Andrew Harrison: Well, number one, flattery will get you everywhere. So thank you. But we had a huge learning from COVID. We were squeezing out the cabin because we went for loads and there was a robust leisure. And of course, when I talk about leisure, I’m talking also about chase loyalty and Costco and major leisure agencies. So what we are really seeing is that for us at least, we had structured our cabin and our demand environment to take more further out and leave less closer in. And I think what we are finding is there is a — the whole group of customers and guests who are a strong leisure traveler that just book a lot closer in and we are making seats available for them today. And of course, given the fair fencing and how that all works, the yields are much better than they would be further out.
Mike Linenberg: Absolutely. Absolutely. That makes sense. And then just my second, I know you did talk about a couple of teasers and things that we should look out for. You did drop loyalty. I know Ben mentioned loyalty, if anything. Are we up for renewal this year?
Shane Tackett: No, we are past that. But I think — if you just — what I would say about loyalty and you’ve heard other side is such a very powerful and important part of our business. If you look at the environment and how loyalty programs, they’re all evolving, and there’s changes. And so we are looking at how our loyalty program needs to change and evolve. And I think there’s just real upside. And again, we are not willing to share anything today other than this is an area of focus for us.
Mike Linenberg: Okay. Very good. Thank you.
Operator: And we will move next to Dan McKenzie with Seaport Global.
Dan McKenzie: Hey, good morning. Thanks. A couple of questions here. I guess my first question really is a headcount versus fleet count question. So what number of deliveries are you — I guess, are you guys hiring to? And then I guess where I’m going with that is the overhead or the cost burden that Alaska is carrying because the deliveries are coming in a little less than expected. And then I guess, is Boeing compensating you for that cost burden?
Shane Tackett: Thanks, Dan. A couple of things here on this one. I think we originally had anticipated 23 deliveries. Of course, when they come is an important variable as well. As evidenced by our revised full year capacity guide and CapEx guide, we expect to get fewer than that. Boeing XES 10 aircraft essentially built in going through the final review and ticketing process. So we expect to get all of those and probably some additional units beyond that. So we are thinking somewhere between 10 and 20. We have a number of aircraft we are planning to retire. So many of those aircraft were going to replace older 900 classics. So our headcount situation is in really good shape relative to the delivery stream coming our way. We are not going to be materially overstaffed.
I don’t believe in any part of our business. We watch that closely. We had to staff up a bit throughout the end of last year to get ready for this year and the spring, but I don’t think that we are going to be in a significant drag position from a cost perspective. And to the extent that we are having conversations with Boeing in terms of compensating us for that.
Dan McKenzie: Yes. Very good. Okay. And then I guess, Shane, another question for you here. In the 10-K, Alaska highlighted 200 million gallons of SAF through 2030. And I guess I’m just curious, how many gallons you’re planning to buy here in 2024? And what is the cost differential today of that versus West Coast jet fuel? And then where do you think that differential can go, say, in 2 to 3 years time? And I guess what I’m trying to get at is probably a small percent of your overall volume, I’m just trying to get a sense of the margin headwind from that.
Diana Birkett Rakow: Yes. Thanks for the question. So it is a small part of the overall buying and that’s in large part because it’s a small part of the supply in the world at large. For 2024, it will be about 1% of our total fuel and that’s coming from a couple of different suppliers. It is — there is a green premium over the cost of Jet A. We are fortunate to have a lot of really strong corporate partners that are working with us to co-invest in SaaS in a way that also offsets the Scope 3 emissions of their business travel. And we are doing a lot in the market to try to grow and mature the staff market in the future and which includes looking at the cost down curve of different technologies and different producers.
Shane Tackett: Dan, I think — thanks, Diana, for the color. I don’t think there’s a noticeable margin headwind from it this year. Obviously, it’s a consideration for the entire industry as we move forward and becomes a larger part of supply, but we’re probably a few years before it really starts to show up in a way that increases materially the cost of fuel going into the plan.
Dan McKenzie: Yes, okay. Thanks for the time you guys.
Shane Tackett: Thanks, Dan.
Operator: And your next question will come from Chris with Susquehanna Financial Group.
Christopher Stathoulopoulos: Good morning. Thanks for taking my question. Shane, the comment you said for 2Q, I think it was flattish CASMex. Just want to confirm that, that’s ex the freighter cost? And then freighters are not typically discussed here. I think you’re sizing up that fleet. Can you just remind us of the current size and where that’s going this year? Thank you.
