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United Airlines (UAL)

Participants
Emily Zanetis Manager of Investor Relations
Scott Kirby Chief Executive Officer
Brett Hart President
Andrew Nocella Executive Vice President and Chief Commercial Officer
Gerald Laderman Executive Vice President and Chief Financial Officer
Gregory Hart Executive Vice President
Savanthi Syth Raymond James
Duane Pfennigwerth Evercore ISI
Jamie Baker JPMorgan
Michael Linenberg Deutsche Bank
Ravi Shanker Morgan Stanley
Helane Becker Cowen and Company
Catherine O'Brien Goldman Sachs
Brandon Oglenski Barclays
Christopher Stathoulopoulos SIG
Alison Sider Wall Street Journal
Justin Bachman Bloomberg
Chris Isidore CNN
David Slotnick TPG
Call transcript
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Operator

Good morning, and welcome to United Airlines Holdings' Earnings Conference Call for the First Quarter 2022. My name is Brandon, and I'll be your conference facilitator today.

Following the initial remarks from management, we will open the lines for questions. [Operator Instructions] This call is being recorded and is copyrighted. Please note that no portion of the call may be recorded, transcribed, or rebroadcast without the company's permission.

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

to these do now drop over Zan, today's you not Investor you ahead. Manager terms, Emily turn host Zanetis, call, agree presentation may will If Relations. I with simply of for line. off the go your the

Emily Zanetis

number during Information Yesterday, to Holdings and actual factors. call on by filed earnings A the conference our discuss for these expectations. reports release, is made available could of currently Thanks, Form forward-looking everyone, we contain our current earnings represent United's quarter current other financial call, the Airlines or which remarks of with issued statements welcome differ and future refer statements, Brandon. Good from several a and the available and release XXXX we first SEC results description forward-looking website to our information in at ir.united.com. this expectations our will XX-K to Please release company. morning, earnings non-GAAP yesterday's conference cause call. and may company's measures. the materially based Also All and factors financial of the upon performance. are beliefs events concerning United our XX-Q thorough Airlines United course during to more which

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

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

Q&A. on turn executive of members Scott. assess available other over like to the have we I'd now to the the to team And line call addition, In the

Scott Kirby

all a team. us you to start morning to this thank joining I Thank huge United by for thank saying today. want and you you, Emily, the

above and each will other success to to environment. of team strength care United ever. industry continue our a world beyond connecting quarter than always people. operating of go and The of the first take Our In stronger members our United's and team United in was the and people year, difficult is is the be really what mission our foundation the this of customers

customers to along the it, seeing Our are with leadership and entire are I, team them. grateful

of is reached the last transition ready two fully fully my than seen especially demand recovers. inflection international, pace years point continues Our were We've spent in well We on to way before we during to stronger moment. endemic, the pandemic United of track, and recovers. Airlines for even ever Even than Though this the determined we're back goal we airline best, history days the industry. the Next our do major to and is at pandemic, firmly strategy I've rapid Asia, and much survive a to and most to career, and getting travel that's the and the on United biggest, business finally profitable more to accelerate from get normal. build in as early before the our pandemic just it

strategic work the demand focused going best there confidence that investors catch believe us outlook. gives positioned during as domestic in to the margin fuel thinking we have in three higher XX% hard future they are We highest prices. a our and great rapid should the leisure pandemic and seeing We're and approximately the expect and we're that that lead strong history business despite to quarter. United long in will move revenue best operating still XQ, up think But forward. the quarterly we're reasons acceleration The forecasting in TRASM this haul

airlines customers of told desire to ago. our their strong did flow what was began successfully led Delta you to to customer customer Those is United price are. back them our about If trying And we've in really we've interactions The focus, improvement because talked rapid which and what we're accomplished the air about how led and in choose shifted preference. relative the two at to NPS improved brands. earnings, and I rapid back stock a and significant the improvement brand look to 'XXs and replicate strong doing Continental TRASM, history, XX pandemic, outperformance. first, Throughout which scores travel. years The result customer de-commoditize cash in to

prove, led been we we For throughout quarters. Delta in the and they was outlook indicator the TRASM there we have that United recognize our ago. still and XQ strong is keep United are to and the But years seven now a major customers for attention, XX at executing, TRASM choosing happening was I like that began out Continental but must lot eight have choosing XX much another really anyone but the carriers paying pandemic, of hints, thing warm-up. as same last

Second, approximately industry uniquely CASM-ex for gauge the United CASM-ex. a same back are and And time is on outperform the we that ultimately, And have going benefit a is fading the industry bring significant all grow margin. Boeing XXXX. set to but United wide required But confident the do more COVID We issues CASM-ex, reliably. delays delivery There customers. to focus. outperformance timing I'm infrastructure of positioned going our top anything, at to capacity doing so XXXs headwinds. by by expect that, our from Three, our pressures capacity XX% and up is lot than improving drive to is reliably is to product with

Andrew not recovered. and United from but other that as expect expect to that those more the benefit still quarters. airline we fully is will As most international, acceleration it's recovery in more the returning, than have exposed sectors we travel and is Asia, just continues, any United rapidly far detail, is to recovered, especially coming will business fully

about in of in order. I'll your you worried vastly in give should any I those markets. I invest in more, reason the think improved the one airlines, why first supply for long-haul three should about airlines think, domestic been past we've the place. of markets, At you to in If we've United you're dynamics international reasons United, But going the but pecking underappreciated the move to the top talked invest

For reasons I'll the is I now think be describe, domestic to market robust. going also

spreadsheet not to most five plus I to there at a shortage wrong listening because industry single The and the in years probably years. to the able a airlines is person lot. has capacity and call think for are their is every this simply for by that pilot capacity next of the not a realize plans enough wrong industry forecast come to pilots, least be real, going simply with aren't

customer experience, of Given done pilots. the any course, our brand on that problems having work United, hiring and isn't we've

flights and they positions. where I are see pilots, coming United for a career. the -- build top tier higher soon. largest But is the mentioned, just investments pilot want including lucrative We running an pay. where always they higher we to that's wide-body wide all. They to to aircraft experience but where to a a pilots have, recognize in We're new far, airline by orders a communities increasingly build number the employees, supersonic for growth airline paying force career. can that to our for want From that the is industry a exciting Have financial is in of And opportunities ton also not good of airline opportunities and consistently work. building customers' that proud serve. best being to top-tier operation United an in leads, we the long-term be that

be fact, at of pilots new we see to behavior. United, pilots lot applying that's and In now other airlines a from

good While just we to aren't smaller for are pilots their growth staff there in position the and airlines, a mid-tier aspirations. enough

probably large capacity for I anyone to pilot for think enough airlines also will plans that the else, it's out able mathematically be to attract are pilots. demand really the meet other just possible don't there. The But

temporary see issues about worse. already month, airlines are ramping higher we pilots a that United constrained thought occurring supply of is alone going pilots. the is TRASM is lack much by be the Because at to going stronger I and in over can domestic is that, is the And This previously now forward, up mid-tier situation to only of XXX years because multiple, be shortages. than get come not going that issue. to smaller think when looking environment pilot per to You

of room next straightforward. target the with business COVID basis means travel and long-haul to the exceed and that our going and XXXX elevated feel can points results. supply that pretty our international the we now back also still quickly of seen has long just a I've bullish. our to to approximately all our a gauge significantly X% anticipate bring reflected has from expectation that we're revenue than two robust we That more and confident meet obviously pretax year, that improvement in adjusted Asia target put that confident taught we'll is But back we and levels. or and us not run, their in together, ever margin for yet particularly base and last ups CASM-ex seems down drive lots have getting our macro been XXX this very that of We're XXXX operating margin, shy XXXs to view You downs. least our our at to big time in gradually still of are grow outlook. for in industry XQ add and expect capacity continue years lot recovery plans for change XX% dynamics both some The events us adjusted our domestic

a bearish from years. future a actual airline that about the decade so Looking back, sentiment there's be and significant where so for in there few seems for stocks a outlook the once that gets sentiment is to opportunity outperformance different

it the means pilots do this in to in above, that's industry to biggest that I being I We've already a I'm airlines whole two one the listed than objective, bet again. want the think or when that rest entirely do the better environment. and but past, supply happened not pack. like the well, And make but you reasons one, usually sure tends seems time constraints, is much is United suppose the of

baby later And to cute Before Brett? Jerry But I'm I Brett, I that want I Jerry time his grandson. promise not. excited. grandfather. to maybe sure you, voice our Laderman, to hear congratulate CFO, a Well, today. turn really becoming first over excitement congratulations is the on in you'll it

Brett Hart

Scott. companies Thanks, be were we influential to honored for included times XXX in XXXX. month, Last most

the bags. appointment to Our my Advisers universities. historically President the not in work employees. Council the White Advisory the black and over customers only Biden's best the the investing We're the an customers aviation committed to and leader future the hard innovation, where TSA, but United their industry continues for being and colleges the to reliably corporate been for stressed our pandemic, be want proud leader a America system in airport recognized entire both at shortfalls and company last United and go and among quarter factors. of being with constraints Throughout placement Scott's airline family to FAA, and commercial appointment recent means list year. of Security Homeland last of during of to and vendors, and House's they staffing on announcement coincided on on getting times Board with other the announcement to firmly has time our by the also supply chain safety Becoming on be recovery,

operation. every All of has stability the airline's of which

United We tested shows challenges airlines path. their they them. what leaving Some taking on schedules to and built their limits reputation price. customers that mitigate of own could of these even steps operate, our many pay to a anticipated different the the larger

we some the Importantly, company That size We'll the for near-term, schedule. long-term but our the continue months the In the X Ukraine. in workers of to transport may front customers customers, by assist ahead. people right miles to supplies United profits decision and those and the the decision it's have than frequent of to relief to in to weeks, decision together million bottom-line. people recent United conscious approach have use prioritize line the has and capacity that as the add limiting reliability operational $XXX,XXX we made also and us on our of to a help cost crisis. our our flyer plan of more our come donated

customers' million one generosity They often they shelter, raising food, services miles XX.X refugees. of proud our nearly $X.X to announced and As partners, relief as do. flyer to as our other we March, customers stepped support in our being We lifesaving and support humanitarian and to care, the the provide donated are health victims million so up conflict with them appreciate efforts frequent to to and Ukraine. early team

our This towards Arizona next we Academy United the January, in welcome of United to our to and qualified progress of generation believe family. it pilot for first needs flight as training to a continue shortage. combat opening we we This We maintain make hiring to pilots looks the and Next. pipeline as look of Aviate industry school towards will its is the celebrated kind, our candidates help United the pilot

We background opportunity train providing are pilots the particularly proud Academy. at aspiring the diverse for of and study to from Aviate

to next new at we the plan train eight years, X,XXX Over Aviate. pilots

goal With at women of of the half or color. least being people

goal offsets. XX% the are of remains by is XXX% to XXXX, greenhouse XXX% committed in to continuing year without carbon the XXXX in And established path by we XXXX gas our to reducing leader emissions We also XXXX. green by the United a industry becoming intensity carbon only relying that compared as of airline midterm traditional our reducing sustainability. on strong our

dedication than ever. is greener real creating Our a stronger to change through tomorrow

We the flying. and have announced collaboration March, the are we aviation reduce of sustainable Biotech the ultimately from potential with a to actually fuel. emissions commercialize production that in to solutions investing In remove Cemvita

are focused other any like making we're future. in than these airline invested world, for proud on also sustainable the to solutions scalable we in While aviation production more have the

we with climate cross-industry a But progress the travel. or to travel We to three speak of nearly quarters experience. change. on action. our by other climate Through focused helps of our support of valuable part on United, our and use customers travel technology be also case engage are A to urgent real Currently, the the technology. sustainability and of instead with using actions, app will continue in our call partners day at customers making difference these agent. to to enabled key committed an tool contact policymakers for enhance their A also manage that the center we're having

more search new from features to drop like contactless experience more employees This their app is efficient, in our when and a our United. continue with the faster bag airport the check options, helps zip we arriving at invest shortcut, be allowing satisfied before survey use new this credits, you United through better airport visibility to mobile that While flight the bag are through flight to the who know data payment airport. lobby Wallet in our enhanced customers we why into you -- a with

an experience customer phase. becoming employee new to COVID-XX endemic, reflect to adapt our we this As we need and

onboard as on are country of predeparture pleased to should and flights see flights, requirements for administration We mask at testing transportation strongly mask requirements select countries are gone depending eliminate now well. indoor for the XX% U.S. the as We believe domestic arrival well international the requirements as airports.

throughout United like In requirements While appreciation critical these for travel demand is been would travel point. our this inflection surging, will ease eliminating customers. our we the experience closing, I to believe express who entire has to team

environment it confidence in in gives to Andrew path momentum now I'll strategy. demand hand and forward. While over our Next even this discuss recent to us United's we've United more always detail. committed to remain The more

Andrew Nocella

start Thanks, normally previous an Brett. on update each quarter's the revenue with call I performance. earnings

the during have our March including business record the often headwind XXXX. most caused. X%. it X% just The premium faced start expected just from exposure season results However, up of record parts leisure up off the from a Even with higher a QX TRASM Revenue demand of inflection Asia set quarter. this point is coming TRASM summer. and XX% confident ancillary when appropriate resulting in QX of this even Atlantic and pandemic clearly more strong the TRASM our every yields, to step yields inflection business headwind. United a about United's We're are is TRASM in QX seems that substantial outlook. currently the rebound traffic category, to sales, We increase and view of TRASM with to high MileagePlus, United about passed We've industry-leading demand, and QX with up demand future. revenue point and seat 'XX, the results major rebounding. achieve produced a confident in momentum be with that have is versus across today, second talked sudden versus pandemic change was started revenue down to

business recovering, fact, in United is more This outlook. now same QX last a in now with corporations weeks carriers, leisure-focused the traffic the have rate week to the XX% are period I a for rapidly to Now Business small. than we XX% expect down Large versus versus returning a I United's really has about travel see with only can to guidance. at QX been important few tailwind think, our XXXX. faster revenue down last

week, XXXX. of XX% are yields business of to As up last ahead now close

the increase we at QX the region in and robust sufficient for to versus believe our these across business very most inside levels the The yield. the the of XXXX business period pass XX% leisure on of in the strong to as to Given revenue debates trends, largest this to back many traffic, grow bookings we and not is strong strong, fully becoming with expect sell still time. fuel that Yield milestone we Demand expected see approximately nice price United business, 'XX. even the travel to generally XXX% cargo even regions. of is XXX% soon. office. be After contribution are momentum about for airline all Across have room peak important for this we businesses by Atlantic, continues summer, TRASM of first traffic return it's be

are when gains Pacific the capacity expect produce XX% continues X% We Latin outlook borders with disruptions in in up In revenue countries inbound expect XXXX. have about other revenues U.S. that and and 'XX results 'XX. Australia down versus see many versus chain boost we operate to momentum requirements strong versus Ocean cargo. test QX, QX Cargo versus further and American our capacity relaxed. XXXX also and for to their and of continue to XXXX shipping up supply XX% XXX% opened up

advantage found of we pandemic, even implemented including changes the the to guide focused network during QX everywhere at business-centric and postal markets, During on competitors United none. less had we which United's structural disadvantages. we the fuel-efficient often Florida which back advantages, global a moderate Hawaii. network compete and Latin better long XXXs which communities small our only all do combined advantages, all simply where cost. the on where from context mainline areas been with take potential business have and offers domestic fleet. the revenue and United's bounced fraction single-class seats performed operating our small the of world haul a we jets couldn't our temporary in traditional coastal during traffic, structural full pandemic, now XX-seat our the communities, new fully with in fly United a many including health Pratt meant gateways to were strength past, And was the be near don't long-haul when unit and Imagine competitors Imagine to jets Whitney Imagine America, United premium and grounded, pandemic. of against

our these impact border you to have of revenues. is things a have an to structural and where area time a for just advantage. long-haul we hard us. QX Opening is guide. flying on I Global want transformational the point revenue We our imagining the

during wide-body the of our all are was the that right confident pandemic We call. jets retaining

I've growing remain As in years expect we the long-haul for opportunities. than supply all front haul, of talked the on the we domestic demand. about faster challenges we on the potential think growth long the with about coming often bullish

of ability a level, macro years. issues we There quick previously growth on However, expect no supply At coming planned levels. is fix as and to execute the the constraining result, there's no industry capacity, single increasingly less fix. to doubt we in the a

revenue However, United growth updated elevated flying Florida, domestic has has where exposure. of the this less be to profitability performance With we smaller domestic capacity still view expect in improved. more industry outlook, of and our communities

of our leading United The course, our of We to pandemic constraints, being our pilot with including in commercial delayed next have are full these and Plus the known ability the fleet. of end long-haul the execute consistent projects have plan the confidence Premium shortage. initiatives, largest, But cabins many today, rollout Polaris the and a so project. we of that nearing we on

with even economy flexibility basic seeking offer more possible best price. the our to continue to customers We

transformational. the the that, that over types to in carrier. United for entire clubs very investments set off gates today. best levels, network the planes, and service offer that for well two U.S. provide be thank the Gerry. and We'll with wanted choices their will will last and begins partners our desired hand don't With along team of global future the any with years, others I very product future Our we're dedication best customers multiple and up it to I across

Gerald Laderman

and good Andrew, morning, Thanks, everyone.

reported the a quarter For first loss and an pretax of around $X.X we XXXX, of loss billion. adjusted pretax

Our with provided the guidance the month quarter line XX% last quarter versus first CASM-ex at we ended up XXXX. in

which profit even achieve we We now, quarter up current second second we capacity currently more of fuel also expect prices, expect with right in around increased a our our on quarter revenue XXXX. our both expect elevated the for pretax cost we to produce and meaningful ahead, the second versus full-year expect fuel cover around revenue seeing XX% a than based are to the pretax down persist the we result, for the be to on quarter. Furthermore, as in the XX% expectations, CASM-ex income a while, to Looking XXXX.

increases. large will that the We continues narrow-body growth our a utilization to quarters our step levers over as grounded through sequentially XX of normal aircraft to also take CASM-ex to improvement in start returned as aircraft these XXX function delivery CASM-ex between our and meet We XXXX service, believe to drive will our relationship expectations. capacity improve continue expect we XXXX unit change of capacity additional the and remaining aircraft the costs

and managing we our that to control, done expect continue. all team tremendous Our job focus the costs under has a

makes exact forecasting will impact inflation of the CASM-ex the XXX for rate service for the precise exit our and we up are continuing confident elevated of generally us to well timing beyond. Nonetheless, and XXXX set return that difficult. the However year

fleet. to Turning

As you of our constitute know, vast aircraft the capital expenditures. deliveries new majority

for and pushing adjusted by We chain million of our of expected challenges supply year expectations CapEx and this result $XXX manufacturing year XXX are to the MAX from some $X.X as reducing to our year. billion XXX approximately next a deliveries

the While many as of efficiency. it is as meaningful expect slip are XXX of now bring AXXXneos MAX may on assuming aircraft of eight we to fly, of and how X, difficult Those XX improvements in precision say CASM-ex with aircraft and seven the we Airbus Next XXXs two delivery will to fleet will to fuel year. right the we well join is XXXX. to XX our aircraft to to ability and XXX X our into to United have continue both take order critical next Bringing and success MAXs

ended We the available with $XX balance cash. in billion liquidity. and to quarter sheet Turning

level Henry, Treasurer, Our optimal of discuss cash. Pam and regularly our I

keep to Now both a terms too have so time, is for us we long mind, in for of the industry think cash. in it much difficult been around

it us begin we the reduce However journey. continues, our the fair say see will to as cash you as recovery deleveraging is that

ticket the for In XXXX to maturity our confidence to we the cash an indication advanced the first reiterating prepay additional our our committed year earnings operations in approaching journey an This cash billion XXXX during target above in operating liability. by making quarter the from targets. in resulted about an progress. produced million to this levels XXXX our generation first XXXX I elected margin scheduled addition remain representing continue by we year, to pretax want $XXX quarter, confidence Furthermore, previously recovery's our We over pleased as X% and We're in largely driven levels. have fact, achieving of in that and XX%, $X flow of profitability in by of declining normally is this of scheduled over principal later unsecured debt next adjusted billion close an approximately quarter. started to total United increase XXXX payments. repayment as our our well $X.X in

I to move thank finance focused goals. long-term remaining dedication nimble into want second my we As and for to the their quarter, on team our

outlook the and as profitability of us a United's ahead. path for quarter full-year milestone both on Our for redouble is welcome all we our second focus

am I'll ensure will Looking even and grandson since to further can more employees that and I focused it perhaps, I And all Q&A. you Ezra, to grows start my most now recognize newborn its proud that with the when he want the are to people of airline the commitments his Emily environment. Ezra fly ever as for ahead, that generation, where United to met than has tell work up, Scott importantly, pass to mentioned that, to airline the

Emily Zanetis

Thanks, Gerry.

question. We please now community. from questions will take analyst the [Operator to ask a Instructions] Brandon, describe the procedure

Operator

ahead. James, Instructions] have Syth. Savi go And [Operator we Raymond Please from

Savanthi Syth

morning. good Hey,

of pilot kind that you playing the what see kind call, on and commentary your I'm hub-and-spoke means regional what the of curious strategy? your just given partners Just role to

Andrew Nocella

plan, that is a a and ago. that Next Savi. accelerated thought kind It the developed we're much there the than going more plan assumed is we Hi, of it flying When contribution but smaller while planned, down United It's Andrew. road. a ago, of marching while in would we where regional we be this we was

best think for So we QX are with communities. says the I well. I fine outlook service our probably smaller the can to the that term the we're rejigging appropriate sure network And And doing make level really new level generate that. revenues I is that this with actually think in we we're of think

just most being large And still plan these of of so our close reliance said, future. on to operate jets with regional to jets used aircrafts, less and smaller is be. that so it lot CRJ-XXXs, a the regional at the going lower United a is right our along the to what we be in aircraft flying to communities XXX in them but That have spot being because we dramatically to future, than

Savanthi Syth

curious And on helpful you as up that you because little summer was a of offtake just maybe to peak strong saw about revenue and but bit. versus period. as kind travel and -- thinking that's the was off-peak sense. Could Andrew, about, that color, just Makes talking not performance really follow I the how peaks really is trend strong exit you're a peak we

Andrew Nocella

plan think most -- RASM of XXXX. said earlier I important will I of one see things business to think be travel and one from I we're going the is their actually was approaching the in

So traffic we fully view returned, the capacity marketplace. as were level particularly of now given that in often business almost the

a of rely degree will As we on accelerate we quarter an we and today. continue incredibly with month be business going trends going being the to the through strong go exit confidence see we we summer, on where that, and given perfectly business that's high fourth more to October to have fine, just as business we're traffic

bullish their yet. business. a would fully come because would after when not And have we're is have how back to office. recovery. not again, So the much Everybody back very go long offices it see of revenue still it's returned that the nice debate from we all approaching we to way are about on XXX% come in and a And

months of there's a maybe we people think actually So few than a lot more thought ago. upside just there

Operator

We have go [indiscernible]. Please ahead.

Unidentified Analyst

plan, are and realize all CASM-ex that matter most, you target of the for at Again, that too the impressive. some of margins that of plan you the evolving. that to that's timing those how Thank is do look and the but United just stuff? most takes since the the deliveries, you the Next United stuff. But everyone. matter just to seems most the on just margins I it Next willing and where Like realize plan you I the kind correlated with? lot's and earnings flexible issues navigating a Hi, time. When be changed and puts are most

Scott Kirby

start, add. I'll let I'll and Gerry

matter that basic I things a everyone margins high the right year in absolutely built And We been changed than little how intact. inflation we inflation is You're were inflation a thought higher think ago, and we been. the remains being but bit. most. we by thought. high surprised And strategy the has has have over But basic vision, conservative,

of point higher like got to than revenue-related is So is CASM. we headwind even have We this year, expenses, CASM-ex from inflation -- which higher reason good thought. full a we a got

pressures. So we inflation higher do have

CASM and around separately, have, XXX our happen. that and the a get degree, fleet just be once know This than lowest we sure to lesser it's flying. don't is XXX, back that Boeing function what step going to to also But longer timing We up is principally hoped. issues. biggest, going is full the airplane, had a deliveries. for We we taken change It's

are So there will important be for growing But point gauge because timing absolute are level just and drivers real I that and the margin of how structural but be we are mean. gauge there's to the higher the going is important issues, think. growth what inflation,

everyone. what inflationary the I tide for more than to more already means we so that see we it increases. the impacts the carriers low-cost XXX% impact raises tends us. of And that think And right cost bar, than inflation happening now, recover It

revenue changed CASM. about and points there's just most just And gauge mentioned so the important to fact the last of already gauge. that's that's nothing encouraging, But happens, margin. real really -- in the travel coming. the it's in I that the about return we're quarter. of it, away this first that's travel to relative mostly to of XX% from basis coming-out number environment, you of what's sort quarter, growth, that and the Most XXX meaningfully the do kind inflation business and this going I the ultimately go just get for to because to look, it's think, And international is, whatever what this is however and the CASM-ex going In also math think have what's that think with is is the high we be thing party big better we're than you've is The XXXX We're to math. to going in think straight margin. airline I that's of margins the

world, inning to first XXXX barring that bad levels in pretty the XXXX to just Gerry? the as in are revenue something of margin on and recovery upside seems got getting easy. We That's happening be why well.

Gerald Laderman

in on revenue Yes, as of translates percent a a that really to is CASM-ex. for bit while, what up Scott couple than continues comfort, said, that. a of seeing more just a to give world you And only single-digit we're where this so more high little making for inflation, sort

us achieved. to targets going those see not dramatically comfortable you're going CASM-ex. to makes that on So margin numbers are be different very we're But seeing everything

Unidentified Analyst

Okay. you of year delay, to that many next XXXX? some is case, provide your how next the the have year, you're deliveries year you if deliveries next then capacity don't MAX Thank with I haven't all in like or on a you version. XX seems the there number guys then Great, that think backfill but misconception Can there a quantified and for deliveries I think a aircrafts. be they're kind of MAXs that you. the from to MAX that's And optionality that for XX what's specifically? And expecting

Gerald Laderman

Yes, can't a then But of be when XX. never and deliveries will dictates delivery as we MAX take plan how that to specific many. don't MAX so all exactly we the had we XX know because first next be, year's

it fact, In next deliveries was year. for the of less half than

MAX and XX timing And plenty for you first but XX in terms of get I Boeing they X that -- see, us. wait producing the the we'll confident to the so talk flexibility, will to exact of when are In am we'll about be Xs of delivered. should MAX MAX but

next little we're And eight, bit so of timing going and take a nine, we're Xs when shift delivered comfortable But XX can year. a Xs there always are of in or versus XX. be to

Unidentified Analyst

you. thank Okay,

Gerald Laderman

Operator?

Operator

Evercore From have Pfennigwerth. Please Duane ISI, ahead. go we

Duane Pfennigwerth

thanks. Hey,

you why industry time, And rate a the pilots you to for or -- bit But little delivery aircraft about think for reduction of in of sort and United On aircraft much is this for year? than past on in United specific of short had of the you issue versus timing the constraints more delivery the pilot-related rate. the discussion can certainly you that expand industry, terms of on which your to more XXXX? growth, than could constraints is how We've referred the about XXXs? going more in be talk some

Scott Kirby

and Gerry that That's issue is We're month. That's XX% biggest an start, we is they're We've I'll well, this Okay. not us. or XXX hired Andrew our don't first we XXX. issue for labor capacity, on year. can add. and have of pilots a issue shortage. hiring biggest X,XXX The a capacity grounded. The people have

constraints realizing to TSA, that the The snap other is the rates. -- vendors. way have infrastructure pandemic us. schedule. the not made set much issue we're whole these I customers not And in up so back reliable enough growth is mean fuel to of even all we FAA, rapid we -- we're those with the just if do, really it's willing United just of brand. people, progress we There's building not just It's all and which a get during the

to goodwill think going that be enduring the possibility that customer willing sacrifice we're most profits. short-term change of that's I the to not for

performance, -- we're so completion And month-to-date, and factor. one one in number number in on-time

I'll So it's paying off our pilot for The give customers. you shortage, some numbers. to

come right a They're So dive regionals we've we're pilots never our of back, assume. I problems. going And did airplanes able all because to we grounded trying deep to think got are and now. on -- having weren't hire XXX I

X,XXX, the pilots a year, got really available. fixed lower X,XXX deep the produce mostly probably next X,XXX over epiphany hire there closer But by the for a dive historically little airlines, year, that That to And year, put. X,XXX COVID. are but And it's can't the to of on way, is be turns pilots to industry's And and pilots. so growth quick that we X,XXX only did aspirations can intent out it. year. up XX,XXX given produces This It us. between per to other an industry more X,XXX was during a even

people to flight But and pretty that hours, you doesn't You just today. got get up their schools first to hours get they set X,XXX to get $XX could license to exist easily. from XX

X,XXX few that don't to at getting probably United X,XXX, a years, are XX,XXX a up. if it's in look next to is half of X,XXX United could literally six like go it's hire five that to you to the them anytime Half When or in them. I Airlines X,XXX, over of So that think years. Airlines. X,XXX, going

underappreciated it's not and fix. think, quick just So this is, I factor, to

Duane Pfennigwerth

influence well? going Scott idea your beyond? this couple this and than that. does really is well capacity of I So Is operation, detail, influence pilot math, great That's influence that I'd that and willing a to given the to you're XXXX kind of along epiphany and appreciate those the XXXX? more protect a others as guess as lines, of

Scott Kirby

the we to that the or growth. get But is and meter pilots in. But function the overnight a a a Not having from -- not pilots are successfully easy see to leads. the we what bumps, but you lot are we've lot behind from hit the way. were going upgrade flying build All Like focused some the we other ahead And all saying, to of step airlines.. And feel the some happening yet. increase. of on XXX of have go getting -- step that is a XX it's had happening XX had stuff this bumps that so are constraints about XXX we're has to sort and steady upgrade retirements it's marks and watched increase. state through it. read get some are in hiring here -- blogs hire ahead gotten where learned We're things them can to XX. the pretty that for month. of this some We XXX. go I've a can to that airplanes take of We're month airplanes gotten through going amazing a really and some It's not to the everyone training. other if the the where it to of COVID. to kind had -- some struggle. has to going We many the just team it read of also good We've There's our -- to about pilots by that been of

we more in So a before than We are fleet. we we issue. systems It's timing a we would nine quickly. to to is make to This the that's this solidly even we're the strategic decide we months And really if think And get feel ramp go part time. But in that Earlier, is to it set that's get okay into issue. probably flying. before Like will faster. sure to just do executing it's ability we're good hire. just month, best I double because not really because just it. place. particular, of our of going I any the going timing all would longer United, thought them take be not them going realize we're up CASM for probably to done we about it take But want the advantage to we're

and we good. are some a go. good ones some aren't pilot the to like best There's place that there you're are other If

it a think will a I is is it strategic be It advantage because a shortage. shortage.

Duane Pfennigwerth

the thoughts. Appreciate

Operator

Please go have From JPMorgan, ahead. Jamie we Baker.

Jamie Baker

I Good hoping was call. morning kind everybody. bullish of a for

Scott Kirby

Always the Jamie. lines, best

Jamie Baker

question. First

Scott Kirby

to is want all I get, never though, got. you that

Jamie Baker

Is system. Asian all for guide part? to suppose. Asia it. was still earn right. A Well, monosyllabic second to way fame, quarter Yes, that the of shut I down identify the how RASM All for a most benefits don't being much from historically right. My in Andrew recognizing the lower claim question than RASM XX% there

Andrew Nocella

is that number don't obviously have of that Asia is cargo can I head. there But what that Japan strong. that China tell I and incredibly and of rebounding pretty in But tell Australia the Korea have But rapidly, are in you, strength our not. I are Asia. you direction parts and top my will question. Good off Asia, including is

view, So XXXX, less otherwise other from is of to of think. other the but a behind maybe to the relative you world TRASM of regions the would it than compared regions point world,

Jamie Baker

personally got and, even Scott, to analyst, the renaissance. that made junior a quick as of And the remember when period Continental you my a I for piqued I reference Continental interest Okay. Continental employee. time, you then, helpful. passenger both admit That's to a a

would he relevant even Not that why me. if weigh shareholders right for that referenced. in your to want of history well, and you as now? with Gerry chord at and time sure expand a UAL bit you it's struck can definitely it on the So was there But given

Scott Kirby

how did ago, same to or what Yes. XX a of Gerry And both funny years customers But and embarrass airplanes. changed fly Delta and Is then started XX story end to the deserves them. felt happened, They look, XX They I'm felt. customers they tell thing the the around at those changed people changed they felt. ago. the credit, people choosing to it. They years how going -- Andrew employees to how brands choose built customers

people they have do is says that it but travel air few prove I So commodity. does everyone not are it. done. that a And a be two were very to think And examples those

been pandemic, from industries Capitol people CEOs NPS different and numbers. how go. it United. told to Hill we've we've other We've think the it got we've from customers, doing way flying from Like feels But got Acknowledged. a on long lot during not to and I a to about We're other there. I anecdotes the you prove. have galore

what a They're proud taking just potential. product mentioned, that's a happened different Ezra. and about business, That's greatness doing brand -- and are to how on hubs airlines. you're United flight United Airlines, at feel have what customers we're And people done. airplane the tell the we're to go employees, is ask They Airlines. that at for people fixes customers Aviate get for the on of two care the what was also their They're proud about airline a actually you're why, to our our Academy. get energy at investors. the also an fix thing that's that's Look, you And key for gauge, that had key at the a feel customers focusing to that's now. frustrating through those for like. for. pilots and they we're brand for again. doing hubs that. look and never going the diversity going we We've what it ask United, Our believe. They're stand best and flows work employees, a proud leading other airlines. in Gerry [indiscernible] at we're into the sustainability one building of a we of you proud of potential, an ask of but always which and them like realized to And answer bunch to Realizing of of, they proud -- United we've of Like been They're

too, one one disappeared remember from has he S&P compared A back And a I I of can is front XX it. again, the and you the quarters. all but is last T-shirt this that I including want screen, the have Anyway, You at that or like oh, do team I've Despite anything? wait we'll a still be happening And those the calls, what quarters, I'm one as fact nine the still Gerry, of the to yet calls, XXX. Jerry the stock see fact that's have not from like, on have biggest I things domestic as one it. somewhere I'll nine like probably second I and the our travel. that say, to what international [indiscernible]. our the add already we mean travel be on is said embarrassing number Continental He and T-shirt the back headwind will headwind. Andrew quarter, we're and We find recovered on eight United. two quarter, the biggest that number this leisure said don't comes of can't the and just price days got or for the story, Business back. of

Gerald Laderman

be for will the and Wings continue great launch. a Club this to at One, conversation next you I week things. two Jamie,

to invite I So that. attend people

there, example the our to happened just older But sure I the from there for happening. of I most years yes, in the is, the thing fact with crews. Delta just similarities. with everywhere One other so years And has look, not on that here. business. then for incredible and taking The are was been our this of work. aircraft, outside, we're And it's the the shows, customers, XX same kind retrofitting interiors that now wasn't The We're very, all I the lot it's a for aircraft, industry. just but say, they're just it then in this ago. was also thing a customer-pleasing saw new several exact very I'm what focus of you're going -- the the place same right, it's It's isn't MAXs. but proud similar.

Scott Kirby

this record of a QX was I'll really for add the another momentum relevant. 'XX didn't for What be of think it's And our incredible, is point, ones quarter which that's quarter United. we going is and I is a unbelievably off about record The one talk was quarter ever. history great of in to and United. an best incredible

So...

Jamie Baker

Well, something hadn't topic honestly, that up. thought appreciate really bringing quite you listen, of It's, I yet. I the

definitely it you it. to Thank something gives me Appreciate much. ponder. very So

Scott Kirby

You fly United all experience, employees. should shareholders and

Jamie Baker

the I bag. leaving Club day. the and Wings my I pack leave I'm next

Take you give a report. So I'll care.

Scott Kirby

Brandon, the have we next please. question

Operator

We ahead. have Linenberg. go Michael Please

Michael Linenberg

Hey, Good everyone. morning Gerry, good outlook. results, good congratulations.

what in you're sense [indiscernible] again or give fuel you address your I'm mean, market. -- curious heard And realize maybe question it think, What York that New you issue Thanks. fuel of percent it? maybe are Newark, I is with flows we've the How the of York in. do terminates up. that addressing jet it about single to you I today like maybe York doing to prices mile have Appreciate the my a get getting market? And and been are the from a maybe you I just pipeline, near in lately us guess, it. New Colonial So New here, are I south but the the harbor? has fuel that colonial tankering

Gerald Laderman

Sure, Mike.

the First, Market dollars. two let measured that different dislocation has It's crack out point moderated. in me in in was that. weeks ago spread

measured let's as Coast, you It New at Gulf be Now say. York can to is it in compare still cents elevated least.

a we so have also can of options. resort the we we to -- needed pipeline, And yes, do number One is as tankering.

exposure. with with sort going comfortable that And problem our so is of away, And the helpful. we're

Michael Linenberg

Great. quick And a then here. one just

you were service? just years. revenue, that thoughts I only. we But fantastic max sort I Do Does run do the Just being passenger not move presumably, not when absolute Thank sustainable, that? that's $XXX cargo off? been believe at airplanes flying Andrew, it's of we mean maybe because Just some airplanes over that to couple look level see rate over growth level you some back out on into the but of as level the million, you. your past cargo at still

Andrew Nocella

Yes.

lot in on there's board. the think bit when bellies a there's I room little less a of luggage

offset. is there an So

some And that but cargo places the airplanes to demand. of have passenger strong demand, strong go have don't

machines, the fact by gigantic there's that are XXXs, that's that However, not offset cargo which flying. XX are

Scott So over said, those nine XX service, providing as capacity. are next a reenter belly aircraft lot going add, months, more the to overall

that's So because highs record on good and my which a of to bit? perspective. the revenue where And we yields start expect we're from view we have of are the feel about at outlook that back that. a cargo for online capacity coming Should XXX to still our moderate total in Absolutely. going belly really

Michael Linenberg

that. Thanks Thanks everyone. good. Very for

Operator

Morgan we From go Stanley, Shanker. have ahead. Ravi Please

Ravi Shanker

well. revenue the a this seems With in career. also unprecedented the you in is said an environment constraint it your unprecedented capacity as shortage, yesterday, morning Scott, in media everyone. your pretty Good Thanks. pilot on like commentary prepared remarks your

that how at consumers that a here take A, demand demand the think there you of industry multi-quarter is upside the pretty of at in pretty a a dynamic. results b, pricing But do some that disruption kind able And or to environment of right point where it? a be RASM outstrips strong you also when Usually, think puts So not cusp is you're in you point sweet PRASM seeing spot. may industry do lasts? that the now. long-term supply, do long think

Scott Kirby

on your or I the for your demand rental Uber close vacation dollar and getting for where pay many on I'll for when to Air with travel macro in remains pay to night you close you real We're to car than the the start micro demand more a that, think cases, one hotel you your we're give great curve. you great don't the remains more think first travel view, great we're for a get before destruction more a of I some to were I airport your value, go at or, back I'll pay point don't of bargain. to do bet airfare. basis Well, a pandemic. bargain. a view. just then anywhere anywhere Air we destruction. or taxi

we since by And nominal think has track normally, revenue. back XXXX. But macro about Another we're XXXX now grown GDP of way nominal to this is just XX% levels GDP. getting to

kind macro -- I there's they there's it got And that of think are results and We are at go. XX% so level, another we from XX% as got that. look strong a -- And arguably, another to today.

go not micro but XX%, yet, is business If at think yet. you that, international on the that pretty you revenue it's look recovery good all a back makes coming that would a demand, level, if I Like don't there way sense know back. to exactly

is of yes, So is revenue I inning think inning think first I the -- turnaround. travel this real in the revenue, of TRASM the first

Ravi Shanker

pickup interest been post the in it's you follow-up, mask seen dropping I have but only any Got a as travel few it. domestic days, of a know And the mandates?

Scott Kirby

a we certainly discern think don't be It's short not something data. it's to able I answer. -- we in no, would

Ravi Shanker

Great. Thank you.

Operator

and Company, have we Becker. Cowen Please Helane ahead. go From

Helane Becker

the traffic acquisition? card seeing, that Scott, Andrew, about So loyalty in maybe improvement and as also are an in think you're you you or credit seeing increase, sign-ups

Andrew Nocella

an Helane, we're in increase seeing everything.

So the it's than card been. in we're our retention acquisitions, rate card the better front, card is MileagePlus and for record spend, doing record ever

-- this contributing point, just results. these great all doing of MileagePlus a on cylinders firing it's is and we're at job So

Helane Becker

rate for relatively floating the And debt you. high. percentage Thank seems, helpful. very That's then of on I know, don't Gerry,

you're expense step interest interest an paying that first from causing rates you thinking are that the concerned is Or about in about So debt? increase that? higher

Gerald Laderman

rate of don't Well, that our vast speaking. debt our floating high, exposure fixed The majority rate debt. all view is as first, aircraft-related actually relatively I

So level. that's we're concerned LIBOR And really low not relatively particularly still rate, the a something at about. floating is

the attractive. rate, floating So that's still perfectly

part course, generally floating the debt without good Of is of pre-payable rate it's premium.

it but now, it there it of not lot of is prepay, right generally, is. all to a So

current ahead may that be factored move interest that to higher will is balance Obviously, in rate into debt the environment, concern. sheet. we how that's -- not -- we not So a of the as a kind manage as

Helane Becker

That’s very helpful. Thank you.

Operator

From O'Brien. go Catherine Goldman have Please Sachs, ahead. we

Catherine O'Brien

time. the morning for everyone. Hey Thanks good much

pent-up time you backfilling and you the do think year do be corporate I were having we And guess talking the that same both lap kind when LatAm It some of I markets well the about that? on and to touches travel do for at in how you any this a Thanks. a answering this slowing just So about Would is in last international demand air structural is? see international Or perhaps conversation where ahead think like we happened running what at having comments but we are summer. something like that Ravi's guess, to XXXX conversation should travel of question, pent-up sounds should to lot point? I was we and Scott, be long-haul travel. is has your your and love if like domestic thoughts. wrong for Trans-Atlantic

Scott Kirby

get change. back Well, just this the we I in this give lot pandemic higher on is it, personal and travel am think with step no and others took one for And mean to Losing to business. before. you've both long confidently granted more certain lost to or and the once it or opinions. can I been we talked creatures. no think of sure. years and I personally life, We it The a ago for entirety. come almost realize the We new minority go the this you back going different said are two people a I'm opinion, a opinion, to more, But a of answer But gotten a other. It's we at right minority of pent-up demand. to people knows we're rest you of think and would what question how one. social there Nobody has like certainly is years when people I've my traveling, year my it for be however beginning. than very travel I'll it one -- I vacations is that, for experienced, one enough not were I two has do there time, from the business are quarter United level answered just Airlines that think a going on much true. And for like people question. structural I family you've missed or weren't things back now have need It's and thought that. and I'll each travel.

what's customer are than together the at even And we're they a you Zoom our doing in productive And accounts. then talking on corporate and important. it's of we it Look they simple we the see transaction that's once nothing, start at zoom iPhone. conference past a traveling, background get when or where more we're the are back your flatlined client and got a I people more dinner just going of a were. They're in It's not you're -- they realize we're lot a traveling with happen. We or reading when kids when and kind same. think doing to

line buy opinion. where because You airline one we're to basis, Airlines that happen to trend on to XX% GDP. I don't sustainable where or are just we were surpass, to the behind on stocks But believe of guy's we still before. a that's were permanent stock going have believe that we United

Catherine O'Brien

for any Okay. is XXX that broad about the stroke upper you for thinking do kind what where this unit be your lower Thanks of then capacity for so guess realize to time time. how the and Great, maybe means one XXs. Gerry. of FAA all the difficult conversations, latest I just cost? we it decisions on should I have the for much limits of based the maybe on year and and

Gerald Laderman

the this for of Yes, largely the capacity XXX. year driven as by going is be to timing said, we

get be as all the CASM. to it, well year. that will benefit the to as end So on number XXXs to the to we know narrow-bodies by why CASM, to going over of course is where as said. do which are the greatly a that we we're the precise of want will in is It's year particular comfortable large obviously I we though, put tough improve it the What

Catherine O'Brien

Okay, thank you.

Operator

Please Brandon From Oglenski. Barclays, go ahead. we have

Brandon Oglenski

I congrats and to Andrew, strong follow-up. Hey, good just normal. here morning the to back being everyone outlook on wanted

think I RASM you on guys XXX% business explained it, but travel.

adjusted correct? to means that for you were. where relative just Is your that So capacity

Andrew Nocella

That's of correct traffic Yields little that now. XX% right is XX% volume down a are up bit. is capacity for down because component about and

So mathematically getting XXX. close to it's all as

Brandon Oglenski

what Is this well? ramping that the really business demand? summer on do to Or as outlook guess, recovery need I the see removed? up is international requirement And on travel you testing

Andrew Nocella

Well, it up. ramping is

the in cabins leisure current the would to corporate business you have Atlantic largely more business. the what premium corporate are quarter, with normal. returned The traditional filled tell business I So bookings than is across business

where meaningful again the smaller really So as bulk It decent we network. we into business at Latin is seen The is a going business same true The true in Asia, relative component really revenue the the traffic expect Asian summer, recovery not we with to do point get XXX% haven't is or XXXX of business same Atlantic, traffic than particularly at this for America. a our Europe. across to greater. in

Brandon Oglenski

thank All you. right,

Operator

SIG, From you. Please Stathoulopoulos. have go we Thank ahead. Chris

Christopher Stathoulopoulos

question. my Thanks Good taking morning. for

more agree So need Scott, on for I couldn't travel. the you with

or forward you midsize then other respect like? for And that consulting small how the health of survey mix corporate care, versus that there? buyers corporates? finance, you much look changes mix, from business, tech, in of and/or at look the and seeing to with Thank you. is On on frequency your to are Any the work what the seasonality data large

Scott Kirby

the lag, is terms others. industrial the want technology. in which San than booking eight. to ago. in It's a to curve point changed. than quicker and has it out All metros than now sectors faster All said, be I number was closer part. it month is are in that looking I'll start, a important San transportation, of seem top was a Francisco, moving really the XX returning, States, Francisco, recovery the XX United to the in first just being some the XXXX did It's Media, number us. market

so in And rapid bounce-back San there's been Francisco. a

I've explain to the macro in think I numbers technology It's is we think I seen get updated when back the for only see we're can what the So to going data, line. that. I way

that of follow-up? Does do have So on question? think kind that numbers are we're case. the Or really you that, I answer bullish a in and the supported

Christopher Stathoulopoulos

color. Yes, Thank you a follow-up separate. is for that

like there renaissance, you the for being So estimates and what out if unit comments industry revenues. will, about feels capacity off wildly a

your can it from those place as take targets $XXX holding we an Assuming getting stage deeper to Is deliveries get oil expected below we Thank of new you and and back opportunity what's moved into there and hold recovery. margin the you. faster? this

Scott Kirby

faster. will get we there think I

Andrew Nocella

For XXXX.

Christopher Stathoulopoulos

you. Thank

Operator

Street Sider. Thank Journal, you. Instructions] media. now the [Operator from Please will from Wall have we Alison questions And go ahead. we take And

Alison Sider

services pull if talk wondering bit a communities the about could was little where regional of some back. you I smaller your had to

figure that the do out? future carrier do developing? think just they'll ever you by or is do what see Now going to they of you think again to markets? something network for have some How those service you air have Like

Scott Kirby

of to And can different expect communities been have lot the in smaller talking they've my service be before We meantime, That to it's been up. to to frustrating to level that change. that's in communities, communities Even on their aircraft smaller of the years a really mean doesn't in industry take time I've on think spool service these that's to so going all United But a of many this small time and network. left particular, number possibly do spent of much expectation important can note. the it's a the of lost is based the date. I what seeing going

to for So possibly frustrating we to as service that best our this years. at and in can. dramatically it's expect all improve this small as next it than we them as those to -- don't as XXXX. many regional is but are where are, we jets in really doing communities, is we're But United just And maintain few for -- we stretched. is flying fewer today the it's were We're we of

Alison Sider

employees? separate question, you you're of signs doing rise any is among a the case are any the in sort as that seeing just country? to And contingency And something increased COVID-related of of for absences parts your numbers planning start

Scott Kirby

good And that. yesterday. -- seeing not got was in are really news fact, We

we For track any the long and have first COVID, we is happening something zero. employees for zero closely what's time in great, complications which hospitalized time, from a

So seeing. quite of opposite the what we're

Alison Sider

Thanks.

Operator

Bloomberg, from Please we go ahead. Justin have Bachman. And

Justin Bachman

work Hi, good about of XXX mechanics still your wanted waiting ask the what to you're be remaining morning. to around Thanks time. for that you're that far as goes, some gives MAX where and XXXX? from what done, of return, the the what on the is I confidence kind start then XX FAA; the up certification and those Boeing as hearing that certification, MAX will you in Thanks.

Gregory Hart

thanks for This two underway Okay, Greg Hart. of really bodies work the There's question. on the is XXX.

Boeing those and start Also, & regulatory are Boeing The working through is first complete, a that we worked with process work working aircrafts. the is aircraft the got modification the there's number Pratt that the work with to to and FAA be of continues. on and FAA. able Whitney We've

legs in some you the allow we Gerry, at on obviously the take XX safely return the focused expect those future the the We in point certification? that, the not-too-distant aircraft to issue appreciate are and Boeing's and to MAX air. want FAA to of and is FAA perhaps, do final to the

Gerald Laderman

I regular am I said get keeping us is that Boeing. line the Sure, certified expect, in on very for the good XX, communication yes, earlier with confident you been why MAX year. the time the XX They've MAX we'll about and can are fly next we certification will which it as for informed

Justin Bachman

return Great, topic, talked and what some in being the of will not another to with to allowed this policy? United you've on issues about your who that flights the are are in thank list you. that related you're the be on sorting are complying that able not future What week, the through can on to On a who return passengers masks for change Thank policy issue? and who you.

Brett Hart

This Yes. Brett is Hart.

can wear to you who of relatively were during reasonable this mask range it's mask. refusal imagine, those behavior, and who of just beyond are are period, been refusal It's we there the -- have banned for a manner. the where behavior straightforward. just to conversations, handle those in some a a As But those general able in time

those with approach can we'll very have to individuals who to will back imagine, and it customers, to to in to But as our we banned this, as airline. getting you is individuals that that so -- behavior a been our then touch take likely evaluating be we welcome passes. And if going team a we're risk And are thoughtful and that members will behavior. other presented who less evaluate time

Justin Bachman

thank you. Okay,

Operator

have we Please Isidore. CNN, From ahead. go Chris

Chris Isidore

Given how have first yet they domestic are as yields first any XXXX? Can up were are percent? of not back that on leisure XXXX give business of yields quarter the you where is and level, X you up the that sense travel that to normal quarter to to they about do travel guidance Are that? any compared

Gerald Laderman

all sure second -- I'm our station up. And price really largest higher. dramatically the pass out of is definitely there that dramatically largest a customers at is when cost United. our higher are of gas fuel realize They component by they therefore, our

into were point that along ahead. leisure out as we the yields, yields ahead at leisure XX% running yields quarter, pointed are quarter. So second are at business XXXX second into yields, and point with the of this look as look already this Business above we

Chris Isidore

not but giving number you're a XX%, Above yet?

Gerald Laderman

No.

Operator

David go ahead. have Slotnick. Please From TPG, we

David Slotnick

Newark you if deal cope wondering how all good Thanks again. planning that know capacity just to planning to the just know problems issues with of Hi, have given for I wanted plans summer, question. you've And morning. sort any you're was in demand I about you're to the gotten with I at outlook, continuing this or be with that. that to warning place

Scott Kirby

it's in in which theoretical it's capacity let for conditions, one canceled the calm employees. country XXXX. at biggest FAA to consumers, month. time It can airport operations try violate says. I of XX FAA Spirit hour. to It's for airport The flights It to Newark, the the letting airport per do was in And more Unfortunately, awful XX% are employees are unheard flying when customers the that Airlines is It's price. what the rules. has their it's at the is for their I XXXX, XXXX, paying for behavior It's at fly customers simply break they're the the it people just delayed to in those That's perfect I'll are It outrageous this -- stay FAA in operations Airlines our collateral break, that. airport flights are their their offenders rules. in And rules. what what's Newark. That's happen -- I Sure, happen canceled, and bad Newark at being to is for their two Newark answer. enforce to to consumers. being They've awful -- handle. airlines mean, most XX XXXX, Newark. -- per customers. for rare it's frankly, allowed our disaster they Their the FAA rules just know, they're for are FAA again in and mean, damage has the don't me I to canceled, the limit again the hour, brazenly canceled I in the again, JetBlue. terrible delayed, of time for enforce own a Spirit far biggest five over rules. to so mean for because is and allowed and not customers JetBlue it's flights, this the

David Slotnick

communicating I capacity way mitigate But to customers help or whether any it's on customers? redo what's mean Is like you or something that this, there aside that? can going from rerouting

Scott Kirby

Well, care United job it's because bad of great tough results customers. our of doing whole better, team -- our a customer is taking a should -- book are on is lot for while us, as our and

you're If United. to book certainly fly Newark, on to of out you encourage I'd going

David Slotnick

thank you. Okay,

Operator

you. Thank

We Zanetis back will for remarks. closing to it turn now Emily

Emily Zanetis

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

Operator

and you conference. and Ladies you. Thank joining, may now concludes disconnect. this today's you for Thank gentlemen,