Delta Air Lines (DAL) 10 Apr 242024 Q1 Earnings call transcript

Good morning, everyone, and welcome to the Delta Air Lines March Quarter 2024 Financial Results Conference Call. My name is Matthew, and I will be your coordinator. [Operator Instructions] As a reminder, today's call is being recorded. [Operator Instructions] I would now like to turn the conference over to Julie Stewart, Vice President of Investor Relations. Please go ahead.

Matthew. you, Thank and quarter everyone, joining for us Good earnings thanks call. March XXXX our morning, for

Joining Atlanta X analyst Dan please President, of provide Glen costs open us an After Bastian; call follow-up, Delta's Hauenstein; can Ed the from we'll as to the take sheet. the and and limit today performance brief are update and and our Glen to an prepared possible. you on CFO, balance questions. and with our Janki. discuss ask so strategy, will will get CEO, Ed overview our Dan will many our environment. We a to question yourself of remarks, we as revenue you

our statements future and contains materially media questions. And forward-looking actual the involve forward-looking cause after Today's the statements. that expectations to about our results to forward-looking beliefs events. or All that could risks statements differ analyst Q&A, uncertainties move the represent discussion from we'll

cause of exclude special SEC financial results factors all Some the discuss and unless measures, such that otherwise We'll differences also filings. noted. items in non-GAAP Delta's described are may

find can ir.delta.com. Investor at Relations a on our reconciliation page measures You non-GAAP the of

over turn I'll with And that, to Ed. the call

of in new higher nearly per good half and a on thank on you, record of $X.X Free a invested $X.XX appreciate first reported the top return returns us S&P you X% and the putting $X.XX flow joining Earlier year was a billion, everyone. and Delta's Well, XX%, that delivered revenue Julie, was for improvement last this March cash we XXX. quarter. capital results, share, morning, $XXX posting or of million We quarter today. over our we morning, pretax earnings

performance investments completion for history XXX,XXX for operational outstanding best reliability operational in fourth the gap have new first teams XX% and in like Delta's is we work We operation. forward-leaning made professionalism to cancellations among results. and our with the are have dedication, in down the I'd setting since factor delivered quarter. people quarter the And your our competition. in these that thank our mainline records and delivering the Last hard summer, then, both sincerely delivering widened to industry-leading and

best we our billion profit for reward by to named performance operational Global sharing, large of culture, people of was fifth recognized industry-leading our continuing People America, World recently premium philosophy the XXXX employer and rest customer Forbes February, long-standing than with commitment industry In the Air the Transport efforts to $X.X outstanding combined our ranked in Year compensation. with service. more the First Reflecting Delta's the of Delta Delta and and safety, the in Airline performance industry-leading

transportation us a and on consumer Delta the list is and as the world's of cabin JFK, the most fleet. app service near to horizon, the of Fly One Boston, of premium aircraft, opening of across fast, Los WiFi is why recognized was we the brand international continued modern in what that apart Angeles fuel-efficient travel companies. offerings, new airline Delta experiences do, enhancements Lounges including the Delta are While our set introduction expansion Exciting #XX free customer-facing Delta on it and as leading Fortune's admired on new and and upgrades the

airline investment Innovative in have has is tremendous sessions took streaming The Company's Companies, logged travel been future the be never brand the the Since success. program the board in last free and this through #X Delta ensure the joined have recognized quality to ranking. stronger. the to our connected, of to only Loyalty continues of List more be travel rollout recognizing Fast category, the WiFi spot and Most million we a SkyMiles our a than channel, of on to XX Sync millions launching customers year,

our We commercial of important on with relationship way set and are records to $XX from continue well billion. most our our remuneration our Express, target long-term to American new

cards, On direct more and February Delta X, has value very customer the we announced response been enhanced Express SkyMiles benefits positive. for and providing refreshed our American

our we Turning strong quarter you with to into in year leverage $X strength free of in visibility X January. of confident we guideposts travel and the demand, flow the summer outlook billion $X our per to first X.Xx., and share, billion $X shared performance cash full with for main earnings guidance that remain of to of $X

to and For deliver the quarterly per to revenue our mid-teens of share. quarter, $X.XX $X.XX the highest June earnings margin we in of operating expect history

of Our be just pretax XX this to calendar strong, prices. shy a due see travel on of to we highest season and year our last and billion in par occurring fuel is $X Demand spring continues and approximately profit with all for forecast record days with our summer history, XXXX sales higher year.

there Spending driving consumer step premium purchase recently year with last to this is over further position and another consumers Delta's on runway X into in and pass trends. preferences priority. forward first year. long-term their return travel shifts for are Generational experiences. secular has And a services the meaningful healthy in to in to top mid-teens and years, core a time goods remains taken business growth are the evolving travel growth demand accelerating

focus I've be level demand may this this industry's the strength my constructive financial most in with seen career. increased the improving airline returns, backdrop When you on of together put that

to brand well returns-focused our to demonstrate continues strength of flow, performance is Our value. significant investment Delta's and further on balance approach disciplined deliver shareholder our and capital industry-leading And strengthen cash and to with focus free sheet differentiated exceptionally strategy. positioned the Delta

continues the business to In momentum in the build. closing,

Please New that and the and company am focused across we'll talk and ahead, to which XXth long-term City. reliability, opportunities improving put for provide at your and that are support earnings Investor in targets York Day, I calendar. scheduling we delivering financial new XX our Delta's more about on customer are on We November growth in for our excited efficiency and flow. the experience elevating excellent cash

that, And Thank again. it our more over you performance. to me for hand Glen with details on commercial let

the growth for invest higher-margin for to and strength close-in revenue to commercial we're want reliability to is is customers and delivering our by the end future. streams on by XXXX providing to in off year-over-year quarter X.X%. result Revenue and X% and our Thank billion to driven in a our initial with optimize good This on of performance a $XX.X guidance at our increased of industry and record employees service bookings. day. upside our high March operational start industry-leading capacity thanking I start, network, great every the in priorities single best you, morning. grow the our Ed,

the of with business the corporate financial over a travel consumer travel. revenue reflecting unit and Since continued Total revenues sales sustained that and prior year points headwind from MRO. in optimization improved entities, year, start our our X-point network. leading seen X.X%, services of unit Transatlantic, momentum. the XX% sequentially and delivered a cargo services Domestic X the to technology, down we've We growth positive X acceleration largest grew in Managed including nearly

improving rebuild revenue in X% revenue as X-point franchise. International of The transatlantic the X% capacity XQ up strong Latin year. to of revenues unit with X% record was grew the Pacific on over prior XX% decline our growth a revenue Domestic quarter the by investments muted trends unit from reflects unit industry and continued improvement XQ from and than demand March more revenues, backdrop. grew

more on XX% high-margin adding have seats revenue underpinning as continued to prior Diverse continue $X.X billion. our and Express revenue, industry-leading differentiating premium aircraft, segmenting Total improving we ahead revenue co-brand in our grew streams strength American year, the over products. financial our record portfolio remuneration we with revenue Delta retailing capabilities XX% Premium quarterly further up total loyalty of of runway generated performance. XX% and was and

card in the the premium new saw co-brand records are as refresh applications program's we Following benefits, our mix we highest acquisition reach seeing history.

The this robust is travel half demand corporate for in us travel deliver putting our premium corporate Consumer of and maintain XX% revenues back outlook to to strong. in on of outlook. volumes intend our XQ, increase record to recent back year. in the trends positive. Companies survey track is or remain Turning

unit X% the to year's very March June the expect Similar X% our core of from restoring from on travel down we of of Domestically, normalization quarter, the to headwind growth For on flattish are to unit credits. and where XQ flat X% growth be expect to over performance. focused strong last departures a with revenues we X% hubs seats faces with fully growth X% year restored. yet quarter, prior to revenue capacity revenues not

of will be expect restoration the hub full stabilized, return flying. has core the capacity we our increasing Pilot of summer. the over to hiring regional fly stage final The

as are another Unit In our looking similar and higher through and utilization corporate asset strong record to we trends. and with We are record performance summer last the revenues. improvement demand transatlantic, year expect to cabins progressive the expected driving lock to improved premium healthy the forward we be improving our revenues profitability. benefit from for XXXX,

In down Unit be markets. the second into short-haul the back markets These are demand expected healthy to profitability digits improvements Latin to to remains half revenues expected leisure double solid. year in comes balance. are America, pressure and in due of as see supply

with deep into South the America, results. are very we flying pleased Our

We LATAM. are our capacity deepen revenues we with partner, about as minimal increasing our unit XX% impact JV to to with ties continue

to offsetting by year on for revenues unit restructuring. margin of of have lower continue strong in the in a strategy. industry-leading benefits capacity Profitability is brand Pacific continuing expected to Japan, prior revenues and started commercial expect in In We is be differentiated fronts unit to closing, trusted line how we lead XXXX. and as with returns, highlighting driven the record with pleased growth multiyear set demand China. Korea XX% on all the Delta harvest strength we with our our and to I'm

And to the like talk that, about to over I'd with turn Dan financials. it to

you, to Glen, morning and Great. Thank everyone. good

$X.XX is efficiency This $XXX normalized guidance last from higher share we favorability. teams operation. unit factor at an a provided renewal Fuel pretax fuel of of our the a and of cost Fuel drove $X.XX upper end X.X% CASM our $X.XX of million and fleet year million, customers. For offset running couldn't from earnings be than last performance for refining margins. million operational improvement central I more generating X than continued our above of range. year the per our averaged nonfuel last and profit Nonfuel of on gallon, was of refinery and million. $XX The ahead the down was higher midpoint guidance. $XXX March benefiting prices. point of of X.X% benefit are last guidance better record our $X.XX quarter, strong was delivering prouder per prices brand and strong capacity excellence a than higher-than-expected strong year, more over reliability income as was Delta's the promise, great completion demand to of $XXX year, . A Operational delivered how

was Operating point margin year-over-year. of X.X X.X% higher

margin X equity pretax business. Our profit into This from billion. interest, over employees top pension investments. higher $X.X sharing of billion flow generated improved reduction a from the investing cash reduced We our expense $X.X point, in priority. and our after free remains $X.X paying billion Debt to was earnings and benefiting

Our improved ratio X.Xx. to leverage

the of repaid $XXX scheduled of debt $XXX maturities and we initiatives. million including During quarter, $XXX additional million debt, of million

We expect $X and of to at debt year billion continue to repay accelerating in be debt least reduction. opportunistic this

with investment-grade outlook currently during at Moody's updates all following at BB+ Fitch, and both and quarter. are rated positive Fitch agencies on Moody's now from the S&P We and

XX% expect the an prices including $X.XX with to to $X.XX we June outlook $X.XX line are XX%, operating refinery. $X.XX guidance. with per expected to the our from earnings share. a contribution $X.XX Combined quarter Fuel to for Moving of of be gallon, growth, margin to per top

is price a approximately year costs expected delivering At the hubs with this normalizing, gains our focus single is period XX% of a and with fuel entered to Nonfuel most full year. unit outlook X% of optimization higher our Growth across profitable core efficiency higher digit. on last be over we've restoring expected low enterprise. year, and than the midpoint of be our than to last all-in range, consistent are

are XXXX The in in investments of operational second reliability made industry-leading health and off, the performance. supporting paying we fleet half

through investments continue to as chain expected As industry-wide and of in with complete supply an we January, intensity that the delivering for XXXX fund of volume our these heavy efficiency hiring managing good the we and The The elevated airframe are has operations while constraints. engine discussed year. momentum you through will the training our help teams people, in revenue on our have our This experience goals customer premium. and in investment in moderated. support checks

to and $X continue per share $X cash free of $X billion. In to our closing, be we flow year of in confident full billion earnings outlook to $X of

Our for industry-leading to operational and it do they that, each of the I'd what result like them Julie day. of to every With hard the thank Delta Q&A. dedication is a financial for performance people. turn and work back I'll of

analysts can Thanks, And comes up you queue Duane Matthew, from Dan. the please first questions? for analyst how remind Pfennigwerth. the question to .

[Operator Pfennigwerth Instructions] Duane coming Evercore from is from first question Your ISI.

execution, expense to think on can just relative like and just in there, on maintenance. perhaps on corner maintenance how Dan, cost you into a the line and the sounds expectations? year? into second do half improved it but turning to you're your The you speak outlook script the tone the you talked about next that And

year-over-year expect maintenance, is we million. you Duane, on expected talked you. the to $XXX part to be the thank we up beginning year, -- and as maintenances Maintenance at Well, we plan as it performing of

first We expect team executing well. and plan, was the full quarter the that on year, for is the

I we visits And health as touching in as year, fleet this go aircraft. continue made the mentioned, those along we those through that will investments, proactive

impact. the perspective from seeing down sequentially, XX% You're XX%. Cancellations they a year-over-year improved were maintenance

So is as doing They're expected. good on a job. plan team and

on could whose to ], team, want that, the over leadership there John add to Dane, in terms Tech I to Water helping turn. if Ops congratulate of [ that make I

on seeing confident in Too few a years been the journey. a back it. in good continues We we're renewed here. are tremendous good the that chain to It's constraint a of supply But I'm have team. path It's a tough on confidence rebuild. early of victory. the a declare amount to know We set

average that's of Appreciate and a a my on close And in. more one on assume those seeing maybe generally in And corporate conceptual wonder thoughts. follow-up continued corporate you're recovery in length. then to. if you you're for I could the decrease pointing if comment trip I

per trends? but trip. more on road commentary days fewer Any So maybe trips on the those

and people bit further No. not to I'd just than any seeing business the they're we're related think longer having with We're trip both. had. we're that's some say seeing little where And some change longer. blending the seeing generally, And a leisure shorter, trips. are out I fees purchasing they

into in but the curve, really some So quarter quarters. what of terms next the bookings forward in as seen of forward as we've corporate by look changes booking couple look through see this encouraged we and we we

Linenberg question Your from from is Bank. coming next Mike Deutsche

you and TRASM -- that Can how I just I Glen, back, impact is represents a the still about normalization want bit credits [ June of to a travel that get talked of headwind. ]? what you on quantify

the our think I And past. said couple of a that's points. go of we that not into what think up going we faced generally we're But the disclosed headwinds in we've -- in I details in that. to X previous to

How on the second that any -- does an that? the question Okay. that? process can line just say, with the my Great. is give And to us respect of then time just Or I Aeromexico. milestones with should to what of we it's status forward DOT look should Ed, appeal And out? an on I Ed. you the guess, update play

consumers, it's economies a Mike, you That They're we've view of on the it's have regulatory bad for Peter it. the bad DOT It's the for I It's question. bad is But think, partner. tentative order, know, that example competition. great our an as Carter. overreach, why flights one. Thanks strong really which local challenged was and a for is typically this struck that served. for those out was

administration the less are was order solutions say, that punitive currently We tentative with proposed. discussing, and the I'll engaged than

number way is some and hundreds the connection say I'll before we're that to joint America they're of this but with up DOT of would a final optimistic our, say, take solution. think to better support in a to we've respect We a issues venture. months, had going Mexico come between this in, I with And the cautiously going time of order

Group Scott from is question Research. coming next Your from Wolfe

about Glen, I sort or flat months year I ago, X think RASM think was for year. guide for the the when it the original of

QX, slightly of down slightly. midpoint in for we're guide down QX, So

visibility maybe inflection? that, or the guess just that bigger in travel the like is half see your second flat this risk downside to upside or you that second headwind, with what's credit to ultimately, more And point, do at RASM So I smaller half? RASM?

their and as on in it's travel as get year think for the have I like the through well of is plan comps to move first, XQ. ahead I is what the pretty consistent it the easier peak our get that we people But credit -- looks year. at internal the you in half No, as it headwinds, to is loaded industry the flattish would year. schedules, say, we're if what capacity a through And guidance back reaching look of

half plan I or a this back sit the we're plan we from on year right and we for setup great So see think of now. of ahead where

Okay. follow RASM And just I bit. up to a then little just want on

outperformed So absolute -- wondering, from see? what second into again QX outperform to last help thoughts RASM quarter in guiding is you a really just you're just QX? right? I'm if in used seasonality. year, meaningfully then QX, this do curious shift I'm year, that Does relative look And your hurt you in it like pre-pandemic underperformed to like QX? seasonal does on think If And you potentially to seasonality. you that that. we there your QX just

and very related to south, thoughts it coming I has particular, have it's the in -- in and earlier August. earlier yes, schools some back changed, into

schools the I go Georgia of back now. fact, of believe, matter in a first August week As here,

bit and we making think stronger we we we're so making capacity changed, But that the second into our how over third I materially plans now, has that about think, moving incorporating that years, as forward. think plan a quarter I quarter weaker. the And -- the

question Shanker Your from next Stanley. from coming is Morgan Ravi

you it balance you next months? the flexing kind leverage XX for So be like the good in place. return of pretty can a looks kind your of over do sheet use of to When start cash getting is CapEx, think cash other

to be this Well, continues position yet call to the thanks, we're any and first Ravi. still not around a or take more looking have for comfortable of I at was decisions if we end in you Interesting, than had continue which on our to that have this actually target factor make at in numbers cash to we at We're We table. that XXXX. for off obligation, end and eliminated the with, pension preparing call. of the you debt comments that. some risk the any look the year

actually leverage ratio XXXX, of We're end the the at entering pretty to were the pandemic. we close at

made So will that Investor to we and November. at be have But for in down of about be bit debt. a That a progress. Day lot first talking said, the some will we'll call time be the pay our

of helpful. Paris pretty That's here. follow-up maybe question a for as of obviously, detailed with . a bringing potentially Kind that caution it. little on nuance transatlantic this Olympics [ of big in And travel catalyst of seasonality end some Got and XQ, modeling that kind you Kind would summer being a of in a something bit the of of us towards noise ] kind of thinking that are versus terms -- we cadence is XQ? early

Well, exception to are I And for no the is year, not generally, airline Olympics this that. think, good revenues.

generally favorable backdrop ceases are as for totality, its for to Olympics and Paris the a there business approach. see while challenges in from local we as markets travel very the Europe So some

to numbers bit shared So be us It's you. in a that, going I for the windfall. a of wouldn't headwind to a actually that's we've with be going say

Paris are sponsor excited through the get and it. we That Team USA said, we'll Olympics as very for

Elaine coming from is Your question Cowen. from TD next Becker

maybe quarter, X I you're which my that the And So In I'm area of explain could your seemed I to starting landing for especially first it in rate, first one wondering question, bit have Is suggesting follow-up acceptance then you expect what little And rather fees a have that that I for just Express an to higher a than normally of can see than the me questions. see as would American well? improvement in if one issues be? that is Europe. am quarter. cardholders

and up. our expense. two, in year-over-year, fees, in Yes. would say country And you I of you're picking as at across On related third and to come you're it now that relates it when one; [ benefited redevelopment away, generational ]. the XXXX airports they're CARES And look to as those gone yes, adjusting Volume, projects they're then the up from the item, rates that have through. seeing cut landing some XXXX their

they're global And of number Express we rates, the worked Express American also acceptance highs of American with internationally. that terms right domestic they all-time are can use back very that that rates. on Express in hard And at American on now, acceptance domestically. merchants And years doing improving you the

we places particularly were that those So places and Americans vacations. that like to worked with them strong, on prioritizing go for

is from question Didora next from America. Your Bank coming of Andrew

think had move just X, regards that But helpful. would the hard So up imply X% through Kind of of just obviously, as be year half Glen, we XQ schedules move it first with capacity to still the the there thinking above find with of a question are sort your because north you would any as on X% year believe. back should half are growth guide. of to capacity. the of XQ the XQ the I original cadence based thoughts How be to your down. your back into schedules about we about How we that would

even first all, who operating I our for going completion accounted had that to than we we're such factors planned have of exceptional think for. us given teams higher -- for thanks

factor they will, to say, hope in. X% of be we think continue, X% will that the right I'd that will imagine the So that I if on bit the early but say, And think X%. at at comes I depending they a to I we completion those high which would how or be it's

the elevated the remarks, headwinds I thought of given more in That's ancillary that? you sort What in it I Any think line is helpful. everyone's there? quarter. bit in then spoke revenue of maintenance thoughts to have a just tailwind? your been expense, would driving MRO little prepared And a

we've ops I'd say talked the what constraint which that is, team, say our output. One it. it -- and just we're about it's we're to on tech associated things. relates team would industry And X our generate constrained material is and -- constrained third-party always by to is by, as activity, ability John the turnaround fleet. I to the and continues focused as be the Delta are times with But material

Your next Jamie from question from is coming Baker JPMorgan.

Glen. for couple A

First, were think flat on what, roughly the topic international. to of premium RASM and premiums, industry, were domestic running, XX% pre-COVID, you the you I on

international You premium both and the is currently what international. Where one calls do I like. spoke Delta on revisit Can that to to an domestic the in where and earnings you we look world? what path from the see And that heading achieving that might of post-COVID as RASM topic? here

the Well, Jamie. for thanks question,

factors mix, the we [ have ] and that seats driven to to been are to accelerate continues But now, we we peers. one we premiums, performance the our relative on us the on industry routes think international running higher believe for of right premium evolve to fleet primarily continue fleet. is load put our key drivers believe continue by I to that in more the as

several as years our there, now to journey execute think we on on and we Delta. hopefully, the we next are can think consistently. generating And I premiums differentiate a accelerate those I we're plans over So

a premium. on follow-up, And Glen, as

understand the of you members the I'm XX% Cabin thing. X%. that the the coming quarter, tell was share X% main SkyMiles you those Are was in That of revenue economy? cabins, discounters? the what's that constitution Are thing? premium are trying of taking So main from. cabin What premium us trend to passengers of example, customers? to up with X%? For about is sort compared basic up just sort new from where What percent can

the I load think a the we quarter, record in in first quarter. domestic factor ran

levels. took was we over what incremental drove believe traffic So I historical that the that

doing that excited about quarter. first in pretty So the

of the a know, come we But quarter brand. of there'll in available premiums took, be for that really the to is seats year, that you the of And less discounted most As first you we're and is strength quarter course, as challenging less get loads. in to terms think, we through us And XQ. most towards open the peak. through I as our get with generally, testament the

from is next Brandon Oglenski from Your Barclays. question coming

come growth that So guess this about X% I to you're jumping domestic I a X% I could the like wanted but from quarter. to because bit that, up flat. X% around little think it or to guiding RASM, Glen, the to this, looks concerned obviously, back summer were investors first to context In you're in growth lead lower

maybe little on on So your and bit can bit little you domestic priorities dig a network a deeper more regional expansion?

out our of we're Boston hubs. in at opportunities core rebuilding to building to our the had back places those like resources went like there kind not available. I and And done think positions I'd our had to once-in-a-lifetime expense we allocate Los to we past, and -- to coming COVID, what is, we've resources of the Angeles and of hubs, said take leading in go the core still

go advantaged to so where rest into core back our And now and our focused year. to and ability structure back we're for our profitability seats is of cost is put is where where highest this most the our

below X [indiscernible] point And is seat about growth

bit Okay. Latin that. Can little a unpack us? Glen, for you long-haul. I were And you short-haul differentiation, think then, I appreciate that and talking about separately more on the

with performance. pleased America are really South we Well, our

our prepared degradation revenue. As of in said XX% unit the to we're in is our that I with the capacity up remarks, minimal XX% doing range, and

we future have continue South and venture. we're evolve our United think LATAM, start and between to carrier really States in So the I working leading off to really to as joint with America a with great the them great a

was and that there leisure put first quarter. aside particularly an oversupply destinations, in the then So the say

in I first think the quarter of 'XX returns. industry higher historically saw

it. And And of more but wants it. do revenues. to it. high profitable returns, The did more was expense the for of We did listen, more quite when of at us, historically are industry of so unit there considerably everybody considerably it

next we as year, be as year. to things through there's happen so those I'd moderation we as of as going when And say to always capacity is there a well move probably next comps as get easier

looking year's actually America. next I'm Latin in So to comps forward

Your Research. Cunningham Conor from next from question is Melius coming

fantastic we in an you if domestic the Just to improvement then back was started when in market XQ, just of saying March positive inflect play pretty the in in you some U.S. expecting X%. and quarter saw off it plus performance outcome

and your think momentum how things I general? hub rebuild in a disparity Core in performance. about out You've and there's Can gateways versus are playing highlighted talk coastal you But just Hub premium. there just corporate just

for today back we're there we're I tight in airplanes band having gets base really, really second little bit core going capacity pleased inflection with to half And Again, that had accelerated they're to out our with pleased gateways on opportunities Well, than pretty some positive that think moving total right more a in. . But a play this hubs there our and than us generally we had very and the now our generally, coastal hubs more of core in gateways should planned our probably year revenue were Boston where because quarters. a have a should we in revenues. move and sit higher third and the how we think with I on coastal for unit us.

that like like what -- pick have they're when general? you just the are FAA, term. could to are a seems to you wildcard potential changes maybe in there's operating potentially talking to a what environment? And Okay. you long And regulatory medium for your asking conversations growth, potential with up It seems it given then be oversight maybe to some about the it just them

would thoughts any helpful. just be there So

Conor, this is Peter.

around I'd them to the very Washington with say shortage. in So those, you solve just control models we're trying FAA, fundamentally, structural say, because, with traffic help also working we're closely And more of I'll staffing as some there's challenges an infrastructure. air engaged know, around

our with seen I the light another You extend to responsible has call York in made the request And had. of that's what regulator waiver staffing FAA probably industry have partnership the would they've New that challenges a of season. slot the

relationship, them. deep great with partnership So

from next is Savi coming Syth question Your Raymond James. from

question Just follow-up on a the revenue. premium Jamie's to

could Just the premium versus is and I you to mentioned that think volume from of much curious if offering. kind continuing of how XX% yield share grow coming you've

might just what curious trend be. the So

Right. I split right say between premium XX-XX yield. the traffic now, probably is and would

helpful. of the that? That's And volume how then in terms we in about growth should think offering,

we've if domestic that you said into the coach we adding haven't over been that the years. seats really the think XX longer-term past I trends arena look at Well,

services. been all so growth premium in And and our products of the has

we're but on coming think more talk years. a see to long that I that in for Investor a going about where going, we bit think little I see the Day, we runway

look the Main XXXX. fleet outpaced Cabin Premium you all as way product Yes. at through deliveries our

kind some shift in of you growth think type of to it follow-up, just if might, should Helpful. lot back those growth use comes of that the another on markets? capacity of that on kind a I regional the as is the of And bigger Or in capacity domestic other then markets the hub, could aircraft? then kind with building regional aircraft where those on I

flying I little the underutilized either of short been think when both. you We XXX include least not our a We've at probably or regionals, almost regionals. on underutilization. probably XX have very still

that's be hubs, of lot hubs. that's in lot our frequencies feeds by adding So in we'll that of a historically being and mainline and and feeder that seats have and the mostly, out. planes need markets some feed lot there missing now, we're a Right our back the the gravitate core regional from departures a been into of from core those local done of vicinity. we But

from Vernon is from Your Bernstein. question David coming next

that I Glen. Maybe there, thought on up point, just following

some improvements Or you utilization, the issue? primarily just for about is there to prior room regional As is on also the levels in think regional well? as the a narrowbody fleet utilization pre-COVID improving this

is where And us we our look the going game, playing. would at our game I really improve of And challenge exciting we're asset that's with are, this the a whatever a be planes, hope I airports. utilization all. That's above for that's operators at so. they to network, across were we're of long think the and game now terms 'XX widebodies, working in to annual If we or utilization. in

get pricing? lot see of the about seats higher at day-to-day the past? that in being and have mix, a this I for done into the And guys guess management. of just upper of you there marketed through you of change managing premium out sort volume yield that think may go as opportunities on you of way problem sort sort work about does aircraft, sense a these to might kind have model management is a capacity cabin you the to you of I'm [ summer level of in new you of the there is greater then the Are to have trying you continue a differently and than that changing the of Okay. yield to segmented be more sort the the get distribution as months, able in number ] what frontier didn't

us that, the products what premium do years that we back of the side. more on than on I did the commodity destiny controlled and to experience several think really is what pushed we said our was this side, fact journey we

that's investor and I the out, runway in And we'll talking taking to but about new against journey see be we in lot base. using a as be a using that a against see very continue that playing talk denominator. the and exciting lowest the think not ourselves for of see But evolution. to runway, our will our common so of play about absolutely, again have things Day we even think we'll game it tools lot this further November I what been tease And is lot to opposed Investor on to we our to next

around about me, elaborate And bit then Could last about mentioned improvements retailing. for one what in a little sort of you you something you're there? talking

and was to whether working products on day, front right has Well, online and and we I services our weren't to been XX% and this better where we're couldn't not we're display or of with we and did and improve Holy wind whether environment that in industry or long displays the that the a this now I -- it, internal their working up at get was to because better booking We is tools, distribute commoditized services. geared that's think products think every we Grail why journey. And we're our better making as own not improve well. progress direct-to-consumer internally

long every So working it. been And a this has day, very journey. improving on we're very,

question from next from is Your Sheila Jefferies. coming Kahyaoglu

in large obviously the unit you've magnifies course, about investments revenue LatAm talked Maybe there growth on But America. these of with The Latin just making a follow-up partnership decline. capacity profitably.

So your up that curve profitability talk can you maybe coming to the America? years? and expectations Latin in today are where you shape at quarters about to you relative how expect And in

Yes.

the dramatic now that lot growth to in I years still baseline, we opportunities of to mode this as more together. think work as continue But as mode X turning to we'll we moving focused see in think of opportunity. the an networks the on continue of I more you'll into on investment we'll out and bridging to harvest don't kind with a our forward. got that see We've LATAM be a opposed refine work

Ed, that. just completion up, QX really maybe on it was helping and to factors Okay. about then talked sum performance CASM and good, And cost, operations you one just

more X% growth. seems cost you guide a bit QX the at So normalized, guys putting

that with pieces throughout you've guide? single-digit are about the it And moving what low just of and context in to is headcount, think as So noise maintenance costs run year? rate fair a think about any the highlighted we year the other the

Yes.

think low digit. I the line in X% is single with the

think great operation. when -- with operation run that you starts the think sets the of variables you about run it I running great When a a inside that foundation.

X row to in the it and the costs after and you're have allows also really get a operators, the efficiencies. those in better frictional confidence continue but those only in to drive get You not out, [indiscernible] really improvement and quarters seeing operation, it

And than the that carrying about we we'll no efficiency historical with for XXXX, as you Maintenance It's it constraint supply that, execute still associated change is we that maintenance. and the But what XX%, that we're one that, into is as ran and to the grow expected. with and do said -- associated headcount higher going manage drives we'll the we largest chain. as has the to we to year. continue through that be in

We'll to now media. before question analyst final our the moving to go

last Trent question coming Citi. from is Stephen Your from

Delta have TechOps legacy years, next the Just getting example, Could your to fleets about think you may. I across over give us high-level about valuable for is When to XX older. question you we going a Sheila, that you be a sense and follow-up probably guys competitors? advantage competitive if the versus industry, for how

can. we Yes,

leaned is the unique our over last fleet, years. the actually our into gotten it restored so a younger I we've in the have around But given we've flex industry along That, think also fleet. the with has OEMs advantage. our fleet few the in, constraints network

Tech of going us team and be period . And XX us equipment. to into of really and It's a go So those to the ability period to puts ], consistency to we're we anticipated. around reliable period And is natural more gets our ensure growth nimble. normalized it we XXXs normalized, go XXXs more that flying and demand more retirements. flying more on their this are through we flex aircraft allows [ as -- have in longer that Ops than also that more a and allow

what We ability shined, XXXX. retire team then and haven't have back have that that's reuse fleets that of us. of our done used recoup the retired and really this they that any has in but did it XXs. out and start We'll front and it decade, the half a always and for naturally that's equipment run material they at And and They've aircraft we really in MD-XX that history. and XXXX year where to the the with

to attribute and been in see still supply of and we product front exist. that constraints the In was team, opportunities reliability team, Dan's to that's history. every us. strongest things. Steven, the TechOps I of through X our factor a in maintenance the if statement chain day the lot a quite responding having first the the end that And given comments, I on that overall back ready we've And completion where our in mainline could quarter, quarter of the add first

move So these as years, to couple green Dan arrow of we forward was be forward that's going to continue positive as next saying.

we've is still is start the on I'd fleets taken, the going turning we've our going to of a given energies compared just that's focus forward talked there, had that as pause our thing And in to for that again. rate that growth about next fleet our while waiting to customers' Second years us. we've MRO, say, it's couple on back own

a talk I capture to to be think, is, pre-pandemic -- business we than very, were to what XX-year ability we've given we that been that. on X- about is is all be thinking going stronger through. even going to excited very as business I'm our time line That

the team, So hats off to path. absolutely lot the Tech a to Ops work are on more right but we go,

Thanks, Steve. turn I'll That the wrap to up call. now the portion will start Mapes Tim media it of analyst to the over questions.

question and could you, you repeat Thank . follow-up, we the transition mind, as instructions reporters, analysts to Julie. if don't Matthew, please. for you the X from a

we'll time, Josephs Your CNBC. Q&A Leslie this a conducting from [Operator be from At media Instructions] coming Certainly. is for first question session questions.

the of for airlines protocols fact bit seems the hubs then this a that talking your following have of separately, Delta. a rain just airline we've have been if that mechanical just issues all any having and little not like It XX wondering just about cooler, your any past And communication at saw you operations, reemphasize it hubs. put reminded blizzards. was of degrees at lot employees if or kind On out safety some XX, you ensure that and grounding kind recently, the on got winter from been to those they're benefit

the certainly had across the weather of weather operational overall our candidly helped own weather broadly it's within adjusted Ed. for performance. our respect that our the prior across But of And has what system, we a and our we're certainly do we With even we is to performance nice see adjusted. airline system, to events, performance, like respect have Leslie, to with weather, neutralize and weather outperforming run country.

day. much, better safety messages weather improved the out the We at cake. don't a day job is icing is adds Every running safety fundamental to one single the But the just here. core every clip. communications, all of nice day much around So special at is a around send as safety. times And

question is Bloomberg from Mary from coming next Your News. Schlangenstein

through an the at ask include area? on the addition in for And the year. also seen does slot wanted waiver the in Have D.C. request the of improvement York extension issues all ATC waiver you slot another any I to New the area?

the Mary, DC does ATC still area. so controllers, FAA have still shortage the include Carter. traditionally view So Peter That's It's of likes way the it's thank. an incredibly It we it. to challenging a and environment.

Have you all? at seen any improvement

the had waivers in place. We've

there with New those challenges of improvement absent some But in a real because would in waivers, industry, course, an capacity So less be that the as I there's we'd York. marketplace. some waiver, think have

call. wraps time the close out question, the to you Mary. that if believe for you our want I Matthew, Thank up

you. our And completes concludes Thank this Certainly. Q&A today's That event. session. everyone,

this You participation. your you day. and wonderful time, may for at Thank have a disconnect