So when you combine this laser focus across all three initiatives, I’m exceptionally pleased and we intend to execute the mid- to high single digits on a full year basis. In terms of how that plays through, throughout the year, Q1 is slightly elevated in terms of the year-over-year. The 9% to 11% guide includes 2 points of pilot pay and given that contract is lapping here in the January and February time frame. As we navigate through the rest of the year from a pure CASM extent perspective, we’re essentially flat every quarter throughout the year. So the progression improves from a CASM ex year-over-year perspective as we navigate through the rest of the year, and I feel confident that we’ll hit the mid- to high single digits.
Conor Cunningham : Okay. That’s helpful. And then on the deferral versus lease extension comment, I’m a little confused there. I would have thought that the change in deferrals that you were pivoting to slower growth until margins improved at some level. Can you just help to play out the scenarios between maybe low single-digit growth to like your historical range of mid to high in 2025 and beyond? Thank you.
Ursula Hurley : Yeah, the deferral, we believed was imperative because the #1 priority is getting this business back to sustained profitability. And we had 35 aircraft that we’re supposed to deliver in ’25 and 45 in 2026. And we just didn’t feel like that was the capital investment that we should be making when we’re just getting the business to profitability. So we slowed the growth. On average, we’ll take 24 aircraft per year over the next five years. We honed in on the A220. We protected that delivery schedule so that we can continue to exit the E190. And as I mentioned, we do have a lever to pull in terms of extending or buying out these leases. And the goal is to get this business to grow again and to overcome the GTS challenges that we’re seeing. So we do look forward to sharing you the multiyear growth plan at the Investor Day in May.
Conor Cunningham : Okay. Thank you.
Operator: Our next question comes from Jamie Baker, JPMorgan.
Jamie Baker : Okay, good morning, everybody. First for Ursula, just trying to reconcile the unencumbered asset disclosure. So for the bridge loan, can you remind us what was pledged there and confirm that was $9 billion. Is that correct? So in theory, if that bridge goes away, just hypothetically, those assets come back to you then there’s another $1 billion plus, and that gets us to the figure on Page 9. Is that the correct way to think of it?
Ursula Hurley : That is the exact way to think about it, Jamie.
Jamie Baker : Okay. Thank you for that. And then second for Joanna, let’s see, how do I ask this? If plan A was the premerger trajectory, and Plan B was or is the merger, have you allocated any internal resources to coming up with a potential Plan C or is that how we should interpret today’s deck. I guess put differently, are the adjustments to your announcing today consists in with the merger plan meaning in a scenario where if the merger doesn’t go through, we should be prepared for further revisions. Does that make sense?
Joanna Geraghty : Yes, it does. Yeah. So the plan that we’re talking about today is our organic plan without a Spirit acquisition. Given the appeal that’s pending, given the outcome of the judge’s decision, we’ll see that process play through. Our hope is that the First Circuit realizes the decision is erroneously decided, and we continue down the path with the Spirit acquisition. But if that does not happen, we need to be prepared with our organic plan. And so that’s what you heard about today. We will explain that greater at an Investor Day in May. We’re in the process — we’ve been in the process for the last several months of building this, I call it, the Plan B actually, building this Plan B, which is the kind of supersize our organic plan in case Spirit does not happen.
So that’s what you heard about today. From a resources perspective, there is a team that has been working through the integration management office on the Spirit plan. That team will continue to do what they need to do, and this organic plan will be worked by the broader Jetblue organization.
Jamie Baker : Okay, that’s perfect. Thank you very much.
Operator: Our next question comes from Catherine O’Brien, Goldman Sachs.
Catherine O’Brien : Good morning. And congrats to Robin and Joanna again. I just wanted to dig in a bit on your comments on reshaping the cost structure to address cost convergence that was in the presentation. What types of initiatives are you looking at to achieve this? I know you’ve been talking about being relentless on fixed costs, and you gave a few examples on the voluntary opted that are in early innings and a few other things. But could you just give us a little bit more color on what exactly you’re looking at? And I guess, on the cost convergence front, where do you see yourself kind of fitting in versus the bigger, more premium guys and maybe the lower cost? How do you view your performance over the last couple of years within that context? Thanks.
Ursula Hurley : Hey, Caty. Thanks for the question. So a couple of thoughts. Definitely on the labor front, costs have obviously converged as we’ve navigated through COVID. I’m very hopeful that the peak is behind us. Hopefully, from a pilot labor perspective, attrition has been lower, and that environment has been tightening up. And so I feel confident that the peak of labor rates across some of these larger frontline work groups is behind us. And so we’ve got to be laser-focused on ensuring that we drive productivity that we set up the network for success in terms of how we recover the network, but also ensure that our frontline crew members have the tools that they need to do their jobs easier. And essentially, that will result in productivity efficiencies going forward.
So like I said, I am very pleased with our controllable cost execution in 2023. And I do believe that this is a competitive guide compared to the peer set in light of us not growing this year. And I fully expect to deliver on our full year guide again.
