And where that settles, we still — the jury is still out exactly where that’s up, but it is higher and more stable and more resilient and that is not recognized by the capital markets today.
Operator: David Vernon from Bernstein.
David Vernon: So Andrew, I’d like to get some help from you if you can, in terms of helping to think through how some of the negative margin capacity that’s going to be forced out of the industry is going to impact your fare ladder. Beyond the upward pressure sort of general maintenance, I’m just trying to like understand if we see a bunch of basic capacity rationalized, because some of these negative margin unbundled carriers have to take capacity out. How is that going to impact sort of basic fares versus economy fares? Anything you could give us to help translate that impact of capacity shift into what sort of impact it’s going to have on your fare ladder would be really helpful.
Andrew Nocella: I mean I think that’s probably a lot more detail than I can do on a conference call, to be honest. But just generally, unproductive capacity has been leaving the system. I think that’s been good for the system and good for United. And so we’ll manage our RM like we normally do to take advantage of all of the opportunities. But I just want to reiterate that our choice to diversify our revenues at the top of Polaris and at the bottom of Basic Economy is not something we’re going to be giving up on. The Basic Economy is an important part of the airline, it is what our customers want, we will continue to provide choice. And we expect to provide more and more of it as our gauge increases. The competitive dynamics are what they are, I can’t predict them.
I only really can talk for United, and we’ll obviously maximize our returns and do the right thing. But again, the diversified revenue streams that we’re putting out there are really working for us across not only the fare ladder but our geographic dispersion of our flying. And so we couldn’t be more pleased with our revenue results quarter-after-quarter, by the way, not just in Q4 and not just last year, and the outlook we have. If the industry is dynamic, it’s always changing, we’ll change with it. But it is, I think, a good time to be at United Airlines and be an investor in United Airlines.
David Vernon: And are you seeing any sort of benefit yet from some of that capacity rationalization as you look forward into to forward bookings, or do you think that’s something that’s going to develop as we get through the year?
Andrew Nocella: I think our outlook for Q1 for domestic PRASM says it all.
Operator: We will now switch to the media portion of the call [Operator Instructions]. David Slotnick of The Points Guy.
David Slotnick: I know you talked about London and about slower growth across the Atlantic. I was wondering if you could talk a bit more from a consumer perspective. There’s been some talk just about all the capacity across the Atlantic next summer. Do you see any impact on ticket prices, do you see them going down or up, just given all that?
Andrew Nocella: David, what I would tell you is that we’re prepared for an incredibly strong summer. As I’ve said numerous times, we decided to go slow this year. We’ve tilted more of our capacity, particularly in Q1 to Southern Europe. And that’s probably what I would say the biggest change is what we see with the consumer is that destinations in Spain and Italy have become more year round destinations than seasonal. And that is new post pandemic and we’re reacting to it and moving more and more capacity out of Northern Europe, out of London Heathrow or Germany and into Southern Europe, and we’ll probably do more of that again next year. In terms of the price points, I’m not going to exactly predict that at this point. We don’t really talk about pricing.
But I would just say, we expect a really strong summer across the Atlantic. Our capacity is not growing materially. And we think that’s going to really allow us to get all of the capacity we’ve added over the last few years to be mature and incredibly and solidly profitable in 2024.
Operator: Rajesh Singh from Reuters.
Rajesh Singh: Scott, you made some comments on CNBC this morning that MAX grounding broke the camel’s back. Do you have confidence in Boeing’s current playership that it will be able to fix its problems that some people will have called the leadership into question and have faltered it for all the quality problems. So do you have confidence in the current leadership?
Scott Kirby: Boeing has a storied history and thousands of great people. They’re one of the best engineering, they’re one of the best technology companies in history, they’ve been a great American company, their biggest exporter. I have — they’re going through a rough patch right now, but I believe that Boeing is across the board from top to bottom is committed to changing and fixing it. I’m encouraging them to do it even faster. And it is going to impact United in the near term because of some of the challenges they’ve had, but there are great people there and they will get it together. And we are their biggest — at critical times, we’re also their biggest cheerleader. There’s no one that’s a bigger supporter that wants Boeing to succeed outside of Boeing than me, and I’ll do everything I can to help.
Rajesh Singh: Just one clarification, Scott, about your comments about MAX and some people are misconstruing it that you are planning to cancel the order. Can you clarify your comments about MAX 10?
Scott Kirby: We are not canceling the order. We are taking it out of our internal plans. And so we’re taking out of our internal plans and we’ll be working on what that means exactly with Boeing. But Boeing is not going to be able to meet their contractual deliveries on at least many of those airplanes. And I’ll just leave it at that.
Operator: And that is all the time we have for questions today. I will now turn the call back over to Kristina Edwards for closing remarks.
Kristina Edwards: Thanks for joining the call today. Please contact Investor or Media Relations if you have any further questions, and we look forward to talking to you next quarter.
