Devon May: Yeah. I’ll start and just maybe talk about where the P&L has been and then turn it over to Robert, to David. But we did have some headwinds in 2023, I want to say our maintenance expense in 2023 versus 2022 was up something close to $0.5 billion. This year flattens out a bit. We do expect it to be up. And it’s one of the areas of the P&L where we’ll have a little bit of variability just depending on how many in-house engine overhauls that we end up doing this year. But ’23 was a big step up, ’24 is less so. And there is a lot of great work being done on David’s team to address as well. Hand it over to them.
Robert Isom: Yeah. So, I’ll just start, Conor. I think one of the things that I look at is that maintenance needs for the industry as a whole are going to increase greatly. American is really well positioned, not only because of what we’ve done over the past decade by bringing in more new aircraft than anyone, but as well remember that we have maintenance capabilities where we’re not solely dependent on outside resources that are going to be incredibly constrained. So one of the things that I know David can talk to us about is that we’re going to make sure that we have even more capacity to do engine overhauls. We already have 12,000 mechanics, more than anybody else in commercial aviation and we’re going to put them to good use. And I think that that’s going to be even more of a strategic advantage for American as we take a look at a really constrained resource. David?
David Seymour: Yeah, Robert. Yeah, there’s a lot of effort both what Robert and Devin talked about is that a lot of focus here and we have these normal waves that we run into with maintenance cycles that we have on heavy checks and engine checks that we got to do. But a lot of emphasis this past year and going into 2024 of getting a lot more efficient at how we manage that maintenance. As Robert talked about, we have really good control with longer-term resources to get that work done. So, we’re very confident that we’re going to be able to get the efficiencies and reduce some of that cost here in the near future.
Operator: Thank you. Our next question comes from the line of Daniel McKenzie of Seaport Global. Your question, please, Daniel?
Daniel McKenzie: Hey. Thanks. Good morning, guys. My two questions are on technology as well here. So, 65% of the bookings going to 100% on aa.com. What percent or portion of the revenue does this represent today and what percent of the revenue was up 15%, exactly?
Devon May: What I would say is 50 — let me first clarify. So, 65% of our bookings are going through our digital channels. On a revenue basis, it’s actually a little bit north of that. It’s probably a little closer to 70% as we’re intaking. And those are our revenue intakes that are coming in. Separately from that, when we go, look back at 2023, 60% of our revenue came from customers buying premium content, which is a premium seat or greater flexibility around the premium seat. Of those, 15% of our total customer base is non-AAdvantage. About 45% is AAdvantage.
Daniel McKenzie: Yeah. Thanks a lot. That’s helpful. And then the second question is really a bigger longer-term question on potential cost savings and it relates to the transition to the cloud. I’m wondering where American is at with respect to that transition and what kind of cost savings that could ultimately represent on an annual run rate? So is it tens of millions, hundreds of millions or maybe somewhere in between?
Vasu Raja: Hey, Dan. Let me start on this one as need be. Devon or others can pick up. But this is actually a great one, which we look forward to talking about more in our Investor Day. We are operating the entirety of the company with a tech-first mindset. This is one of many initiatives, but by no means the biggest, as promising as it is as you’ve laid out. So more to come soon.
Robert Isom: Yeah. And Vasu, I’ll just add that, look, all of that kind of work will be a facilitator to delivering product faster, more efficiently and so that’s the kind of mindset. So we’re not — I’d rather not talk about it just as a discrete item. We’ll bring it altogether as we get to March 4th.
Daniel McKenzie: Okay. Thanks, guys. Great job.
Operator: Thank you. [Operator Instructions] Our first question comes from the line of Alison Sider of Wall Street Journal. Please go ahead, Alison.
Alison Sider: Hi. Thanks so much. I was wondering what is your level of confidence in Boeing’s current leadership?
Robert Isom: Hey, Ali. Look, a couple of quick things. First off, some of Boeing’s current issues are all around the MAX 9 and the 737-900s. American Airlines does not fly those aircraft. We’re a huge Boeing customer, though, and we’re dependent on them for just producing. [Technical Difficulty] We’re going to hold them accountable. Boeing needs to get their act together. The issues that they’ve been dealing with over the recent period of time, but also going back a number of years now is unacceptable. And no matter who it is, all of Boeing needs to come together and to get back on the right track.
Alison Sider: And the production limits that the FAA announced last night to the MAX, but do you expect that to have any impact on deliveries for American? I mean, do you think that that makes sense for Boeing?
Robert Isom: So, look, we will encourage Boeing to do everything that they can to get back on track and produce a quality product, plain and simple. For us, we have a fleet right now of over 1,500 aircraft, so we have 20 MAX 8s that are on the horizon for this next year. These aircrafts are likely already in production, and I don’t anticipate to run into any issues. But I’ll say this as well, though. Nobody has taken on more new aircraft than American Airlines in recent history. And we take that acceptance process very seriously, and we’ve done that for years. We have the teams of people in place to make sure that what comes onto Americans property is ready to go, ready to fly. And as I said before, we encourage Boeing to get their act together, get back on the right track.
Operator: Thank you. Our next question comes from the line of Mary Schlangenstein of Bloomberg News. Please go ahead, Mary.
Mary Schlangenstein: Hey. Good morning. Just to follow up on that, as you continue to talk to OEMs about a potential narrow body order this year, are the things that are occurring at Boeing right now, is that having any impact at all as you think about placing that order? And then also wondering if you think that federal officials are taking the right steps in looking at Boeing. They’ve said they may expand to other production lines than the MAX. Do you see them taking the right steps or would you like to see them doing something different, maybe going even stronger on new requirements from Boeing?
Robert Isom: So, Mary, thanks for the questions. Let me just start with this first. Administrator Whitaker, we have incredible confidence in. He’s the right person for the job right now, and I’m very, very confident that he will hold all of us, but especially Boeing accountable for what they do. And to that end, I think that’s the right approach. Look, aviation in the United States, aviation throughout the world, it’s the safest form of transportation. We have a commitment to keep it that way, and Boeing has to be part of that equation. Now, as we take a look at future needs for aircraft, again, American Airlines, we have 1,500 aircraft, and a lot of the growth that we’ve been talking about is getting planes back up in the air that we could get more utilization out of.
