Good morning. Welcome to United Airlines Holdings earnings conference call for the fourth quarter and full year 2022. My name is Candice. I will be your conference facilitator today. Following the initial remarks from management, we will open the lines for questions. At that time, you may press pound two on your telephone keypad to enter the queue. 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. Your participation implies your consent to our recording of this call. If you do not agree with these terms, simply drop off the line. I will now turn the presentation over to your host for today's call, Kristina Munoz, Director of Investor Relations. Please go ahead. Thank you, Candice. Good morning, everyone, and welcome to United's fourth quarter and full year 2022 earnings conference call. Yesterday, we issued our earnings release, which is available on our website at ir.united.com. Information in yesterday's release and the remarks made during the conference call may contain forward-looking statements which represent the company's current expectations or beliefs concerning future events and financial performance. All forward-looking statements are based upon information currently available to the company. A number of factors could cause the actual results to differ materially from our current expectations. Please refer to our earnings release, Form 10-K and 10-Q and other reports filed with the SEC by United Airlines Holdings and United Airlines for a more thorough description of these factors. Unless otherwise noted, we will be discussing our financial metrics on a non-GAAP basis on this call. Please refer to the related definitions and reconciliations in our press release. For reconciliation of these non-GAAP measures to the most directly comparable GAAP measures, please refer to the tables at the end of our earnings release. Joining us on the call today to discuss our results and outlook are our Chief Executive Officer, Scott Kirby, Executive Vice President and Chief Operations Officer, Toby Enqvist, Executive Vice President and Chief Commercial Officer, Andrew Nocella, and Executive Vice President and Chief Financial Officer, Gerry Laderman. In addition, we have other members of the executive team on the line to assist with Q&A. Now I'd like to turn the call over to Scott. If people can hear us. I'm listening. Okay. There was a question about whether you could hear us. Hopefully, everyone can. Well, thanks, Kristina, good morning, everyone. Before we do our normal 4Q presentation, I'll walk you through a short deck that explains the intellectual rationale for what we're doing and where we think the industry is headed over a longer-term run. In short, we think there's ample evidence that there really have been structural changes in the airline industry that set the entire industry up for higher margins than we had pre-pandemic. First, while the specifics of the demand environment will be different, we expect it to return to at least 2019 levels. Seems to think it could go higher. Second, we believe cost divergence among all airlines as well as supply challenges may drive structurally higher industry margins. Finally, United has been pretty accurate about the macro outlook's impact of COVID and what the recovery would look like going all the way back to February 29, 2020. Based on that, United really did take a different and unique approach to the recovery. At the onset of the pandemic, we acted first, and we acted more aggressively than anyone else to protect our airline and the jobs of the people who work at United. At the time, in fact, some said that we were overreacting and that the pandemic wouldn't be so bad. By confronting that reality and acting quickly, our leadership team was able to be the first airline to move forward, turning crisis into opportunity and begin making plans for big investments in United's futures, while others, frankly, were still in crisis response mode. It's clear we had a head start in planning for the recovery. You're already seeing it in both our absolute results as we've achieved our 9% adjusted pre-tax margin ahead of schedule and in our relative margin results compared to the rest of the industry. On this next slide, you can see what industry revenue has looked like as a percentage of GDP over time. A few interesting points. The industry still has about 15% domestic revenue growth left to go just to get back to 2019 levels here in 2023. Our base case 9% and 14% margin targets assume that we just get back to the 0.49 ratio. In the 1990s and 2000s, however, revenue to GDP was even higher. As you'll see in the next few slides, we think that cost convergence may drive revenues higher than 0.49. For what it's worth, every single basis point of domestic increase translates into about one point of margin for United. On slides five and six, I'll address what I think is the most significant structural change to happen to the industry in a long time. For a host of reasons, we believe the industry capacity aspirations for 2023 and beyond are simply unachievable. That's just like 2022, when the industry capacity was seven points lower than initial guidance, and we believe the same thing will happen this year for the same reasons. We've talked a lot about the pilot shortage, which is just one of multiple constraints. We, along with Delta, American, and Southwest alone, are planning to hire about 8,000 pilots this year compared to historical supply in the 6,000-7,000 range. Pilots are and will remain a significant constraint on capacity. Post-COVID, all companies, including airlines and the FAA, need to staff at higher levels. Lower experience levels combined with sick rates that are elevated because of COVID and new state legislation that makes it a lot easier to call in sick. We believe any airline that tries to run with the same staffing levels that it had pre-pandemic is bound to fail and likely to tip over to meltdown anytime there are weather or air traffic control stress in the system. OEMs are behind on aircraft, on engines, on parts. Across the board, there are supply chain constraints that limit the ability of airlines to grow. Finally, the FAA and most airlines, with the exception of the network carriers, have outgrown their technology infrastructure and simply cannot operate reliably in this more challenging environment. Taking all of the above into consideration, we think at United, we need to carry at least 5% more pilots per block hour than pre-pandemic. In addition to that, air traffic control challenges mean our taxi and en route flight times are elevated and growing. The same number of block hours probably produces 4%-5% fewer ASMs. Put it together, you need 10% more pilots and 5% more aircraft to produce the same number of pre-pandemic ASMs. Like it or not, that's just the new reality and the new math for all airlines. I think, however, we may be the only airline that's actually figured this out, and likely the only airline that has included this in our 2023 CASM-ex guidance already. To be clear, all of these issues also impact United. The reality is that the airline industry is probably the most complex operational industry, with by far the highest safety and regulatory standards of any industry in the country. COVID hit our industry harder than others. All of us, airlines and the FAA, lost experienced employees, and most didn't invest in the future. That means the system simply can't handle the volume today, much less the anticipated growth. At United, we also missed our capacity target for 2022. We had our own challenges over a year ago during Christmas of 2021. Omicron hit us all hard. It also shone a spotlight on other strains in the system. We responded by proactively pulling down capacity. It was the only choice. You can't change the engines on an airplane when it's flying. We flew a lot less last year than we'd have liked to fly, but we did it intentionally because it gave us the breathing room to make even further investments in our technology and infrastructure and to increase our staffing levels. We had a huge head start compared to most airlines because we started with much better technology and infrastructure. Also importantly, we got to acceptance quickly and didn't spend much time in denial about the structural changes. We accepted that the structural changes were real and moved quickly to what to do about it. On that point, I also fully recognize that most or perhaps all of our competitors will get on their calls next week and tell you, "One time event, no big deal, no change to our capacity plans." If so, I think they're just wrong. It's intellectually hard and takes time to get through the denial phase. What happened over the holidays wasn't a one-time event caused by the weather, and it wasn't just at one airline. One airline got the bulk of the media coverage, the weather was the straw that broke the camel's back for several. This keeps happening over and over again. You can see that despite good weather, ULCC still hadn't recovered even as we entered the new year. The operational difficulties are just the latest among numerous data points proving the systemic challenges that are going to limit the growth in flights. As you can see on the data on slide six, United's hub locations mean that we pretty much always have the worst weather. In spite of this, we're able to lead the industry because we're doing a lot of things differently than we did historically. We made significant additional investments in technology and infrastructure. We're running with 5%-10% staffing buffers. That means we need more pilots, gate agents, flight attendants, rampers, et cetera, to fly the same schedule. We're running with about 25% more spare aircraft than we did pre-pandemic, and we're flying lower aircraft utilization. All of those obviously cost money, but it's clearly the right thing to do for our customers and among the most important things we can do to win their loyalty. It's turning out these buffers are much less expensive than the cost of avoiding the otherwise inevitable operational meltdowns. In their forward guidance, other airlines are likely to talk about returning to 2019 utilization, efficiency, et cetera. We believe they're just wrong. Our industry has been changed profoundly by the pandemic. You can't run your airline like it's 2019 or you will fail. Don't take my word for it. Watch the data. United will always have the toughest operating environment. Any airline that's operating meaningfully worse than United is out over their skis and has simply outgrown their technology, infrastructure, and resources. Slide seven transitions to the unique setup on the international front. This is one of the most stark examples of what United did differently than our competitors. Over the pandemic, we bet international would return strong post-pandemic. Because we were the only airline around the world with that view of the recovery, we were also the only airline to make two important strategic decisions. We didn't retire wide-body aircraft, and we were the only airline in the world that negotiated a deal with our pilot union to keep pilots in place and in position. That allowed us to quickly bounce back. The decisions that our competitors around the globe made to retire aircraft and downgrade pilots take years to reverse. Because of that, they simply can't grow, and you already see that in this summer's capacity data. On slide eight, I've already hit on the theme, so I'll try not to belabor it here, but United had a conscious strategy to use the pandemic to invest in the future. Our large aircraft orders were just the latest example of this. New planes are big-ticket items that get lots of attention, but other investments we've made in technology, infrastructure, and people haven't drawn big headlines, even though they too are essential to our success. The point here is that we really were unique. It wasn't just one thing, and it wasn't just aircraft. It started with the fact that we always believed in a full recovery, and as a result, we invested and invested early. On slide nine, everything about this deck hopefully gives investors some comfort on why we have confidence in our margin targets. I think there's potential for margins to go even higher, making slide nine the money slide for this entire deck, for me at least. You can have whatever view you want about capacity, but what really matters is cost convergence. It's already happening, and I'm pretty sure it's going to continue. I believe a world where ULCCs pay their pilots significantly less than us, yet they can still hire and retain pilots, and they can somehow operate with previous staffing and utilization levels, is just the null set. It's not a realistic scenario. With cost convergence, if I were a betting man, and actually I am, I'd bet that the revenue to GDP ratio is going back to the mid fives. We'll see, again, we expect to hit our margin targets even at the 0.49 level. If it is true, I believe industry margins will go even higher. That's not our official guidance to be clear, but it's certainly possible. To conclude, I think the pandemic led to a structural change in the industry. The supply-demand dynamics are different than they've ever been in my career. I realize there's a lot of investor skepticism on that. Every data point keeps demonstrating it over and over again. Because United saw this ahead of everyone else, we were able to invest and prepare to take advantage of it. To be clear, I think margins across the board are going to be higher in the airline industry. Because of the unique steps we took to prepare for exactly this kind of recovery, you're also already seeing United's relative performance is strong, and I expect that lead to just expand. A huge thanks to the entire United team. You're really doing an amazing job, and you are making United the biggest and the best airline in the history of aviation. With that, I'll hand it off to Toby, who'll explain some of these critical investments, why they were important to the success of our operation through the most difficult holiday operating environment in my career. Toby? Thanks, Scott. Hello to everyone tuning in today. I first want to thank our employees for their exceptional performance over the holidays. We faced a really challenging operating environment that included some of the busiest days of the year and historical cold weather across most of our hubs and line stations. While you wouldn't know it from the holiday travel headlines, United was actually the most impacted airline from a weather perspective. 36% of all our flights were exposed to severe weather between December 21st and December 26th, more than any other airline in the country. Even though our load factors was already high, we accommodated thousands of additional customers on short notice when their travel on other airlines was disrupted. Despite these headwinds over the holidays, our team connected 90% of our customers within 4 hours of their planned arrival and served more than 8 million people, 1 million more than we did last year. Our operation performed very well, especially considering these tough conditions. United was among the airlines with the fewest cancellations during the holidays, and we were number one in completion in Denver, San Francisco, Houston, and Washington Dulles. We practically eliminated all crew-related challenges and cancellations compared to the 2021 holiday period. How did we do it? The answer lies in all the planning and investment we made during the depths of the pandemic. Instead of just trying to run the airline like we did in 2019, we worked over the last three years to prepare for a different, more complex operating environment and a sudden surge in travel demand. To prepare specifically for the 2022 holiday period, we purposely built some slack in the schedule and reduced how often we fly during peak times. We accelerated our hiring and added staffing buffers in key locations. We built firewalls that prevented individual weather events from spilling over into broader network. Finally, we beefed up our training in every department, including clearing out the pilot training backlog to be resource ready for the peak travel demand season. Again, as Scott said, our work to prepare goes back even further. Over the last three years, United invested in systems, training, tools, and technology that would empower our employees and benefit our customers, including a modernized crew scheduling system with 800% improvement in performance, capacity, and security versus 2019. A smarter schedule and operations coordination to build reliable and offerable schedules. Additional spare aircrafts in our fleet, upgraded technology infrastructure supporting our network operations, airport operations, and maintenance teams. Together with our industry-leading customer-facing technologies like ConnectionSaver and Agent on Demand, both of which now are integrated in our mobile app. Some of these investments are obviously more marketable than others. They all make a difference in our performance. Finally, I wanna point out the biggest difference maker for United this holiday season, our frontline teams. They worked as one team. They volunteered to pick up extra trips and work overtime, and again, braved record-setting cold temperature. It was the combination of their dedication and the proactive investment in technology and infrastructure that led to our success. With that, I'll hand it over to Andrew to talk about the numbers. Thanks, Toby. PRASM for the fourth quarter finished up 25.8% and PRASM up 24.6% versus the same period in 2019 on 9.5% less capacity. This was similar performance to United's third quarter results and above the high end of our TRASM guidance for the quarter. TRASM growth or non-passenger revenue continued to outpace PRASM in Q4, although that will reverse in 2023. The reversal is due to cargo revenue decline in year-over-year to new post-pandemic run rates that remained well above 2019 and co-brand credit card revenue growing slower relative to our rate of ASM growth for the year. PRASM in Q4 was strong across all parts of the network versus 2019, with domestic results up 23%, Latin up 30, Europe up 11, and Pacific up 42. International capacity in the quarter was down 12%, and domestic was down 8%. Looking back at our revenue performance for all of 2022, our overall TRASM performance comparing to 2019 was up 19.5%, about 6 points better than our expectation for the rest of the industry on average at this point, and three points better than our network competitors during the same time period. To meet our overall 2023 outlook, we're expecting flattish TRASM for the year versus 2022. The impact of cargo and other revenues on TRASM in 2023 is a negative 2-3 points year-over-year, implying PRASM up about 2-3 points in our outlook. As we think about the revenue outlook for 2023, we are bullish about global long haul. We expect industry capacity across both the Atlantic and Pacific, where United is the largest carrier to be flattish versus 2019, which provides for an easy setup and positive PRASM year-over-year. International demand remains incredibly strong. We're looking at the potential for record profits and margins across our global network. Asia has traditionally been a margin drag on our global flying. We've worked diligently to rebuild the network and close this gap. We think 2023 will validate that we accomplished that goal. Asia is also close to being fully opened, allowing United to reestablish the bulk of its Pacific flying outside of China. It's worth noting that restrictions on the use of Russian airspace will constrain United from flying both of our China network in 2023. This same restriction will also limit our ability to fly to India. While I would not normally provide revenue details about the months within a quarter, I think it's important to share what we are seeing in Q1. Our unit revenue outlook for February and March is largely consistent with the levels we've seen in the past three quarters at roughly 25% higher than 2019. We believe January is a negative outlier in Q1 with unit revenues compared to 2019 softer than the months after it. We think this is primarily due to holiday timing with less demand for incremental weekend trips enabled by hybrid work schedules so soon after the year-end holidays. We expect the second half of February and March to be back on trend with booked revenue already 30%-40% above the same period in 2019. I think this validates our excitement for 2023. Overall, we expect our Q1 TRASM to be up approximately 25% year-over-year. Another positive catalyst for 2022 revenues is the continued but slow recovery of traditional large corporate business travel. While November and December were low relative to October, it's great to see that January is materially better by about 5 points versus the average for Q4. January represents the start of a new budget year for most, it's a great way to start the year. We've heard often that budgets in 2022 were exhausted early as to why November and December travel were a bit disappointing for large corporate travel. I talked about the great setup we see in global long-haul earlier. We also see a nice setup for our domestic operations as constraints across the industry are everywhere, creating a favorable supply-demand environment. United is also now quickly executing on the United Next plans focused on gauge, premium seating, revenue segmentation, signature interiors, and most importantly, restoring and building connectivity which suffered during the pandemic. We're opening 17 new mainline gates in Newark and 20 in Denver in 2023, which will enhance our customer experience and improve reliability. In Denver, the new gates will allow us to grow our most profitable hub. In Newark, the new gates will allow us to transition more flights to mainline from Express consistent with our United Next plans. In addition to gates, we open more United Club space. In Newark, we have 69% more club space. In Denver, we'll be up 180% versus 2019. We also have expanded club space in Chicago by 40% with a new club that opened last week and in Dallas by 43%. Most of these United Club projects will soon be online and were planned during or prior to the pandemic. There are more projects on the way in the years to come. Looking beyond 2023, we continue to implement our United Next plans. We've adjusted our long-term gauge plan so that by 2026 our North American gauge will be up 25% versus 2022 and 40% versus 2019. United continues to be undersized in gauge as we await delivery of our large narrow-body planes that are largely absent from our current schedule, creating a margin gap versus our potential and versus others that have a significant fleet size in this category. Activity suffered in 2022 due to a reduction in RJ flying capabilities and delays from Boeing. Pilot staffing at our regional jet operators has stabilized since pay changes went into effect, essentially matching one of our competitors, combined with our Aviate program that provides a four-year transition plan for pilots from an Express job to a United mainline career. Regional jet utilization is showing signs of improvement, but we still have a long way to go, and it'll be until about 2025 or beyond to get to normal. We have also signed a new agreement with Mesa to expand our large RJ flying in 2023 and associated small community service while our relationship with Air Wisconsin comes to a natural end. With this change, the number of regional partnerships is reduced from six to five and will eliminate approximately 40 single-class 50-seat RJs that were not part of our long-term plans in exchange for adding dual-class 70-seat RJs, a clear win for United, small communities, and our customers. Rebuilding connectivity will be a key focus in 2023 and 2024 and will be significantly additive to RASMs as it was in 2018 and 2019, giving us confidence as we do it with optimal gauge this time around. Thanks to the entire United team. With that, I'll turn it over to Gerry to discuss our financial results. Thanks, Andrew. Thank you to the whole United team for closing out the year strong. With adjusted pre-tax income of $1.1 billion, we came in ahead of our fourth quarter expectations and not only returned to pre-pandemic levels of profitability, but actually exceeded the fourth quarter of 2019 on both an operating and pre-tax margin basis. More encouraging, in the second half of 2022, we achieved an adjusted pre-tax margin of 9%, which matches our margin target for 2023 and puts us well on our way for that same success this year. Turning to costs, our CASM-ex performance in the second half of 2022 meaningfully improved versus the start of the year. As I mentioned last quarter, a big driver of this success is the return of the grounded triple sevens to flying and further improvement in our operational reliability. As we know, a well-run operation is a more cost-efficient operation. Looking ahead, we expect first quarter 2023 CASM-ex to be down between 3% and 4% with capacity up 20% versus the first quarter of 2022. On a full year basis, we expect 2023 CASM-ex to be about flat with capacity up high teens versus 2022. This full year cost outlook is inclusive of investments in the system that support operation reliability. Our current expectations for new labor increases representing about 4.5 points of CASM-ex, excluding any possible signing bonuses, and a higher inflation outlook for all parts of the business. On the first point, one lesson learned during the pandemic recovery is that it is both economical and profit maximizing to provide cushion to our aircraft utilization. Instead of pushing utilization to its theoretical limit, we are focused on protecting our reliable operation. This minimizes delays and cancellations, which would otherwise drive higher costs such as overtime and customer re-accommodation costs. Turning to our expectation on profitability, as Andrew mentioned, demand remains healthy. As a result, and using the January 10th forward curve for fuel prices, we expect our first quarter 2023 adjusted pre-tax margin to be around 3%, resulting in an adjusted diluted earnings per share between $0.50 and $1.00. Additionally, building on a successful second half of 2022 and with industry dynamics Scott described at start of the call, we feel even more confident about achieving our United Next 2023 adjusted pre-tax margin targets of 9% and expected adjusted diluted earnings per share between $10 and $12 for the full year. On aircraft, we currently expect to take delivery of 92 Boeing 737 MAXs, 2 Boeing 787s, and 4 Airbus A321neo aircraft in 2023. Assuming all these aircraft are delivered, we now expect full year 2023 total adjusted capital expenditures to be around $8.5 billion. Even with this elevated level of CapEx, based on the capacity, revenue, and cost guidance we've outlined, we expect adjusted free cash flow to be positive for the full year. Looking beyond 2023, last month, we announced an aircraft order with Boeing that included 100 firm 787 aircraft, which will address much of our wide body replacement needs through 2032. We also received options for up to 100 additional 787s that can be used for growth if there are margin-accretive opportunities to do so. Additionally, the order included 100 incremental 737 aircraft to both meet planned United Next targets and start preparing for narrow body replacements in 2027 and beyond. Our aircraft order book is one of our key assets as it provides us with both cost-saving replacement aircraft and the ability to take advantage of profit-enhancing growth opportunities. Because of the flexibility built into the order book, we can also adjust the delivery timeline as the macro economy dictates. Moving to the balance sheet, we ended the year with liquidity of $18 billion and reduced our adjusted net debt by $3.3 billion versus year-end 2021. We continue to balance liquidity levels with deleveraging activity and financing opportunities as we expect to end the year having met our 2023 target of adjusted net debt to EBITDA of less than three times. We're entering 2023 with a strong foundation, and I want to recognize all of the hard work that has gone into running this great airline. We look forward to delivering for our customers, employees, and investors in 2023. With that, I will turn it over to Kristina for the Q&A. Thank you, Gerry. We'll now take questions from the analyst community. Please limit yourself to one question and, if needed, one follow-up question. Candice, please describe the procedure to ask a question. Thank you. The question and answer session will be conducted electronically. If you would like to ask a question, please press pound two or hashtag two on your touch-tone phone. Please make sure your device is unmuted to allow your signal to reach our equipment. Pressing pound two a second time will remove your line from the queue. Once again, if you would like to ask a question, please press pound two on your phone. Please hold for a moment while we assemble our queue. The first question comes from Conor Cunningham from Melius Research. Hey, everyone. Thank you for the time. There's been some pushback just on the 2023 jet fuel guide, and just trying to get comfortable with the link between cost and revenue. You know, RASM is the highest it's basically ever been, and even with the capacity constraints out there, industry capacity is now being added. What gives you the confidence that you might pass along additional cost headwinds onto customers, in the current environment? Hey, Conor, let me provide a little bit of color on that, and maybe Andrew will as well. First of all, when we provide our fuel guidance, we did this quarter what we always do, which is we look at the forward curve about a week ahead of the release. Last week, those numbers, as you know, can change daily. In fact, if we had run it more recently, we would have put out fuel numbers potentially $0.10-$0.15 higher. All things being equal, that would represent about a point of margin. We continue to remain confident that there is the correlation between revenue and fuel that we've seen historically. You know, for the first quarter, you know, near term, you know, we don't have quite the same ability that we would have during the full year. Even for the first quarter, we still have February, March, and fuel will change daily. For the full year, we're still comfortable that there is this correlation. And in fact, had we put a higher fuel number in, it probably would have been a different revenue number. Let me just give you an example that gives me some comfort, but keep in mind that for the back half of 2022, where we achieved a 9% margin, fuel was $3.68. We do have a lot of cushion, and I don't know if Andrew has any additional color. No, I think you covered it really well, Gerry. The, you know, we absolutely still do believe and have seen constantly over time that fuel is a pass through on both the up and the down. The other thing I can tell you is as we look at our advanced bookings, particularly starting in the mid-February time period out, well beyond that and into Q2, we're in a really good, strong, supply-demand equation, that's allowing our RM systems to actively work to do what they do best. We feel really confident about the outlook. Just on the United Next plan. When you guys talked about that originally, it was all about leading on costs, and I realize the environment has changed, you know, a lot since then. You know, as you start to look at a cost structure that includes labor and so on, you know, is your expectation that like that United becomes a cost story again, you know, in a post-2023 world going forward? Thank you. Well, Conor, you know, there's no question there's been an industry reset on cost, and I think Scott did a nice job sort of describing that and the cost convergence ahead. You know, for us, you know, if you just look at our guidance we put out about six months ago, for 2023, there's been movement, there's no question, probably about nine points. You know, three points of that is just the capacity difference between what we thought six months ago versus what we're thinking today. Another three points in the labor numbers we put in. The rest is, you know, inflation and buffers. What's important for the United Next plan is the relative cost, story, which remains very intact. Whether it's the mainline gauge benefit we're seeing, we will see from all the additional aircraft or less reliance on single class 50-seat aircraft that have come out and will continue to come out of the operation. We're very comfortable in the United Next cost story as it's been adjusted for the industry cost impact. Our next question is from Catie O'Brien from Goldman Sachs. Good morning, everyone. Thanks so much for the time. Maybe just coming at the revenue question, a little differently, maybe for Scott or whoever else wants to answer. You know, how do you think about getting back to airline revenue as a percentage of GDP? I think that makes a lot of sense conceptually, but do you think the industry gets there on pricing if, you know, volume versus GDP is lower given the capacity constraints we talked about? Well, I mean, if you go back and look at history, you know, while load factors have gone up a little, I wouldn't expect a lot of change in load factor. If you went back, you know, a few years, pricing in real terms, you know, was higher than it is today. It remains a great value. I mean, air travel prices are probably 50% lower than they were, you know, about 30 years ago in real terms. You know, you can still frequently pay more for your Uber to the airport than you do for your airline ticket to Florida. I think that what this means is, you know, the era of $4 prices, you know, from Los Angeles to Cabo and $7 from New York to Florida or $9 from Houston to Central America are probably a thing of the past. Cost convergence, you know, it's up to other airlines to decide how to price the product, but I'm pretty sure it's not up to them what's happening to their cost structure. As that is changing, we see it happening already. It is what happened last year. It's what changed last year. We see that continuing, you know. To Andrew's earlier point too, you know, I look at the data as well and follow, and our revenue management team is doing a great job. You know, the yield curve for February is higher than January. The yield curve for March is higher than February. The yield curve for the second quarter is higher than March. By the way, bookings are ahead in all periods. Yeah, I think it's a structural reset. I think it is the investor store for aviation. I think it's good for everyone. I think it's particularly good for airlines like United that have the sophistication, the technology, the infrastructure to operate in this more challenging environment. It's good for everyone. It, it's just a structural reset that's reversing what happened, you know, over the past couple of decades, at least the possibility of it. I think it's likely, we'll say it's at least a possibility. Thanks so much for that color. You know, live in New York can definitely confirm on the Uber versus the airfare of late, so, similar there. You know, obviously a lot has changed, as we just talked about since the original United Next plan, you know, particularly, you know, how the capacity bottlenecks we've been talking about have played out. How should we be thinking about capacity growth over the next couple of years? You know, are you still targeting to be about 40% bigger in 2026, you know, based on that 4%-6% CAGR or help us reset the bar? Thanks so much. I'll try that. I, you know, I don't think we're gonna reset the bar here. Obviously, this is really dynamic, and the OEM delivery delays, both on engines and aircraft, have been really unprecedented. We're not gonna re-guide today to what 2026 looks like other than we're plotting our course in, you know, very bumpy skies when it comes to the availability of aircraft. There's not a quarter that goes by where I don't get an update with obviously disappointing results from what our outlook looks like for aircraft deliveries. We'll continue to monitor that, and at the appropriate point in time, we'll update the guidance. I think the important point is we have real confidence in achieving our 14% margin, under sort of all the plausible scenarios for aircraft deliveries. Next, we have Jamie Baker from JP Morgan. Hey, good morning, everybody. Gerry, a question on the labor cost assumptions, the pilots and the 4.5 point headwind. Do you expect the pilot economics to be backdated to January 1st, or are you using some other date? Also related to this, the EPS guide, do you also consider Delta's profit-sharing formula to be market? Jamie, nice question, neither one of those, we're going to be able to talk about on a call. You're asking for too much information regarding potential negotiations. Okay. Second question for Scott then. You know, on the topic of cost convergence, I think you said that the ability for discounters to maintain a significant wage arbitrage is, you know, narrowing or impaired. I didn't quite get your language. If we look at the Spirit and JetBlue TAs, you know, yes, they're incrementally expensive, but the resulting wage advantage to, let's just go with Delta here, it's still pretty much the same. Were you implying that the arbitrage has to narrow even more, or did I misunderstand? I'm saying, not implying, that I don't think a world where they pay meaningfully less and still hire and successfully fly and complete their schedules, I think that's the null set. I don't think they can do it. You know, one of the other ULCCs has really been struggling this year with completion factor, which at least had us internally, you know, wondering if they had pilot shortage issues because the system's been really pretty good. You know, there was a one-day FAA outage, but the weather's been good, and they've been consistently having problems. You know, eight or nine days ago, they put out a $50,000 signing bonus for pilots. Look, however you wanna calculate it, however you wanna look at it. If you're interested, I can give you some more real-time facts. Like I've watched the data closely, it's not happening. I mean, what happened over the holidays wasn't just at one airline. At all the airlines that had challenges, you can look at our data that we put out, and if you want data for what's happening right now, I can tell you some more stuff. There are a number of airlines who cannot fly their schedules. Their customers are paying the price. They're canceling a lot of flights. They simply can't apply the schedules today. Maybe it's pilots, maybe it's something else, maybe it's technology, maybe it's infrastructure, but what I'm confident of, the big three, and by the way, I think JetBlue has invested in this. The big three and JetBlue, you know, are operating at a different level than everyone else for whatever the reasons are. Next is Ravi Shanker from Morgan Stanley. Thanks. Morning, everyone. Scott, thanks for that kind of early intro to the call, pretty extraordinary set of kind of facts and argument you laid out there. What does this mean for the industry kind of longer term? Kind of, it's really unusual to see an industry, to your point, try to grow in the face of the restrictions that they have like this. I mean, how does this end? I mean, do you think there's gonna be, like, regulatory scrutiny on kind of, you know, airlines trying to grow when they, when they can't, and that's hurting service? What happens next year? Well, I think what it's gonna lead to one way or another is less capacity. It just, it's not mathematically possible for all the airlines to achieve their aspirations. Now I'll just give you the data. You know, I'm not trying to pick on these two airlines, but, look, this seems so blindingly obvious to me. We talked about it a year ago. We were right all this year with capacity coming in seven points lower, and I feel even more confident that we're right today. The data I'll give you is, pretty big snowstorm started in Denver yesterday afternoon. It continued through this morning. 11 inches of snow, that's a tough operating environment. There's three airlines, up to two in addition to United, that have big operations there. Yesterday in Denver and on our main line, we had a 100% completion factor, so no cancellation. One of those large, 12% of their flights, the other one canceled 27% of their flights. Starting off today, we've canceled a little less than 1%. Each of them have canceled 33% of their flights. Like, guys, this isn't new. You know, there's like 12 of the Wall Street analysts that breathlessly publish a weekly report on industry scheduled capacity. You guys are looking at the wrong data. If you want a forward indicator of what's gonna happen with capacity, you should watch completion factor. One of you should start looking at completion factor because airlines that are running like that, it means they can't fly their schedule, and they're gonna have to adjust one way or another. That's my thesis. That's what happened last year. It's what I think is gonna happen next year. All of the structural issues are multi-year. I mean, all of them are three years at best, to address. You put all of them together, this is a long-term structural issue. I think, you know, it challenges us too, but we just did more to invest for that future, saw it coming earlier than others, and are better prepared to deal with it than everyone else. It does challenge us, too. Really, like, don't take my word for it, don't take the others' word for it. Just watch the data. Watch what's happening with completion factors, that's going to tell you know, whether we're right again this year or everyone else is right when they say they're going to achieve the aspirations. Great. Thanks, Scott. I think you can be a good sell-side analyst, when you decide to something else at some point. I can't be a sell-side. You guys are way too negative. I'm too optimistic to be a sell-sider. Just maybe one follow-up. I think the point on corporates running out of budgets towards the end of last year was an interesting point. Do you guys have much data on kind of what 2023 corporate budgets look like to avoid a similar situation this year? Thank you. You know, I don't. What I'll tell you is that the reset looks very good as we head into January, obviously. We're really pleased with those numbers. October was a really good month for corporate, and January is tracking at that or above that. We'll see where we go from here. I'll tell you know, this is an important number for United. We monitor it a lot, and it's moving in the right direction. We're highly confident, particularly for long-haul global, that we're gonna get back to full strength. That's an enormous tailwind, I think, for at least airlines that rely a lot on corporate travel. Next we hear from Duane Pfennigwerth from Evercore ISI. Hey. Hey, thanks. Good morning. Just on the interrelation between fleet and CASM. If we just back up in time, you know, you announced a big fleet order in June of 2021. I think that's when you unveiled United Next. And your target for this year was -4% relative to 2019 on CASM-ex. You know, you updated those views. Obviously, we had less capacity, inflation, et cetera. You went from, you know, -4% to +5%. Another big fleet order in December, and now the outlook is +15% versus 2019 versus your initial -4%. I guess the question is, given the constraints that you articulated very well, why does this investment rate still make sense? If you can't grow at the rate that you hope to grow, why invest at a rate that assumes a much higher, you know, growth outlook at some point? Well, to be clear, I think we can grow at United. I don't think the industry can grow, for all the reasons that we've said. I think at United, we can grow. You know, we are clearly able to hire pilots. You know, pre-pandemic, like, the most we ever hired was about 900 in a year. We were right at 2,500 last year. Our team, our flight training team has done an amazing job. You know, there was a lot of work to do to get that training machine humming. It also helped that we had enough foresight to build 14 new simulators during the middle of the pandemic when everyone else was pulling back and shrinking. You know, that's one, that's one of the probably the most complicated thing that airlines are struggling with. We have that machine humming. We're here in Houston at the flight training center, and, you know, we hired 4,000 flight attendants. This year, we opened a new flight training center, another investment, we made last year. I mean, really the point is, we invested to be able to grow, and I think we can grow. We have the other benefit of we're taking 300 plus regional jets out of the system. That creates some natural slack in terms of departures. If you got FAA issues, air traffic control issues, you know, if you're a single fleet type airline, you fly all A320 family or all 737s, like, you don't have anything to take out to give you room. We do have, you know, 300 aircraft worth to take out. Really the point is all the investments, I mean, you know. Like one of the investments that I like that speaks to the foresight that we had coming into this was clubs. We increased our club space by 48% during the pandemic. Like, that's always a challenge, you know. Trying to close clubs when they're full, you know, in a constrained airport environment, it's always tough on customers. Like, the pandemic was once in history, like, not once in a generation, once in history chance to do that 'cause we didn't have nearly as many customers flying in 2020 and 2021, and we're the only ones that did it. And like, there's just stuff like that everywhere that United did differently. To be clear, while I don't think the industry can grow, we think United can. My guess is because of the OEM delay, our full target, 'cause those will be behind. We're gonna be flying a lower utilization than we were before, and there's gonna be less regional, so we probably won't be all the way to our target. I think we can uniquely grow and expand margins in this environment when everyone else can't. It's because of all the investments we made to set up for this. Thanks for that, Scott. Obviously hindsight is 20/20. It's been a unique set of circumstances, but I guess the question is, you know, had you invested at a rate, you know, more aligned with your DNA or you know, where there's, you know, real free cash flow to point to here, how much higher would this CASM outcome have been? In other words, if we're up mid-teens relative to 2019, could you have invested at a much more modest rate and gotten to the same outcome? I appreciate your thoughts on it. I think I mean look if we'd have done the same thing everyone else did, we'd have the same problems we have right now. Instead of canceling 1% of our flights today in Denver, we'd be canceling 33%. That's higher cost. Our cost would be higher. You know, this isn't just investment. Like... Anyway, I think when you get to the end of the year, I'd bet dollars to donuts that we have the lowest CASM, the best CASM performance. I recognize other people have better guidance, and they maybe they will have better guidance. I think in the real world, we've come to grips with what the real world means and how what you have to do to operate it. You can see it in the data, you can see it in the operating stats, you can see it in the financial stats, and it's a new world. You can't run the airline, like you did in 2019. I read all the transcripts, and I read one of the transcripts, and Jamie asked someone, I don't even remember which airline it was, but asked someone, you know, "When are we gonna get back to pre-pandemic normal?" I don't remember who it was or even what they said, because I immediately thought the answer to that question is never. I don't think anyone else has figured that out yet. The answer to that question is never. It is a new environment. It's a new industry. That creates higher costs. It does. it's also creating higher revenues, and I think it's going to lead to across the board higher margins, but particularly for United. Our next question is from Dave Vernon from Bernstein. Hey, Andrew, I just wondered if you could sort of about what's embedded in the TRASM guide for being flat. I know you mentioned PRASM was up 2%-3%, cargo down. What are you expecting out of the card program and the other revenue line as we think about 2022-2023? We're still expecting really strong results, but, you know, it's not keeping up with the ASM growth, creates that negative headwind. Our card program is doing really well. The partnership with Chase is top-notch. New members into the MileagePlus program relative to where we were in 2019, I think are up about 50% in the same time period in 2022. All of that's moving in the right direction. It's just not keeping up with ASM growth in 2023, which creates that inversion between PRASM and TRASM. Obviously you understand the cargo part of that, so. Okay. Then maybe, Scott, just to ask the question, that just kind of came up as you're talking about the challenges around, you know, the industry having to reset its cost structure. Do you see any risk that as you're kind of looking out and building the revenue plan around your own cost structure, setting fares at a level where you can recover that cost pressure, that the rest of the industry maybe doesn't get there? I guess if the rest of the industry isn't quite recognizing what the cost pressure of operating in the new normal is gonna be, do you think they're gonna be underpricing, and potentially creating some problems for you to absorb, some of the costs that you're building into the network? Thanks. Well, if they're right, I don't think they are, but if they're right and they can return to 2019 utilization and efficiency, then we can too. That'll be easy to just go back to flying. No. The short answer is no, I'm not worried about it because if they are right, you know, it will be really easy for us to just fly the aircraft a little harder and, you know, because we're growing, and within a few months, just slow the hiring down, and within a few months you'd be back. To be clear, I think that's extremely unlikely to happen. We could, we could adjust our cost structure down if it turned out that we were wrong and that's the new normal pretty easily. Next, we have Andrew Didora from Bank of America. Hi, good morning, everyone. I just kind of want to go back to fuel for a second, just because it has dominated my conversation so far. I guess when you think about it conceptually, looking at your 2023 guide, it seems like you're assuming fuel is going to $2.70 per gallon, you know, 2Q to 4Q. Gerry, you said fuel is a pass-through, so I think that's down like at least 30% from current market. Just how do you underwrite that kind of 2%-3% PRASM growth in 2023 if fuel is coming down? Let me start. Look, you know, what I'd tell you is that, you know, I do think fuel is a pass-through in both directions, and that it is dynamic on when we pick the number and we adjust the revenue forecast for it. More importantly, you know, where we are in terms of demand and supply, and cost convergence, as Scott just spoke about in quite a bit of detail, has just given us, you know, I think, significant ability to utilize our revenue management system to make sure that the price points are where we need them to be. We did that all through last year. In fact, we did that all throughout the entire pandemic where we led the industry, I think, 11 out of 12 quarters. We feel really good about where our revenue performance is. We feel really good about where our bookings are. We feel really great about our Q1 guidance. We feel really good about where the RM system is currently managing price points for Q2 and beyond. We definitely, you know, believe in the CDP relationship. It is convergent, and it's convergent for all the reasons that Scott talked about earlier. We feel really bullish about the outlook and the ability to achieve the revenues that we need to achieve. Got it. Understood. Andrew, you gave some pretty robust booking figures for February into March and kind of your whole outlook. You know, any color that you can provide in terms of how you're thinking about 1Q by region, which regions might you see accelerating, which decelerating from here? Just to kinda get a sense how you're seeing the world right now. Thank you. Sure. I'll give it a try. You know, I will say that as I started with earlier, the global long-haul environment, where capacity ex-United is negative and capacity with United is just slightly about at 2019 levels relative to where GDP is this year, provide just an enormous setup to hit a home run on TRASM on our global long-haul network. We couldn't be more bullish about that. It's simple, right? Supply is flat versus 2019, and the propensity to travel along with the economy and GDP is dramatically higher. That sets up a very good opportunity for our RM systems, and they're actively working to do that. And bookings for spring and summer look really strong. You know, to Europe, I just think it's gonna be another record RASM and margin year, based on that setup, and it looks really good. Across the Pacific, the same exact capacity setup, by the way, where it's slightly negative without United and about 100% with United relative to 2019 capacity. A very similar setup, we also have the opening of China and, you know, all three markets, Hong Kong, Beijing, and Shanghai, ultimately. We think there's gonna be a significant bounce back in demand like we've seen in Korea and Australia and other places in the region. The only thing we're watching more carefully is Japan, where the numbers look really good, but it's based on U.S. point of sale at this point and not Japanese point of sale. We expect the Japanese point of sale to kick in later this spring and summer. So that one has been slower to rebound. But again, U.S. point of sale just had an enormous, you know, I think pent-up demand and is ready to fly and is doing so. So that really covers the numbers. Once Japan comes back online from a point-of-sale perspective, I think that further strengthens that as well. Latin America, near Latin America is, you know, the best I've ever seen it from a TRASM, RASM type perspective at this point. Deep South America is also very good, but it's just not nearly as good as the amazing performance we're seeing in close in Latin America. The setup for our global network is, I think, unbelievably good, and it's really very simple math, and there's very little capacity growth out there and a lot of GDP. If you look at our capacity guide, while we haven't given you an international and domestic breakout, you can look at what we're selling, and you can see how we've leaned into it for 2023 to make sure we maximize the profitability of the airline, and we think that we've done that very well. Domestically, you know, I also want to say, you know, Scott talked about this cost convergence. We talked about the capacity constraints. What people think they're gonna fly in 2023 is not what will really be flown. That happened in 2022. We think that's gonna happen in 2023. Given, you know, where we think total revenue is and ASMs will be less than that, we think there's a chance for positive TRASM domestically as well. It's a really good setup. Across the globe, amazing setup. Here at home, also a very good setup for a positive outlook for the year. Next is Helane Becker from Cowen. Thanks very much, operator. Hi, team, and thank you for the time. Just one question here. When we look at airfares and we compare, say premium economy to where business class was pre-pandemic, it seems like the price points moved to that level, right? You have some economy fare, then you have a premium fare in economy that seems to be equal to what business was, and you seem to have business that is significantly higher. A, is that observation correct? And B, what's your paid load factor in the front of the cabin? All right. There's a lot of numbers you put out there, Helane. What I'll try to say is that paid first class load factors, particularly here domestically, are up a lot. They're up six points. Our RASM growth in the first class cabin versus the main cabin domestically is 15 points higher. It's doing incredibly well, which we're excited to see obviously because of our move towards more dual class aircraft and monetizing the premium cabins. On our global long-haul fleet, I think it's a little bit different than maybe what you said. The published price points may be exactly what you said. I don't know. The performance I would say is that Polaris is not back to where we'd like it to be just yet, but the middle cabin, the Premium Plus cabin is and better, and the coach cabin is and better. The RASM performance on board the aircraft is a little bit more tilted towards the back of the aircraft, or the middle of the aircraft on the global long-haul fleet than it is the front. Why I'm also particularly excited about this recovery in large corporate traffic is that is how we tend to fill the front of the aircraft. The trends we see in January look just really good, and that also is a positive TRASM tailwind to the global network as we do a much better job of filling up Polaris with higher quality yield than we did in 2022. I'm confident when we end 2023, we'll be able to report that the Polaris paid load factors and paid yield are much closer to their 2019 baseline than they were in 2022. Okay, that makes perfect sense. Just for my follow-up question, I'm not sure whether you said this or Scott said this, but if nobody flew their capacity, you know, original plans in 2022, which they didn't, and they don't in 2023, and the infrastructure issues, you know, I don't see the government rushing to invest in air traffic control. In fact, I see it getting worse. I don't see the FAA investing. As you think about this, doesn't 2023 get worse than 2022 and 2024 get worse than 2023? Doesn't that accelerate to the point where the industry just has more because you run out of space? Pretty close to yes is the answer. We're near the limit on capacity on flights in the system. There are places that are at the limits. We're near, and you can see it. Like, it works fine, and you can add more on good weather days when absolutely nothing goes wrong. Something goes wrong every week. I mean, there's weather, there's, you know, systems issues that happen at the FAA, that happen to individual airlines. There's pipelines that get cut for fuel at airports. There's vendors that fuel airplanes at airports that are short-staffed or have higher sick calls. Just there's stuff that happens every day and, you know, we're near the capacity limit in terms of total number of flights. Scott, we should add to that, though, what you said earlier that we're getting rid of a large number of regional jets. The departure activity that we're planning from our seven key hubs in 2023 is still materially behind where we were in 2019 from a departure level. The ASMs are a whole another story, as we've talked about, because of what we're doing with gauge. We've created the room in our hubs to be able to execute our plan. We have sufficient runway and gate space to do so. Our next question is from Scott Group from Wolfe Research. Hey, thanks. Good morning. I got one near term and then one bigger picture question. Just when I just look fourth quarter to first quarter at the RASM guide, the re-implied revenue guide, just worse than normal seasonality. Just given everything you were saying about February, March bookings, just help square with the revenue and RASM guide, please. Yeah. What I would say is that, you know, we definitely see a different set of numbers for, like, January 6th through February 15th than we do beyond that. You know, as I think about it, you know, it's our hypothesis that we do have a bit of a different type of seasonality post-pandemic than we did have pre-pandemic. It just depends on the year or the quarter-over-quarter year that you're looking at. Look, the trade-off would be every weekend is potentially a holiday, allowing us hopefully to be able to de-peak the summer and run a more constant level of operation from mid-February all the way through October. That's really exciting, a lot more upside than maybe a few weeks in January that don't look as good as they used to be. I think the trade-off is fine, but our hypothesis at this point, it is a different type of seasonality related to a post-pandemic environment. Scott, bigger picture, if you're not getting the unit cost leverage from capacity growth that maybe you thought you would have gotten a year ago, I guess, why grow so much and risk adding too much capacity to the market and risk pricing? Maybe just ask differently, like if you didn't grow as much, do you think you'd still hit the 9% margin, but at the same time just generate better free cash flow? Well, to be clear, we're focused on margin, not CASM. We're focused on margin. While we aren't upgrading, our margin guidance, we're already way ahead of the street. you know, I think everything we had in our deck today and everything we've talked about today, certainly creates a plausible case that margins are going to be higher, for all the reasons we've talked about. If we were not growing, I think our margins would be lower. I mean, clearly it would impact our CASM. I think the capacity that we're gonna add would be soaked up by someone else. Anyway, I think our margins would be meaningfully less, if we weren't doing, what we're doing. We're doing it 'cause we think that this is a, you know, Look, I think this is a once in the history of the industry opportunity. This is an event that's never happened before and, you know, like I get that most of you on the sell side disagree, and I accept that you disagree and, but I think the world has changed. The industry has changed. By the way, we do have a lot of flexibility. What I would say, you didn't ask this as a question, but what I would say is doesn't look like we're gonna hit our targets, if we're structurally missing our targets, if we're underperforming the industry and missing our targets, we won't do all this growth. I mean, we have a ton of flexibility to move aircraft around. We won't do it. This isn't just like, you know, damn the torpedoes. This is, as long as it's working, we're gonna keep moving. I will tell you, every single data point increases my confidence, at least it's working. Look, we had the highest pre-tax margins in the fourth quarter of the big network carriers, at least. We amazingly enough, actually, we had the highest free cash flow in 2022 with the lowest net debt. If you use traditional GAAP accounting with operating leases and include pensions, we had the lowest leverage ratio. I mean, it's working. You look at our operating results, look at what's happening in Denver today, like, it's working. We're not gonna change course on something that's working. If it stops working, then we absolutely have the flexibility to adjust. We will now switch to the media portion of the call. If you would like to ask a question, please press pound two or hashtag two on your touch-tone phone. Please make sure your device is unmuted to allow your signal to reach our equipment. Pressing pound two a second time will remove your line from the queue. Once again, if you would like to ask a question, please press pound two on your phone. Please hold for a moment while we assemble our queue. First up is Leslie Josephs from CNBC. Hi. Good morning. Thanks for taking my question. I'm just curious if you're benefiting at all from book away from Southwest after the holiday meltdown, also if you're benefiting from pilot attrition coming from Southwest? The second question, do you see any impact from many travelers that are cashing in on their miles this year that they might have built up during the pandemic? Does that help or hurt you? Thanks. I'll give it a try, Leslie. It's It's Andrew. I think we're benefiting from running a world-class, great global airline. You know, when we look at the data, particularly not over, like, 1 week, right? 1 quarter. When we look at the data over the last year-plus, you know, our team has been just hitting a home run, the data shows it. I think we're really proud of where we're at. We intend to keep that online. We have the appropriate buffers to make sure we can continue to de-deliver for our customers going forward, we shall. In terms of frequent flyer growth, what I was gonna say is the program is incredibly healthy. The redemption rates are quite normal given where we are with inventory availability, and our customers are using their miles to fly all over the world in the largest global network of any U.S. carrier. On the pilot front, what I'd say is, it's a amazing change. I try to get out to the pilot training center and see new hire classes. If we're hiring 200 a month, and I've started asking, you know, where they come from, and show of hands. It used to be, like, from any of the large you know, any of the large airlines, the LCCs, big airlines, you know, hardly any 'cause you had to give up seniority to come. We now have a high percentage of people in those classes that are coming from all airlines. I think the reason is because, you know, United has if you're a pilot, well, if you're anyone, you know, and you aspire to a career in aviation, United is the place to go. You know, we're well on our way in to be the biggest, but also the best. Andrew talked about, you know, the brand, the reputation, that matters a lot to people. You know, our pay rates are gonna always be, it varied depending on the timing of contracts, but always basically gonna be at the top of the industry. If you're a pilot, United has the most growth opportunities, the most opportunities, the fastest path to captain, the most wide bodies of any airline by far in the country. Like, we're the place to go. People are actually giving up their seniority at all of our competitors, for the opportunity to come and have a future at United. That's a testament to what all the people of United have accomplished and how bright we feel like the future looks. Next is Alison Sider from The Wall Street Journal. Hi. Thanks so much. Just wanted to ask about the FAA outage last week. I don't know how you're thinking about that. Is there a concern that there are other sort of these systems that are vulnerable or that you'd think of as single points of failure? You know, how you're thinking about it and what kind of conversations you've had with the FAA since? I think this ought to be a wake-up call for all of us in aviation. Something that many of us in aviation have been saying for a long time, that the FAA needs more resources. By the way, I think they do an amazing job. During the Christmas, you know, struggles with the weather, you know, a bunch of great things that they did. You know, two in particular, they had a water main break that flooded the tower in Newark, and same thing happened at one of the towers in Chicago. They really quickly moved into backup facilities and kept the operation running. I mean, just a lot of people jumped through a lot of hoops and deserve a lot of credit for that. The hard facts are, the FAA's budget, in real terms, is lower than it was 20 years ago. The amount of work that they've been asking to do is significantly higher. Huge resources devoted to space launches, drones, thousands of people more working on aircraft certification programs, in the aftermath of the MAX disaster. They've had to rob Peter to pay Paul. They've been asked to do more, and they're doing it with less money. There's fewer controllers than there were 30 years ago. You know, it's people, it's technology. Look, here in the United States, we should have a world-class best aviation system in the world, and we're putting at risk if we don't invest in it. This is infrastructure. You know, it was great that we passed a bipartisan infrastructure bill. This ought to be bipartisan as well, by the way, that we passed a bipartisan infrastructure bill. You know, this isn't concrete. Modern systems, modern technology, and the right number of people for the FAA is an infrastructure investment that will pay dividends many times over for the country. I hope that what this is an opportunity for us to look at this just like we looked at the infrastructure bill in a bipartisan way, get the agency the resources that they need, because we have asked them to do more, and we'll all be better off. Thanks. If I could ask one more just on restoring flights to China, are there, like, approvals, either in China or the U.S. at the government level or, like, diplomatic things that need to happen, you know, in order to ramp that flying back up? There are, at this point, United Airlines holds the rights to fly four flights per week to China. You know, we intend to convert our current one-stop service to nonstop, sometime in the next few weeks, hopefully. We do not hold rights, at this point, to increase our service any further, and I believe that is an industry-wide type situation. At this point, there's no green light to go beyond what we're currently flying. Next is David Schaper from the NPR. Hi. Thanks for taking my call. I appreciate you guys doing this this morning. A couple of questions I had have been asked and answered, so I'm gonna kind of shift gears into something that might be coming out of left field. The Biden administration announced last week a plan to get the transportation sector down to net zero emissions by the year 2050. I know the aviation industry has that goal as well. How realistic is that really? What is the cost to an airline like United to try to shift to sustainable aviation fuels, to possible hydrogen-powered engines, that sort of thing? Well, I haven't seen the details of their plan, but I think as a global citizen, it's a probably the most important thing that our generation needs to accomplish. I'm proud at United that we are the leading airline around the globe on real sustainability initiatives, and we are one of the leading corporations. We're focused in a at United, but I think it's the right focus for aviation on a number of fronts. One, on sustainable aviation fuels. By the way, the Inflation Reduction Act has a number of provisions. Regardless of what you think about everything else in the act, the sustainability provisions are meaningful, not just for our industry, but for everyone. I think are transformative legislation. It makes it viable to start making investments in hydrogen and SAF. We've been the leader, and we've got even more coming. A lot of projects that were gonna be hard to do, all of a sudden, you know, start to pencil out, at least potentially pencil out. I think it is driving a lot of investment, and you can expect more from us on that. A lot of excitement, you know, in electric aircraft, what we're working on there. While it can't replace everything because it's never gonna be big airplanes flying long distance, it will be a part of the solution. Finally, carbon sequestration. You know, I'm a climate change geek, and have been for 30 years. I used to have conversations like this, it wasn't too long ago, even just a couple of years ago, I would have to explain what the word sequestration meant. It's real progress actually, that people know what it is now. There's more investment. You know, we're here in Houston. Occidental is our partner in a sequestration project. They're a leader in that front. A lot of others are moving into sequestration, and the 45Q changes that happened in the Inflation Reduction Act are also really consequential for carbon sequestration. I'm more encouraged today, I think, than I've ever been at the possibilities. It's a lot of hard work ahead, and it doesn't happen overnight. I mean, there's not a magic silver bullet. I'm also proud that United is leading, and we partner with everyone that would include the DOT. Anyone that's interested in doing the right thing and solving this in a real way, we're happy to be partnered with. Just a quick follow-up. What is the cost of all this? Especially if governments, not just the United States, but governments globally, start imposing, you know, mandates to shift to alternative fuels that may cost a lot more to develop and use. Well, I think what we need to do is drive the cost down. For SAF, for example, what I like to think about is wind and solar energy, which because I've been a climate change geek for 30 years, I followed it. It was 20 years ago, certainly 30 years ago. 20 years ago, everyone, everything you read or talked about wind and solar was, it could never compete with fossil fuels, it could never be economic. Well, guess what? We passed legislation that had credits, a carrot instead of just a stick, a carrot. That carrot drove massive investment in R&D. It drove economies of scale. Today it's cheaper to produce a megawatt of electricity from wind and solar than it is from fossil fuels. The same thing can, and I believe will happen with SAF. It is more expensive today, but we are in the very early phase of the development curve. That's what's great about the Inflation Reduction Act, is it creates those same kind of financial incentives that existed for wind and solar, and that is, we know it 'cause we're involved with the companies. It's driving investment into the space, and that's what is needed right now at this phase, and that investment is gonna lead to breakthroughs, it's gonna lead to economies of scale, and I think the costs are gonna come down. Our last question is from Bill Murphy from Inc.com. Oh, hi, good morning. I have two quick questions. The first, I believe if I, if I understood Scott previously, you mentioned an unprecedented number of new pilots actually coming to United from other airlines. I understand, of course, hiring, especially, but not limited to pilots, is a big industry constraint and a big effort. I'm wondering, can you say anything more about that? Is this an effort specifically involved here now to recruit away from competitors in a way that you haven't in the past? If so, how do you go about doing that practically from, you know, besides simply positioning the airline as a good place to work? I would have a follow-up. It's really the latter. You know, it's not a targeted airline to go after them. You know, people pay attention, and United is the best place to work. If you're a pilot and wanna work at the best place, a lot of them are just putting their applications in. We don't need to do anything more than be the biggest and the best airline in the history of aviation, and that's enough of a sell point. Okay, no specific numbers to report on, you know, that you've had an uptick in that? Well, I don't know what the numbers are. I'm acting by anecdote. I ask people, I would guess that 30% of the people in those classes come from one of the large airlines. That's just my, you know, eyeballing it in the room. Somebody at United probably knows the numbers, but I don't know the specific numbers. I'm just proud of everything the team is doing. If I can just do my other follow-up here. In previous calls and interviews, you've talked about kinda changing customer demographics, including things like, you know, the rise of work from anywhere and leisure passengers. I'm just wondering if you have anything more to add to that now in terms of how you see that changing structurally in the post-pandemic world. You know, it's a really interesting trend, and we saw it again over the Thanksgiving and Christmas holidays. For example, for Thanksgiving, we saw a lot of people leave dramatically earlier for their vacation than they would normally do. This year, Saturday, because they left early, Saturday was actually one of our biggest return days. It didn't displace Sunday, which is obviously always the biggest. Completely different pattern. We saw that throughout the entire, you know, second half of last year, and it's really exciting for our business because it allows us to de-peak things ultimately, run the airline differently and more efficiently. You know, remote work, while I'm sure will evolve and adjust over time, which is driving this, remote work does seem like a permanent feature in our workplace here in the country. We're optimistic that this continues to be the trend, based on everything we've seen. It really is just it's a different type of demand. It's a different industry. I think we're well prepared for it, and it's very exciting from a capacity and revenue management and customer point of view across the board. I will now turn the call back over to Kristina Munoz for closing remarks. Thanks, Candice, and thanks for everyone joining the call today. Please contact investor and media relations if you have any further questions, and we look forward to talking to you next quarter. Thank you, ladies and gentlemen. This concludes today's conference. You may now disconnect.