All right.
Well, for those of you that were here earlier in the morning, you will recall that my memory of senior appointments in the airline industry is fading, and I confused CFOs and who had most recently risen to the top spot, like Leskinen or, or Devon May, and I got it wrong, but then I got it right. But I can say with confidence the most recently minted North American airline CEO is seated to my left, Joanna Geraghty. We've got Ursula, we've got Dave as well, and, yeah, you had some good news this morning. So why don't why don't we start off with that?
Yeah, sure. Thanks so much.
Thank you. Thanks for having us. We have a couple of slides that we'll flip through. I know others have given much more specific presentations, but I just wanted to recognize Justin Houk and Alex Scarcella out in the audience, our JetBlue MEC. Thanks for joining us today. I'm sure you've learned a lot through the day. It's great to have you on board. So it's obviously been a very busy start to the year for JetBlue. We've had nothing in the news at all, no CEO changes or terminations of deals. But with the Spirit termination now kind of under our belt, we are fully focused on our organic strategy. Maybe Ursula, you can pull the first slide up. For three years, we've had you know some challenges.
Obviously, the Northeast Alliance with American Airlines, which didn't work out as we had hoped, followed by the Spirit transaction, which also did not work out as we had hoped, all focused on trying to create a larger and more relevant JetBlue and an airline that could compete with the large legacy carriers. But now our focus, after spending three years trying to do those things, is returning to the business fundamentals. We have got an absolutely fantastic brand. We have a great group of customers who fly us regularly, and we are focused on returning to profitability. We have not been profitable since pre-COVID. We've had a few quarters of profitability, but that is our number one focus. We need to deliver for our shareholders, and many of those are our crew members, including two of our, our pilots in the audience.
This slide lays out, you know, what we think are JetBlue's core strengths. We have a great brand. We have a great product offering, and we have fantastic geography. New York has most certainly lagged recovery from COVID, which we can talk a bit more about that, during the chat, but we know it will become a tailwind to JetBlue and its constrained geography with 50% of our network based there. So we do think it is a tremendous asset. We've also got a one-of-a-kind value proposition with a loyalty program and JetBlue Travel Products wrapped around trying to optimize for the leisure customer. Then we've also got a very distinct brand. We're going to refocus and pivot on these core strengths and, frankly, make the most of them. We have got to fully leverage our unique position in the market.
And with three years of distractions associated with the NEA and associated with Spirit, we've got a lot of work to do to get JetBlue back to profitability. Our network, I'll start there. We've got a deep relevance in our network. Our core geographies are great, but we've put off making some changes with the hopes that a combined JetBlue Spirit would be bigger. We need to repivot some of those geographies that we're holding off on and bring them back into the core network and really redouble our efforts around how do we make the network work better for us. Leisure is obviously where the demand is coming out of COVID. It's what we're built for. We continue to see tremendous upside and opportunity there, as evidenced by our guide up today. Our product offering, it's great, but there are gaps in it.
We need to fill those gaps. We're doing some of that work now, but there's more work to be done. And then, as I mentioned, the leisure category, it's our sweet spot. You couple that with our loyalty program, which is designed to touch many more customers beyond legacy carriers' programs and JetBlue Travel Products. And you think about how do we create a flywheel of opportunity. So making sure we're flying where the opportunity is, where we have co-brand customers beyond just our core geographies, growing those markets, flying where they want to fly, and offering products that they want, we can create a level of synergy across network, JetBlue Travel Products, and our loyalty program that we think will drive profitability and margins in the longer in the longer term. Maybe slide two, Ursula, if you could pull that up.
As we think about some of the revenue initiatives that we have laid out for this year, there are $300 million many of which are already underway. Product merchandising and ancillary, think of that as preferred seating. We've launched that in this quarter. We're already pleased with the success that we're seeing there. We will continue to redouble efforts there. Ancillary revenue opportunities, whether that's fees or better targeting customers with Even More Space and upsell, continuing to focus there. Our distribution strategy, online travel agencies and travel management corporations, we're in the very early innings there. We continue to have some upside, and we've added those to our portfolio for this year. And then, as I mentioned, loyalty. We launched TrueBlue 3.0 last year. The goal with TrueBlue 3.0 is to create a level of engagement with customers that is unmet by the legacy programs.
So how do we create stickiness across customers, in the entire leisure spectrum? And so continuing to provide opportunities for them to move their way up the ladder, both at the Mosaic level - we now have four Mosaic offerings - but also at the lower, at the lower levels. And we've seen tremendous improvements in TrueBlue member attachment, activation, and then Mosaic retention with this new program. And we just launched it in the spring, so we continue to think there's upside there. The other piece is our co-brand portfolio. We know that there's opportunities for an upsell product and a downsell product, so looking at how we can fill those gaps as well. And then our network. As I mentioned, a number of changes were paused pending trying to build a bigger JetBlue in Spirit.
I can tell you Dave's team felt like he had some shackles on his arms, and now we are going to take those shackles off. We made a number of changes, closing some cities, unfortunately, repivoting the network, but there's a lot more opportunity for the future. This reflects tranche one, the $300 million. We know there's a tranche two and beyond. So as I think about our revenue initiatives, I'm very excited that this is about three times as much as you would typically see for JetBlue in any, any one year. Two-thirds of these are ancillary, dropping right to the bottom line. And so, pleased with the progress that we're making. As you think about the May timeframe, we will be going out with an investor day at the end of May, and that will be incremental revenue initiatives on top of this set of initiatives.
A few other things I wanted to call out, as you think about JetBlue, operational reliability is a core tenet. We've made some nice progress, but we operate in the most challenged airspace of any U.S. carrier. 50% of our flights are in New York. Air traffic control is an issue. We do see progress from the FAA. We're very pleased with the work they're doing around creating a college to career program, but we're several years away from really seeing significant improvements in the New York airspace. And so the 10% slot waiver at LaGuardia helps significantly, as does some of the self-help measures that we're taking around improving our operational reliability by creating more resilience in our reserves, how we use premium but doing it in a more cost-effective way. And then last but not least, cost control continues to be paramount to JetBlue.
We are focused on maintaining the gap to legacy carriers. That definitely comes with some headwinds in an environment where you're not growing because of some of the pressures around the GTF issue, but we are focused on driving out fixed costs to preserve that cost advantage, and looking for continued opportunities, structurally to improve how we're set up for the next several years. Also transitioning the E190 fleet to the A220 fleet, so seeing about a $75 million improvement on costs from that fleet transition. And we're sort of at the height of that at this moment in time. You know, I think I'll emphasize, as we refocus on the core JetBlue business, it is not business as usual. This is about accelerating the really strong parts of what makes JetBlue unique and special. As I mentioned, we know there's gaps.
We're focused on filling those gaps, adjusting the network to reflect where the opportunities lie, and making sure that we're taking full advantage of the JetBlue value proposition around the leisure customer, where that demand presently is, and JetBlue Travel Products and our TrueBlue loyalty program. And then maybe the last slide, Ursula, or Dave, you know, we talked today about, we issued an 8-K today. Pleased with the progress that we're making in Q1. You know, we're one point better on our revenue guide and our ASM guide up one point versus the midpoint compared to what we went out with at our earnings call. CASM also improving, a little bit of pressure on the fuel side, to be expected in this environment, and continuing to try to keep the momentum going into Q2 and beyond.
With that, maybe I'll, I'll stop and open it up to.
Okay.
Jamie's questions.
I'll kick off just because we have this slide here. So you underflew planned capacity, but you still did very well on ex-fuel CASM. So what were the buckets that drove that upside since usually we're not accustomed to seeing both of those metrics move in the right direction?
Yeah. So capacity was actually 1 point to the midpoint better.
Okay.
And so, you know, that most certainly helped with the.
Negative math.
Yeah.
Yeah. Okay. All right.
I didn't want to point that out, but I'm just calling it out.
I'm so wondering, where did we go in the last year too?
The lawyer here caught that, not the banker.
He normally checks the math with me, but that's okay.
Negative numbers are tricky. We don't like them either.
Yeah. Negative numbers are tricky. Yeah. So obviously, a little bit better on the, ASM side and revenue side. That also helped on the CASM side. And some of that is ASM-driven, but some of it's also continuing to focus on just delivering on our cost targets for the team, and operational reliability. So obviously, New York, 50%, ATC, you've got, you know, the weather, and, you know, as we think about completion factor, better completion factor, which improved our cost performance this year, less interrupted - less this quarter - less interrupted trip expenses and less premium pay.
You referred to the NEA as previously being a distraction?
NMA.
NEA. Sorry, and I believe that was May of last year when that decision came down. You didn't choose to appeal, I felt, because you were just going to, you know, your priorities at that point were still on the merger. With the merger off the table, with American appealing, does the Northeast Alliance have appealed to you conceptually, or is it just behind you at this point?
Sure. I mean, we, we absolutely thought it was a great idea. We absolutely thought we were going to win the case. I mean, I think most probably thought that, that it would have moved in the right direction. In terms of partnerships more broadly, we have 50 airline partners, 50 airline partners. They're great in terms of helping us not just grow inorganically, but build relevance for customers, earn and burn, redemption, things like that. In terms of something like the NEA, you know, whether or not that structure would survive, you know, I think that's somewhat dependent on the outcome of American's litigation. In terms of some type of partnership with a domestic carrier, Judge Sorokin did outline a framework that would work, and I think that's something, you know, that we would be interested in down the road.
Right now, it is organic, focused on driving profitability and really removing distractions from the team so that we can deliver for our shareholders.
Okay. So here's what I'm trying to reconcile. You and the board were willing to do the Spirit deal on an all-cash basis or an all-debt finance basis, you know, for $3.7 billion or whatever the number was, and lever up the balance sheet. Yet now that the deal's fallen apart, and you know you did this when it was falling apart, you are deferring aircraft. But at the same time, you're talking about making JetBlue bigger and more relevant and improving loyalty and so forth. So-and this is the credit guy speaking-I sort of think you have $10 billion of unencumbered assets and so forth. You're not doing the Spirit deal. So why defer aircraft and defer getting bigger and growing and so forth when you're no longer-I get that the Spirit deal would have been putting the balance sheet in jeopardy given the way things played out.
But just buying the aircraft that you were going to buy wasn't sort of jeopardizing the franchise. I know it's prudent to maybe push it out, but maybe just talk about that dynamic because it doesn't sort of. I'm getting questions on it.
Stands in contrast.
Yeah. No, no. And understood. And I think the word you used is prudent, right?
So we need to get the balance sheet back into better shape, and that was one of the levers that we pulled. We also—we're taking 25 aircraft a year moving forward, so we do have a decent number of aircraft coming. We also have the option to extend, retiring 320 aircraft, which is a very capital-light way of growing, and looking at that seriously. Of that group of aircraft, only 11 are not reconfigured, so 11 are in the, like you call it, vintage JetBlue configuration. And so we think there's some nice opportunity there to grow in a more capital-light way, to enable us to drive for profitability in the short term, repair the balance sheet, turn the page, and then regroup and figure out longer-term how do we look at accelerating growth.
We do have options in the order book as well that we can pull down the road. But this is about near-term: how do we shore up the balance sheet? How do we focus on profitability? Get past what we've been managing over the last three years with Spirit and the NEA, and then move forward past that. So we absolutely recognize we need to grow longer term. That is fundamental. We know we need to do, but we also need to, navigate the next few.
But it's got to be a bitter pill to swallow to defer aircraft in this market when you have United and Delta, you know, clamoring for aircraft in the market, and you're trying to catch up to them in terms of margins, and it's based on growth and further network density and loyalty and so forth. So was it an easy decision, though? Was it—was it simply we just—we feel like we need to run a much more conservative balance sheet going forward? Because I would argue, post-Spirit, the balance sheet's fine. You could afford to take those airplanes.
Yeah. Ursula.
Yeah. I mean, listen, we ended up in a position that we were scheduled to digest 80 aircraft between 2025 and 2026.
When we're not sustainably delivering profitability and we're not delivering free cash flow, that was going to be extremely challenging to digest.
Okay.
And so we took a pause. We streamlined the order book, and we, to Joanna's point, have more capital-light ways in order to add capacity back into the network. And so, I mean, we've always been prudent in how we manage the balance sheet, and it's not at levels that we want it to be at. And digesting 80 aircraft just was going to send us in the wrong direction. And so taking a pause and smoothing out the deliveries, and resetting, really, and getting our feet underneath us and getting, to Joanna's point, back to the basics, in terms of delivering profitability with the aspiration to grow over the longer term.
On international expansion, have your ambitions changed at all now with the revision in leadership?
No. I mean, Robin—for the revision in leadership was Robin. He obviously was very bullish on entering Europe. That said, it was always the design of that was always around what's the largest underserved market out of New York and Boston? And it was Paris. It was London. And now that we've kind of cycled through the markets that are large European destinations that we did not serve out of New York and Boston, you know, I think we're going to be far more opportunistic in terms of what we're doing. And one example, if you look at this summer, is we're launching Dublin tomorrow or tomorrow. Yeah. It's tomorrow. I think that we're going Dublin tomorrow, Edinburgh. That's seasonal in nature. And we really want to focus on how do we utilize those assets in the best way to drive margin.
And we all know that wintertime over Europe is a bit, you know, pressured in terms of profitability. And so those will be seasonal as we enter those, but it's really opportunistic in flying the top markets that are underserved by JetBlue out of the Northeast. And we've kind of cycled through those top markets right now.
Right. All right. Maybe a question for Dave. I mean, if we think about underperforming markets and, you know, we can identify, you know, Baltimore, I mean, you're exiting it. I'm just thinking, are there one or two characteristics, other than losing money, that they share in common, you know, a lack of market share, a heavy presence of low-cost carriers? Any DNA in common amongst your underperforming markets?
Yeah. Thanks, Jamie. It's a great question. There's, I'd say, two primarily that I see. One is just what markets have seen demand shift away from them since COVID or hasn't come back as much. And some of these smaller markets, especially shorter-haul business markets like a Boston, a Baltimore, is a great example. We flew that as many times as six a day, a decade ago. We've been struggling to fly it two or three times a day and have enough demand. So that's a great example of changes that we have been making based on customer demand changes since COVID. The second piece, there is a lot of market share-driven ones.
As we thought about, you know, Spirit and the combined network, there was a number of places where we looked and said, "Well, we're relatively small, but when you had us and Spirit together, we're both big." So there's some markets where, from a standalone perspective, maybe have been questionable for a couple of years, but from a combined perspective, make a lot of sense.
Right.
That's, you know, when Joanna talked about sort of being unleashed and being able to make some moves. You'll see sort of rounds of markets like that over the coming months where it would have made perfect sense in a combined network, but on a standalone basis, just isn't earning its right to be in the network. And if you think about it, you know, if you're not growing and especially if you're not profitable, if you're extremely selective about where you fly. So we're going to be pruning some of these markets that weren't really earning the right to continue, and putting them back into the real core bread and butter JetBlue routes, where we perform really well and are really well known.
What about some of the other aspects of just sort of basic blocking and tackling that seems to be increasingly popular these days? We're hearing more about the reality of demand. I don't know if that's a word that you use, but we used it at Continental. You know, Tuesdays and Wednesdays really being pulled down. Other days of the week, you're seeing greater demand. You know, Frontier seems to be having success with multiple pilot bases and doing a lot of out-and-back flying, for their crews. I mean, is that something we should be thinking about as it relates to JetBlue?
Yeah. There, there's a couple pieces. One, there's certainly more variation of demand, whether it's between seasons or between days a week. We've been adjusting to that, relatively well. We do have some constraints. You know, New York City is slotted. There is still use-or-lose restrictions, even though it's not as high as it used to be. So we don't have quite as much flexibility as everyone. But we have been getting more, I'd say, creative about how we drive additional trough revenue, whether it's specific markets or it was even in the, you know, in the press a week or two ago that we, for the first time, applied for an EAS route, which was new to us in a way to drive additional revenue, especially during some of the slower times of the year.
And then on the operational side, we've been focused for a few years now on driving more operational reliability into the schedule, but that's really accelerated in the past year, year and a half since we created an enterprise planning team. We have cost efficiency and schedule durability right in the very beginning of the schedule design, you know, a year before it flies.
Yeah. And I'll just add, I think we have an extremely high percentage of flights in New York that are out-and-back on equipment, less on the crew side looking at that, because it just drives better resilience and the ability when you face weather, you can take out the schedule in a cleaner way, avoid costs, avoid customer disruption. So it's something that we've been doing because we've had to, because of New York and the complexity with New York, but continuing to kind of optimize that and do it more so that we can create a more resilient operation.
On the topic of complexity in New York, does it still make sense to serve all four New York airports? Fourth airport, anybody? White Plains ?
Well, I think Stewart .
Okay. All five.
But yeah.
Well, but you're not in Stewart anyways .
We're not. It's still paused. Yeah. So let me speak about New York, broadly speaking. You know, we remain highly committed to New York. New York is getting better. It is a tailwind; it will be a tailwind for JetBlue. It was a tremendous margin builder before COVID. Obviously, it's been more impacted. But the way I look at it is there's two things. New York is recovering. We see more private sector jobs post- than pre-COVID. Tourism should rebound fully by 2025. Airport volume is up compared to pre-COVID. New York City GDP for 2023 is above pre-COVID levels. So in terms of those economic indicators, that's all moving in the right direction. And then JetBlue is taking strong self-help measures. So, you know, our growth is somewhat normalized in Newark.
You know, at one point, we'd gone out with much more aggressive growth ideas, less so now. You know, you've got JFK, which continues to be a stronghold for JetBlue. And then LaGuardia, we've actually taken down somewhat significantly. So if you look at the NEA, at one point, we were flying 50+ slots out of LaGuardia. We're now down in the 40s. We'll be in the 30s pre-summer and back to 16 at the end of, sort of towards the end of the year. And so I think a combination of New York's improving, from a macro perspective, JetBlue is taking self-help measures to improve it. So but, you know, it will be a tailwind for us. It will recover. It is, I think, the second largest metro area after maybe Tokyo. And so, you know, I'm, I'm bullish on it.
50% of our operation is here and we're New York's hometown airline, so there's not really another answer.
Okay. Fair enough. Maybe, Ursula, we can circle back to the balance sheet.
Sure.
Maybe you can just review sort of the unencumbered assets, where it stands, the composition, everything. Now that the Goldman Sachs bridge has gone away because the Spirit deal is no longer happening, you have the $750 million of converts coming due in two years. Those were trading at distress levels. They've had a nice rally. They're, you know, yielding 7% and change. I still like them for short-dated debt, given how you're about to answer, but maybe you can address your game plan for those.
Yeah. So, now that the bridge has been released for the Spirit transaction, we have $10 billion of unencumbered assets. About $5 billion of the $10 billion is our loyalty program. So we're one of the only airlines out there that hasn't yet levered up the loyalty program. Another $2.5 billion of that asset base is just aircraft and engines. And then the remaining is our slots, gates, and routes, as well as the JetBlue brand. So, you know, the benefit of having this variety of collateral is we can, when we need to finance, we can assess various markets. And we tend to focus on all-in cost of funding, but also building flexibility into the debt structure. So when we do get the business back to generating free cash flow, we can actually start to deliver.
So, in terms of the convert, those mature to Mark's point, in 2026, we're assessing how to address those. Again, we have a lot to play with. And so, more to come on that. We'll try to get ahead of that and optimize how we end up refinancing.
Anything else we should be thinking about in terms of the capital markets between now and then? Anything to reprice now that because you had the bridge in place with Spirit. When you go back, though, and look at the bank facilities or just anything else that comes before the converts that we should keep our eye on?
No. No, there we don't have any material maturities. We are financing the majority of aircraft that we're delivering this year. So we'll raise about $1.3 billion-$1.6 billion. We've been very successful in the finance lease market over the last 18 months. The benefit of that market has been very attractive LTVs, attractive rates, as well as prepayment flexibility. So we've locked in about $600 million of the $1.3 billion-$1.6 billion this year, and we currently are out there with an RFP. If there tends to be a lot of continued capital in that market, I don't envision us hitting the EETC market for aircraft in the short term.
Okay. Then, Joanna, I think you know Jamie and I are old friends with Marty St. George, who you recently brought back. So, you know, what, what was your thought process in plucking him, repatriating him from LATAM, back to, back to the JetBlue Nest? You know, what's sort of your, your vision for his role within the company and what you hope to accomplish on the network with having Marty back by your side?
Yeah. Sure. So I think first and foremost, Marty and I work extremely well together, and I think are great complements, as we sort of approach the long-term strategic kind of framework for JetBlue and how we drive profitability. Marty is extremely strong in the commercial space. He's also spent the last five years doing some different, unique things that I think will add a tremendous amount of value to JetBlue as he kind of reenters. It's definitely been, you know, he, he's from JetBlue, remembers JetBlue, but it's a different JetBlue than when he left. We've been through COVID. We've had, you know, two transactions that haven't worked out for us. And so he's reentering in a unique time. And I think having somebody give it a fresh set of eyes, through the lens of somebody who loves this brand, loves this company, is a real asset.
also a credibly bright person I know, well-liked by investors, hopefully. And I think, looking forward to seeing how the team, whether it's Ursula, Dave, myself, Warren Christie, who's our new Chief Operating Officer, and Marty, how we, how we get JetBlue to the next level.
I guess this means you're going to continue your sponsorship with the Boston Red Sox.
Yes. Somebody made a joke about it. I can't wait to hear Marty talk about how much he loves New York with that thick Boston accent. So yes, I can tell you the community of Boston is very happy.
Ursula, I don't think you were in the room when we were wrapping up before lunch with Alaska, but, you know, they recently stopped hedging fuel. And, and I've never been much of a, a fan of, of those transactions. Basically leaves JetBlue and Southwest as the U.S. airlines that continue to hedge. Now, in fairness, in Alaska's case, they didn't do it well, and they typically got caught with pretty large premiums, and that hasn't happened to you. But has there been having fairly recently initiated the program, has there been any evolution in how you're thinking about fuel hedging?
Yeah. It's a good question, Jamie. So the difference with the two carriers that you mentioned is they're very systematic. They're in the market specific days, and they strive to achieve a certain percentage hedge. We approach it differently. So we view it opportunistically. We view hedging as a tool to help us mitigate extreme spikes in oil. It's a level of insurance. We also hedge directly in jets, which is different from the peer set, because you eliminate the risk of the crack spreads, as well as Brent. So, we're very opportunistic. We're constantly watching the market. We're also very sensitive to the amount of capital that we outlay to enter the hedges. So we are price-sensitive, and we also enter structures that allow us to take advantage of the downside.
So, we are 13% hedged in the first quarter or sorry, 30% hedged in the first quarter and 13% for the full year. So we'll continue to monitor the market and be super thoughtful about layering in incremental hedges if it's price-sensitive.
Do we have any questions here in the room?
We do.
Yes, we do. Perfect.
Right back there .
Right place, the right time with the microphone.
Okay. Had a couple questions. One was regarding the breakup fee. If you had just let the deal clock out, I'm assuming you still would have had to pay the breakup fee. Second question is the deal you had with Frontier for those slots. I'm assuming that's going to be cleaned up, that the deal's not happening, or.
Just keep in place.
Sure. So two responses there. The first is if we let the deal between the merger agreement between JetBlue and Spirit run out until the July termination date, we would have incurred roughly $69 million in expenses. So that is what we paid to terminate the merger agreement. And like I said, we would have been out those costs anyways. The answer to your second part of the question is, in terms of the slots, we had essentially said that we would divest Spirit slots in certain cities to certain carriers if the deal was successful. So given the deal is not successful, JetBlue maintains all of our slots that we have today in restricted airports.
All right. I think we had another one over on this side.
Yep.
Yep.
One last one.
You mentioned the GTF engine earlier, and I'm wondering who pays for the shortened wing life, and do you think Pratt will come up with a permanent solution so that that engine runs, say, 15,000 hours plus? I understand the engines are running 5,000 hours before they have to be taken off wing. Is that right?
So in terms of the GTF, we, on average, will have 11 aircraft on the ground throughout 2024. We will peak at 14-15. The groundings are driven by the powder-metal issue, as well as additional teething pains in regards to reliability challenges, given it is a new engine. So we continue to work collaboratively with Pratt & Whitney on compensation. So we're addressing that as we go. We do have an assumption that's baked into our full-year controllable cost guide in regards to compensation. But what I will say is that, you know, longer term, we believe the GTF technology is the right engine to be in, but this is going to be a challenge for the next few years that we're going to have to try to overcome.
As you think about compensation, your question is if there's a long-term impact, are you being compensated for that as well to the extent the engine is somehow detrimented? You know, we're looking at all aspects of compensation from Pratt & Whitney.
No.
These ran 15,000+ hours.
They've identified solutions. It's just a multi-year process to implement those solutions, not only for the aircraft or engines that we currently have in the fleet, but engines that are going to come off the line. So longer term, like I said, we do believe in the engine, and that we believe that's the best technology. It's just going to take time, to your point, to get to an extended life.
Let me just ask one follow-up to that, and then we're going to wrap up, which is, in your conversations with Pratt, when you're talking about compensation, is it strictly in terms of, credits, you know, towards engine time and maintenance and so forth, or is there a cash component? Do you have an option to take cash, if you want, for the future value of the impact that this is having?
Yeah. So specific to JetBlue, we're a pretty big Pratt customer. So we do maintenance with Pratt. We buy spare engines. We're buying new aircraft with engines. And so there is various means in which they can provide value to us. And we're taking advantage of that. I mean, one other thing we're doing, right, is to add capacity back into the system is extend some of these older A320 aircraft, which have Pratt-powered engines on them. And so, there's a level of investment that that will take. So my point is there's various means in which a customer like JetBlue can receive compensation, and we're working at all angles.
With that, I think we'll wrap up.
Thank you.
Thanks.
Thanks very much.
Thanks, everyone. Thanks, Jamie. Thanks, Mark.