We’re seeing, I would say, significant market share gains in terms of our piece of the business. We talked about that at Investor Day in December. And since that time, we’re seeing really meaningful shifts in market share our way on the business side. So, as you think about demand for the brand, demand for the product that shows up, obviously, in bookings, we’re just not seeing any sign of weakness. Ryan?
Ryan Green: Yes. No, like I think we mentioned last quarter, of course, following the event, we have brand tracking research in place where we’re tracking sentiment on a weekly basis. Those scores in terms of trust in Southwest Airlines, their confidence in our ability to get them where they want to go, all of those have rebounded past — post disruption. And I would say we’re — those are back to normal ranges, certainly. I’d echo what Bob said, the biggest single indicator is demand for Southwest Airlines overall. I think as you look forward to the third quarter, expecting another record revenue in third quarter just came off a record revenue performance in second quarter. We had record Rapid Reward acquisitions in the second quarter, record co-brand spend, which is an indication of customer engagement in the second quarter.
So, I think, all of that points to the fact that there is continued strong demand for Southwest Airlines, and the disruption is in our past. I will also just point to the fact the travel patterns changing. If you look at an individual customer basis and you look at the frequency of their travel, especially for business trips, that began to plateau prior to last December. So, there’s been no step down in terms of frequency of travel on Southwest Airlines post disruption event. Those trends were beginning to emerge last year and prior to the event overall. Now, on the whole, as Bob mentioned, we’re continuing to pick up market share in the managed business space. So, we’re winning more business and we’re winning — we’re earning the business of incremental passengers.
So, we’re going out and adding more accounts under contract. We’re winning more of their business as we move forward. It’s just the structural impact of the pandemic on the frequency of business trips on an individual traveler again persists or that was taking place prior to the disruption in December.
Operator: Our next question will come from Conor Cunningham with Melius Research.
Conor Cunningham: 10 years ago, you guys established a plan that was centered around minimal capacity growth until your return on invested capital hit like 15%. During that time frame, slow growth, your earnings exploded. I realize today is not exactly the same. You have a large order book, open labor contracts, all that stuff. But you do have a lot of planes that you could retire. I’m just trying to understand why you’re not taking a step back and slowing capacity into ‘24, accelerating your fleet plan? Like, why is mid-single-digit growth the right number for Southwest right now? Thank you.
Tammy Romo: I’ll start. And — well, first of all, we do believe we have growth opportunities. And I’ll just remind you again that we did make investments during the pandemic to grow our route network. And as we reported, we have a larger than normal amount of our capacity in development markets. But those are progressing and they’re trending in line, if not higher than our expectations. So, we’re pleased with that growth. And based on what we’ve seen so far, we have no plans to pull back on the development of those markets because we believe those are really good markets for Southwest over the long term. And we believe we have additional opportunities in our strong hold market. So, now, that said, based on our assessment of our growth opportunities, we believe that supports mid-single-digit ASM growth.
