All right, folks, moving right along. Very pleased to turn the spotlight at this point to Southwest Airlines. I just saw Bob speak at ISTAT last week, so I certainly have an idea of some of what we can expect this morning. We're also joined up on stage by Tammy Romo. I think we can now refer to you as longtime CFO. Have you been in your seat long enough? I, I know long-term employee. I don't know exactly how long. Yes, but in the seat. We've worked together a long time. Yes, that is, that is true. So without yeah, without anything further, let's turn it over to Southwest and see what they have to say. So, Bob, thanks for joining us, yet again. Take it away.
Everybody, how you doing? A little subdued. And, Tammy, long time doesn't mean old. Right?
That's what I was thinking.
Yeah, never say that. Well, it's good to be with everybody today. I've got some prepared remarks here. I'll roll through those, and then, we'll leave plenty of time for Q&A. But, Jamie, Mark, thanks for hosting the conference and for having us here today. It's great to be here with everybody, in person and on the webcast. You know, I was kind of thinking back, the last time I was here, with all of you all, we were coming off the Winter Storm Elliott disruption. And I don't want to go back and rehash that, but since that time, we have accomplished a ton at Southwest Airlines. We completed a comprehensive winter weather action plan, which has been successfully tested in a lot of winter weather events so far this year, and also other types of disruptions.
Through those events, our crew and aircraft networks remained stable. We've been able to recover quickly and minimize the impact on our customers, and I'm just really proud of the accomplishments last year to restore our network, to get and remain fully staffed and to reach our full utilization of our aircraft. We also made a lot of progress on our labor agreements. We were in active negotiations last year with eight, eight of our labor groups, and we have now successfully ratified agreements with six of those, including SWAPA, who represents our pilots. That brings us to nine ratified agreements, out of 11 that we have. So nine ratified in the last 16 months.
We also reached a tentative agreement with our TWU 555 union, who represents our ramp operations, cargo, and provisioning employees, and the results of that voting for TWU 555 will come in later this month. We are actively negotiating and optimistic about timing on getting the last contract that's open, which is TWU 556 , and they represent our wonderful flight attendants as well. So I'm optimistic. The main point is just to tell you, we're here today, in my opinion, a much better company than a year ago, and we intend to end this year a much better company again. We just got a lot of things underway that are very exciting for our people and our customers, things like larger bins, upgraded Wi-Fi, in-seat power.
If you may have seen it, a new interior, so just all kinds of things going on. We have a lot of exciting things that are underway to drive efficiency improvements as well, like turn modernization, electronic flight deck, with launch which launches in April. It actually takes 60 million pieces of paper out of the turn and out of the flight deck. Integrated crew and aircraft recovery systems, just to name a few. I could stand here and go on for an hour in terms of the efficiency improvements. While we have not yet met our financial goals, we're making progress. I just want to tell you, we are fully, and I mean fully committed to our long-term goal to deliver ROIC well above our cost of capital. It may not be a straight line to get there.
It rarely works out that way in this business, but we're making progress, and we will be absolutely relentless in doing the work until we get there. And before I jump in, I got to say this. I want to quickly mention that my presentation today includes forward-looking statements. I think the verbiage on this slide gets longer every time I see it, and it represents this other disclosures. We filed an 8-K this morning, and this slide and other disclosures in our 8-K outline a variety of factors that could cause actual results to differ materially from our projections. So turning to the first quarter and the updates, you all saw that we issued an investor update this morning, and so I just want to start to give you some color on that update and our current trends.
Starting with the operation, I'm just really, really pleased with the way our operation is running. The work that we did to add resiliency and recoverability in the operation over the past year is nothing short of exceptional. I want to personally commend all of our Southwest warriors for all the work, both on the front line and in our headquarters. Nearly every single operational metric has improved over the past year, and when we've had tough operational days, like multiple winter storms in January, the operation has been absolutely resilient, with almost no, and I mean no operational hangover from those events into the next day. Since February 1, we've run a stellar 99.3% completion factor.
In fact, February has its highest completion factor on record, going all the way back to 1997, which is, I think, the first year we kept records in that category. As a result, we now expect first quarter capacity to increase approximately 11% compared with our previous estimate of approximately 10%, both year-over-year. That increase is due entirely to the higher completion factor from running a better operation. Turning to revenue, we've updated our expectations for the first quarter RASM to a range of up roughly flat to 2% year-over-year, and that new guide implies a 2.5-point move in the midpoint from our prior expectation of up 2.5%-4.5%. Of that, one point is due fully to higher than planned completion factor and running a great operation, as I just described.
The remaining 1.5 points is driven by close-in leisure volume coming in lower than expected. That said, first quarter revenue performance still represents a very nice sequential improvement. In other words, our fourth quarter unit revenue came in at $0.1499, and our updated first quarter guidance would suggest that we are outperforming the typical seasonally adjusted trend by almost 3 points. We're also on track to have another quarter of record revenue, so demand has really held up, and we're seeing evidence that our network actions, which are now fully in place as of March, are accretive. Further, our GDS initiative is also on track, and our managed business revenue is coming in nicely and right on our plan. Looking forward, we like what we're seeing with forward bookings.
We're seeing nice improvement in bookings taking in March for travel in the second quarter. As a reminder, our optimization efforts started in earnest with the March schedule, so second quarter benefits from having all months materially restructured in the network. Second quarter is set up to have a strong peak season performance and is on track to an all-time revenue record. Bookings are right now where they need to be, and they're actually slightly ahead of expectations for this point in the booking curve. That's for the second quarter. Moving to non-fuel costs, we're doing a very solid job of managing to our cost plan and overall remain on track for the year.
While we now expect CASM-ex for the first quarter to be roughly 6% higher on a year-over-year basis, which is on the high side of the prior expectation of up 5%-6%, the change is driven entirely by movement in spending across quarters. Mainly some salary, wages, and benefits and maintenance, maintenance expense timing, like engine inductions, but the changes are neutral for the year. However, given the news on Boeing aircraft delivery delays, which I'll discuss in a moment, managing to our plan just is not enough. Going forward, we are actively and urgently focused on further cost reductions. Now, here's just some examples. We had already stopped all of our hiring for CS&S, which is the group that supports our reservations team.
We recently announced that we would stop pilot hiring classes, effective April 1, with the exception of pilots that have an opportunity from our Destination 225 pilot program, which is a partnership with CAE. Other than that, we have stopped our pilot hiring classes effective April 1. Now with this morning's announcement, our flight attendant hiring classes will also be stopped, starting April 8, rather than later in the year, as previously planned. To just give you an idea, the updated plan reduces our hiring for pilots this year by more than 50%, and for flight attendants by more than 60%. Again, that's for the full year, 2024. Altogether, we now plan to end the year solidly down in staffing versus 2023, compared to our prior guidance of flat to down.
The main point is just to give you an indication that we're moving very quickly to adapt to the Boeing changes that I'll talk about here. We're also actively evaluating additional opportunities to reduce costs as we consider all hiring plans, including our corporate support. These efforts are supplemental to the work that we were already doing on initiatives to improve our efficiency, things like removing paper from the turn, providing self-service capabilities from our digital modernization efforts, applying generative AI and chat in customer support, because this is not business as usual. We're being very aggressive in controlling what we can control, despite the fact that some of these changes are very recent, like the Boeing delays.
Regarding fuel, market fuel prices have risen over the recent weeks, both for crude and for jet differentials, so we're also feeling pressure on first quarter fuel costs. So we now expect our first quarter fuel price to be in the range of $2.95-$3 a gallon. And our current hedge will protect us from extreme spikes, but it doesn't materially kick in until we cross about the $90 per barrel Brent cost, Brent prices. So while we're now expecting a net loss in the first quarter, we're optimistic that March continues to represent a profitability inflection point, and we have an intense focus on delivering margin expansion and driving ROIC for the balance of the year.
And speaking of the year, considering the significant change in expectations for aircraft delivery schedules, we are not providing a full year 2024 outlook at this time. The news is very recent, so we just need some time to work through our plans to best adjust to new delivery expectations, a lot of that being the schedules and how we plan to mitigate the risk of further reductions to the delivery schedule from Boeing. So starting with those delivery expectations, Boeing has provided us with updated guidance on our delivery schedule. They now expect to deliver 46 MAX 8 deliveries in 2024, which is 12 fewer than our previous expectation of 58 MAX 8 aircraft. This is again, of course, different from our contractual order book that we included in our January 25th 8-K.
Back in January, we were expecting to receive 21 MAX 7 aircraft, even though they were not planned for service in 2024. But we no longer expect to receive any MAX 7 aircraft this year, and of course, it's immaterial to our schedules, since we already had excluded them from the 2024 schedules. In terms of how we will adjust, as you know, we have a lot of flexibility in our fleet plan. But as we weigh our options between delaying planned retirements and making capacity reductions, I wanna make sure you understand our bias in thinking.
Our bias will be to, one, avoid additional maintenance costs, two, retain the initiative benefits of our fleet modernization plan, and three, take advantage of opportunities to aggressively manage the network and further reoptimize late summer and fall schedules, thus driving RASM benefits. The bias in these decisions is laser-focused on supporting our commitment and plan to work towards covering our cost of capital. To provide some context around what to expect with capacity for the year, which is still very fluid, and we're working on it, note that the impacts are expected to be primarily focused on post-peak summer schedules. In terms of the magnitude, we estimate that at the high end, we could expect full-year capacity to grow now at most between 4.5% and 5% year-over-year.
So around 1 point to 1.5 points, a cut from the impact of the delays. As you would expect, this is all very fluid. We're still in the process of determining our internal planning assumptions around the number and timing of deliveries, and that we will plan around, and that could be different from what Boeing has provided. So none of this is yet meant to be guidance, but hopefully, it provides you some color as we rework our plan and we reoptimize our schedules as a result of the Boeing delays. As we reoptimize our schedules, we will be, of course, continuing to be focused on our overall revenue and RASM production and margin expansion.
The good news is that we are seeing benefits from the network adjustments that we made, and we see more opportunities to further refine and improve the revenue efficiency of our network. And just a reminder on what that is, the network opportunities that are already in place here in March include things like accelerating the pace of reductions to short-haul flying to allow for more profitable medium and long-haul flying. Executing deeper cuts on Tuesdays and Wednesdays in order to match better match our capacity to demand and allow more of the schedule to move out of the less profitable shoulder periods. Nurturing and optimizing development markets, and reduce flying in lower demand periods, and a variety of other tactics to better match supply and demand and reduce lower profitability flying.
So while we're not ready to provide an update full-year guidance until we report first quarter earnings in late April, we are not backing off on our focus on margin expansion, on ROIC performance, and on delivering shareholder returns. We are working aggressively to make changes with those goals in mind. We've overcome many, many challenges in the past over our history, and we will not stop until we deliver against those goals, period. So in closing, we continue to have so much to be excited about at Southwest and remain very optimistic about the future. We have sustained competitive advantages, everything from our world-class culture of hospitality and our powerful network with points of strength in all the right places. And of course, we have a fortress industry-leading balance sheet, investment grade rated by all three credit agencies.
Our best competitive advantage, however, always has been, always will be, and continues to be our absolutely best people. We have a lot of momentum right now, and while we will continue to work through some turbulence, we're optimistic about the inflection in financial performance that we're seeing in March. Southwest is a terrific company, and we are fully committed to become even better and deliver the financial results that you expect from us. To that end, we are hard at work on our top five priorities, which align with our long-term goal to consistently achieve ROIC well above our weighted average cost of capital. We're currently planning towards a fourth quarter investor day, where we will be providing a full update. But in the meantime, I want to be very clear about the commitment to our ROIC goals for 2024 and beyond.
What I said in December and what I said in January stands. Producing ROIC well in excess of our cost of capital is our financial North Star. It is non-negotiable, and we will continue to be relentless in focus and actions until we achieve that goal. I appreciate everybody joining us today and listening in. With that, Jamie, Mark, I would be happy to take any questions.
Okay. We will see-
Or, Tammy and I would be happy to take any questions.
Okay. Hopefully, we'll see some hands go up, in the audience, but until such time... So to my surprise, and I realize you weren't in the room at the time, but to my surprise this morning, United leaned pretty heavily into the decision that they made to waive change fees, during the pandemic... And, you know, they cited that as a competitive positive for them, the implication being that it came at Southwest's, expense. And, of course, that change was made during some of the darker days of COVID, so it's probably hard to pull out what impact, if any, that it's had on the Southwest brand. But would you agree that the industry's migration towards your change fee policy has been a modest negative for the Southwest value proposition?
If so, does that heighten the need for you to come up with some new revenue initiative, as you've been coming up with, you know, revenue initiatives now, you know, here and there for the last several years?
Yeah, Jamie, I think I was separated into two things, the leaning to the customer and the policies and then the revenue question. And, it's hard to tease any one attribute of a product apart. But I would tell you, if you think about our brand, and we talk a lot about what do we stand for at Southwest Airlines? We stand for having the best hospitality, the best people, the best customer service, treating people as you would like to be treated yourself. But we also stand for common sense policies that lean to the customer and make sense. A change fee, and I'm not sure it's a strict, actually, I'm not sure it's a complete one-to-one comparison, by the way, but we'll hold that till later. But change fees is one example.
We have Bags Fly free. We have Rapid Rewards Points that never expire. A little more than a year ago, we put into place flight credits that never expire. We just put in. It's coming in April, a $75 credit if we have an extended delay outside of our control that a customer can request. And as far as I know, no one, United included, has followed those policies. So it's a very broad set of things that Southwest looks at. We start. I promise you, we start every decision, if you're thinking about a policy, with what makes sense to our customers, what will make sense. Now, so we have seen no one follow in those other areas, so I think those points of difference, collectively, will remain.
As you think about revenue opportunities, you know, yeah, we're constantly looking at those. And whether it's related to Rapid Rewards, it's related to how we board. And I will just tell you, as we always have, we always have a set of initiatives. You know, you've got GDS and other things at play right now. We always have a new set and an ongoing set of initiatives, and we will be sharing a number of those things at the Investor Day here in the fourth quarter of this year. Thank you.
So I'll jump in. Tammy, no complaints on the balance sheet with negative net debt still and so forth, right? So let me ask a Boeing question. And when you had the risk factor slide up there, I noticed, just having my eyes, like, went directly to it. It was basically saying the risk factor of Southwest relying on Boeing for airplanes. And we've had discussions, before at this forum and at your Investor Day, especially when you were considering MAX 7s versus 220s, and you decided to go with the MAX 7. Bob, have you and the board, in light of what's going on at Boeing, had any future discussions about whether, in the best interest of all stakeholders, it's in, you know, that Southwest will consider a second fleet type at some point in time?
You bet. Maybe, maybe I can break it into Boeing. How are we thinking about Boeing, the risk mitigation, and then, you know, sort of the how we think about the market and orders question. And there is a lot going on at Boeing right now. I don't think anybody would deny that. And I just want you to know how we're thinking about Boeing, how I am personally talking to Boeing. We have these delays here in 2024. It is not unlikely. The aircraft that remain are backloaded in terms of deliveries. It's not unlikely that that 46 number changes. I don't know that. I wouldn't be surprised. It's not unlikely that that creeps into 2025. There's just a lot to do. I just want you to know how I'm talking to Boeing.
A strong Boeing is great for Southwest Airlines, it's great for our industry, it's great for our country. And so I, and I know other CEOs, have told Boeing: "Get the issues understood and get the issues fixed." They're bracing to work with the FAA. We appreciate that. This is Boeing's view as well. Stop, take the time, understand what's going on, fix the culture, whatever's at work here, but fix this, because we all need Boeing to be stronger, two years from now, five years from now, 10 years from now. And that takes precedence over delivery delays. We've got to make—Boeing needs to become a better company, and the deliveries will follow that. So I just want you to know how I'm talking, how I'm talking to Boeing.
We need Boeing to, as they're doing, understand, address their issues, and become a better company. Now, as you go to the risk and what can we do about it, we, there is no such thing as de-risking your fleet plan, because even at best, you might be 50/50... parking 50% of your fleet or 30% of your fleet is disastrous. So I think the idea that you can fully de-risk your fleet, your deliveries or your fleet plan, is a fallacy. So we've approached it that way, just generally. Obviously, you know, the efficiencies we get by having the single aircraft type, single type rating, one, you know, one type of ramp and jet, well, all kinds of efficiencies from the 737 and single aircraft type. So it would be a big leap to move beyond that.
And we have calculated the cost of transitioning to multiple fleet types, and I'll just tell you that it's significant. So there isn't a such a thing as fully de-risking this question. So last, I will tell you that, and you know this, we do, on a regular basis, talk to other manufacturers and compare our options. And on sort of an every so many year basis, which, you know, that was the, I think, the question related to the A220. We do look at our options and have very rigorous discussions with Boeing and with Airbus about what could be done there. So it's a complex issue. I really start with, we all need Boeing to be better.
A reliable Boeing that cannot just deliver, but deliver with quality, is good for all of us, and that's where my whole focus is right now at this point.
Second question: I am one of your latest and newest Rapid Rewards credit card-
Good.
Chase credit card.
What, what took you so long?
What took me so long? It took my number three kid to go to school in Indiana, and I'm gonna fly a lot to Midway Airport for the next four years, so I said, "I might as well bite the bullet.
It was personal.
It was personal. But as a corporate traveler and someone who, you know, travels corporate normally on your competitors and so forth, I wanted to tie that into my own personal experience with, you know, where do you stand? Where we're spending so much time talking about loyalty with American, Delta.
Right.
United, you don't need to borrow against loyalty. You don't really need to spend loyalty off like they're looking at, right? But when we think about your economics from loyalty and Rapid Rewards, what is the opportunity? Do you feel like you're under-earning there? Do you feel like that is a source of, you know, getting back to a return on capital and margins-
Yeah
... where you wanna be? That that is one of the areas in which, you have a lot of room to run?
Well, I just start with the performance of the program. We, the Rapid Rewards program, whether that's card, loyalty, members, revenue, is doing extremely well. We had, if you go back to the fourth quarter, we had record loyalty program revenues. And so, I would sort of start with the overall program is performing very, very well. And our offering to consumers is really strong, whether that is, how you earn, how you burn, it's easy. Every seat's available. We tend to be, obviously, because we have low fares, lower in terms of the cost of the redemption, in terms of points.
So it's a very attractive program to our consumers and our customers, and we see significant growth in the program. Now, if you think about opportunity, you always have opportunities to do things like, we're in a period here where card approval rates with just higher interest rates, maybe a little higher default rates, card approval rates for everybody. It's just a banking, you know, question, are off a little bit. So you have the opportunity to do things like have secondary programs, and so you always have things that you can do within the program, and we're looking at all of those. The bigger question is the opportunity to negotiate the economics of the program. Our deal is up. I don't know if we've been public about this. Our deal is up-
Several years.
In several years. There are things you can do along the way. You have a few airlines that their deal, you know, is up sooner. So we, as we did last time, and it was a substantial increase, we will take that opportunity to look at the market, look at the opportunity, and do exactly what you're, what, what you're saying. The opportunity in between, to me, are things like the ability to work with them to produce more cards. We, if the... We talked a little bit earlier about the flight attendant contract that is not quite there. I'm optimistic, but it has some things in there that potentially make it easier to offer cards on applications on board. So you can always work on the tactics.
The larger issue, of course, is renegotiating the economics of the program.
Yeah, Mark, and along the way, we are continuing to roll out new features, new opportunities. For example, you can purchase a ticket on Southwest using points and cash as an example. So we're continuing-
Which is coming in April.
In April, yes. We're continuing to roll things like that out, and adding new partners, new ways to use your points. So those are ongoing efforts for us, of course, in addition to the bigger opportunities that Bob described.
Yeah, I think it's coming here in, you know, roughly six weeks, I guess. The opportunity, because our customers and members have wanted it, the ability to... Because you don't quite have enough points, redeem part points, part cash. I think there's a lot of opportunity in that change that's coming. What else?
... So just as an aside,
You realize you all have the whole forum?
Well,
I'm just kidding with you.
Oh, there's a hand.
Oh, thank you.
It wasn't a complaint. I'm happy to talk to you two, you know, all morning.
Keep going, Mike. We're happy to see people.
Hi.
Yes, sir.
Can you just talk a little bit more about the reduction in close-in leisure that you cited from sort of the quarter to date? That has not been sort of the theme of this conference so far, and I'm just wondering if you could share if it's more of a forecasting error or just a change in trend. Thank you.
Yeah. Thank you. I'd be happy to do that. I think what's different is, again, you had the full point, that is just because capacity is up. Of the 2-point, 2.5-point gap, you got 1 point of that, which is capacity is up because the operation is running so well in completion factor. The other 1.5 really is that close-in demand coming in just a little lower than expected. I think it's really, it's more a matter of our expectations, because the network changes, the reoptimization of the network, really, it's substantial. The moves between, you know, sort of think about the Tuesday, Wednesday, the high day, low day.
My memory is it used to be 3 or 4% capacity difference between the days, and now it's upwards of 15. So these are big moves. So those are fully in place in March. And you know, you publish nine-10 months early. So and then we'll continue to see momentum in the value of those changes in March and in April, and then May, it'll accelerate across the year. So we had forecasted that benefit, and I would argue fairly aggressively forecasted that benefit. There's a scoring process of those network changes. I think it's a lot more about we are just off of that forecast than there is somehow weakness in close-in demand, if that makes any sense. It really is more about we're off of our own projections. And again, it's relatively modest.
Thank you. Don't let me go over. I don't know what... You know, make sure we're-
When, when you were answering Mark's question about a second fleet type, I remember, and this was quite some time ago, that Gary had a CRJ-200 in Southwest colors, you know, a model, in his, in his office. So I, I commend you for, for showing restraint on that.
I will tell you this, people, people who want our business send a whole lot of things in our colors.
I bet you have some cool stuff. But my question is actually, you know, for Tammy, I'm trying to better understand the comment that you've made in regards to bookings momentum at this point, going into the second quarter and how it's ahead of last year, because there's a side of me that wants to interpret that as a you know, a bullish indicator. On the other hand, anybody buying now for the summer is probably getting your very, very best deals. Is your comment solely a volume observation, or is booked revenue running slightly ahead of where it would have been this time in prior years? Thank you.
Yeah, it's booked, it's booked revenue.
It's booked revenue?
Yeah.
Okay.
Yeah, when we're-
It is about our booking.
Yeah, when we're speaking about our bookings, yeah, absolutely.
Good.
One more. We have one more? Okay.
Hey, Bob, great pitch, and Tammy, always good to see you.
Thank you.
This is more philosophical, but what about the industry journey to net zero? You know, we've seen Robert Isom came up and said, GDP, revenue to GDP is actually moving up, and there's some upside there that Mark talked about. But as more and more people fly, you're creating more and more emissions. You probably have the youngest fleet with the most fuel efficiency. You can't get enough airplanes. How do we get to net zero?
Well, it's... First, it's, you know, we've got multiple goals. Goal one is to have 10% of our usage be SAF by 2030. Our net zero goal is further out there, 2050. So I think it's gonna take... You've been reading the headlines. It's gonna take everything. It's gonna take, obviously, to me, and I can't speak for Boeing or Airbus, but I think the new aircraft, whether that's hydrogen, electric, whatever it is, is further out there than anybody thinks. There was a thought at one point that that's kind of 10 years out. It's 2035. It feels like it could be 2045 or 2050. So that's my guess.
We're gonna be using more traditional aircraft that have more traditional engines, which means that the, that this leans very heavily on SAF and SAF production. So it's all about getting SAF production up to the point, at least today, where you can meet the demand. I think there are two components to that. Well, one, of course, is the technology and building plants and, and, and those kinds of things. I'll talk about an initiative that we have. The second is because it is more expensive, it is working very hard to make sure that we have the credit structure, whether that's federal or state, the credit structures in place to mitigate that difference. I think SAF, depending on the type, today is roughly $12 a gallon as compared to the $3 the jet is.
That'll come in. As you get volume, that'll come in, but it's substantially different. So it depends on a credit structure, at least today, to make that viable and to therefore drive investment. I'm really excited. We've announced a couple of ventures. We formed, a couple of weeks ago, a company called, it's a wholly-owned subsidiary of Southwest, a company called SARV, Southwest Airlines Renewable Ventures, to invest exactly in these kinds of projects. We have an investment in a company called SAFFiRE, and the intent is to take a process that drives corn stover. So it's sort of the after you harvest the corn, the stalks that animals, I think, eat as feedstock, it's sort of the, all the other stuff left over underground.
Take corn stover, bale it, dry it, use a process to turn it into ethanol, and then turn that ethanol into sustainable aviation fuel. We have. We just announced a partnership with a company called LanzaJet, and what they do is they upgrade ethanol to SAF. So that's a piece of that journey. And we also have now a commitment to build plants, the first experimental plants, around turning the corn stover into ethanol. So it's actually moving along quickly. The issue is the ability to get the production levels required to get to the 10% SAF by 2030. It just takes a lot of investment, but we're... No, we're highly invested in the processes that will get us there, and...
But it's gonna take the government, airlines, states, it's gonna take everybody in this process to get to those goals. The biggest thing we can do right now, outside of that, is continue to upgrade our fleet. The difference in, I believe, Tammy, the difference in emissions between, you know, an older 737 and a 737 MAX 7 or a 737 MAX 8 is about 17%, is my memory?
Yeah.
So that is the most, that's the thing that we can do today that's very tangible, which is why we continue to invest in our fleet, and why I would like to continue to retire these aircraft and take our Boeing aircraft as we can get them. Thank you, though. Thanks for the question.