like who overall our take can of while option. pilots, it a it ULCC, mainline better XXX that the expect Aviate We cost versus Express we’d XXXX Express competitive recent career staff RJs by pay [ph] career long-term first to we’ll carriers, the alter

entire of the say to set new record XXXX. Finally, quarter a Mileage over quarter. up memberships highest to and records history date wanted our so say the is program third a we thanks any have more in redemptions program. history spend the than key number year in co-brand were this on We’ve the expect continue XX% every MileagePlus third far for quarter with our grow XXXX this the quick indicator I positive. saw accounts seen update all and is I and enrollments in of of measure to to year-over-year, strong, to team. we highest new as program. Momentum the were we the quarter to of United we

I And Gerry. to will it over with that, hand

of quarter the to you thank achieving profitability. for big team a whole and Andrew, United Thanks, another

Brett pressures the previous the us. talked believe about mentioned, been behind record-setting, calls are recent As our operational we’ve performance cost of now on and has we operational-driven worst

work XX few vast majority be Pratt completed all line on in with the month. service and the last next we’ve are remedial powered Importantly, our XXXs by to back on expected

we calls, we of as CASM-ex in indirect than our we more headwind many by portion We was aircraft, incurred schedule direct of noted operating to together service it and previous we capacity On costs have of also significant significant mix suboptimal implications. the but driven believe -- the as groups variety the a waited of just XXXs, our for grounded return a wide-body fleet. a of piece with the a

compared aircraft mainline our quarter which is day the how improved was provides improvement utilization, impactful to primary the able put fleet over This quarter. to the context To in in a one is meaningful more flying of drivers of aircraft third to these in costs. for again, produce XX% unit first it per ASMs our have

Looking for guidance, of $X.X at X than on adjusted recent a income point XX.X%, most of stronger by revenue We billion also quarter. driven costs. the an combination reported and third numbers pretax an the better This operating an was margin basis of and better basis. our adjusted on

earlier third versus performance. driven Our quarter is better a This points outperformance the was quarter by operational expectations. third in our XXXX. than CASM-ex part improved up large was X.X XX.X% The of

and cost A the key reliable a efficient operation performance is and an today our to strong future. operation unit for

in of compared our This first a reduce we is a expected September, saw costs, of the example equates pay in reduction quarter year. year. by CASM-ex as an That X the to and to the quarter in $XX than first the our in to improvement compared alone. benefits how premiums XX% point paid million reduction strong September average operation in of to an half month overtime more this premium fourth As

retaining to key costs. the future, on As top-tier operational our continue element we performance will execution look into to be a

with Looking ahead, to be up fourth capacity of down we between expect XXXX. to fourth XX% and CASM-ex quarter XXXX X% versus the XX% quarter XX%

fourth we remain throughout the As environment strong to Andrew revenue expect quarter. mentioned, the

$X margin talk As XXXX operating fourth XXXX $X.XX. to fourth we of about our again earnings a the quarter about a diluted happy expect quarter adjusted result, and per share, metric be exceeding adjusted to XX%, are of to we

X XX aircraft. and we XXX we XXX quarter, third to In Boeing of the XX took the In quarter, delivery delivery expect fourth X of and take MAX aircraft Boeing MAXs XXXs.

XXXX, Assuming be expect these capital to aircraft are delivered, for the now full we billion. year total $X.X expenditures adjusted

next than Our expect guidance any in assumption There’s year to airline under most circumstance XXX of assumes XXXX. downside the certainly year, delivery end through to we aircraft capacity aircraft of almost now but in one that recent for year more any deliveries risk other history. take from next

we in plan with closely for work deliveries to you outlook and updated an our XXXX continue Airbus We to Boeing January. and regarding provide

further third flexibility the of we our to including protects expect today some We revolver, which aircraft delivered pool about liquidity, purchase of our in this as with use assets, we allows maintain our that that and cash of undrawn the remember We us balance half quarter. over for to the purchased date unencumbered sheet. remain the And industry. fourth uncertainties used our our ended of remaining increases every year, to deliveries cash which to to aircraft in quarter of our all billion meet the future. Turning cash, $XX

the And remain tremendous leverage again new portion continue have and or all opportunistically team long-term financing whole at to to rate markets to pay purchases access working current prepay aircraft the sheet aircraft of at benefit is to environment, balance to all a prepay the deliveries. In times, in we this quarter. par. our for targets. it accomplished new committed our to for thank for flexibility want restoring addition to our XXXX, United we I opportunity have In towards debt, beginning cash will the debt we aircraft a the

towards executing We goal. and plan good our are Next our making progress United

for I over that, Q&A. it will Kristina with to the turn And

Gerry. you, Thank

analysts follow-up the take if will please from committee. question to Candice, question. yourself ask limit describe a We questions and now one needed, question. Please to one the procedure

First Instructions] Linenberg [Operator Deutsche question from you. Bank. Thank comes Michael from

numbers. Great -- here. Good just I’m up quick morning, of brought Brett, everyone. XXX,XXX Hey. saved the one connections Yes. quarter. one you during

tens perspective? helping it’s sense I think into X,XXX give about said product. I we your this what talking you sense of of you a trying us Thank just new millions to a get reaccommodation day. you. are a Can technology cost of and dollars translates a how improve here? of Just from savings that mean,

look, to we’re savings millions. the customer Yes, is importantly, more know in have you because flying are number People them. United satisfaction. comfortable they Mike, improves things. after of But looking dramatically a now it’s the it

Yes.

experience. NPS us, it’s about more For much overall and the

Great. And then...

Are you there, Mike? We lost you.

go Mr. please Please ahead. Linenberg, go ahead.

I back Sorry. I’m was muted. on.

quick comment one you’re an But preparing the plan the looks going that it of next capacity, recover how year, Just kind for you update like in said January, Andrew, you China. know, thinking that for on maybe Gerry, you’re made be exception get of Asia Andrew. or on I all Pacific with year, back next that to the we’re XXXX. preliminarily a about of to

now basis points? that more I XXXX view Thanks. on grow initial of of prior than X%. that down you sort couple your number been capacity? by was Any a number think no adjusted Has hundred

this December let What you, you Well, excluding to just We’ll published Pacific, in is Asia so year, color on some as about in course, I’ll wait January. recovered. XX% China, I’ll due say that to know Gerry you me our tell schedule give that won’t have in now. probably is, let Mike,

this trans-Pac we our enter the the to early year, flying way full in year. point at into excluding China are as we next well schedule, So, on already

the of I’ll add Hey. the there’s through downward I end else, of take Mike, you’re if is a bias on year. side at thing I aircraft past, the would I scheduled most what optimistic delivery If the we’ve looking only next for say that would that nothing that. in said mentioned the XXX to under number.

Our from Morgan Ravi next Shanker is from Stanley. question

happening the the an minds very were industry sort you peak is in troughy think XX your What months, like kind of United if traveler. seeing this levels. build a what’s like also your like corporate going spoke about does network very and picking structural actually for were change struggling are you rest leisure to I in And the to cast next and you our and of think the or and you right way So, it years? with even permanent peaks all to and to fleet X of structural were to environment over it adapt is peaky where you sort we Do you you normal, where the troughs. work with kind similar indicated the that of almost do shoulder think I this the to opposite commentary, make seasons to of X the your And of changes exact new system? up current now can make that need running any mean back

normal Well, more become allows to us I efficient. more this think new really and

not used of For traditional as and Wednesdays in to a example, trough a week. Tuesdays be as are much

spread traffic For out more. is now traffic, holiday holiday

and days. it spread again. a on time necessarily that And out see as So, days. one peak time and doesn’t few two across It or much we actually

than ultimately, in primary we also that of enormous very efficiency schedule secondary And incredibly July. with the ASM schedule, is holidays. this mean less and in peak is strong, cost gains a we a just peak February what less could comes operate that holidays and the really see think And an not marginal that different we like are

opportunity peaked. it really on that but So, peaky subject, think something as a come a to less lot from I transitions for more very schedule to a United interesting that’s

And quick follow-up. Great. just a

transatlantic said above couple to You of you XXXX XXXX. weeks XX% a ago expect that be

outlook seeing more, kind of in unpack kind given the a If in kind or what that nine-month gives little of Thank you. you that the a confidence, like are you macro? current signs just you can bit data just gives that -- of confidence

number. that gave I think don’t I

may of week, new the else number look, But routes, Somebody announced last we a think just have. Atlantic. across I

based incredible Our a view well. seen. is on dollar based really useful partnerships incredibly doing was for seeing. this origin This fall are frankly, of U.S. stands is from everything incredible season transatlantic we’ve on the And Quite we’re travel. point numbers where also the

-- the good network. of very it’s ahead are across rebounds see And very only coming just across So we traffic speed Atlantic. just lot global outlook, economy over the to a is and bullish not we across Once but the that months. expect network. quickly, on Japan entire open, there, in entire indicators full the our There’s

Becker Next, from Cowen. we Helane have

lot them I how this are some that your Can of about ask a of routes expectations all versus kind wondered routes if week, the whether and compared routes I them new of last were below coming focused. just leisure the past question they back are Atlantic? just on they were And next replacing were added those that summer North them? summer announced you or expectations, A the

of We number but and this for a next for be announced summer all will routes them coming back summer. one Sure. of past new

So just had I a the across good Atlantic. success rate pretty think we you tells going that

coming we’re and will bullish And across season. all back be Atlantic but one next again, for so the

a system Are relative -- they better you can -- just or than up to follow they are Are system then, And talk on they worse that. average? average? about

I all were give will routes across you we those or say won’t all the don’t details, of added Helane, our the that Atlantic. I But secrets two because my out. want one I routes best

Next, we have from Trent Steve Citigroup.

Star or South how Virgin of one partners to Just that Australia, intriguing was involved getting your Star see guys to alliances new it mean, but are like thinking Abra. seems Alliance me. I Emirates anything with that, to be I the curious about with American you’re say one was not your forward. you and leaving going for and

your outside just high networks. you. sort Thank about about love So to just sort hear alliances on think of I’d of thoughts of these how level, you a traditional your

it a I’ll Sure. try. give

our is, we particularly will and the all, across It’s the supply Lufthansa alliances, foremost, that to primary and Europe. continue and going is Canada focus. number best across best alliance Atlantic of the be first the partners in Air hubs that is have the to with gigantic. one our and And First Atlantic. And

So, of ANA, to across focus South these every course, I New just network. our and with key And day specific to to down want with the are be on we here Pacific that. on things clear Air are Zealand, all global

the way That East we the use term, being said, was, white a the Middle spot for United.

Our kinds global it fill of we to across the could partnerships. opportunity looked access a the access with existing a gateway our with markets all at do and not us when supports in partnership spot of we lot did destinations white globe. that otherwise And allowed Emirates, to this

so, that. And that motivated

same Australia, fantastic Virgin Australia where franchise. has true And a in is the

the most And them. We’re profitable largest to to but hope Australia. largest to airline comes we the the think We already Virgin across network have airline so Australia. Australia, not Australia. to were partnerships partner excited the great only definitely And with to with I airline board, the strong I be and now, that

of strategic interfere So, sure my look And we’ll frankly, more those many alliances. point, but for is out what not there opportunities world, that represented. don’t pretty in I’m we’ll Quite these the at comprehensive. United’s in mind our two that’s there’s global network continue keep to with looking. things core this immunized

Morgan. Our is from Baker next question Jamie JP from

strength air the was I bookings. square than with have in trying the in traffic to just drawdown I’m sequential that larger the expected. liability Gerry, So, would

how reconcile So, do two I these metrics?

it time. It the just -- that as wasn’t the normal to get we we I was don’t seasonal, that of booking sort see unusual. trends over back

there. don’t unusual anything So I see

look me. It you’re that as percentage unique. Okay. magnitude not it’s revenue, But trailing it sheer just that if of I dollar the suppose a surprised was right, I at

Second question.

the So, as capital seating and Scott, aircraft cheap would model on an abundance airline of describe abundance and abundance pilot wage there’s and predicated density. and business of of arbitrage an I that pilots,

seems exist say, business that, how environment we should of density for think So, any where to in about model longer? none an that

Everybody headed, restrained is call. what But in like optimistic was room market this that’s that United feel recognize say. obviously going quite I’m be to -- restrained. the be there to going is yet, the going and worried isn’t restraining. more I’m where super to about on that about We with this but

model I think happened even that’s scheme, year. business describe you as a is growing XX% appreciated keep now be going yet. to not huge Look, XX% there’s way on a because that be pejorative, XX% I that’s XX% change is it more positive. only perhaps costs Ponzi of growth, low and I predicated a is that The your a your to to will

producing get they The that real. do are airplanes two control to from going away a to rate. same system. calls trying mean, is I only look is There air -- others at system, getting great job the at and by to years to take the on a to conference the are a It’s the real three way. next resolve. manage Boeing shortage week of to It’s issue. back probably years Airbus temporary this say and going pilot FAA traffic is the not one

States United works. have the years that but we XX than we in have tripled ago, we fewer operations, the controllers had But

manage going Sort of And in directions, And issues fingers the and launches be the people it’s all during aircraft budget been controllers, Congress work. without had incredible and do summer. more that and a on their to okay July. not to on do in They in day-to-day, is of they’ve to going work many their operations in their up. does September, FAA do to not so drone they’ve more working airlines the In until authorizes their certification many best so and dike but to constraint it space try hard fault. the put pulled

nickel advantage And And a things: airline, anymore. grow is predicated three not at at business doomed at jamming dime for real a including think able like XX% growing models. to is and think model. so, a model fees a and year; business for add-on going be they there’s us they with to $XX And The to know It One, whole two, a until to just to show as XX% I that’s $XXX sardines; business year up people airport. them in don’t I it’s on in that’s challenge three, us, XX% XX% and death United. them, no that’s real those the

Our Research. Group from next Scott is from Wolfe question

see what CASM next wondering next QX, I’m plus better do or more At year. this to risk CASM guidance X% the you means on upside for the for year? downside point, QX

Hey, Scott.

I prepared I more in year. I for our my can numbers have provide, just remarks, color what we tell said confidence right as January. But hitting in in the next these think increase obviously, So, we’ll numbers you now,

I think And fact to hit we that’s the look our are says that to margin pretax I in lot. confident think, our the target, So, at ability way a it.

then, this new just on normal. of And like the idea Okay.

if better right there’s that business less and leisure performance, perhaps there’s So, you’re off-peak travel. demand more but maybe

What’s So, what’s net net impact less this the leisure, of more less impact the schedules? corporate, peaky maybe long-term margin? all of on

the can think the our XX our far, days over a pretty outlook we Well, think I and next you XX it’s last see trend. and by for so results days, good

continue say lot I it’s positive that point. to more would I this for get business And come. will say to have better margin. a still traffic from obviously, that to There’s So

like those coastal impact. are pandemic So, to I’m transition tailwinds, and Airlines the in United faced headwinds period of gateway that particularly all the optimistic that the in still

from traffic go, a on think still way our domestic have coastal long gateway. I to particularly we

upside. think lot I more So a there’s

Our from ISI. Evercore next Duane from Pfennigwerth question is

York Chicago market Francisco? look thoughts your recovery corporate the appreciate by the how we travel just versus hub a curious, into say, recovery, really don’t recovery to And momentum have see the offer U.S.? would I Bay into kind the may future, or Scott, changed or the some right of upside mark or New in, on On really in you be would as Andrew you next you market the kind I’d you How can Area on and San there? versus start year. of Why of to patterns speak thoughts there and

ones industry by vertical. to Scott I’ll And track will We if most. try here, trail the in little wants we to the biggest I by Airlines that bit ones are, add color fact, a are track of this with the say that the this United hub. in. Yes.

tech the our the results, I services and So, the trail most yes, are leading think, professional And industry. trails most.

think, I quickly environment. to new this affirmatively we’ve and So, adapted

nice in at those to convinced short on still going is while domestic. to than being even And recover last a global I particular, -- they’re recover. are change, think rate been the see. on -- That recovery long the will haul I haul in pace think, And few on it radical positive going global flow recovery weeks, there I say to really to I’m that the was, a faster said, a hasn’t

San So will that still from interior of key that perspective, that I in say these traffic trail in average. on and New Francisco York coastal gateways business hubs the

I think as why, tailwinds new these go as where believe and better United in future. are those that’s -- I today forward, just fine -- given with we get stronger, uniquely given And we’re dynamics, we’ll the we benefits stronger doing we’ll get think we do do what that

those how now XXXX. How end do place? to lot capital seen And much maybe of in plan for the these thoughts. cost between expectation and aircraft of is How a follow-up you the cycles. mean, on have I do? changed? of of you I that Gerry, much for has XXX still to your Gerry appreciate you’ve take a financing And

questions. of momentum the seen of about you How years? this. of haven’t rate like we couple book thinking are next So, aircraft the taking Thanks that over the supporting sort balance for

good question, So, a Duane.

next to our early mix of entire too cash tell you aircraft. or it’s for So, for financing for the year’s paying plan

a to ownership the portion environment. rate keep in that. remain, we’re cost financing for opportunistic. Yes, new But I interest no as mind, more on We’ll question higher come a in such said, in the cost of there’s a So, aircraft dramatic it of is really doesn’t and fraction of current the small rate interest the overall impact on benefit have environment, us. a even that, so overwhelms aircraft, that

bit love what years is higher, do to I Sure, we used but doing that’s a ago. X% little EETC [ph] or at X, X EETCs at X%

So, new there’s here. nothing

Our from Research. next Melius Conor question is from Cunningham

travel work actually guidance? What about the -- ‘XX. side, business quarter revenue that’s tailwind business side. fourth you just a little that on yield do speak into recovery, can assumption bit still And underpinning sounds Just your international it. I travel then, to to volume think great, in your pretty there’s guess, a on what the but some talked good that’s I you the for is just is the -- And

would high-level any be there thoughts just So, helpful.

Yes. We -- pretty when flat. we forecast, it’s much did the

So, be I’m right to it. clear. we’re to way anymore, not we expecting the it a significant sure recovery on measured the that’s traditional measure not way

from forward as agile that be go at point. we’ll we on this this So,

Okay. piggybacking... And just then

the cabin Premium perspective as say, correct Yes, I incredible good have airplane. Polaris your think question. cabin, I I finish somewhat back of We’ve there. the also good, We’ve in to coach as seen and not but seen in strength the strength your cabin the new cabin. Plus didn’t On the really in is

as aircraft. business front the hopefully strength continues of that back, further will we think, so come And see, to I section the likely in

the nature downright yield has numbers lower fly at cabin. the factor traffic that today of load pretty a than Again, from a of But leisure-oriented more in strong are the traditionally point Polaris view. of been some does

that fast returns to forward. occurs, provide, however think, as will to normal, that or going of tailwind a more that slow continue So, I

all just a Okay. there’s go the bending And on high as -- of earlier, question right the side. about level, cost tailwinds know higher the expense. but just seems. stuff, disruption it lot trending But, costs, regional turning buckets ‘XX, we just And I less from then, maintenance, headwinds less think of and the that unknowns is in curve, on obviously capacity I to pay the when we’re Scott’s XXX the direction, a piggyback into

as ‘XX there -- there you think we we things buck high about like may are any that can out missing overall? in Just be level

inflationary you’re I are anything. there. missing don’t think The pressures

on pretty we I that, all a handle think that have we’re good incorporated comfortable and our thinking into been year. that’s

the on. of this the the that tailwinds we record-setting have XXXs, from We going operation have from tailwinds return the

to there So, it. magic any isn’t

clear think components the I are. been all we’ve what pretty

from Dave is Our question from Bernstein. Vernon next

point or Difficulty] peaky historically, follow historically schedule. load of that to up on fourth factors I first wanted [Technical think anyway, If I and Andrew, back quarter look So back you less made about sort running a

Bernstein, Mr. connection. losing we’re your

me? you Can hear

try the two first out. We but cut again. sentence got now, can or We you

Sorry.

a the making if dig guess, of little sort out scheduling XQ, of of the new if idea coming to moderate of operation. So and kind XQ changes bit you’re airline I’m terms normal. of more just in running the building pandemic Andrew, wondering because from some to the into this that of less of trying to drop-offs XQ, I’m be should I the peaky quarterly

true. Exactly

the example And be examples this to many them, or Tuesday winter, for from non-peak if throughout winter, this European at use will a look our of week. one the operate fact, And York. day higher percentage other transatlantic a In I on good schedule, of flights cut off would we the Wednesday December. weeks our first two daily you New them of the think entire is of

but So before ahead after X, of booked be we ‘XX. Thanksgiving, points expected and versus we’re where already X.X Christmas, to

doing swimmingly Again, that off-peak period is a well.

amount our the it, that dramatic the XXth we staff efficient. has efficiency to and And summer year, pilot much think June about like we when peaks for a August flying higher in the all in fewer we of And be staff if we it, so the workforce peak, incredibly time, for creates run chunk so you larger more, do the much can should having that a of more can of this. from that than particularly rest XXth. be -- And extent because that to not we’ll operation an digest

how aspects maybe us where long of there a from kind thing, I you inventory in and you as sense from there lot just runway XXXX? up. for orient in where we But a quick more I’m seats follow-up. hard runway. that to of trying Thank There’s just on that. I’m of in were of way… we service cabins, to is are is sort the it’s kind like Can a room think know just premiumization? help much that for premium terms trying a of get to Outstanding. catch And product of any

it internationally. Well, you versus have to separate domestically

On the mod. international all front, almost that have of through Polaris our we gone have aircraft the

XXXs XXX down our of to XXXs. bulk think I be to the and we’re that two one or need done,

of two or one have done. those We

the be done with just And it’s long-haul -- Premium Plus mod so which X% was of Polaris shortly. Versus we’ll cabin, was but And not significant. we that about been ASMs. I today, started, our also think ‘XX, had have

is that out So, there.

And sales, think which aircraft premium up our United the can seat a already you think arrive the with dual-class were as these see I big I tailwind cabins comes XX% as plus Next about coach. domestically in large per quarter. section in from

those with that RJs ancillary I more think class a of there’s come. to single replace we As revenue lot jets,

think at in just think that my reconfigurations. Internationally, front. only just Polaris would I I distribution of So, finishing domestically, be are terms we there’s we’ve stable, point, seats -- our the started on up just pretty take given this is, premium where in

We from Sider Street will Wall call. now the first question Journal. [Operator switch to the from comes Alison of The Instructions] media portion Our

of I the ATC staffing. your about and you to kind comments wondering was ask on FAA

week. of constructive this to come like, talking Buttigieg the the are more he the Secretary most And publicly, Like, airlines? things from tends to still earlier scenes? mentioned behind You say how problems going? those conversations are Because

referenced, this Well, the Monday, on I help something with had is fault. them really to need a we Secretary as really It’s good the FAA’s because not solve. call that you

operational And so, fund they’ve out operational it before, and is asked last the about you far This decades, headcount extract, talk I agency programs, The done just that when do agency the an the growth, by that’s on amount at of number an taking most asks over that it’s and and of are higher forced of than of aircraft massively budget. certification was were that’s agency that -- day-to-day of probably launches, think budget, couple the they incredible to important the point. the people working to been more. work space

fact that the reauthorization. And sort pass solve It’s that the controllers -- test FAA fewer but ago. than don’t doesn’t And help basic fault. that it’s we look I just of in for them there’s there XX That’s think. years at have anyone, to hard to their an issue today -- that’s not were smell

that hours had the is our I’ve one with the goal solve subject. problem. solve about, last that? are we airline three you can help how hill to that conversations in with just people help conversation And conversations the in someone industry about administration, XX the on that’s So the from

it’s that Because have level until works Mostly that’s you to we get today. struggles but until fix in -- until to month operations up going of a staffed a are supply fundamental be problem, like always airline challenging. amount month to like July a of we’re more in the it’s reflective okay September, issue, we going a sky in the the

unless something it made was us a But per beautiful, way to by capital FAA And have support sick reauthorization increase to to with infrastructure the airport, bill between way, runways And the and operation, big it human hour, -- in not and capital of hundreds about support the X We get to operations human to we’ve work that XX. the We about is infrastructure goes on building. so, to with to it, couple I use we’re XXX by where to blue the this scrapping commensurate. we all of up their we be think airport of Sunday, is concrete of bipartisan the XXX along -- investment the we’re built. all the on don’t This that Denver, in sky, get from have infrastructure billions clear dollars it’s need of that parallel that this a building. we’re the FAA the and like aligned cut wound infrastructure. our Sunday human calls,

is Our CNBC. from from question next Leslie Josephs

year, the then out? on sent to attrition? and people year much the next to to that’s TA update United XX,XXX pilot retiring that of is any was And have with goal maybe was the Thanks. I ahead what and Do raise if also, by the replace said expect negotiations? compared you XX,XXX new some I How XXXX you with just employees pay wanted Next. way you clarify, that think, of, this original

is Yes. Hi. This Brett Hart.

finding meeting So, schedule we’re who to four the with what no United replace to that that is people some the And are of with towards no respect of -- majority by talent across company, expect way, in longer sure, but our actually the years plan, Next. And terrific our right the next system. having hiring the of we throughout is overall five so. geared on to terms trouble is vast

this at employer that an definitely choice. point we convinced of are are We

So, to no hire we we our And expect issues have we as said earlier. continue meeting to needs.

ongoing With unions. as our are respect to with obviously the pilots, with our pilots other are our they discussions

So, area. we make but a hope will don’t typically what comment that be much we progress beyond that, in continuing we’re to

have David we Next, Schaper NPR. from

I’d the like expect maybe to prices terms inflation travel And holiday but is bit ask just a it you a pricing, about you that do more continue, question a airline season expecting been inflation, How but is little just about you’ve What -- perspective. prices different? but not of are little that’s travel? out. demand I up, to little in already, addressed it kind how for demand also, the for from recession? especially with not of a holiday of being going a everyone, a addressed think passenger prices, the fears with spread bit this

give I’ll a Sure. try. it

the close very in little out any time on to our and as approaching incredibly are And are We that bit obviously they’re lot you strength past. for across I this more period, a earlier were Thanksgiving holiday single days indicated, spread bookings holidays of definitely the strong. bookings multiple or are very, seeing and a the year different said and than the as they day, the

time definitely a is pattern seeing new for that us. the travel that as well. period for develop And Christmas also So, we’re

great produce see there the that even do and store, go the to room as value hotel and we a to country customers. our and booking inflationary pressure can also need prices is to quite the And in this and price to make points, we -- they’re definitely The grocery benefits sure our or it frankly. managing a we’re everybody can booking results

new or on board videos to as We’re are into of fantastic, so which so in itself that with they’re whether invest aircraft, we a lot money and customer forth. CPAC putting be in and these the back back going Wi-Fi on

is to board. going So, a that I’d to create on experience money to use much better like think great

you Christmas well to any customers with operations we’re luggage as Airlines can sure or see getting expected. United for grandma to great they their make as Thanksgiving or home see time our on in as time,

call the to remarks. turn now Munoz will Kristina for back closing over I

Please and next Thanks you Media further Investor for talking and on forward any if quarter. the joining Relations to we today. the call contact you have look questions, to

concludes ladies today’s conference. you, Thank This and gentlemen.

disconnect. now may You