RASM Outlook
Q: What's your visibility to second half RASM inflection?
A: We are ahead of our internal plan to achieve flat RASM for the year and expect easier comps as we move through the year. Industry capacity seems to peak in Q2, setting up a great opportunity for the back half of the year. Travel credit headwinds remain consistent throughout the year.

Capacity Growth Impact
Q: How will capacity growth affect RASM domestically?
A: We're focusing on rebuilding our core hubs, where cost structure and profitability are highest. Despite increasing domestic growth to 6–7% this summer from about 2% in Q1, we expect RASM to remain flat. Adding seats to our core should positively impact revenues.

Cost Management
Q: What's driving the low single-digit CASM growth outlook?
A: Running a great operation reduces frictional costs and enhances efficiency. We're carrying headcount about 10% higher than in 2019 and will grow into that for increased efficiency. Maintenance costs are as expected, but supply chain constraints persist.

Premium Revenue Growth
Q: How is premium revenue growth shaping up?
A: Premium revenue is up 10%, driven equally by volume and yield . We continue to expand premium offerings, with all domestic growth coming from premium products over the past 10 years. This strategy enhances our control over revenue compared to competing on commodity pricing.

Balance Sheet and Debt Reduction
Q: When can you start using cash for CapEx or returns?
A: We're prioritizing debt reduction, as we still have more debt than desired. By year's end, our leverage ratio should be close to 2019 levels, considering the elimination of pension obligations. We'll discuss more at our Investor Day in November.

Latin America Performance
Q: How is Latin America performing, and what's the outlook?
A: South America performance is strong, with capacity up 30–40% and minimal unit revenue degradation . Our partnership with LATAM positions us as a leading carrier between the U.S. and South America. Future focus will shift to harvesting profitability rather than investment.

Fleet Utilization Improvements
Q: Can fleet utilization improve to pre-COVID levels?
A: Yes, we're improving asset utilization across all fleets. Widebodies are now at or above 2019 utilization levels. Enhancing utilization is a key challenge we're excited to tackle.

Maintenance Expense Outlook
Q: What's the outlook for maintenance expenses?
A: Maintenance is on plan, expected to be up $350 million year-over-year. Investments have reduced cancellations from maintenance by 80% year-over-year and improved 30% sequentially. The team is executing well, though supply chain issues persist.

FAA Oversight and Slot Waivers
Q: What's your discussion with the FAA about regulatory oversight?
A: We're collaborating with the FAA on staffing models due to air traffic control shortages. The industry has requested an extension of the New York slot waiver to mitigate these challenges. We maintain a strong partnership with the FAA.

TechOps Advantage and MRO Business
Q: How valuable is Delta TechOps as a competitive advantage?
A: Delta TechOps is a unique advantage, allowing us to flexibly manage our fleet. We'll enter a period of natural retirements, reusing materials and enhancing efficiency. The MRO business is poised for growth, ready to capture market opportunities.

Impact of Paris Olympics
Q: Will the Paris Olympics benefit revenues?
A: Generally, the Olympics are not beneficial for airline revenues. Business travel to Paris decreases as the event approaches, posing a headwind rather than a boost. We remain excited as sponsor of Team USA.

AmEx Acceptance Improvement
Q: Is AmEx card acceptance improving internationally?
A: American Express acceptance rates are at all-time highs domestically. Efforts are underway to enhance international acceptance, focusing on popular destinations for U.S. travelers.