“But again, I think we know that it will take some time for that to impact us, not that we will be immune for the calendar year, but when you look at past downturns, it has taken two, three, four quarters, sometimes longer for that departure slowdown to really impact our activities.”

In context

“nks. Larry Culp: David, you touched on a number of the variables there. Again, the mid-single-digit outlook for departures that we saw -- we talked about back in January, held up quite well in the first. And it looks like, just looking at the -- this morning's data, that continues to be the case. We often, I think, maybe over-indexed on the dynamics in the U.S. market, we know there's some cross-border traffic softening in Canada to the U.S., even Europe to the U.S. But broadly, when you look around the world, departures are holding up pretty well. Rahul had used the word conservatism earlier. I think we're just taking a conservative view with respect to the second half. U.S. departures could soften. We may see some adjustments elsewhere. We'll leave the detailed planning to the airlines. But again, I think we know that it will take some time for that to impact us, not that we will be immune for the calendar year, but when you look at past downturns, it has taken two, three, four quarters, sometimes longer for that departure slowdown to really impact our activities. And I think that's why we've highlighted the strength of the spare parts order book that we have in hand, again, 90% of the second quarter already in place. And with the engines that are off wing, either in our shops today, waiting to come into shop, or waiting to be delivered to us, that would take us well into the fall. So we don't like the fact that we've got such delinquencies in place. We want to serve our customers better, but it does, I think, support the underlying strength of the backlog and the delinquency as we look at our opportunities to execute and deliver through the rest of this calendar year. But again, there's uncertainty here. We're taking what we think is a cautious view, and we'll be watching it very, very closely. Operator: Our next question comes from Gautam Khanna”