So I would just say we're very disappointed in the circumstances. They did a day trip, likely business, right? Considering that July is almost over and the summer travel season, you have about a month left in it, where are you looking at making those costs? Stock Advisor list price is $199 per year. Now how that bakes into financial forecast, we haven't put anything in yet. You know that throughout the pandemic, we had put an offer on the table that would have made our pilots the most highly paid pilots in the industry. And we anticipate that that will continue through the year. I think people are pretty aware that you guys are making a big effort on the pilot side, and that makes sense. Our current forecast for the third quarter assumes fuel between $3.73 and $3.78 per gallon, an increase of more than 80% versus the price of fuel in the third quarter of 2019. David Seymour -- Senior Vice President, Chief Operating Officer. You're smaller than you were pre-COVID, but you're generating more revenue. We've improved the consumer proposition that's there. In this last quarter, we flew 20% -- we had 20% more O&Ds than what our next largest network competitor did. So it's important for us to get the utilization back up and get the aircraft in the air. Now all that said, there's so much that you can do with your own team members. At American, we encountered significant weather on 27 of the 30 days in June. The first two will come earlier, and we don't have any of them built into the schedule until November time frame. Early in the pandemic, we made a conscious decision to simplify our fleet network, focusing our flying where we could create outsized customer value and using partnerships to augment that service. Our next question coming from the line of Sheila Kahyaoglu with Jefferies. And assuming that it does slip again, when I look in the fourth quarter, it does look like you have the 787 scheduled in -- it's in your timetable. And as we're looking to the third quarter, anticipating [Audio gap] a good revenue environment. And our next question coming from the line of Stephen Trent from Citi. Is that sustainable long term? And that does conclude the media Q&A. You said you have 140 to 150 planes on the ground, but you referred to mainline equivalent aircraft. We anticipate there will be -- that they'll have a much more significant impact on travel demand as we go into the fall. Thanks for taking my question this morning. Love to get those backup. We have deliveries coming in, in 2023. So while we know the supply chain systems are tight, we've taken a lot of steps throughout the pandemic to stay ahead of that. Good morning, guys, and thank you for the time. As we look at where we're at now as of June 30th, the actual pension status or funding ratio has gone up to about 81%. Good job this quarter and good outlook. And hopefully, that clarifies the point, too. Thanks, Ali. Look, I'll start and then others can pick up, too. Appreciate that perspective. We intend to stay that way. 27 out of 30 days, we had severe weather that resulted in ramp closures, ground staff, ground delay programs, aerospace flow programs. It is second to none. Thank you for your interest and for joining us this morning. One is, fortunately, we're in a really strong revenue environment.

And if you take that hour across the entire fleet, it's equivalent to about 44, 45 aircraft. Michael Linenberg -- Deutsche Bank -- Analyst. This is Vasu, and the answer is both. To that end, we're working as a group with our oneworld carriers to make sure that we match our capacity to the resources that are there. Thanks. And it gets back again to how quickly we can get these jets back up, from a regional perspective, get the 787s back in. From a cost perspective, that's where we would like to see unit cost come in lower. But if we see that, then that is what we would do is not renew leases, push deliveries like we have in the past. And how long do you expect that conditions in the industry are going to require American to limit its capacity? As I said a minute ago, we're sizing the airline for the resources we have available and the operating conditions we face, and we will make other changes as needed. The answer to that is yes. I understand why they might be the right answer from a small market, market share perspective. To Robert's specific point, that is compared to our system in absolute, but let me provide a little bit of context behind the point. Secretary Mayorkas, Secretary Buttigieg, and their teams at the FAA, TSA, CBP as well as the air traffic controllers at NATCA. Thanks. So if those do slip from August a little bit, we have put in almost a two-month pad in those coming in. Hey. Your line is open. Looking forward, we will limit capacity to the resources we have and the operating conditions we face. Our co-brand spend, our enrollments are up, and engagement with the program is really up.

The first question, Robert, I saw you on CNBC this morning, and you talked about the pilot contract. We're also pleased to have hit our pre-tax margin guidance, despite a challenging end of the quarter and a significant run-up in oil prices. So last quarter, you brought up a phenomenon of corporate travelers combining business with pleasure, extending trips, bringing the spouse, that sort of thing. And is that an opportunity for helping to drive margin expansion? Well, I would say as we look at the cost structure, the cost tradings we talked about is built to fly another 150 aircraft. We haven't had the kind of delivery certainty that we'd like. Your line is open. Thanks, Robert, and good morning, everyone. Good morning. And you know what? But Derek, go ahead. Total debt reduction remains a top priority. Good morning, everyone. We're able to go and calibrate it on -- we ask customers, did you actually buy for business, and we can actually go and look at it. I don't think you guys have as many flights to London as they do, but are you seeing the same issues? I echo Jamie's comments. And so business revenue is that. Good morning, everyone. But it's all these other things that we really are dependent on so many other parts of the system. Cost basis and return based on previous market day close. Maybe differences in hub geography explains it. So it is all about moving forward, getting the asset utilization where it needs to be, get the aircraft back up in the air, and we can reach those levels for sure. We continue to reap the benefit of the past investments in our fleet and are well positioned for the future. So it is very much on our minds, and it's probably going to shape a lot of view in the months and quarters ahead. We dedicate more time to the turn, and we better utilize our assets. Our 2023 aircraft capex is now expected to be $1.9 billion. Well, I'll just -- I'll close with -- pardon me. We have -- there's a lot of pent-up demand for people going internationally, wherever that might be, transpacific, transatlantic, and long-haul South America. So why is -- why are pay increases like this the right answer from a profitability perspective? Thank you. Calculated by Time-Weighted Return since 2002. Thanks so much, operator. OK. Great. And to that end, maybe I'll have Nate Gatten, our head of government affairs and corporate real estate add to what's going on and the prognosis for that. Derek, you said that you're going to get 9 787s this quarter, and I know that everybody's been -- that, that has slipped multiple times. OK. Great. With that, we will open up the line for analyst questions. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. No. American produced revenues of $13.4 billion in the second quarter, and that's an increase of 12.2% versus 2019 and a record for any quarter in the company's history. It's just -- the concessionaires at the airport. Our second quarter results and strong revenue production, despite challenging conditions, demonstrates that our plan to return to profitability and deliver a good operation for our customers is working. Also on the call for Q&A are David Seymour, Vasu Raja, and a number of other senior executives. We have unencumbered aircraft of over 200 aircraft. You were down on pre-tax sort of 390 bps closer to '19 in the second quarter. They use large travel agencies to help them manage the program. And while we may not have the pilots, we have the other resources to actually fly those aircraft. The reduction in '21 -- there was a slight reduction in '21 of the pension obligation. Why Airline Stocks Are Down Today Even After 2 Big Carriers Turned Profitable, Why Airline Stocks Are Rising Again Today, Why American Airlines Is Losing Altitude Today, 1 More Reason to Avoid American Airlines Stock: Surging Costs, Cumulative Growth of a $10,000 Investment in Stock Advisor, 3 No-Brainer Dividend Stocks to Hold for Retirement, 2 Nasdaq 100 Stocks to Buy Hand Over Fist and 1 to Avoid Like the Plague, The CHIPS Act Could Boost These 3 Semiconductor Stocks, Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. And that's coming directly away from our large network competitors. Thanks, guys. We've done a great job, I think, in just about every other rank within our team to get the right people on board. This seems to be a relatively durable trend and one that will continue, which is that there's going to be more and more unmanaged businesses out there. Excluding net special items, we reported a net income of $533 million or earnings of $0.76 per diluted share. We've done a lot of improvements in overbooking technology. Robert Isom -- Chief Executive Officer and Chief Recruitment Officer.

Hey. Vasu, do you want to add something?

And the kind of operating performance will improve from where it was even pre-pandemic. And then just one thing that's a little confusing to me. And even if you did upgauge it, flying to large cities, Birmingham, Alabama, Wilmington, North Carolina, once a day of a 737 doesn't really create a lot of utility for some of those really big metro areas in the U.S. It's just a myriad of things that have to -- that all have to come together to put an aircraft in the air. So I think as we go forward, we'll do it a little bit differently than we have and not -- and we'll raise the utilization on the rest of the fleet, but take some aircraft out to provide relief for David and his operating team to have more aircraft for maintenance and more aircraft for spares. We have more people per flight hour per flight than we have ever had in our company's history on duty. So at large, we're really encouraged by what we see. So you're talking about 150 -- 140, 150 aircraft that aren't being utilized. While June was challenging, we have seen improvements so far in July, including over the busy Independence Day weekend. And I'll just close with this. And just final point, fortunately, we don't see these same kinds of caps on the horizon in the United States, but we do expect to face similar issues and challenges that additional international locations through the summer. Or is there something to do on the revenue side or the cost side to kind of accelerate the rate of change in the profit margin? But one thing I want to make clear, though, is as we take a look at regional pilot pay, but it costs quite a bit of money to become a pilot. Andrew Didora -- Bank of America Merrill Lynch -- Analyst. We're doing our part. Prior to the pandemic, if corporations wanted to go and manage travel behavior, they could create more elaborate travel policies and hire a range of consultants and other firms to help manage that. Returns as of 07/22/2022. And those places where we've sustained the connectivity are really what's driving our yield growth. One is to return to profitability and to run the most reliable airline we could. What we're dealing with right now is just a lot of variability in the operating environment. And no, we don't spend a lot of time worrying about it just for one simple reason that what we try to do is create the most value for our customers. So we've reported within guide this quarter, despite really challenging operating conditions, we're expecting profitability as we go into the third quarter. And that's the basis to go build off of and, from that, a lot more as possible and will be. Look, the regional network to American Airlines is incredibly important. We continue to work closely with Boeing and the timing of our delayed 788s, and we expect to begin taking delivery of those aircraft this quarter. In the third quarter, we expect to be profitable, despite the continuation of elevated fuel prices. And I am so pleased to report that we have returned to profitability. And in some, we flew at least a percentage point or more less than we would have otherwise. But the interest rate has actually driven the liability much, much lower than what the reduction in the asset class has been.