David Vernon

Joe confirmed all main cabin merchandising tiers are recognized as main cabin revenue.

Joe said premium loads rose almost 2 points on 6% to 7% capacity growth without fare discounting.

Edward gave a direct fourth-quarter capacity framework and outlined upgauging plus international as the growth areas, while declining to guide 2027 specifics.

Joe confirmed competitive capacity in Delta's hubs is in a very good position entering 2026. Low-end industry rationalization continues through internal or external restructuring.

Glen argued 2025 was proof that Delta has charted a fundamentally different path via revenue diversification and premium focus. Low-cost competitors are trying to pivot (Southwest building clubs, going international) but rationalization of commoditized flying remains the key industry catalyst.

Ed noted significant 2025 headwinds (aircraft incidents, trade uncertainty, consumer confidence plunge) that should not repeat. Has not yet completed 2026 planning but indicated if the current environment continues, 2026 could be very strong.

Glen reported improvement across all three categories: coastal gateways (biggest uptick from corporate and share gains), core hubs (performing very well), and focus cities (as expected). Called it a broad-brush improvement from 90 days ago.

Ed reiterated Delta will not pay aircraft tariffs. Cited the UK-US trade agreement honoring the 1979 Aviation Act as an encouraging template. Argued aviation generates the largest US trade surplus.

Glen acknowledged reliance on both Delta's own levers and industry capacity discipline. Noted further adjustments likely needed in October-December beyond what's currently loaded.

Glen confirmed premium-to-main cabin spreads are widening, not converging, and expects this trend to continue into Q2.

Ed was emphatic Delta will not pay tariffs on aircraft, noting a 20% cost increase makes the math unworkable. Working closely with Airbus as a partner.

Glen outlined international slightly higher than domestic, Pacific high initially then stepping down, Atlantic slightly above system, Latin lowest growth.

Glen noted corporate share at or near record highs. Growth was primarily traffic-driven early in the year, shifting to both volume and yield by Q4.

Rocker cited a slight uptick in car orders across the board and record industrial average revenue per car.

Jennifer highlighted committed gateway pricing extends merger benefits to otherwise unaffected customers. Kenny cited 520 customers, 700 commercial partners, and 2,000 total supporters.

Jim expressed strong support for competition and customer optionality, arguing it would advantage UP given their service levels, but cautioned the devil is in the details to avoid degrading customer experience through added complexity and touch points.

Kenny clarified alliances exist with all rail partners including CN and CSX, not just NS, and emphasized nothing is being done pre-merger. He stated UMAX is a strong viable product that is not going away, ensuring customer optionality.

Kenny reported early green shoots of production shifts from Asia to Mexico and increased interest in industrial development on UNP's network.

Kenny attributed pricing strength to service product, network investments, and disciplined mindset, while Jennifer noted truck market recovery could provide additional tailwind.

Kenny reported UNP gained a few market share points in Mexico so far this year, citing seven-day service, best route advantages, and thirty-year customer relationships.

Kenny noted the railroad's own fleet was well deployed in H2 but IMC/private asset fleet still has upside, without giving a specific utilization number.

Kenny confirmed coal pricing would benefit from higher natural gas prices but declined to forecast gas price movements.

Kevin argued ex-fuel incremental margins were very strong given overall expenses down 2% on volume growth, and said the model is built to generate powerful incremental margins on profitable volume.

Kevin confirmed revenue guide raise mostly fuel-driven with small volume embed. Mike said comfortable with current headcount, may see minor T&E uptick in Q2-Q3.

Kevin said Q1 should show above-average year-over-year improvement due to easy comps from 2025 storms. Provided a framework: $150M non-recurring items, 3-3.5% inflation, and investors can back into the implied productivity number.

Steve said focus is on standalone performance plus near-term partnership opportunities. Acknowledged a rigorous STB approval process makes the outcome uncertain but committed to pursuing the best path to shareholder value.

Kevin declined to provide specific geographic revenue breakdown, offering only that over half of CSX business touches another railroad. Effectively deflected the merger-related freight flow question.

Mike acknowledged recovery will be gradual through the quarter, not overnight. Latest flooding in Nashville-Cincinnati corridor set back progress. Goal is to reset fully by Q3 summer seasonality.

Kevin clarified $300M is entirely price-related (met coal and fuel surcharge), not volume. Sean added no volume disruption expected from Howard Street Tunnel with costs added to preserve service.

Justin says card growth is broad-based across regions; Andrew says Starlink installs are paced by antenna supply with no firm fleet-wide deadline.

Andrew reported card remuneration up approximately 8% YoY, just shy of peers, without yet having a high-fee credit card, a major source of industry card revenue growth. Expects acceleration once a premium card offering is available.

Bob reframed the RASM growth as customer choice and buy-up opportunity rather than fare increases. Offering basic through premium with ancillary seat selection, customers choose to buy or not. What they're seeing is customers choosing to buy the new options.

Andrew declined to quantify the knife-edge yield improvement given it's early in the booking curve, but confirmed it represents a clear change in customer reaction, disproportionate buy-up for assigned seats and fare products. Confident in revenue-positive customer response throughout the curve.

Tom said initiatives should continue to build each quarter with no terminal peak. Bob estimated peak assigned-seating contribution around early Q3 2026 based on booking curve maturation. Chase co-brand card benefits will continue ramping all year as customer engagement grows.

Andrew explained the off-peak problem requires connectivity solutions and basic economy stimulation rather than blunt capacity cuts, which would sacrifice peak yield benefits. Structural connectivity launching in August plus network redeployment starting in April address off-peak weakness.

Andrew detailed that the demand discontinuity required careful pricing discipline to avoid discounting close-in. Yields remained robust with strong close-in performance. April year-over-year load factor improved at least two points as further-out discounting began to take effect.

Russ affirmed underlying momentum and a balanced capital approach but declined to give a detailed post-CY26 playbook for deploying the cash balance.

Carere confirmed healthcare is primarily in domestic priority with some in deferred. Deferred growth also driven by SMB momentum (B2B and B2C). Amazon volume is in home delivery, still ramping, not material, will be accretive, and Amazon will not be top customer.

Subramaniam confirmed 24% now, 65% by next peak, targeting 30% footprint reduction by end of FY27 with $2B savings. Dietrich noted Network 2.0 elements are included in FY26 transformation targets with more detail at Investor Day.

Dietrich cited revenue opportunity cost from trade disruption and mix shift to lower-yielding (but profitable) services. Did not fully bridge the gap between cost savings, revenue growth, and flat earnings.

Subramaniam confirmed 10% pickup and delivery cost reduction target being achieved at integrated facilities while maintaining service levels. 12% of volume through Network 2.0 by FY25 end, 40% by FY26 end.

Raj confirmed 250 stations by end of FY25, with FY26 as the big lift year for Network 2.0 major metro integrations. Did not quantify percentage of volume touched.

Nocella said buy-up rates exceeded expectations but declined to quantify; framed as early-innings segmentation.

Andrew said United portfolio would be less impacted than peers due to higher FICO, lower revolve, low loss rates. Letting banks sort interest rate issues; United focused on benefits. New MileagePlus head Jarad Fisher to announce growth levers within 10 weeks.

Andrew cited published capacity cuts, positive yield inflection, and strong business demand recovery as drivers of Q4 RASM step-up, calling setup very similar to 2024.

Mike explained philosophy of conservative guidance with contingency buffer. The prior $11.50-$13.50 had no contingency left. Believes $9-$11 will prove conservative if bookings trajectory holds.

Scott argued no tradeoff exists, brand loyalty leadership delivers both share gains and margin leadership simultaneously.

Mike Leskinen expressed confidence in guidance with upside potential in the back half, maintaining 'no-excuses' philosophy.