United Airlines (UAL) 19 Apr 232023 Q1 Earnings call transcript

Good morning and welcome to the United Airlines Holdings Earnings Conference Call for the First Quarter 2023. My name is Silas and I will 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 maybe recorded, transcribed or rebroadcast without the company’s permission.

consent recording your this implies participation to of the 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

forward-looking everyone morning, Information we quarter available Yesterday, All during welcome to statements, our on which in is earnings and expectations information release made our conference are company. this the company’s future may Good XXXX contain based to Silas. represent United’s remarks current which the conference ir.united.com. or events earnings yesterday’s you, call release the and Thank update, and forward-looking website, call. issued upon first concerning beliefs and available financial investor currently performance. statements

description factors the Unless Airlines to non-GAAP more our results these our call. on metrics Airlines of by number in on press XX-K related differ to and earnings our actual otherwise with cause expectations. be will reconciliations Please for discussing Holdings current United this definitions XX-Q release, could thorough filed SEC noted, from and reports basis to a we our release. Form refer Please United and the financial a other materially of refer and factors. A

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

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

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

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

QX, our But morning, for weather, to of team flights geography. any airline. thanking by everyone. despite most impacted U.S. in hub customer of country. good entire and given United had air brand operation exceptional our to start and the obvious am key and and delays but detailed the and we I traffic results Andrew. impact, airline United by this lowest mainline CASM-ex all almost target. hitting not in rates the the seat this guidance the to want quarter, cancellation Kristina the and has Thanks, quarterly Gerry leave to flight for delivering capacity the planned also I control any just That’s important, going it’s

But appears clear is to even than are the few demand historically figuring I to think to out causing minutes be four that change talk stronger, a themes structurally I foreground months investment believe demand demand a particularly November reliant are will January, take seasonality to and to February, the be and of about that leisure normal. are in important it on emerging December. have that new weaker, while We and March that there that pre-pandemic One, is United today, was case. the were that half through first come October business different we months, impacts just still peak

over domestic. But lead point. U.S. long-haul Second, cautionary essentially will structural but around is multi-year is the as along, this Andrew world pilot airlines aircraft moving and on except the a have third appropriately all as based all more international expected is give retirements long-haul we an theme United. downgrades into details, change my

to arguably our the are more historical trend GDP indicating counter spending a continuing remain room with run services. to back our weakness guidance still case airlines, strong is now. to base now offset way, what as we are based still right seeing consumer right and rebalance And macroeconomic what And we revenue the Our is relationship demand. seeing the in we we being scenario everything on by is At are recovery. discussing today below

are risks Bank. to-date drop macro few However, higher saw closing scare We it Silicon to ago banking in they an demonstrated that were now demand but appears X than of recovered. the months have business Valley by a even lasted about clear for weeks, immediate as the seems that

therefore is are consistent which that mild is case the a what recession in normal. or agree remains seeing bookings. soft base currently tail we than Our higher landing we But risk our with

we the line we needed, a EPS, XX it’s in if great happens a prepared doing c) over a) economy, and like to to with economy XXXX in XX the the what lot billion months issue feel the we we by and cost. macro While year controlling of more by target liquidity the withstand including new, of our and different challenging fourth environment. We $X.X b) control now. approximately harder capacity but hitting pension sheet airline further We have good $XX can flexibility is near-term total and theme job full CASM-ex having reduced it debt with my are about what balance improving XX our can’t which it’s for if can’t past in this our having operating softens different and billion run is business your and can controlling actually our our

way approximately will Cancellation rates will discuss year-over-year CASM-ex the the this half year on full year, drive leading solidly of to indicator CASM-ex point and We target. of that year X leading hit lower but the the on tailwinds we in capacity of half CASM-ex be this therefore our track. front. and forward only remain in United need better to some are of the is back Gerry second the

in rapidly confronted perfect, we exactly more keeping wage is results right stronger, strategic feel trajectory, means years, confidence last we there line we and it not United here reliability about and a been long-term on our real lot near the got more producing X premium over uniquely have years to thrive really the environment right To which but Internationally have for got our than the picture, our wrap took good In normal. United. hasn’t steps has risk, bottom CASM-ex up, challenging, track big environment. in say we a had the near-term aren’t, United for industry the operating changing environment. X are execution to to last all but that also and aren’t the that setup harder, at is execution and know had we a in because tactical but that there growth this

I the a even to want again entire had records. team work more forward ahead hard achieving this operational look We and thank I summer to for their United busy and season financial quarter.

With will I over that, to Brett. turn it

you for Thank team our you, to quarter. work hard United their and this thank Scott

weather, the on running most industry the operation. seat being we XX% the United In see despite metric. XXXX the led This a out around this the led As of the strong first Scott our any that of quarter, mentioned, we impacted of was first since continue to with lowest of flights competitors. rate benefits time our by cancellation

first departures by was quarter O'Hare for weather Additionally, and in Denver. locations, of by United second those all heavily at or the impacted nearly hub winter on-time including our

built summer our airline that Our season. to and well fast run peak expect is recover and the reflect operation in to we

current the navigate We continue in to the operating environment. challenges

and New infrastructure, we United is air Transportation consider traffic of with launches combined fly all get finding is area flexibility was and Specifically, disruptions that recent in FAA’s FAA together. constrained work of airports the to Department how operational as commercial to the regarding can feedback to ways move more carried and York out and the we listening and number industry with shows decision The the of managing air FAA FAA’s growing traffic all U.S. staffing challenges. space working

and experience, In will reductions FAA. by the our at impact our DCA area are throughout departures March, largely York while steps scheduled region period hope over will system. around the space to minimizing schedule the by drive network. requested and reduce regional York provide this relief It daily XX redeployed improved focused we took is jet the flying be in New the United the summer and hubs The that other New air the to our our to in capacity customer

Association agreement the that by very for announce Machinists. the X, customers. our our International reached agreement to created positive support our travel May employees With We does by are team completed tentative excited and nearly represented to to a experience daily volume our the be we proud that operation of with expected work we on of XX,XXX are

Regarding ratified represented attendance pilots was other IBT active in labor January agreements, in the AFA by flight a with we and by our represented new technicians represented and AFA. still with our are contract by negotiations our the

industry our year. our the with operational I confident represented we Dispatchers last further AFCA sharing industry. and look want advantages. outlook by we the team as reminder, in best for remain future. updates reached being forward our our performance We to the thank in once to network an leverage again a in We As agreement leading

Andrew will hand that, discuss graph. to the to with revenue And I over it

Thanks, Brett.

our up consistent top First line quarter with year-over-year. TRASM XXXX. updated finished revenues guidance $XX.X of XX% of up was XX.X% versus billion

While performance guidance, TRASM top that quarter below the we our our we tier. in initial expect were will be first

passenger last while we the at the pandemic. saw opposite other quarter the revenues course strong in growing the rate slower expected, are revenues, As a of than over year trend and

in remains XXXX. it same period the above year-over-year, XX% XX% declined revenue cargo While

XX% card highest XX% ever continue including MileagePlus account and year-over-year in other accounts lows. Chase. and revenue attrition spends, strategic historic to strong yet up year-over-year, records partnership another by set driven the was up card over United’s had quarter new quarter credit our with near per QX, first

We also team Richard welcome CEO the of new Nunn MileagePlus. United the as to

we for seeing different QX. were impact that indicated, Scott post-pandemic that United should believe are we the margin As change seasonality relative in our revenue and

XXXX, simulated impacted level between to more continue, future if a we years. new to leisure. October and operate able be trends where positively March particularly seasonality schedule remote Ultimately, these capacity premium of New March expect consistent through in work October business,

and Florida, is East United’s believe small the February, post-pandemic on in compensates we global align volumes in less where to the more these seasonality periods. usually months, is better for not business demand With business and in January leisure leisure business strong new winter and the the QX premium presence QX West or impacted November were and where the Caribbean trends of United’s to and through along that December. first in over United is negatively reliant network However, simply halves with relatively recovered pre-pandemic October fully March traffic traffic. network traditional

in XXXX business are measure As of sign all we a ahead the we tracking head QX traffic, we that momentum. for ways revenue really into good XXXX,

at for and global June still well traffic of not it’s corporate early on, see in seeing substitute we May months business we in-person strongest is markets, While long-haul ahead are their where videoconference do business for an is a The meeting. previous this time. tracking rebound

In leisure scare was business same was the the saw quarter. after to domestic the experience actually initiate in trend banking progress X since to The points types international that the relative by has scare customer the and on pre-banking This to period multiple to demand domestic flying minimal. over smaller a impact of Impacts most significant, steady across was the reversed for weeks point. quarter did decline recent we demand scare, slowdown impact on in business back demand levels. overall after XXXX on demand

total approximately XX.X%. quarter QX, versus to XX% second be XX% with expect of In we revenue up the XXXX, up to capacity,

in to second revenue for strength almost XX% domestic show revenues in expectations growth approximately Our to with for continue X% quarter international. and XX% the

up the look XXXX, and book same deals and bookings quarter Second XX% revenues respectively. above XXXX point with versus good do in XX%

that the to twice favorable For into flying by expect. XXXX, expand we the international we balance leaning approximately of rate supply demand expect domestic

we will on for up We the deployment rebound financial international Atlantic Polaris and United’s believe objectives We the the Asia given this in stronger position will flying leading Pacific. and meet plan be are South to us capacity the to our outlook and set across cabin. seeing revenue focused extending

premium critical will seat milestones international having also Polaris the cabin. jets summer, pass all a this latest with plus We two wide-body generation United by and

down the summer versus an in operate this return our to in up help scheduled excluding that excluding both will across in the of Across summer summer. will industry X%. versus we Pacific, international Atlantic assuming business this about will of capacity will plans not XXXX. United’s occur corporate daily quarters, XX% United, but the XX% is be Atlantic, up with X% be United ASMs XX% XXXX is further revenue United average to this While Overall, all estimated capacity capacity, China, industry profitability XXXX. United capacity to down in XXX are be XX%, flights outlook. about

to Yesterday, Auckland new year. Christchurch, and to increases service partner, new South we summer Angeles of we a Los ideally the New to Brisbane, Los for connect our the back Australia. Southern our Zealand and XXXX. at capacity Dallas will to XX% the The Francisco standards versus Pacific in XXXX to of another where set from Rebuilding to service timed These later mainline from announced be long-term hubs San turned to Air the to first-ever are include partnership this nonstop suffer. with flow Angeles a Mid-Con XX% focus for jets connectivity sizes cause will Virgin connectivity in original them our our regional to jets pandemic high volume. without hubs our also loss domestic down Peak bank to backfill

were We connectivity size and strategy in execute margins build a to able connectivity XXXX we expect similar when bank in XXXX and and to we XXXX. and XXXX increase

XXX of do the appropriately However, this regional jets with will time sized around, it jets. we instead single-class

the Newark. and reduced time planned operate within with abilities be the believe we FAA, hours allocations. consistent slot As Newark requested years the and will will in by airport’s in most Newark that from our to this from flights first this have City including summer, We capacity the

the terminals the the experience are optimistic runway’s and to will make partnership capacity customer happen. FAA with the We this that we between new appreciate with the dramatically consistent and capabilities, improve

we mainline improve new Newark’s new will adding versus this XX which XX,XXX later relative will Along this new and reliability in club customer Terminal Club A XXXX. A Newark XXXX summer experience. C and United and will to in up Terminal open feet gates year, be square the gain EMEA in will with in gates, XXX% up space to Terminal Newark and a

next Newark, in will in members Denver our that Denver of XX as total sizes the that to United of opening XX,XXX a space XXXX. also club in increase and and new bank Construction XXX% had XXXX. us club which allow X expect XXXX experience up over an we measurement include XXXX, from in XX will is is feet, year impressive square a clubs have complete As increase of and gates in almost dramatically our connectivity will we gates, versus

Mid-Con we remain connectivity are that strengths ground, United, our and correcting increases course, with high consistent long-haul, focused that large during gauge, hub structural surface hubs on markets. our on in our At global pandemic focused the of issues

without operational year plan capacity strong place we this in adjustment Our for remains as results. operate with

With to wanted that, will thanks it team. turn United I Gerry. And entire the say I to to over

to morning Thanks, Andrew and everyone. good

with our quarter first start Let’s results.

updated the profitable. last expectations in of end issued losses $XXX month. and better due in We loss March Our line weakness, was pre-tax to million February January saw with and at our but of guidance seasonal solidly turned

lower Our in spike price of guidance in at late revised end higher our early range. the the fuel still first fuel the and quarter at was prices to our in of expectation of start quarter This due a than $X.XX February. $X.XX came January about jet

X.X% slightly our costs, guidance first CASM-ex last better quarter Turning came to first revised than in year. at non-fuel range down quarter our the versus

of a first was benefit cost due largely and the the fee operation. in reliable exceptional performance operational Our quarter is our to CASM-ex truly

ended On approximately billion with $XX the quarter balance the in sheet, liquidity. we

leverage our provided the with cash cash in generated first paying We for by produced cash and the United’s history any quarter, operating and down billion financing in billion. continue over flexibility opportunities quarter highest debt. $X we $X in over flow of We flow free to the

meet adjusted last by adjusted Over than our pension remain EBITDAR months, to debt on of billion declined net track including $X.X and liability, XX has less our we approximately debt, the Xx. target total to XXXX of

confidence of adjusted in we with diluted second Strong share trajectory earnings cost price versus second flat up quarter the performance up XX.X% capacity we $X, the with underpins $X.XX last a year. of of quarter second per $X.XX ahead, the business the CASM-ex earnings be to expect fuel to Looking expect to our of in approximately to both quarter X%, $X.

of in fuel investor price as XX. update, based noted our this is As prices on April

As achieving our operational conviction key others the the to of the strong is tone in targets. our performance quarter sets mentioned, the and first CASM-ex for year remainder our in

versus this context improve For in of to to half of second CASM-ex year. continue half consider expect cost the with the versus the year why half first give year-over-year helpful to be of half the non-fuel keep a CASM-ex track the costs the To approximately to full XXXX flat on in second we this year declining on versus last year, unit of year, baseline. this XXXX as we basis it’s second to

With COVID comparing a when of this still first the certain year, significantly in first the on unique costs we basis. year-over-year impacting in of the headwinds half business half last year have

are second similar Here examples. much the last was in the costs year drives higher This first year XXXX also that distribution of lower notable the first half than A commensurately second the half this half the for with two which lower of the much half were half. XXXX, to year. first Revenue of meant comparisons maintenance the exists of in second this phenomenon expense. be versus year-over-year than of half

abated more hold, of in Omicron the more and difference recovery year-over-year our Again, normalized half activity the As in of half. we maintenance second year to levels. are this in back ramped ‘XX up the muted took much half the versus the first costs

that with we EPS to for towards full diluted we target or the in recession confident combined So X reliable year, first CASM-ex headwind in growth represent a cost with the of operation simply management, hit outlook, to landing. we soft strategic expectation two half. will adjusted trajectory in which along CASM-ex These our mild our year. whether the support $XX second revenue X the won’t face and the a drivers, this our put, for exist remain our flat running When a half items in $XX gauge point year

across Next encouraged financially left the in As by not we but and I we’ve progress entire made organization. our only am the our for operation have the starting United plan, gate

times, financial manage know we to uncertain I our path a our as control reach While live in will that everything we year continue to continue under we objectives. successfully full on

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

Thank you, Gerry.

We community. if the Please will one yourself now take analyst follow-up question. question to and needed, from questions limit one

procedure describe to please Silas, a the question. ask

The comes Thank from Sachs. from you. first question Instructions] [Operator Catherine O’Brien Goldman

Your line is unmuted. Please go ahead.

Thanks morning, the for time. Good everyone.

been slowdown. around investor concern So recently there lot is domestic the a of

to pandemic? to I’ll revenue domestic exaggerated be at is through post in quarter United as least that. had business something quarter Thanks talk remarks, stronger, So us else? have just another help leisure I to win record just get there right think driving build saw you strength. right just know from that first think Is shift in be international versus now built might traffic performance the know books, liability. what’s domestic much That versus demand international, international first domestic about the I you I on a But international the on based can ‘XX. you underperform first air in you also international to helpful to much. so is Would the And prepared then how quarter. unit

Catherine. Sure,

way, We’re we of record XXXX, last to conditions last We view, travel now go domestic my TRASM really best we how open, about International the prior XXXX getting to up year, customers excited at levels. should just trip. long-haul sent Domestic holder. QX versus the were QX comp for it, a a was more of and trips this unprecedented when for TRASM QX, ever the conditions United The hard of of the which, which comparable to and to selected and XX% it. really lot simply was out is a sell. different. by capacity QX international year year’s we quarter have demand seats travelers, address this domestic open XXXX also domestic describe thinking about to or clearly back QX to taking recall This completely time, number not see a less way about of is question this of are strength widely caution, in also creating available relative XXXX we markets

from at And XXXX, should what growth I’ve year-over-year. negative QX single facts, ASMs given said the Total for will finish outlook well digits XXXX capacity will XX% our on TRASM here about XX%. about low domestic United So outlook above be revenue domestic today. are of domestic our up in TRASM be

on summary, just QX We’re TRASM last negative, to matching as a it’s when focused record gross this total at quarter currently be when be as weak we booked books, we’re best compared to which quarter. only will behind strong don’t into revenues. for second revenue record an and outlook, amazingly and our XX% about I year, XX% target point about again very I just global strong where the likely the think good just the in is and In majority domestic curve the United biggest is revenue revenue booking break facts see ahead to a I these in The TRASM bit that ever is say domestic capacity. looks, XXXX can not long-haul thing of has with likely is is domestic as XXXX.

On ATL… the

question. On in the don’t ATL on way. a normal anything it’s wants seasonally ATL, to the add moving know, I think Gerry else I

Okay.

about actually question versus ask question. to Your us person the domestic, international first you’re that

will follow-up we you. with So

Okay, you. thank

The from Jamie JPMorgan. next Baker comes question from

Your Please go line is ahead. unmuted.

Good Hey. everybody. morning,

moderate there, this build positive ATL in as Just the think incrementally the chuckling generate Gerry’s $X the obviously the response quarter, will free in Gerry, it ATL, free to generation still Do you billion you half often on cover and second can flow cash cash with it CapEx helped the year’s presumably, in Katie does. flow?

Yes, Jamie, think I can. we

enough. Fair Okay.

have these I’m route of I lot read-through past? ever it take trying time some got faster? a did? you Andrew, same of the sort to relative speak just new does about amount you are same-store the the it revenue, or the component, routes? think in of that new markets about to to to international RASM year. I or like much Or mean, maturing to those compared markets to as new these normalize trends as next same-store Can relative guess, of And profitability does to in all activity. sales ramp the how of Second new

up Jamie. There gives is It just global supply-demand now, equation there haul, is been ever not in school virtually for the us it’s – past. – the no what is right long

Atlantic United dramatically up, it is is While across and down. dramatically we’re Pacific supply Industry happy obviously. flies the up and

because we’ve what keep sales, tell is London just are which there amount in strong of not lending say same-store That adding terms of just will to profitability, – very Heathrow that why capacity grown weakest is is the them. the I quickly and through I haven’t routes So probably very And like point key have being domestically. at the our is in that there our is recovered, new a would you that come with fully there. we our this world, hubs of large rest in relative connections within in Europe they – said,

see actually coming But weakness so some to of global the on routes And in a home with day do the network base. question runs new your strong relative parts off in just of are certain we X.

Speedy gentlemen. you, answers. Thank Take care.

The from Melius comes next Conor from Research. question Cunningham

unmuted. ahead. Please line is go Your

you. Thank everyone. Hi,

from first maintenance seems cost. rate that doing CASM-ex the mentioned about encouraging. know rolls you. there? year But you as to could as of and mean start be to about right we cost I curious being but incremental potentially still just second the mean, main CASM-ex off it Just now. next what driver that if talk seems you’re may holding I distribution business Thank XXXX half the a you pretty half, think

one process aircraft this year, we’re the going mainline growth the just starting as continue in seeing that to not of call year. really is to I’m benefits would mind, sure keep gauge, really it off. I So come is next start in. But in That rolling

run So year. larger rate next next more aircraft of the get year, the and we full take gauge even

are of one. looking tailwinds So getting Think to be you’re finally year of year operation. the post-COVID sort this really of to are gauges the comps of And year-over-year rate next sort better. run full the is when where going the

saw done as some lot the all of of we a out cost an with COVID of surprises the So coming of industry, think I we’re pressures. kind with

little stable side, more more and I business the predictable. from has So think a become the cost

Okay.

And That’s been and seasonality Okay. helpful. curve evolving that the just on then talking booking about. you’ve

to with Just are forward? Delta going incurring the how at inventory. they looking has mean like overbooking like compact going challenges curious your those about combat talking mentioned and I

what changes curve. the there those to curious at booking Thank the you. if Just in is strategy combat United, one is

think we world, the clearly it’ll Sure. the with. start Well, That’s we have the by RM off in best way. what system

the due eliminated been of material in created it’s quarter, number the really United the increased to tickets not While flown change not there in It’s is on fees. our change a flexibility that small view fully systems. overbooking for and by well, our accounted our lower that, RM to changing at point. not be add will is and we on levels it’s rate this no-show as our I’ll And

thank Okay, you.

next comes question Raymond James. from Syth from The Savi

unmuted. is line Please Your go ahead.

everyone. Hey, thank you. Good morning,

kind three a MAX a bit. deliveries of you had little deliveries. Just like year, full It prior than XQ, question the on looks more the plan in but slipped the for

about especially news? confidence deliveries, of the given the on feeling recent Just how MAX you’re kind curious

and on know impact news, may we gotten seen prior have just back what The an an you delivering has well. And track that that’s be won’t this have Boeing had I they recent years, much few will quarter Okay. of on on issues impact we and think think certainly full have we is have minor. us, what – know over Savi, the to year impact the don’t the managed from the on going second really aircraft. yourself, today on from they for what

of saw in maybe the by of Plan? in going first forward, And little there kind the of the on we is than a what that’s surprised of of what we’ve efficiency, bit seen Next Gerry. quarter, here kind trends that, United those around lines, especially less kind last fuel the of that helpful, That’s a year. expectation how What’s kind given little another a part your cost the Okay. benefit maybe follow-up kind along

MAX and of as improvement that a we’ve aircraft. delivers XX there’ll that Remember, more in we be on of MAXs, the those about of sort as nice the more started incremental seeing talked taking start will pop well And start Next. Well, seeing some point. that just we once at delivery United we’ve

So on you is when think know just mass like roughly guess? that today, when critical – standpoint, from do that what based you does a I

next the year Yes. critical in to It starts after. mass, kick year, maybe

you. that’s helpful. Thank Okay, very

just the see trend. going I’m to Quarter-by-quarter.

The Linenberg next question comes from from Bank. Mike Deutsche

is line Please go ahead. Your unmuted.

of Hey, your but issue. look from is hit. to can that with at higher not to had quarter, morning. it an just quarter you I you thought sort loads see saw rate, do seasonal March of mean, when Andrew, sort a of that good And no-show I I sort that When addressed maybe I fourth that,

perspective. service Zealand, add you Maybe you or see that, improvement kind extent, able we should Australia, Brazil, of, you some to about we does like level seasonality. able that as say, think are right? South start be to places to a seasonal get the – that that in see that the Do is Is really never mitigate American the actually we’re of that should to to industry? more But Africa, narrow from versus Delta to we where headed? As New – etcetera,

it addressed that have smaller intent And do we of quarters, to that good be can’t of due – Florida in a a to few – be a lot simply in is over addressed to question. to But years. narrow. our reasons get matter It’s we’re a we

put gap so we’re do in it most be South probably be will and so looking blunt, we to for grow of fly while QX results. and in of eliminate business Florida, quarter a looking we opportunities relative counter-seasonal able narrow it. helps the going of our faster Clearly, definitely think be the than to will to will introduction the our traffic don’t that goal more I in to direction, our QX we’re is Pacific and competitors continue I to into And right QX, be most because to help to the our to recovery be just weakest going think,

any the lot Okay. of from more Thanks. when wide-bodies you to you going that, you out going maybe And it’s announcement like that trying mean of capacity. I daily look fleet in. is China operation? to these do much? you’re XXXs seems year, the it’s I’m one other to back pull How you additional – just it’s just going when a this follow-on and more two require aircraft of took I to as later tied going the should of are then sort not does just you get not a look did going it to service? to trip as yesterday, figure your in assume amount year, where airplane – decent coming see this to look quarter, to funding that we’re make than I the March like at that think going And it new to service need Are of a parts because we round some come routes at

I to tell towards continue regards this China, quite Pacific. What to be but best many and and be year, is those our you will was Pacific, reduced that we system of few is those year, our South otherwise, week. would we In flights their heading maintenance. Europe wide-bodies four per Definitely domestic a aircraft the South would just we at use. to the flying aircraft And this stuck which think we seasonally into

more do but us to China, be But this to do that, We so been than we so. supply are later unable more are far. and the the that to – we so have aircraft have if year, to will done flying conditions to preparing get hopefully, allow

you. Thank Great.

Pfennigwerth comes ISI. next Evercore Duane from from The question

unmuted. ahead. Your line go is Please

question good the call Hey, Mike’s but – to first about on on one And shaping to I of just the a capacity. maybe morning. wanted themes Scott flexibility. ask with there, started follow-up seasonal

on greater regional normal, flex limit up of lack your on lift new if the kind or at do shaping ability seasonally a that, Given all? to does how ability of maybe lack recently emphasis regionals capacity? of And is to there

peak. question. It’s schedule am structure definitely having evidence And a the of further good operate through March able to be really will I cost stable we from hopeful after October, benefit which more the I end the that will way all a less that of think our

there just not are yet. we However,

we fantastic, can to out. to the pool this to change of we the this do see seasonal validate it to, we – We that next this will through shape think We we as October but help in, end remote make play how in obviously, actually September particular, I whether need us were And not for described. year. work year need hopefully, ready today. last And continue I think the jump just deep how schedules see and need I really into that we’re to year.

So we where will will in there. continue as to airline July see from go the peak we do, we normally we and

changed. we issue. regional in the jets we change and fleet of That And to about I the that back in ever think to business We In mind, recently This connectivity the is have focused has of right fact, and we’re jets we it. situation think hurt our with forward. very We jets, – being approximately has news intend good connectivity. jet the to of rebuilding on definitely going regional terms has in talked XXX need on it, jets the don’t XXXX. said, go an with regional the had stabilized. our lack economics regional front, pilot changed the

pilots very of We’re this our year jet were the year. in this at losing can consistent of the we we with. deterioration. the rate we earlier no or that. division And would last that production tell hours be hours end same longer block And continue with see year We not at block the the was year – started regional you will thought for budget our of to I original that that production early

the be X all over wait us are our years. so or the least is help we regional our next at news connectivity to there jets good the jets to deliver for boost as able So to Boeing temporarily from going of mainline

that you the kind high with the for solving taking this just the to the conceptually, take for how for relative you Or margins much solving guess, I half? could we capacity it, And we detail. are you year? just for teens, flexibility the CASM? in XX% could are questions. and that Thank back capacity And of sticking then take the theme environment lower Andrew idea lower if Thanks, warranted, on

we’re think don’t I ever solving for CASM.

We’re to XX%. solving for margin and, of course, XX% the

domestically, large will maintain the focus. that said, of going AXXX going us but fly could we flexibility. I pretty AXXX fleet aircraft to generate plan I’m a be the older early, that a growth very where year. number chose set significant at easily obviously, we’re way the far, so And up of Gerry that through And be end And really ground all strong good lion’s and the that and to about still the international we far, solve So margin targets for we at our EPS bullish have environment, I ASM share to and we this necessary the expect have always thought right International we was could we’re on of or to we look less year. when optimistic. our put if as right we and that’s that. October the Like It’s the reach that

Thanks for the thoughts.

comes The Helane from Becker Cowen. next from question

unmuted. Your Please ahead. is line go

Thanks items. where in for some United Thank and are very And did on what everybody. time. year? contribution this the ‘XX the much not, had Two the you you operator. on pension questions. say what you of Next I other Hi, progress then if maybe And plan? you? bigger the question be would just One, versus is And was could

smaller regional the cities Andrew, that? narrow-body and bank or like or the connecting shift addressed just you Thanks. something changes connecting jet think I

did say disclosures. recent pension. is this anything we pension There Helane, our – not expect year. yes, contributions about changed no Hey, we Nothing’s from

liabilities. made calculations wouldn’t for of both years. a having are any with expect pensions Our in that can rates and nicely good be contributions pension couple the shape pension interest We reduced and actually the

That’s know. great to

of the relative where bit we missing were. we’re my we we On a connectivity – clearly to just our RASM by number I as We this is one Next issue. at look flight can focus market by comment, earlier, connectivity when see it indicated domestically United are that a lot

focused we it just back we’re it’s accretive where time. connectivity And going to to optimistic some XXXX is we’re in to that and go they in were, sizes going to margin going to course, we’re XXXX. but And connectivity. and, that it like do of back we rebuilding and going as to and build the profitability forward, be did XXXX, hopefully, RASM very on be bank again, so as But the to getting it take we very

to a is really possible. get as of that it So as our domestic focus implemented soon and important we’re flying, ready

That’s very helpful. Thank you.

Shanker The from question next Ravi from Stanley. Morgan comes

Your line unmuted. go Please is ahead.

Good morning, everyone. Thanks.

help expecting data is kind guys into if are think what that of of are data pretty those points data these macro are are the you’re probability determine of tail event. clear points but tough kind I fine a some things of Are with high you risk or kind data referring? risks – us of you there these either now, broader points you these outlook, despite to Can tail the are specific what latter at airline receding of looking or materializing? where kind points macro for

first I the it Well, we common maybe larger about corporations with from it look what the questions recovering be like. what and business ways, traffic And I will one we is against and XXXX. United. different it’s at I are business have because of the will is really is say do to now, start get will traffic benchmark in I there, business of first recovery and all from going all, we a the most think wonder talk whether in contract future. seeing of methods for travel the same But traffic look really measuring three a business have as old to that that I

traffic. on The of specialized third that second business a from set from agencies the ticket based demands attributes. is in And

clearly third it have a that encompassing for an is The businesses medium-sized most don’t don’t contract as includes the or have United. and view small agency

for QX, XXX%. XX%. rate and rate two revenue ranged range XX% And first QX, In from from XX% weeks to for So, recovery XX% the the to XX% revenue measurements three for recovery between of these recovery was the in these the April, three categories.

surprise last are us tailwind have we the in The fact data is XXX%. start a was to this conservative think to a more approach I close United. weeks of getting as nice corporations two to to large seen that XXX%, April measurements,

increases our of domestic. As say head recovery many even you good tell lot a is to the I revenues. critically the predict reviewing become continue this hold. critically revenue more And are of to planned – or need positive capacity component We a just business important more that of few of these points our in headlines all time data to this obviously you trend week that a will right if will measurements moving as in know, last international after long-haul global recession. the are direction. important is can in sign But the what also our see this increases, I many so a

traffic statement, the in days for this absolute we confirm it the very recent, said I pandemic. since As also last for March. I look the best add, days trends for quarter. business demand incorporated the we May have XX been outlook the step-up will in since business booking is dollars our not I have revenue seen in opening my that also into have ahead have revenue of can

evolve you I business. will That’s Thank switch be cargo about for And you color how of the ‘XX? about level there? portion since what’s winners, versus ‘XX pandemic there. bigger there incredibly and you going the it probably that to of era and seeing the follow-up helpful. was enterprise through one corporate. very small Obviously, the ask a was normalized business, the of And that my kind question are volatile SMB but up given

Yes.

still we are system, plan, United. So, low low which our with well to QX I and prices, see. outside mean exactly cargo yields across But of stepped down particularly the is seeing nice of in XXXX, stepped very ahead down

yields rates We our of is are challenges opinion. have been done they now, a really team air best in are holding where have my we cargo low. through freight world, not job sea at in freight also – the I only But think incredibly where the great but –

are we holding own. our So,

baked got cargo forward. United executing consistent But on executing I this are and year. the think more have We our to pressure see the of yields way. the going with an team we we for and in amazing expect do in rest again, plan, is more

size competitors, the relative primary our numbers. in Our to can see it you

the are it’s to And on plan. we an didn’t. about pandemic the high QX were with particular, that business based reached where able But and still on re-achieve we and look, bullish again, we last expect be XXXX. am didn’t COVID. number, so relative we would actually to unbelievable I we But in We

Okay. Thank you.

comes next from Sheila The Jefferies. question from Kahyaoglu

line go un-muted. ahead. Please Your is

and everyone question. I to Scott, you. morning wanted maybe thank Good a cost you ask

gap the the spoken about for more is airlines versus there XXXX are fairly there level And below You of think mix ‘XX. have second per presumably, now And employees the to to ASMs room operations. and you X% employee XXXX as of as in about some new aircraft advanced new preparing Is ASM deliveries? needing for this aircraft. hiring up, half further are close just X% on we X% your basis same been versus

what reliable out turning giving the results is best least in this by industry ever most Well, and is CASM lowest being one the we for best brand. I run have countries a right run to being frankly, done with best That’s to really leading see. customers. we did of our That’s run. reliable But given it’s in at sensitivity the be with have operation pre-pandemic, confidence now good for I CASM that also guess to able forward. feel that able environment it’s run going us and great the great results operation, the we outcome, resources to CASM about a we I operation, the our will operation what running that about think higher us than [ph]

CASM you so, outcome to by been the were, I And So, gets are It’s the how down – environment a am months right it back really growing – down the feel right has road, reliable done where I operationally. if operating just easy easy I obviously think month two had running at team you easier adjust, as adjust the proud hiring have and obviously the has think are that, I could slip moment. the to we or to of for but lowest operations. we very especially it’s place at are the we

to pretty compared or there? way, should How break continued about about relative your X%. RASM whether I Can if just And premium XX% a which ask out of think we that performance? you premium to in performance, XXXX, question up good, growth sort yield any it’s could was up total the domestic

been Sure. progress happy our particularly for I on in all premium cabins, I the our mean really of actually Polaris. have with side

for travel of making load cabin for example, have sold business been compensated Polaris points of just given comp in a X lot the to progress traffic, In that the and accounted sold we up and have seats, in business points. rebound by We XX premium versus factor a points for XXXX. down more we was points up X leisure being come. still year-over-year but ton year-over-year traffic March, seats X We our but

lower that So, it just came to offset it, at a but yield.

more the we demand do to think of get seating. network. Most and There our growth XXXs, the with continue business is this particularly regional premium that tilted single into since towards traffic. done, and we particularly point, with which jets a our more our also carefully and created as leisure lots of this puts are increased at there new pandemic retire keep accommodating trying given integrate amount we the traditional of premium fleet class while are large So, from the seating is load we to as factors, revenue this to takes come of but potential premium

particular, backfilling Polaris we all lease we say and higher progress front hitting are seeing on in this leisure. in And And that will cylinders think so I or with just temporarily premium factors, load I on earlier, business the get going back, completely we faster, this was it back we in terms year. margin some where of relative as it traffic, later to as ultimately, long-haul profitability are Polaris said optimistic to that were I are of

you. Great. Thank

The Group next Research. comes Scott from Wolfe question from

un-muted. Your Please go line ahead. is

morning. Good Hey. Thanks.

are or multi-quarter, change beginning capacity? the you year, view a of this a I the second Is XXXX guess of I So, to this this is from than QX, look of thinking how plan capacity prolonged marginally of quarter, that go in is about up you one-off more the domestic capacity? levels. more at a back domestic below only – a for less lot this when which from a domestic sort is It’s normal. quarter, it’s when back the is

lower a than do little it think bit is QX. I

turns I think you are as on absolutely as hard that. shook really clearly which on where quickly we as place ASM little in that’s April, a what are shook and could, global put as we we long could It’s and thought March the We correct the into seeing numbers out. leaned more you the capacity. that bit what half quarter. the domestic to because we in second But best second than was out see growth in should domestic for the haul,

then I it’s Okay. know And early.

on gates. growth mainline you about how in about Any overall preliminary talked year, next capacity ‘XX? focus thinking You are thoughts another on early

I think are to ‘XX. don’t our prepared for give guidance we

say all we I biggest to we We excited can domestic really back to of the as Next. point. importantly, sure make And connectivity continue quickly excited at were our the most pre-pandemic. RASM this And for as where are United think implementing that’s that that’s domestic we rebuild year or can driver and I next to

Thank you.

The from question next Vernon Bernstein. comes David from

Your line is un-muted. Please ahead. go

on you revenue seems are customer opportunities some this, Two with thanks from your seasonality. do market, do perspective, get challenges if continues still this are Hey. shift sort differently you yields do you Thanks buck you like for about might are more of shift a talk perspective we with you United new? leisure of management and like you. maybe guys relatively here. the Thank and dealing the in more if for And the this would example, for things guys new of for a in to the on same out you then, bang which of sort me a behavior, relying what overbooking can longer to things how Polaris fitting managing bit and launch, need questions think term? Scott, be love like long-term the bit I on get short-term little going to the little Andrew,

than They both domestic. I adjusted. the What are further international booking extreme is would domestic the out, more booking and Sure. have say international are curves

as keep we and we has moved adjusted on look very, managing systems inside yield in business ahead materializes the a available so in part is we XX That in to has two have plan. we RM the global RM that our had there we weeks think to And to recent the also it days based that. me do possible very XX result. days executed long-haul load have are outside have higher bullish factors closer closer demand run for And systems expect of it’s we now. even accommodate as we capacity and out. more recovery close fill greater system entity going were quickly, I of we of in able are strategy are being year. as we curve. there that – There change and will be as extent back the points booked adjusted X booking makes last in right to were to that the domestically significant business said, Domestic right this, in domestic is we QX are of this where to think again, our up for last we at And right That’s And in these QX. We the have lower yield our seats do in And strategy. in the business. think some

an on question. longer the term, And it’s interesting

management during that huge things it best the things none And not more near-term, system leisure these that that about most do made the more will the to investments generally places of do, We management. industry, things shift, pandemic Florida, things, team one included are pandemic. working the really the that true. we revenue see just they really We is the about talked the talked Andrew are the network. fully also another straightforward And didn’t in we pivoting and revenue business fly well. our is – demand. the wouldn’t though management obvious like one surprising. First, I is what the that to with conclude team destinations. of have It’s we coming revenue but appreciate system can happens obvious Andrew seasonality business in happening are In that’s into

Polaris things we while about talked premium a also Andrew lot leisure. traffic that internationally, of flying fact less like the have we terms In business have more Class,

any one could anticipate, that’s radical deployment, shifts more near at wouldn’t the term, fungible in strategy capacity for than have mostly us and of the I anything probably do. come So, least in in which assets, relatively to terms easy

question [ph]. call. Claire from The Buchi to comes media portion of We the will [Operator first now Instructions] switch the

is Your Please ahead. un-muted. line go

operations. about to summer Hi. ask I wanted

earlier You mentioned New avoid ask of a this cutting I about of to flights changes repeat what disruptions summer? York in in call. operational to summer the making the other United last wanted is

Hey is a Claire, we done have this Well, lot. Toby.

and York Newark first. New about talk Let’s

gave So, with a we us work the the waiver for summer. FAA FAA.

are at times So, and make that’s going big Also, the not difference. to a said, we in are per day like only one. peak flights down about XX we Newark Andrew

can sky So, at the hold. time be least airport actually day, actually while for blue long first in the New capacity we in will on what a of York, scheduled the to a

in And to and that. on Andrew actually top we gates are New terminal world-class a a there, in normal we terminal mainline terminal. last mean were it’s bullish mentioned fantastic his a XX And replacing are if this XXXX as So, well, of been that, on really year. in [indiscernible] that haven’t you guys going I brand-new York. it’s terminal have we the new remarks in

up a right to that’s going improvement. huge right bat the be just So, there,

if again, guys well actually actually pretty you last did year, – last thing summer. did, we other The United remember,

of X other Air and I And think things there are two actually Munich. are especially Europe And the in had to biggest we all actually, biggest there. in weeks they Force Frankfurt issues infrastructure, our Heathrow, was talked ahead year the just the now we ago and and Transatlantic. hiring the all the

and that for open actually this open Amsterdam Heathrow be terminals Europe year. others had not and are to year, So, and much, better year again, and It’s visited, open, place up. even in both this peaked we Europe perfect, but year. in the mean a they I it’s summer, large is in much, were all in We last are business it’s and we wide we going terminals much open traffic were than last

So, are we – we call we – are summer again, it readiness.

tough place going last lightly. we much in to a to better have We It’s is base toughest Bowl, some Super things, were we taking it are much, not going be but really time operate. are the Summer is and our to than with weather year.

were detail that had the maintenance I of just – any aircraft. that They trying just there us? Delta said on they you expected. turnaround were flying time less reduce Is with than share for they can that to

Well, I I take too. – that, will would just

We have already done that.

of advance. And that’s why not XXXX, are in we best we buffers our because prospectively others we curve, in about ran we in that, those but talk what the we up catching country when ahead So, to quarter. best country the were first to that’s curve. of the operation operation And led ahead we it’s own that are the built in and the building and in the were like perhaps

Thank you.

Josephs. comes Our question Leslie next from

go is line un-muted. Please Your ahead.

for Thanks questions. taking Hi. my

and on you And kind for of that? and many get successor this was the you then and how of have do are years those to about many launched how expect outlook thinking retrofits, to And before? are expecting XXXX? been you it’s curious curious just since you if you Polaris almost the year what the X how were Just

somewhere the business on the United of are across I somebody I don’t numbers on always and not is regards teams I great That’s Okay. functions. to comes question working to we latter and and something here. our a all when sure other the it seats am have it will than answer In innovations good leave working at And at question, that. will retrofits,

IFE things systems, we converted day our we business. be first ever challenges somebody many But would the more seats whether the back. and across call be reality chips, been challenging the are have just you We other supply will than have it board have is any our that hopefully, be lines weeks, few in will interior, we and it in And flying multiple while this doing summer. now AXXX new a should the they

retrofits be the So, and just you time X the with we or years, increase by going than in see a longer is to number will aircraft. the interior to convert total new unfortunately, aircraft a expected, through probably through of all be rapid aircraft frank. to The year signature

material will just had intended. will little we than bit But progress. there. get will a longer So, see originally take It you we

get will to the of you year. We end by the out of this separately numbers some

premium hurt at people has And to all for are United do your because that you revenue booking or those expect up it features? choosing that

signature longer done. rapidly. would an on to up tail of United the I is little a the tell take aircraft, going is to of what you interior getting going this No, go get the It’s increasing to that is just

slower and from products coming brand the services, think customers and it. our And the our how going to be we NPS as hoped, but are excited see definitely aircraft little already It’s are our on in had So, converted ourselves people we a competitors, and get I we we it possibly than can see investment are I noticing lot aircraft our the as more We quarters. to new it quickly our bit to in and a see our they know are scores going differentiating are done these already. can. it

Thank you.

from Sider. The question comes next Alison

is ahead. Please go line un-muted. Your

any little a wake doing could if handful I mirror collisions that might about Yes. the the in that kind United wondering Thanks. bit be of the that you like are talk was you has of of are there any anything industry you been respond on? theories seeing. about do Are to to what’s – or taking been you that, steps particular have going

is safety So, industry. that’s proud one not And in professionals across particular, about at of aviation DNA number appropriately deeply Airlines, higher that embedded have, safety. just in for the industry is of so. United that is safety something priority, everyone, an when of I am pyramid tip United, at we terms at order aviation and level the talk the our whole in others but any that top is magnitude which the least than the of of

where good is, quality of out job or coming training. COVID, really a working the time it you air is training, back or think of controllers training, in of of environment, amount saying and new whatever I in the people doing Our and team, increasing there new is airports are today’s traffic in

as feel and need person lot many fact, his more Mark have what he about Mark being put time of in world entire in aviators. President, for for And safest been for We and is career the for and that really guy into a even think named resources and to money that champion having with I push are do because keep resources already system a leading more needs the And has stronger, Champion are have new he there. do system steep one a have Vice safety we to continuing role we that the he his good and to as whatever on we spending doesn’t [ph], and interest budget the there been. where I and he this to make make a our who the on training a charged is that exclusively responsibility we the live to responsible quality can to as safety sure always to

you when data, potential and trend in of you incidents incidents newness of like your So, look sort that? between like or or any sort or people see do of the of kind some anything own any connection of

about things we of Well, great we and aviation data. share one is use the

leads there that of look it’s industry to [ph] because has safety that sharing to own are States. safety tolerance, data to accidents great it report our decade is out means to encourages close have and and to where systems standards. the say, that find to guess have can reporting what without throughout well tolerance is aviation that the in is employees United our We repercussion think I a the over a them a What unique I that for, higher across since been, been strength we

each always, better. of have no we people. continuing competitors work get, we And that. the We we teams don’t And always get well, looking even and That people our on as it’s on data have of one, that what’s always, for other can we are process to teams share So, doing well. this how they good next the matter with compete. place

we think coming out elevated great responsibility headed. are we feel they COVID and have are sense as of I an of where even about now right

Okay.

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

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

conference. concludes This Thank today’s you all.

now disconnect. may You