United Airlines (UAL) 18 Oct 232023 Q3 Earnings call transcript

Good morning, and welcome to the United Airlines Holdings Earnings Conference Call for the Third Quarter 2023. My name is Silos, and I will be your conference facilitator today.

Following the initial remarks from management, we will open the line for questions. [Operator Instructions]

This call is being recorded and is copyrighted. portion without call the no transcribed, be that rebroadcast or company's note of may the recorded, Please permission.

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

terms, line. If drop your Investor host Kristina the with Relations. not call, you to these today's Director do presentation over off will I Edwards, the for now Please turn agree ahead. simply of go

could made is forward-looking factors to materially All our Holdings the United Earnings and of Airlines company's other future available Conference the refer current Airlines results for ir.united.com. Please yesterday's and SEC XX-Q by during information factors. reconciliations reports expectations. statements release, call and differ cause and Good this Silos. beliefs United's a and to company. A number release. actual you, earnings at events welcome release, our basis conference upon otherwise Please may United morning, XX-K thorough the with our to to on filed call. earnings from on these forward-looking definitions everyone, which our statements, Yesterday, a website which Information to concerning available Call. discussing release Quarter or expectations contain are remarks Unless represent performance. financial Thank metrics based press of we description and be this noted, issued current we currently XXXX Third non-GAAP related the refer in our financial our more and will on in Form the

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

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

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

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

today that the innocent start in by on millions we want by in are saying attacks how I and the harm's Kristina. region to of horrific has conflict you, Thank Israel escalating heartbroken way. people the

world, our Here strikes and use to at United focus unique help. around can second tragedy first safety capabilities how on we we anywhere on when the

service and Aviv, from we were flights Athens. While to our to U.S. where operating connect we add to carrier suspended between first Tel Athens Aviv Tel the customers airlines extra

We monitoring the with our [indiscernible] flights outgained continued for touch to dedicated ground added on we Aviv flexibility to Tel as service department scheduled from regularly staying the Athens, tickets possible. situation a in soon resume state and customers can Tel desk, support so maximize closely We're close as to also Aviv. that and officials with

in a We globe, play United around look to expect region and past as of in the humanitarian we the forward the the in role meaningful crisis cessation done to continue to the we've violence response.

the team. to want to the welcoming I start by back business. Turning to Mike leadership

customers and of her the Kristina You no-excuses employees, as also him XX. all to as who committed United have shareholders. as Under well my from partner that recent I is agrees Chicago with to him in work for congratulate making XXX% excited to announcement approach Crain's for Top I'm a here one who know XX our want

is and solid is another expected, third milestone we we that growth as The the profitable. quarter was demonstrate United adding Next working to are

our from why to very It's results. Though the see this clear quarter, encouraged fuel numbers. about spiked we're

quarter grew it $XX.X top-line XX.X% our highest the history. making in to as Our revenue billion, third

produce us even in It's in plan delivered results. track with on solid revenue numbers. evident demand to variations have better also both absolute streams strong operations diverse our were and costs as and September. Our allowed the August in we United's also handle this for XX% strong, absolute quarter XX% other pretax building United's one expected of is industry's and profitability. Even model relative in even revenue the account impressive environment, tough growth to and diverse a the over industry industry more United airline margins. of total total relative

So different? the of a also EBIT, an us because revenue to global size loyalty most what in details industry-leading opportunity earned starting at our future. significantly this XXXX. therefore, significant more program but and the generates loyalty from in Investor is that to world is directly First, in customers a do early network, diversity Expect on our even significant makes with attractive front it more it the us about hear program Day and lot for

network complemented Second, we are international solidly largest have by profitable. unmatched geographic long-haul a large network both the domestic and diversity with

it a margins While to the the this of risk seeing attribute, Israel. result a quarter right in we're as volatility this tragedy and with is transitory as hit short-term great does some create now

and we it's appeal can leisure increasingly market leisure found also the customers to add that both at more business Third, the destinations. that we fly in in as core travelers, well. our now nice markets momentum us and been see to got leisure We've recent both leisure lot a and business surprisingly have but capacity segment, agile to in as not seats customers pivoting

fourth, us but compete is the Polaris move in the and economy, improve leisure efforts. United which of we making, segmentation give to continue on choice long-haul This on up project almost domestic capacity markets the driver end our consequential the to to a when strong in revenue our from decade all the way way is relative a ability our to a allows able to real performance. they're the Our basic international, price they low want. all strong is customers And advance and profitably on

share, operating specifically that thought improve a capacity we allow time that results. By would makeup medium that's shakeout expected. XH Next our demand my going win margins one thought guess that going see confirmation thought would domestic we grow than to term. international but environment way, We the in short, in timing straight tracking difficult. make see medium to over it's forward? been to improvement will happen and past In meaningful revenue the in of to now happened XX% it's what would bottom leads I that industry everything is worth, a And believe the closely So our what an We these lot impossible is domestic ratio airline industry every up, and United and working continue we tougher aspirations also what faster the higher thought It's GDP growth. cycles talked the would be be that term. connectivity, that a about mean as for the through as market relationship. short our by We be that United would career. to gauge to But approximately long goes than the United that call decades. I does declined also industry don't that all I'll even expect grow line. past, that But the happening, the think we that we to changes I've few in And the almost to has about in is this single but do we've exactly. we'll medium-term 'XX.

producing United best industry of in something a connectivity history. ability the our here. at streams while lot environment, and along results the in our well. special I'm relative our We a absolute with to So have results creating United believe in proud conclusion, we're with United. up, tough Next of and revenue We're strong producing team of engage positions diverse we catch runways ahead us Even

lay and foundation We lead our going United, With also expect customers, that, the to structural over changes stress and Brett. to shareholders. for the our segments that the better I'll even for employees, of it to that current turn future industry is an our

Thank you you, Scott. each member to And the United thank of team.

want acknowledge At to top. United, is the tragic I continues our to crews top the also and what safety is our to Israel. conflict us dedication Your customers. of priority the propel in

monitoring We are closely the situation.

flights coordination until with the Tel Aviv have Department, we to and we waivers our While State impacted suspended October, customers. of end are offering the in to

situation Last our along to detail relief our for these impact continue changes Newark advantage operation needed. Mike congested more hedge on as the schedule we investments of necessary provide announced to to airspace and region. will monitor including highly the will taking better waivers in disruptions, reduce We at quarter, shortly. FAA-granted the adjust against of flight capacity to

While quarter, XXXX. delayed third July The and waivers helped proactive down reliability improve the Newark ATC-related were weather to was measures In points avoid month. difficult quarter pre-pandemic arrivals versus other of delays. a third XX levels of the

ever. in successful minimize Additionally, traveling in our and of any quarter allowing hub history, airspace operational we meaningfully travel FAA schedule throughout at the Newark air network. cancels granted the that of flight enabled reduced rest a August the help New improved by to of September, are and waivers while proving be have August, In flexibility the in resiliency year. largest York delays and had The through in for to extensions will maintain Newark the operating our experience schedule reliability to wide-body waivers, the international our ability customers and traffic the the third-largest fewest out at ensuring

system to our Looking operations.

grateful carried During to and August get customers Newark revenue September. employees who make passengers their safely our allowing daily. hard DXX necessary The our FAA to and over destinations most quarter any the in in in time. worked customer We're in history. XXX,XXX quarter, we and system work us top-tier thank The on United's the adjustments for to to

to XXXX or recovered capacity beyond. levels most our While network of has

China a Shanghai. San that At month, Our to were Francisco network a been X to we week recover. we operating flights the start And this from quarter, the last has flight. of daily increased to

contract return continue approach daily demand These great of execute our United, back Pacific from appropriate significant excited to At our first for to forward ratified as as future United point, in U.S. step This in month, bringing continue we We out the groups. agreements flights rebuilding and online China we enables industry-leading Late Asia agreement. X capacity airline last our our San opportunities Francisco. us to we network. for this to measured a this the believe be X career recovers. plan. Next I'm slowly Beijing month, major pilots increased X will ratified as their with providing work a to are flight

attendants an have one. represented Flight we active sharing update forward by we in negotiations, when are to look and AFA

of reminder, we rate for pilot in quarter increases accruing a the As year. pay first this began

expectations agreement. will I for represent and continues it discuss to this has our And outlook Andrew revenue hand environment. that, with over the to to Our

are down for in Brett. guidance point to X outlook, Capacity changes increased the was came XX.X%. a below increased to the validates down we midpoint. TRASM our year-over-year. working in well our revenue ahead X% outcome bit of in ahead come response the our due as our Thanks, of that fires. quarter mostly Total Hawaii strategies XX.X% flying revenue further X.X%. Next the capacity our from outlook United competition. United in PRASM was third QX nice that to our original and differentiated and levels commercial have It's strong

and that Demand the truly Atlantic Pacific continuing into for was the trend we and see fourth outstanding, quarter. the

Third-quarter saw no year-over-year we our of PRASM performance review. points. In consistent quarter-over-quarter real in change domestic down second X.X results trends words, the domestic quarter were our in other with the in

Our International strong our focus resulted though international International profit increased positive up ahead in profitable. domestic on did remain on marginal of revenue domestic, International by flying. of gauge majority solidly focus margins well X.X% in hubs XX%. prudent was year-over-year. capacity on PRASM growth capacity. We centered our remain third-quarter growth margins incremental a our

XX% standout across with of Clearly, saw a with was strong positive and also PRASM performance We up the most capacity performance. being globe. Europe

led international up Pacific capacity. on X.X% Asia XX% more PRASM

outlook fourth the quarter. for to Turning our

total We approximately on XX.X% XX.X% capacity. to approximately revenue be up expect more

will implies year-over-year. down be around This X.X% TRASM

accounts United's limited Aviv for to Our began Tel Tel guide approximately of consolidated service Aviv in began X% we assumes capacity. November.

revenues, many are in the we is many increasing for trend a United's in adjusted flying long-haul international being As you wondering the QX QX about if the think sequential X consistent versus Resurgence of added, are flights with points we expectations slowdown. are unit United's of long-haul seeing revenue I Pacific QX. stage. know by stateline resulting unit

scope over Having added business. allocated being in best domestic team or United advantage Beijing, markets, across has capacity in international our just our not career, we plans United of and not domestic that this new X% said markets flights United's XXXX in the wisely to in Less Pacific surge San full capacity my including entire the demand properly than capacity from key to daily addition have the few. the of the long-pending growth domestic for markets, and and invested Manila, to the of resumption a Francisco taken winter of with in to I done Shanghai in name is depth. XXXX. gauge, markets, is

even goals. our important to planning achieve be financial more Capacity will for XXXX

While we're the we 'XX. XX% let in expect 'XX level have XXXX. mature capacity of XXXX growth added today, since fly going to And guidance for plans similar to a XXXX in not to the Atlantic provide we've to as

of on to to preview also We little align industry half conditions. United as plan on think, capacity, we next commercial our continue important other to produce will of with no I top-tier to today XXXX This a first year for domestic allow as wanted the well. flying. results I few elements touch on growth

our changes much of premier most Recently, premier situation flyers everyone valuable news status and the XXXX is United. The changes each has for asked question premier We've no obviously results on in premier we frequent which often by to very good status planned about benefits the achieve to We receiving year. maintain for our I an population one get adequate set program causing have never managed is material years benefits. potential carefully and a member. a in no a level believe recent robust of premier where

United premium than more competitors seats to Our frequent flyer premier loyalty value is of members our program. our the access of enhancing offer strategy Next each

premium of many technology. on recent of products, moment our types to are NDC hubs I we effective but located. very where premium also to When products growing segmentation. United appealing perfecting new, distribute at in products on segmentation range of our focused about broad didn't back XXXX, we our I to is, our course, also take really a offer our years. to hard and customers have look wanted best more products of pay was customers to in we We've product for. worked ways united.com do all multiple of only by United given that have were a Not revenue where simply talk willing

our revenue Premium all Next We and Xx Plus segmentation has commercial this -- most replaced Plus aircraft XLR AXXX of our Premium on XXX we're Premium now cabin. jets, put is a now a up plan quick capacity in and disconnect to Xx and XXXX, XXXX. new and our best on international our will in third board XXXX profitable correct that progress. is of of which starting one with to United making our place XXXX Plus been plans, is is success. huge twin-engine onboard also quarter with United offered be in examples

we other of seats United's customers X Another domestic first-class important class. We driver Basic represents to revenues in our an our has the in first market jets of passengers, comes more increasing XX the plan future made competitive and elevated segment in to the departure expect and our many from large the now as in increase arrival of domestic experiences. Basic and giving increase. This has are United competitors more XXXX seats even in versus to this premium first-class been the the our XXXX, XX% of more of products. choices. XXXX. is more with Economy economy of ultra-low-cost XX% narrow-body per in success XXXX product compared Basic and our competitive side spectrum on customers by more be seeking

jets with These to low any competitive United at time. be have price marginal anyone allowing new CASMs

has are we only in the of stages While jets, and it the of industry. offer dynamics to time our changed perfect early inducting these took Basic competitive the

and from are it's of also to pay premium Polaris club experience United's providing choice product business and willing for. basic travelers multiple product economy increasingly to network, travelers United's think grown that becoming I core choices, for choices care expanding levels model

domestic positions… split and between evenly network leading Beyond our capacity, global segmentation, United

that continue, view can brief interruption, of In Silos? we

standing Thank by. you for

We live to are again the now audience.

ahead.. go can you Andrew,

convergence not Thank with come providers. create gauge you. United I'll to our for low-cost cost in resiliency to revenue just hubs achieve. a United in add other with business ability turn just diversified provide the years with streams will growth unmatched RASM-accretive with models focused our ever provides

it the to that, with the Mike. And I team again best in off will Thanks business. to hand

And Thanks, everyone. good Andrew. morning,

strategy a want the are dynamics new such excited I'm believe role, the incredible constantly our to see conversations changing, finance Next the no-excuses transformative community talented laying success. take team with I get mentality say to are forward my and I to I United ahead United. and lead the look to continue I the in continuing United. with for executive thus honored clear minute foundation how for far investment I've here at and a had into team during to Industry excited We and join to the opportunity I United the am Before results, time.

turn to Now let's results. the

For earnings pretax $X.X of of XX.X%. billion pretax quarter, delivered and third we margin the a

Our ahead great are our guidance our midpoint. expectations remains the of team in earnings truly amazing per business. a volatile worked ahead revenue best work. share of Thanks point growth us $X.XX the to against came in and the Fuel as full of was commercial the quarter. their at They for

for our price the the than Our the $X.XX of for outlook expectation higher of accounts ended entirety quarter third average reduced for the more the midpoint fuel quarter. than and July

on XXXX. CASM-ex the versus Our third up of remained X.X% track, quarter

Our our our this events been outlook Tel approximately market and operation X% the represents materially has impacting as recent in the Aviv by impacted is capacity. in region of

to For year. fourth the X.X%, be up capacity quarter up the both fourth quarter, CASM-ex last we of expect approximately XX.X%, versus with

of associated flying flights additional Our would the to suspended changes of related close expenses as capacity end for and up by points We're given CASM-ex difficult in. These X.X pressured the it's team. of this expense Aviv the just full no it has industry the approximately add year, result maintenance the an and above approximately United points guidance further all for X.X our Lower and year. CASM-ex year, CASM-ex so our Tel faced, along XX.X% operations end with service a our the below work the are to to high the through October. If proud incorporates bring around of through capacity cut year-over-year us to of reduce very headwinds testament huge full our guidance. that range end of hard the elevated capacity pushed

of earnings would of with per flying fuel fourth-quarter rest share fourth Absent an our reduced $X.XX. quarter, our Aviv $X.XX. by Tel year, approximately expect approximately through the the share the per price average of be we For earnings $X.XX approximately

XXXX, our fundamentals about good Looking of expenses. ahead we the to core feel

facing However, expenses. a labor higher with maintenance and of along and attendant we in headwinds expectation sizable capacity flight believe as expenses. improvements agreement are we growth, our manage with new continued helpful our tailwinds are utilization We

our through projections our XXXX financials, call. working XXXX we'll our and are our for We customary on budget CASM-ex January new and provide and capacity, other guidance

we in XX of and with aircraft of the delivery for On third fleet, the Boeing MAX quarter, cash. XXX took XX aircraft pay those

as in already on Managing be aircraft the we critical. approximately decade. into AXXXneo for the delivery have month, year MAX to XXXX seen quarter, with reduction fifty the Airbus of options is of exercised Due our Earlier our sixty aircraft the for to delivery plan announced confidence took adjusted versus of This first we for beyond. fourth United extend aircraft these the last next half we our expenditures in United and for expect take XX XXXX, July This successes full in builds delivery second shifting for our we to into expect Next week. planning delivery capital our this and XXXX of we AXXXneo year. of We a reflects and $X is now order the billion. future skyline XXXX the and XXXs

important cost XXX and retirement simplification these later decade, work and as towards opportunity. the aircraft capitalize fleet XXX are With we our additions reduction this on our fleet of Boeing

We the Turning revolver. quarter billion briefly in almost balance sheet. to including $XX the ended liquidity, with undrawn our

unique results our facing industry, end as prepared remain challenges. financial an we recognize to important today, it's Before remarks we new while that our are and strong,

AXXX gauge relative that's and XX has from the growth come and fleet. performance, our additions helped to we accelerated we MAX that deliver us strong cost the will begin growth the even Our XXX expect before

industry-leading that, also with are our profitability. performance. cost on convergence We PRASM. improving this form will and hubs, United are a There industry. great over we're future. growth foundation the has I'll to continued the be our facing and for it enter continuing our growing always committed to Q&A. hand confident momentum, industry-leading as we XXXX, deliver And But Kristina to very to because is cost will And I'm absolute and start headwinds bright focused With

Thank you, Mike.

take questions Instructions] from community. now We [Operator analyst will the

[Operator from question Instructions] comes The Jamie from Baker JPMorgan. first

probably is drivers following own loyalty, and [ the low-end those such a a time some up Scott, Andrew How How maybe chasm consumer much recall selling in domestic at order LMAs on remarks, can't is yields of when rank with the advance. or ] would too prepared the how just So much for basic reflective I you there's of of is maybe LMAs. United, your How economy, are the been this? out success of much weakness? far between

Just permanence trying to the assess the phenomenon. of

great. if could the would that you be order So drivers, rank

the Jamie, try, is think I'll but of the little that them is a see exist there's we models I anyone a your in do order years a let's try may what what rank today large occurring questions that can this And start ask difference past today I I to think such could most off that there's would question I do. business. give mean, one past. in of important really business difficult, versus clearly, a because didn't be range

airlines times margin, assumed even outcome which right? more least, demand, carriers It carriers, legacy past. thinking lower creating ] equally that QX the I are that many so anticipate the be at all on an the pressured post-pandemic. happened will at losers models that cost [ was most, clearly telling would at be are these widely And many in and in during call rebalancing and XXXX the -- was did pandemic. Clearly, was so, call industry of a best all way shrink, the would higher for time us supply domestic has winners that legacy not margins of challenging the you

times the to wins can't number I The again? heard the cost that not race, why airline So of lowest the count. I with even begin

up So first, these airlines clear, what I the be seeing unprofitable? just have low-cost does to so top-tier we're United really domestic of has this paradigm cause so that sets much network models shifted United today. Why Why want about and are to kind business profitable. is results change

it's outcome So that's global creating not simply great this our for us. network

first is pressures The of our for the higher rank number gap to is every inflationary with course, airline carriers' And fundamental it one. just issue, are that shift about Mike talked cost, lowest in I cost cost manage the cost to converging. The legacy has I United shrinking carriers cost clearly structure would a industry. guess relative

run like we of your You to that's XXXX. utilization High having and said are ingredient And today. large it's certain was success not also models, simply for impossible larger be in labor difficult a it much where critical Low-cost possible like is gauge to plans cost them operate It United. lower differentials for are to carriers a not drive will high more already. cost with very possible. at gauge tend also airline materially

has in increased that is and come. since years to more gauge plan airline XXXX, push United any our than even to the domestic further

really many It's in our the large very of evaluate some middle mistake in 'XX outlook, At that issue saturation easy with we our model graph, equal. often to it's in is to about think for talk RASMs and QX. Market performance difficult is again of and uses ASM proved of spreadsheets marginal did that low low-cost business revenue every not Another in everyone regions and the should we XXXX competitors. I certain United, just is created for to we it growth creating point our made early this right?

XXXX. revenue in In gaming generally only just operate can or are jets low-cost to the of marginal so model such percentages large benefit and the the Cancun very of period Also hub-and-spoke many low-cost connectivity model, very large competitors with these negative. plague fact, shortcoming, short a and this of smaller response mismatch many down without with must of to model our in our let's for so endless in continues XXXX. competitors opportunities more of certain growth say, absolutely to markets airline many add network expansion than no will type connectivity other in markets and our growth No view, even we business domestic in creates the time. XXXX, models, for would the ones seats business Florida, are bad save of with Vegas medium-sized low carriers saturation plans gauge in are that better There can have equipment into XXXX. of that have marginal business support team low-cost connectivity have be expansion but lack in doubled markets not of RASMs. Market marginal XXXX the a good

gauge regional never mismatch achieve. stability markets diversity in add the to factor long-term rates we United, fourth has And model of This low airlines a percentage in new this now. United's right average. of X% business the the of growth other times The accretive revenue created less in think its as an absolute we is is correcting have has The domestic in of capacity will plan break. provide can growth by what the single-class And quarter that always designed a markets us is been markets. cost high-cost that fast new about to growth that these streams simply overuse strategy At high is passenger that versus United below Very without entire than happening nature capacity earnings revenue -- new create jets. is our ASMs have a of one-dimensional quarter, fourth percentage of 'XX. maker. maintain is friendly ASMs best capacity, which difference this by and

increasingly that's array to premium cities markets options seating big have We as we capacity fly of fly in travelers. We and global products, a of We domestically. range do including with popular small. our as much

has have and less product than margin United's higher cost time the generates added, again. more time now gauge and creates conversions a a is we United's others. complexity by traffic in and model is support business can growth, to gauge business United's more We accretive significant less replicated. revenues that proven we've be will United and once that higher advantage hub-and-spoke between of send model. cannot great and offering just dramatically more disadvantage. and It structural it create cost the The not fact a XXXX. and complexity

legacy and that United grow. excess past, happen. low other with United the the not smaller, from In it time creating emerged not the to carriers plans and that time, margins. around, resources This This for have others other is will crisis

see the won in the on not focus plans. will day We United's results. global has clearly markets in you that adjust and can our QX,

Our domestic focus as past. right in others gauge longer as the the We'll much on we've no one. to is done absolutely revenue spill

on basic be more focus to fares means competitive. even be we'll Our able

long few and will out come truly are diversified top. sooner other the lot will the revenue streams moderate because we're a a I of but in are I didn't And variables. for we there's you Pacific or Asia was other I building line may past, Jamie, the as plan, domestic may -- our later, going XXXX similar few be growth want... confident first the focused have see to exactly rebalance it timing, our But that United coming, the United on like the know and where that has there results. our short-term said the strongest a maybe with of to a off quarters half industry others in on timing way am earlier, I to rank off, and be the done I say, answer.

the suggest that If really follow that's let investors But can. a optimal quick great. but airlines spill do amount me the me with carriers of at up than capacity rather appreciate it. just about? money I we're full-service make keep can't oversupply asking actually that domestic Doesn't philosophical question. Andrew,

kind Andrew. answer and headed, It's great we this XXXX. guess I margins I'll for By this Well, was why on is feel of is, I at industry at think comprehensive. profitability. growth about to of there, statistics industry feel a feel remarkable probably going hard sort we then the be confident. and a the overall of follow what confident that of XX% recognize we're time try quarter what Jamie level, what the That me, market now. the high everyone airlines call is about the X different we're of means We one of that we really really very answering in without I question the this feels. said so or feels But And that to out revenue Andrew pretax feel is where capacity, XX% to most just this,

to end, leisure we've way be fair just had on can't can't the to a to airline. premium end. what across through just service that just product low high that the board. for do to We tried the airline went customers all better We to We -- but be better the low create experience We is airline. just was model. have goal an We We a can't for And deliver products all were better be need a the create try airline. customers. down we

not that commodity. I is believe air travel strongly a

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what have of on getting are product commenting growth are are is wallets working. almost the their service voting customers and without revenue those industry the differentiated total growth all and to with is experience happening So models what is, that

Michael Bank. next from Linenberg Our Deutsche question comes from

higher-end order Congratulations, guess current recognition. of the your to end, mean, your kind it's and to on I'm significant. when going to other Mike, top-up your call Kristina consumer. that promotion to just of XXXs, caters think about on it I the And the business recent adding the I Scott, order, go side your I on the Yes.

your United thoughts at maybe carrier. of there, the thinking the of we internal wide-body are wide-body for a Is that? be given makers whether on kind of OEMs, manufacturers out decade? actually in the one of shape this I least U.S. could some orders largest at or half it's just the the that shortage think it's the engine facing the What back

Mike, aircraft a know. narrow-bodies, as production it the try. as nearly I'll give wide-body do for jets don't many as lines you I produce the think

of decade definitely and in wide-bodies ordered And we really that So to are beyond. confidence our as our part for to particularly latter But our but are it's confidence there point, be global XXXX growth. the produced. not that not we in the to the are to the domestic and pivot going many growth plan, going are it's just more increasingly

use we secured And so confident those we'll We're them. positions.

a XXX We significant of some least sure. at at need fleet have for XXX for to retire and this XXX that point later the decade,

we OEM the brought long you issues Again, And We're of some it's the to XXXX of just confidence into we in with into and and decade. that confident up, in our for we a that this number are and time really we sense. confident away. global made growth will in It's to part the the so that will latter just have beyond. the lean the want have, But plan retirements plan. that, of lean

Mike, this pile is Mike. on. I'll

delays persistent. supply become in chain, the With they've the

has controlling And time so we're in firmer of is of is strategy This us to than that a has term. a historically. gone the the out footing skyline what been longer putting from we period plan Next putting part for to industry have fire United doing longer on fire past for an and industry

as I that see continue been highlight we'll a, playing right. And us contractual to the see have probably slipping. continued And to expectation internally, pushing some the see to you they've want that. -- dates, we'll you us delivery So of

those that invested will a on mistake, times we to and we take returns aircraft. delivery in no capital pretax shareholders. adjustments way the make addition And the in we of to book to on as focus our the make margin But order delivery will return maximizes our

follow-up. one And Okay. Great. just quick

proposed sort know a cap maybe regulation obviously any any of it's go I through TBD? fees. maybe but early credit process, merchant legislation, a it's this or on around proposed take cards has a thoughts on it so it Just to on and early maybe

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certainly a customers like Our lot. them

so vote. And program a be the anymore. rewards And voters programs are that in to by of And it bad rewards with card think XX% this to exist vote of upset debit outcome your kill I be We happens. that think kill would way, Congress it'd that not going I when take policy. the hard it's a

small kind there's also actually I card in with card couple the mark bulk understand I And I companies, this credit probably is in and -- small middleman And But misses businesses with small where things. issues is that's businesses. the are the between of credit businesses. frustration market are. of small businesses. the banks it the think the think just And the the a because of

basis points. charges as charging Some some as of middlemen points, XX those of businesses are middlemen square XXX XXX little those charge, and or basis

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Conor from question Research. Next with Cunningham Melius

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comes Our from with Goldman next question Catherine O'Brien Sachs.

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question with Ravi next comes from Morgan Stanley. Our Shanker

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Our Wolfe comes Scott question Research. with next from Group

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comes Our Evercore from question from ISI. Pfennigwerth next Duane

to the on was Congrats queue. you so I'm interesting. Basic here. pile I the the Economy, kidding. I don't did back up congratulate going want promotion, but of step was on, in I'm on to Mike, given just far the No, disclosure on think kind but I

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Kristina, congratulations.

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comes Our from from question next Barclays. Brandon Oglenski

Congrats, Mike and Kristina.

can it's I to you want not XXXX, get a mentioned I here. but long know also more domestic one just I But been in into got you're call. capacity, So technically know I Andrew, think you should prepared but your that? half that. much the the in maybe And driving of in we clarify pretty remarks, think, first about I being it believe year, flat, what's

next know upgauge want you strategy, to did I under domestically. your Because

So are concert mean, you I pilots, this OEM that's that? seeing delivery expectations, what commercial? with in driving

We're putting our together. plan still

and I have remarks our -- focus. I words, would overseas that low efforts that really it's growth -- in to that's we're exact on focused really So at on into did Look, going Pacific, we're and point. so in say -- we want commercial say type particular, but well Pacific But just capacity, execute my I forgot prepared the slow of my final. don't domestically. executing South where the opinion, across to this And are and the our in

said, few there are As Mike a constraints.

and think leads outcome issues the we all our right for that early we'll outcome. to of next a And OEM in say And it's for lot year. to capacity that have more We XXXX. have kind

portion the switch Leslie We CNBC. the will to [Operator of Instructions] call. from Josephs now media

supply changes last wondering seeing made many if just context if how kind -- since seen those month? I And push can also upgrading then are and on how of the when your things you about are behind you talk you a little was currently and Delta you've catch put requests those premium, on Status for into chain matches expect cabins to you bit up. you to far

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Thank Andrew. you,

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of basic just are XX%, they're now? Okay. is wasn't the -- and on buying customers revenue spectrum Or price-sensitive that the I And of what other Economy, more sure end with Basic percentage your economy.

describe aircraft more quarters able the passengers I we that share say, previous I I are would all years, accommodate likely fair and beginning, and a of of didn't passenger it share the but lot in lot we happened. different we have as And to more flexibility, it amount large we're types accommodate would and those now product just adequately. shift. Leslie, And probably the a think and to shift gauge a have range types

Moving to Schlangenstein News. the caller, next Mary Bloomberg from

any whether in to areas And you ask be to you to wanted I about to over or Europe flights serve? because already that's are you the perhaps and cancel that where other may you other Israel. other And that of spread if areas you're some might away of cities to have poking where more seeing countries that worries. situation even to potential assessing shifted for people

at all. We're not seeing that

Bachman Justin next Moving Messenger. to our caller from the

I a was if the where industry American we landscape bit there? just many of that hoping And point to that see elaborate a situation facing far every I they too what expand that you on other wanted suggests where does is for to more wanted there rest on the as able suggest might to niche you could where be fly or just I airlines go back over out are -- what Scott's become that, to as about and changing. industry players, Delta smaller, if time. the to United, chooses do

to proving fail. going think product will about of going the in I And if that, it to customers but service. because don't invest that suggest you're are quality what succeed services. are And that, and do and that, I product is think quality, I don't care airlines we think you

as I'm a And to Justin, this customers cost provide a to incremental ULCCs is better well. able point right? At we point, product. we're at seats has What and changed to this on with going is in provide that jump our the convergence, price competitive

product are at to so getting And similar and a fly started. we a customers are choosing just better price

what the been? understand trends does just X X, fully years, if if movie that. Right. continue those I No, continue that suggest in thinking, don't for have competitive that as you out, play and things landscape I'm they X,

those for question a not for us. That's airlines,

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

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

This today's now concludes all. disconnect. you may you Thank conference, and