Andrew Diadora: Hey. Good morning, everyone. So, Robert, just on the operations, you’ve obviously made some great strides here post-pandemic. Certainly seems to really be helping your CASM. Don’t want to steal any thunder from Investor Day, but just kind of want to get your bigger picture thoughts on like what is next operationally at American into ’24 and ’25? What’s the plan or are you at a point now where it’s sort of maintaining what you have built so far?
Robert Isom: Hey, Andrew. Thanks. Well, look, we’re really proud of the team and what they’ve accomplished. You think about American Airlines being the most reliable carrier in the country over the last 18 months, over the last year. So nobody can claim that they flew a more reliable schedule or canceled fewer flights and we’re really proud of that. But I’ll tell you, that’s a baseline now that we can take going forward. And you’re right about the best way to run an airline is the most reliable. All the rework costs are taken out of it, but we’re not going to stop there. We can do what we did and we can do it more efficiently. And I want to just hand the mic over to David Seymour to talk a little bit more about how he thinks we can bring things like technology to bear. David?
David Seymour: Yeah. No, Robert, thank you. And, again, super proud of what the team has done in 2023. It was a great year, but it really as Robert said, it is the foundation of where we’re headed into ’24 and beyond. What I’d tell you is, we have a much better understanding of the complexities of our operation and we’re investing in technology to solve quickly and more efficiently and more optimally than we ever have before. So, our relationship and our partnering with our IT team is just starting, and we had seen a lot of opportunity in the future to do what we do better, more better, more efficiently than we ever had before.
Duane Pfennigwerth: Got it. And then my follow-up question. Vasu, a lot of discussion on the call just with regards to your distribution strategy. I thought the 80% of bookings coming through these new channels was interesting. Where do you think this can go? I think 80% already seems pretty high. And what have been the growing pains thus far with the NDC rollout? Thank you.
Robert Isom: Yeah. Hey, thanks for the question. Look, I’ll answer it in this way. We have been similarly enthusiastic and even a little surprised at how quickly the transition has happened. It’s not just that we’re 80% coming through Internet based technology. Within that, 65% plus is coming just strictly through our owned channels, which is our greatest rate of growth. So first, I will say, strategically, we’re going to distribute through the Internet. It’s what our customers demand. It’s how we give them the best fares and the lowest expenses and the best servicing. So at some point, the number becomes 100. And the real issue in 2024 is we want to just continue to transition as many of our retailing partners to use the Internet with us. So ultimately, it becomes 100. We’re really encouraged by what we’ve seen therein.
Operator: Thank you. Our next question comes from the line of Savi Syth of Raymond James. Your question, please, Savi.
Savanthi Syth: Hey. Good morning. Just to follow-up on the commentary about balanced growth between domestic and international, I was curious, if you can talk a little bit about, like on the international side, if there is kind of a difference in growth trends between Atlantic and LatAm and Asia? And then on the domestic side, just if the regional mix, what kind of improvements in mix you’re expecting this year?
Devon May: Sure. Just so that I understand, you’re talking about the American airlines’ capacity mix?
Savanthi Syth: Correct.
Devon May: Not like the industry capacity mix or something.
Savanthi Syth: That’s right.
Devon May: Correct. Okay, well, look, at large, consistent with pretty much all that we’ve talked about, we will, through the course of the year, be a roughly 75-25 short haul, long haul carrier. Increasingly, our growth will be split about 50-50 between short haul and long haul. Certainly the thing that we are maybe most enthusiastic about is the continued improved utilization of our wholly-owned regional jets. In fact, so much of how domestic turns to positive RASM is directly correlated to us bringing regional jets back. And as good as that’s starting to look, in the weeks and months ahead, we know we still have 10% more utilization to do there. So, that’s really where our opportunity is. And in long haul, I mean, you can kind of see the schedule that’s out there right now.
There’s probably not a lot of difference when it actually goes to fly, but a big chunk of our footprint will be in Transatlantic in the summer, which tends to be the highest demand thing, followed by Latin America and last of all, Pacific.
Savanthi Syth: That’s helpful. And lastly, if I might just kind of be converse of the basic economy discussion on the premium revenue side. Just wondering if you can talk about what you’re seeing there and if you’re seeing any, what you’re seeing on the kind of the booked fresh class load factor, those kind of trends?
Devon May: Yeah. Look, 60% of our revenue comes from customers buying premium content, of which 45 points of that are AAdvantage customers and 15 points are non-AAdvantage customers. So I’d say at large, our real commercial opportunity is to make those people who are — help those people who are 15% buying premium content, join our programs and give continuity of great content to the people who do. And we see continued improvements in premium load factors pretty much every way there is. Premium revenues across our system are up 15%. Premium book load factors are at their highest levels, approaching close to 80% in some periods that are there. And really a lot of what we’re endeavoring to do is reserve so much of our premium capacity for AAdvantage customers.
Operator: Thank you. Our next question comes from the line of Conor Cunningham of Melius Research. Please go, ahead, Conor.
Conor Cunningham: Hi, everyone. Can you hear me?
Scott Long: We’ve got you, Conor. Go ahead.
Conor Cunningham: Thanks. Sorry about that. Just in terms of headcount for 2024, we haven’t heard a lot about that from you guys. From the industry standpoint, it’s obviously slowing. But what do you need to add this year to kind of hit your 2024 trajectory in terms of capacity and maybe beyond that? Thank you.
Devon May: Yeah. For this year, it certainly is a lot less higher than what we’ve done in the past. We are going to be bringing on about 1% more headcount. So, we’ll call it somewhere around 1,000 or 2,000 more heads this year, but a big reduction from where we’re last year. And it’s just a sign of where we’re at with efficiencies as well. We’ve probably hired a head a little bit in 2023, but this year we’re looking to grow the airline mid-single digits and headcount is going to grow by about 1%.
Conor Cunningham: Okay. Perfect. We haven’t actually heard a lot about maintenance headwinds from you guys, and that’s been like a major theme from a lot of the other carriers. So just are you seeing any meaningful call out into 2024, and then what are you guys doing specifically to mitigate a lot of those headwinds? I realize that it grew a lot last year. But is that kind of normalized going forward? Thank you.
