Revenue and Profitability: Q1 revenue decreased by 5.3% year-over-year, with net income dropping 41.3% to $1.11 billion and EPS at $1.30, down from $2.20.
Operational Efficiency: Operating margin stood at 8%, with improvements in productivity partially mitigating the labor cost increases due to a new union contract.
Cash Flow: Generated $3.3 billion in cash from operations, with free cash flow at $2.3 billion, indicating strong liquidity and financial management during a challenging quarter.
Market Dynamics: Utilized improved revenue management strategies, particularly in the domestic segment where operational efficiencies were optimized despite a 5% revenue decline to $14.2 billion.
Cost Control: Total operating expenses decreased 0.8%, achieved through strategic headcount reductions and operational optimizations.