Peter Ingram: Yes, so. We reset the delivery schedule with Boeing, with the new agreement. We don’t have any 787 ASM contribution in 2023 in our plan, we expect to take the first airplane before the end of the year and have it in service in early 2024. Given the freshness of the delivery forecast on which that deal, which is basically right now about a month old. I think we’ve got a pretty good level of confidence about Boeing’s ability to deliver on that. And we do expect to get a couple of 787s in service in the early part of next year. We don’t have any other deliveries we’re expecting this year aside from the A330 freighters which is contingent on getting them out of the transition program from a passenger airplane to a freighter airplane, which is the responsibility of our partner on that.
And then the other area where I’ve talked a couple of times about some risk to aircraft availability is not so much around aircraft deliveries, but it’s the supply chain for spare engines, particularly on the 321 where we know we’re already running short and have their airplanes that are unavailable to us in the near-term as a result.
Hillary Cacanando: Thank you very much.
Peter Ingram: Sure.
Operator: Our next question comes from the line of Dan McKenzie with Seaport Global. Please proceed with your question.
Dan McKenzie: Hi, thanks for the time here. So going back to the script, investing in continuum of initiatives, starting with, I guess, premium revenue. I just wondered if you can help us understand what capabilities you’re gaining in 2023 versus what you were doing in 2022? So the IT limitations that go away and the percent of the revenue picture that the IT improvements are touching here.
Peter Ingram: So I don’t think the which gives us materially different capabilities in terms of managing front cabin as we look into 2023. I do think the things that will continue to benefit from, obviously, we’ve executed very well on the revenue management side, that’s a capability we will continue to have going-forward. We’ll have an annualization of our preferred seats products that we launched last year that will hit, it’s kind of long-term run-rate and a lot of initiatives that we had around Extra Comfort and seeing optimization. We think some of those have some more growth as we look into 2023.
Dan McKenzie: I see. Okay. Next question here. I think if I heard you correctly, it sounds like the three biggest drags on the business are a slower recovery in Japan, the inter-island dynamic and then the airport challenges at Honolulu. And I’m just wondering if you can just help us understand just how big a drag these three components are. And so, I guess, if one of these were to flip what could that really mean? And then finally the suboptimal schedule at Honolulu, how many points of revenue is that overhang that’s embedded into the first-quarter guide here? A – Peter Ingram I’d just say, Dan, the first two of those, the Neighbor Island competitive dynamic and the slower recovery in Japan. They are much more impactful in terms of the near-term financial performance than the operating challenges at Honolulu.
We’ve been able to make adjustments to the scheduled to stabilize the operation without having to stay-in a material amount of capacity and particularly as we as we get beyond the construction period. We think that will become even more stable, but it’s not costing us economically so much as it is sort of challenging our teams on a day-to day basis and causing a few hairs to go gray as we battle through some of the challenges, especially as we did in October and November, where our performance was particularly pressured before we could get the scheduled changes in-place. I would say, in addition to the two big revenue dynamics that are in-place, Neighbor Island and Japan. The other thing that does constrain us a little bit is the aircraft availability.
