JetBlue Airways Corporation (JBLU) Earnings Call Transcript & Summary

All right. Good morning, everybody. We're back. And I do want to apologize for some of the difficulties we had during the Delta presentation. For anybody that missed parts of that, the replay should be available pretty soon. We did go the entire session with management. The replay will clear all the issues up. So I encourage you to watch, if you're interested. But let's shift the current spotlight over to the Delta -- I'm sorry, the JetBlue team, largest airline in Connecticut. We're joined by Robin Hayes, who is back in the office with his team today as CEO of JetBlue. Robin, let me turn it over to you, and thank you once again for being part of our conference this year.

Thanks, Jamie, and thanks, Mark, and very good to be with everyone today. And looking forward to this fireside chat.

All right. Any prepared remarks or should we just go right into it?

Let's go right in because I know that's what people -- I know you like to ask your question.

Yes. So look, we've touched on this in the past, but I'd love to hear your current thinking. We've chatted that some investors are challenged in terms of really understanding where JetBlue is positioned within the industry. You've had lower costs than some airlines, but I would never define you as a true ultra-low-cost carrier. You've got a large leisure base here in New York, but you're also going after corporates. Any discussion of future consolidation in your name, JetBlue's name? Not yours, Robin. It tends to come up. How has the pandemic shaped how you want JetBlue to be viewed by the Street, by investors? What's the JetBlue in 2023 going to look like? How will I be describing it to the Street?

No. Thanks, Jamie. That is a great question. And let me start out by saying that I just want to thank all of our 20,000 crew members, many of which will be listening today, for everything they've done in the last 12 months. It is a year ago at your conference that we grew out $2.50 to $3 a year guide. And I think it's incredible how much has happened to our industry since. But it's our people that make our industry, and I'm extremely proud of anyone right here at JetBlue. But back to your question, I spent -- I think we spent the last several years really focusing on our core strength, and what we mean as an airline. And what does that mean? First of all, we have a very focused geography based around 6 focus cities. We're very focused in our network now. So we have really strong points of strength, such as Northeast to Florida, the transcon and our Caribbean franchise. And well, put simply, we are about offering customers a better service at a low fare. We don't think you need to choose. We think there is a huge segment of people that except both -- expect both. So whether that's in core or coach, without TV, extra leg, with WiFi and low fares, or whether that's how we disrupted the premium segment in Mint, we're about the same thing, which is about giving people a great fare, but also a great product. We have to be both cost-effective and productive and efficient to do that. And when I think about how we come out of this pandemic, pivoting back to your question, Jamie, really kind of relying on those core strengths. I mean we have a trusted brand. We're already seeing some success in getting customers to getting increasing share of wallet of their leisure spend through our JetBlue Travel Products subsidiary. I'll give you a little sound-bite, but in the last week, our JetBlue Travel Products subsidiary has sold more vacations than they ever have. And that's a function of both recovering demand, but also some of the things that they've been putting in place. I like our network as we come out of this pandemic, largely domestic. Our international is close to home. I like our geography. I mean the Northeast has definitely been a headwind, but I think that's going to turn into a tailwind here, with some of the state quarantine restrictions come off New York being the latest on the 1st of April. And then some of the initiatives that we have in place, so whether that's our revenue management systems upgrade, whether that's our new Fare Options 2.1 that's rolling out that we've announced, whether that's our American Airlines partnership or our co-brand loyalty RFP that's out at the moment. So I think all of these things, I think, are helpful, and I think our core position as airline is great relative positioning as we come out of this pandemic. But of course, also not losing sight of the progress we've made over the years on our cost structure, and making sure as we come out of that, we really continue to focus on that.

Let's pick up there because you were an airline with a cost problem in the past. You were showing considerable momentum coming into the downturn. And of course, the balance sheet has significantly improved. Should we assume the best you do is sort of picking up where you left off? Or do you see more cost efficiencies coming out of COVID? Can you get back to 2019 ex-fuel CASM on less capacity? If so, how much less? And is that a new run rate? Or is that just a temporary sort of flash in the pan?

Yes. I mean cost is something that we are incredibly focused on. We were before the pandemic, and we remain extremely focused on it as we come out of the pandemic. I was very pleased at the progress that we had made back into 2019 and 2020, really, with the year-over-year, the best unit cost performance in the industry based on consensus. So -- but we can't rest on that. We have to look forward. And as Steve Priest, our CFO, shared on the last earnings call, we continue to look at everything in our company to make sure that we can become more efficient. We've identified fixed cost savings of between $150 million to $200 million. Most of those were realized in 2020. Our job as a leadership team is to make sure, as we grow capacity back, that those savings stay. We also have an opportunity, as our schedule comes up, to focus on that variable cost structure to make sure that, as we bring capacity back, we bring it back in an efficient way. And so right now, what we're saying is that if you take 2019 ex-fuel CASM, you look at 2022, you assume approximately the same level of capacity. Now our goal is to make sure that our ex-fuel CASM in 2019 -- in 2022 is better than it was in 2019. And that's what we're focus on that. There's some headwinds we're going to have to overcome as well. So it's important that we are extremely focused on this issue. So we have rent and landing fees, which I think will be up in the short-term, just because the cost of operating is spread over a lower number of flights in an airport environment. We also see things like the Healthy Terminals Act here in New York, which is going to drive up some wage pressure among some of our business partners. And so we have those headwinds, but our job is not to use that as excuses. Our job is to overcome that and make sure that we're focused on our goals of ensuring that 5, 10 years from now, everyone recognizes JetBlue continues to be an airline that's very focused on its cost structure.

And let me follow-up on the labor topic. I wasn't hardly surprised that pilots rejected the TA. It was a fairly close call a TA was struck at a time that the situation appeared far more bleak than today. It was a pre-vaccine TA, but the flight attendants also rejected their TA in November. So JetBlue has a reputation for culture, okay, but the reality is that you seem to have a labor problem. So convince me that I'm wrong.

Yes. No, I appreciate the question, Jamie. I mean first thing I want to do is recognize how amazing our crew members have been throughout this pandemic. I mean when everyone else was sort of heading into working from home, our crew members, like many other essential workers, were coming to work everyday. And I would say that it was an extremely stressful and concerning year. There were concerns about job security. There were some of the social justice and racial equity issues that really became very pronounced in the summer, after the tragic events with the death of George Floyd. And so I think we have to recognize that it's -- for everyone in the airline industry, it's been a very challenging year. I would actually say we have worked extremely collaboratively as a team here at JetBlue. Whilst you gave a couple of examples of contracts that were narrowly voted against, let's remember that our pilot group was the first to step-up with an agreement before the one that you referred to, a month ahead of anyone else. And sometimes, when you're trying to get TAs done in the middle of a pandemic, there's a lot of complicated reasons why they -- people vote yes or no. And it's not at all a concern about the culture or the company. So I feel -- we've, I think, all been in the foxhole together here at JetBlue. We've all been fighting to both protect the company and protect our crew members' jobs. And I think we can use that to build on as we start to grow the schedule back up.

What are your profit aspirations for London? I mean ordinarily, new markets takes [indiscernible] when the airline has 0 presence at one end. Those markets are very slow to ramp. It can take several years. On the other hand, you know better than most the breadth of the market. You're a corporate bearer [indiscernible] Robin used to be with British Airways, for those that may not recall. There appears to be a lot of pent-up demand, but it's also a really heavy corporate market. I would have to bust JPMorgan policy to fly Mint on JetBlue, which I'm willing to do, by the way. How long do you expect to lose money on London? And have you determined the pain threshold at which point you simply walk away?

Well, of course, whenever you start any new route, you've got to do a lot of thinking around the downside scenario. But we are very bullish and optimistic about London. I mean, first of all, operating internationally is not new to JetBlue. 30% of our capacity is international today. In terms of some markets, really, in Latin America that was very new to us when we went in. We look at our success in Mint on the JFK-LAX route back in 2014. And there were many skeptics at the time who were concerned about that. Even so that we planned them, we ordered the airplanes from Airbus. So we planned it in case we had to back out of it and move the bathroom to a different part of the airplane. So we do try to think through every angle in this. But Mint has been incredibly successful. And we are very confident we're going to see the same in London. It is the largest market from both New York and Boston that we don't serve. Whilst there is a large corporate market, not everyone, Jamie, as you know, has access to the special JPMorgan fares. There's a lot of people that don't. And we think we've built an incredible product that is going to really lead the industry. So when we take our product, when we take our customer base already that is very keen for us to do this, and we take low fares, we think that's a winning combination. And we think that's going to ramp up very quickly. I actually think it's going to ramp up more quickly than they did before because of the pent-up demand that exists for travel between the U.S. and Europe, which, as you know, has been incredibly difficult for a year now.

Any update on the hunt for slots, where applicable?

Yes. We remain very confident. We have a path into more than one London airport. That's a line I've been using for a time now. We feel even more confident than we were before. And we'll share more in due course. We're just waiting to see how the quarantine and some of the other issues like the 212(f) rule here in the U.S., which limits non-U.S. citizens and permanent residents flying. We're just waiting to see how those shake out, but we're still making plans for Q3 entry.

Getting back to the labor question somewhat, what can you not implement with American until you lock down the pilots? What dates should we be thinking of in this regard? And also, as a New Yorker, what does the partnership with American mean to me? I mean, I get it if I'm starting in Pittsburgh on JetBlue. I come. I exit the terminal. I take a train. I get on the new JetBlue to Athens flight. But that doesn't matter to me as a local traveler, and it probably doesn't matter to me as a New York-based investor. So what are some of the real-world examples of how New Yorkers are going to benefit since this is your largest demand base?

No. Thanks, Jamie. In terms of the first part of your question and the partnership or alliance with American Airlines, I should say, that is full steam ahead. We've said that, previously, we did have -- we -- before the agreement that was voted down by the pilots, we did have a previous version of that, that covered the alliance with American. And I think what a lot of people outside of JetBlue may not realize that a lot of the agreements that was voted down narrowly by the pilots, really, was some sort of work really for furlough protection, which I think it was obvious that another CARES round was going to happen, maybe it was less important. So -- and we've always -- #1 goal here has been trying to protect the jobs of all crew members at JetBlue. So I think we're ahead with that. And when we think about the advantages of the partnership, look, what is the #1 complaint I get from people who are based in this area? Why don't you fly here? Why don't you fly there? Well, the constraint has been one of slots. And so this, I think, is a fabulous opportunity for JetBlue working with American to expand our point-to-point footprint here in New York. So things like LaGuardia-Denver would never have been possible because of our restrictions at LaGuardia in terms of slots. In fact, when we added Boston to LaGuardia, we had to remove about a number of Florida routes from LaGuardia because we just didn't have the slot base. So people know the more JetBlue flies, the lower the fares are, the better the service gets. We can also work with American on better use of slots and gates. Again, in constrained environments, it's very leveraged to work together on things like that to create more capacity. So for example, it's going to help our transcon flying because we will have more morning flights off the West Coast, which is something we've had a shortage of short slots, into New York in the late afternoon. And they compete for some of the international return traffic, so it will help us there. And also, our customers will get access to the American Airlines' network through both codeshare and reciprocal FFP benefits. So when we talk about, okay, we have a loyalty program in TrueBlue. We're doing a co-brand RFP. We can bring more benefits to our membership base. All these things work together to create a lot of value for our customers. And then finally, just connecting for customers who want to connect to New York and Boston, really just creating more competitive choices, as JetBlue and American work together to feed customers into long-haul markets.

And since you brought LaGuardia up, it's been a couple of years, but one of your competitors was really pushing for lifting of the Perimeter Rule, which, as I recall, is a -- one of authority issue as opposed to an FAA issue. And you were one of the few airlines that came out against that initiative at the time. Does the American relationship change your view in that regard? Is this now becoming a priority? And of course, you have more fleet flexibility. I think that might have also been one of the gating factors in the past. I know that one of your competitors is going to launch the Saturday-only transcon service. What are your latest thoughts on perimeter?

No. Thanks, Jamie. And yes, you're correct. It's a port authority rule. So it's different to what you see in DC. Look, at the end of the day, our concern about lifting the Perimeter Rule in LaGuardia is that the New York system works as an ecosystem, and they work together. So if you want airlines to invest billions of dollars in terminals infrastructure at JFK, you got to have a pretty clear view that the airports will work together. There's investment going on at Newark. We -- actually, what we said back in the day was, if there was to be a lifting of the Perimeter Rule, there would be -- needs to be a significant redistribution of slots in order that the competitive balance in the region was maintained. So -- and I don't necessarily believe that our partnership with American changes that. We're still going to be a relatively small player. We think that the potential for maybe 50, 60 flights a day, JetBlue from LaGuardia, that's still a lot less than some of our larger competitors. And so we think some of the concerns that we've raised before would still be -- apply and be very important to work through.

How are you thinking about fuel prices as of late? And generally, lower-fare airlines have a somewhat more difficult time putting these prices to customers. On the other hand, I would think that we're in or should be in an environment of potential ticket price agnosticism. I want out, you want out, everybody wants out of their house. I have to give credit Helane Becker for referring to a potential jailbreak. A problem with that is that now I can't get AC/DC out of my head. We're thinking of it more as revenge travel. But in any event, back to fuel, has the recent escalation tempered any of your own capacity plans?

Yes. So as we think about -- I mean, first of all, we're -- as you know, and you implied, we're in a very, very difficult environment for forecasting right now because fares will move quickly, demand has the potential to move quickly and so does fuel. And so I think what we found during this pandemic, and I'm sure other airlines would say the same thing, is that you really -- we've had to look at everything about our planning cycle to give ourselves as much the ability to be nimble and make much decisions much more closely in. For example, we run over the weekend our schedule for May. And that's based on now, and we'll go and do another look at it closer to the time. And so I actually think, at a higher level, some of the flexibility that we've learned as we've gone through this could also not just work. It's really been designed around the demand environment. But there's no reason why we can't apply some of the same flexibility if we were to see big changes in the fuel price over time. So I think that's sort of something that we've learned and that we can maintain. But overall, as you would expect, and I've said this before, we take a pretty cautious and careful view about fuel. We know it has the potential to move up. We know that some of the very low fuel prices we saw last year weren't here to be very long. And look, in the last 30 days, I think WTI has traded between $50 and $65. That sort of range is probably something we should be thinking about, and potentially even high here as the afterburners get kicked on as the economy starts to come back.

And on that topic of ticket pricing, I'll try to answer or rather you'll answer. I'll try to ask delicately because I know it's a sensitive topic. But I asked that [ funky ] question on your last earnings call, what role like automation play, given how unprecedented demand recovery may be interpreted by your systems. Is it really human beings that are going to be determining ticket prices? Is there an automated element to this? Was I barking up the wrong tree in even thinking about this? Let's revisit that topic.

No, I think -- look, I think you're absolutely right. I mean the way that airlines have historically forecasted demand is changing, and it's changing very quickly. And I think what we've learned through this, and what we continue to see is, particularly in this environment, is paying close attention to some of the other things that could impact demand. So how do we use our web data? How do we use our -- looking at who's coming on our website? What we're finding is that, in this environment, a lot of people are looking and searching for flights and not necessarily buying. They're waiting for other things to fall into place, and then they're buying. But there's also things that are very hard to predict. And that is things like quarantine restrictions lifted. We know that when a quarantine restriction gets lifted, there's certain behavior change that comes after that. And so look, I think it's going to be a blend. I think it's going to -- as we've seen here at JetBlue, as we've upgraded our revenue management tools, as we started to work with partners like FLYR, which is one of our JetBlue Technology Ventures portfolio companies, very sort of focused on AI and machine learning, and just combining that with experience. I don't think you're going to replace humans with machines. But likewise, I think we're going to get a lot smarter understanding and predicting the drivers of demand.

Great. Let me cut over to Mark Streeter, who I think may have a question or 2.

Robin, just wondering, it's pre-pandemic, right, the #1 hot point for everyone was the environment, ESG, carbon footprint. How have your thoughts changed versus where we were pre-pandemic to during the pandemic, to where we are now in terms of how you're approaching the fleet and the carbon agenda? Just wondering if you can give us an update on that.

Yes. No, thanks. It looks like you had a birthday recently. Did you? I can see in the background there, a little bit of a happy something.

I did, and thank you.

Good. Good. And I like that...

I got the same date as JetBlue, by the way, February 11. JetBlue and I share the same birthday.

Great. I love that. Thank you. No, it's a great question. I think going into this pandemic, the topic of sustainability was very much on the front of our minds here at JetBlue. And as we come out of this pandemic, I think you're going to see the topic shift very quickly to this, particularly with the administration change here -- we've seen in the U.S. But even -- notwithstanding that, this is a topic that you're seeing in Europe. You were seeing in Europe some concerns on this topic before the pandemic started to happen. And so it's something, as an industry, we're working very well and closely on. Of course, we have to solve this as an industry. But I think focus on things like how do we ramp up the production of sustainable aviation fuels, what's some of the intensive structure that has to go in place to enable that, asking the U.S. government to think about ATC reform. I'm not talking about sort of the previous efforts to move it to a nonprofit autonomous organization, but we've all invested with technology in our airplanes that would allow us to fly more efficient approaches that will save fuel. So can we look to accelerate some of those changes? And then longer term, the topic of alternative forms of airplanes. So we're working very closely with our partner, Cape Air, Dan Wolf and his team, about sort of an electric airplane technology. But what is the -- what are the things that would have the biggest impact in the next 10 years, in my opinion, in the U.S. for airlines? Sustainable aviation fuels and more efficient air traffic control procedures. And I think that's what we need to focus.

Okay. Great. And then just another topic that I wanted to address. We had Ursula in your trans -- treasury team at our high-yield conference a couple of weeks ago. We talked a little bit about sort of JetBlue's sort of presence in the capital markets and balance sheet and so forth. I'm just wondering from sort of your perspective, too, sort of what do you envision for JetBlue going forward? Is it important to be investment-grade rated and be as active as some of your peers in the capital markets and have sort of the whole complement of sort of balance sheet weapons at your disposal, which, arguably, you already do? But I'm just sort of wondering how you're thinking about at the top in terms of how you'd like your team to manage the balance sheet going forward.

No, I was very pleased where we came into this pandemic, Mark, with the second strongest balance sheet in the U.S. industry. That gave us a lot of confidence that we would be able to navigate this. And I think, as we sort of move here from a world where we sort of have now some confidence, that the industry can start to be cash positive here in the sort of short to medium term. And I think the focus moves from just raising more liquidity to making sure our balance sheet structure is efficient, both in terms of making sure that we have a nice mix of instruments that we're using, that we're bringing down our average cost of debt, that we feel good about the mix between fixed and variable, and then we look at our repayment towers, that we feel comfortable with that. And so as we move, if you like, out of what I call, we've been in the emergency room for a year, as we move into now sort of a recovery phase, Ursula and her team will be very focused on both the diversification, the efficiency, and of course, the average cost of debt of our balance sheet. But our goal is to get back to our 30% to 40% debt-to-cap metrics that we had coming in. And to do that as quickly and as prudently as we can. And again, that's what the team will be focused on.

Is part -- just one more question. Is part of that goal to be an investment-grade-rated airline? Does that matter? Does that matter just getting the metric back to your comfort zone?

Yes. We're more focused on the metric than the sort of badge of being an investment-grade airline. I would argue that we had investment-grade balance sheet before this, and we didn't have an investment grade. And so look, I think when we talk to investors, and when they're sort of assessing us as a company they want to invest in, they want to know that we've got a solid and strength -- balance strength -- strong -- they want that we've got a strong balance sheet, and that's what we're focused on.

Robin, I did want to point out that the difference between JetBlue's birthday and Mark's birthday is that I was present for JetBlue's birth. That was not the case with Mark. That would have been [indiscernible]. A question -- and Chuck Schumer stole my seat on your inaugural flight. So not to bring politics into this. Does blue -- this is a question from the audience, does JetBlue plan to do a loyalty deal?

In the debt market, is that? Yes.

Probably in the debt market, yes.

Yes. Look, we've done work on that. We have it there if we need it. We're obviously cautious about sort of saying we don't need anything for sure at this point. Because whilst I feel we've got good momentum right now, it's COVID, and we don't know if there's another sort of chapter in this that would start to see demand going the other way. So we have it if we need it, but we also have a number of other ways of raising additional liquidity or raising liquidity to retire other forms of debt on our balance sheet. So watch this space. But at the moment, not something I would say is at the top of our list.

Okay. And on the topic of liquidity and recognizing that we believe we can see our way out of the downturn, but we are still very much in it. How is your view of evolving on the topic of liquidity going forward? And does the current administration's sort of perpetual, I don't want to say, well, generosity, accommodation of the airline industry, however you want to define it, does that influence how you're thinking about how much cash you want to run with now and how much cash you want to run with in the future?

Yes. That's a great question, Jamie, one that obviously we started to spend more time thinking about. And your reminder about the CARES Act, actually, I should sort of go on the record and say that just how grateful we are at JetBlue for both the support of the last administration and this administration in supporting the airline industry. It really has allowed us to protect jobs and be here to give the economy a boost as we kind of ramp up this year. So very grateful for that. And I think we had, before the pandemic, we've traditionally looked at 10% to 12% TTM revenue as sort of where we were happy with -- what we're happy with. We've sort of -- we look at in the current environment as a sort of $2 billion to $3 billion floor on liquidity. Obviously, that wouldn't be sort of normal course of business. And I mean, as we start to come out of this, then, obviously, we'll start winding that down, probably -- we're probably going to end up at a steady state above the 10% to 12% where we were. But obviously, it's not going to be at the levels that we got. And I think we've also -- as we've gone through this, we've realized that, I think, because of the support we had from the U.S. government, there were ways of raising money. And I'm also of the assumption that as we come out of this, the ability to retire debt, get down our debt, reducing our interest payments is going to be important. So we don't want to just be sitting with unnecessarily cash on the balance sheet.

Another one from the audience here. What level of international success would you need to see, presumably, on a margin basis, to contemplate adding a wide-body to your fleet? And given the 321 order book, is it inevitable that it would be an Airbus product should you reach that distribution?

Yes. So first of all, it wasn't -- it's not inevitable. It would be an Airbus product. Because every time we look to buy airplanes, we run a campaign around that. But that's a long way off. That's not something we're thinking about at the moment. We have a lot of investment in our fleet over the next few years because we have a lot of replacement modernization that we're doing. And we actually think the 321 and the LR and then the XLR is a very, very efficient way of entering some of these new markets. And so that's what we're focused on. And so no plans right now to enter the wide-bodied market.

Okay. Another one saw your updated guidance this morning. Did you also experience January and February softness like Delta? Or was that unique to them? You've obviously seen their aggregate guide this morning, but just asking for some month-to-month sort of thing.

Sure. Yes. I -- obviously, I don't want to comment on Delta's guidance. We may or may not have seen the same or different things. But I'll comment a little bit on ours. I mean we've definitely seen a lot of momentum coming into March. I mean, to give you some color, as we entered March, our revenue was about $6 million a day. We've talked in the past, we need to get to sort of between $13 million to $15 million a day to get sort of cash breakeven. And so we came in with an entry rate of $6 million. Our average in March, we're expecting to be $ 10 million to $12 million. So I think that shows you how much acceleration there has been as we've gone into March. So I think most of the improvement that we've seen over -- really, all the improvement that we've seen over the initial guide is revenue based, and it's what we've seen over the last few weeks.

Great. Another one, pre-pandemic, what was the difference between your international and domestic margins? And can you answer on a fully allocated basis?

Well, I think fully allocated basis is very difficult at the moment because we made a lot of arbitrary decisions to park airplanes based on their sort of individual maintenance profile. So I'll just answer that at a high level, I mean, international has -- was a key point of strength for JetBlue as we sort of entered into this year. When the CDC rolled out their domestic testing requirement, we did see some of that business shift from the beach markets, less so the VFR, into domestic, and now international has caught back up again. And the way we look at sort of international and domestic right now is they're sort of both performing at the same level.

Last one from the audience. When can I expect to fly JetBlue to Hawaii?

Hawaii. Wow. Well, we'll have to wait and see. We've got a handful with other things at the moment, but very, very excited about getting our London flights off the ground, and we'll see what the future brings. I think we're the only large -- well, no, we're -- I think, yes, we're one of the few airlines that doesn't fly to Hawaii. But we do have a good partner in Hawaiian Airlines, too.

Okay. I guess you are the largest airline that doesn't fly to Hawaii.

Yes, that's what I was tripping over. I think that's right. We're the largest airline that doesn't fly to Hawaii. Yes.

Okay. Yes. All right. Let's stop, and that's great. Any parting words before we hit the hard stop here? Anything else you'd like your investors to know about?

Yes. No, I just -- I'd like to thank all of our investors for their support as we've gone through the last year. I know this is impacting all of us, both at a professional level and, in many cases, at a personal level. I think we all want things to get back to normal. I certainly feel optimistic that, that time is coming soon. We're seeing good revenue momentum. I think it's right to be a little bit cautious because we don't know what's around the corner, but there is a lot of pent-up demand. And as we see people getting vaccinated, we think that they're jumping on airplanes, and they're seeing people they haven't seen for a year, doing things they haven't done for a year. And I think that's an incredibly exciting thing for all of us, and I think it's great that the airline industry can play its part in bringing families together because that's so important for all of us. We were focused on the tragic health consequences of COVID and over 0.5 million deaths in the U.S., but it's also brought isolation and many other challenges that we can sometimes underestimate. And so as an industry, we want to step up and play our part in connecting people back together again.

That's great, Robin. Mark and I both hope to host you again at the TWA facility downtown. So look forward to that. I don't even know if it's still there, quite honestly.

Yes, it is. It is. It is, yes.

We got it. Thanks so much.

Thank you.

Take care, Robin. It's always a pleasure.

Thank you. Bye-bye. Thanks. Bye.

Bye-bye.