We’re pleased to report that demand for travel remains strong, maintaining the trend that we saw in the back half of last year, which led to both our top and bottom-line results finishing the quarter above [expectations]. As we move forward, fundamentals remain strong and we expect secular tailwinds to continue to support growth.

Our brand is built on a foundation of service and operational reliability, and we are committed to delivering the level of service our customers expect as we ramp up operations for the coming summer season. The operating teams have done a great job getting ready, and we are planning to grow June quarter capacity 17% over last year to meet strong customer demand. This growth is a couple points below our initial plan to fully restore capacity this summer, as we focus on delivering the best operation in the industry and remain prudent in our capacity restoration.

As we move into Q2, the travel industry is positioning itself for a strong summer. We are doing the same. Already we have experienced seasonal acceleration with a strong spring break and Easter week bringing us forward to Memorial Day. We have some good demand indicators with respect to summer.

We feel very good about our ability to take advantage of an opportunity this summer to really take the hill. We’re in a position both with fleet and otherwise to seize that opportunity. And the second is, while the summer is in front of us, and all demand indicators are strong, there’s no sensibility of the consumer turning. So, on one hand, ready to take the opportunity of the summer and seeing no abatement, but not blind to the proposition that there could be softness, and sort of positioned well to do it.

…we have seen very strong international and strong domestic demand as well. The peaks remain very strong driven by this leisure demand, so whether it was holidays at the end of the year or spring break, we’ve seen very strong demand in the peaks and we expect the same for this coming summer….in general, the seasonality is returning towards normalcy with just the peaks a bit higher, and then the troughs obviously have a bit of a headwind from corporate travel.

Leisure demand is being heavily weighted right now towards international inbound. …if you think about last year with the closure of a lot of the countries, especially over in Europe, and the fact that you needed to get tested before you came back to the United States up until early June, there’s just been pent-up demand. And last year, the airlines weren’t ready to take on those route challenges when everything [was changing] so rapidly. And so that took a while to change and people needed to prepare. There were all sorts of disruptions in the European airports. So, there’s this heavy demand towards inbound.

Long-haul international is moving into the lead over domestic. This is a multiyear structural change based on aircraft retirements and pilot downgrades at essentially all long-haul U.S. airlines around the world. For 2023, we expect to expand international flying by approximately twice the rate of domestic, leaning into the favorable supply-demand balance that we expect.