Vasu Raja: Inflation. Got it. Okay. Yes, look, right now, I’ll say this. Air as I’ve said on a couple of these calls, air travel remains an amazing bargain, though indeed, the price of gas or groceries or clothing or anything is up quite a lot. Air travel is not up nearly as much. In fact, I think today, in the fall, you can fly to Las Vegas for less than $50. And my guess is just about any place you go to eat, it would cost you more to eat there. So we have yet to see something where inflation is a thing that we could go point to as a causal headwind to demand.
Alexandra Scores: Thank you.
Operator: Thank you. Our next question comes from the line of Leslie Josephs of CNBC.
Leslie Josephs: Hi, good morning. We’ve been seeing a lot of discounts, a lot of double-digit fares from you guys midweek anytime. Can you talk a little bit about how much have you had to discount this fall kind of coming off of the peak summer season to fill planes? And how confident are you in this breakeven guide just considering where fuel is now and whether you can drum up fair enough to cover that. Thanks.
Vasu Raja: I’ll answer the first part of it by just simply saying that we don’t really comment on fare activity or sale activity for any number of reasons. But I think others can talk a little bit more about kind of margin performance.
Devon May: Yes, our fourth quarter guide, we’ve done it the same way we’ve done for all the other quarters and throughout the year. We have confidence in our revenue guide. We provide a range on it. We have a lot of confidence in our cost guide and fuel remains volatile, but we did put a range on that as well. So as it sits today, we feel really good about what we have out there for our Q4 guy.
Leslie Josephs: Okay. And then, I mean, I guess if you can’t comment on fares, but are you losing any pricing power broadly compared with last year or even compared with competitors now?
Vasu Raja: Well, that’s probably an inadvertent way to comment on fares. And look, what we continue to see is a lot of the same overall demand trend sequentially day-to-day, week-to-week, et cetera. And as I mentioned, air travel remains an amazing bargain for customers. And customers, as we’ve seen for several years, are keen to travel and traveling at a greater rate than what they were in 2019.
Leslie Josephs: Thanks.
Operator: Thank you. I would now like to turn the conference back to Robert Isom for closing remarks.
Robert Isom: Thanks, Latif, and thank you, everyone. I’ll close with this. There’s obviously a lot of short-term sentiment in thinking out there. And we understand why. There’s a lot going on in the world today. That said, the airline business is one that absolutely requires long-term thinking as we navigate — even as we navigate shorter-term variability. The aircraft we buy today are going to be around for 20-years plus. The leases we signed at airports and the hundreds of millions and billions of dollars that we commit to airports. Those are leases that are 10 years plus in financings that go out a lot longer than that. And even the labor contracts that we sign are multiple years, 4 and 5 years. So we have to take that into account as we look to the future.
And all of us at American have worked tirelessly to set the airline up for success in the short term, yet long-term world. So as we look to 2024 and beyond, look, we have an enviable fleet. We’ve gone out and spent $30 billion prior to the pandemic to put ourselves in a position where we are entering into capital spending that is lasting. And we’re doing it in an environment where others are facing rising interest rates and issues with suppliers. So while there’s a heading the other way, we’re set up for success. And we look forward to putting all of our assets back to full utilization and we know we can optimize how we’re running the airline as we go forward. And all of that is why we build the best network and work with our customers to make sure that they are rewarded for using it.
So we’ve got a great baseline, and I’m very confident in the future of travel and demand. And I can’t wait to talk to you more as we go out to the next quarter 2024 about where American is headed and the story we have to tell. So thank you very much.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
