阿拉斯加航空 (ALK) 2023 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Alaska Air Group 2023 First Quarter Earnings Call. (Operator Instructions) Today's call is being recorded and will be accessible for future playback at alaskaair.com. After our speakers' remarks, we will conduct a question-and-answer session for analysts. I would now like to turn the call over to Alaska Air Group's Vice President of Finance, Planning and Investor Relations, Ryan St. John.

女士們先生們，早上好，歡迎來到阿拉斯加航空集團 2023 年第一季度財報電話會議。 （操作員說明）今天的通話正在錄製中，將來可以在 alaskaair.com 上播放。在我們的發言人發言之後，我們將進行分析師問答環節。我現在想把電話轉給阿拉斯加航空集團財務、規劃和投資者關係副總裁 Ryan St. John。

Thank you, operator, and good morning. Thank you for joining us first quarter 2023 Earnings Call. This morning, we issued our earnings release, which is available at investor.alaskaair.com. On today's call you'll hear updates from Ben, Andrew and Shane. Several others of our management team are also on the line to answer your questions during the Q&A portion of the call.

謝謝接線員，早上好。感謝您加入我們 2023 年第一季度的收益電話會議。今天早上，我們發布了收益報告，可在 investor.alaskaair.com 上獲取。在今天的電話會議上，您會聽到 Ben、Andrew 和 Shane 的最新消息。我們管理團隊的其他幾位成員也在電話的問答部分在線回答您的問題。

This morning, Air Group reported a first quarter GAAP net loss of $142 million. Excluding special items and mark-to-market fuel hedge adjustments, Air Group reported an adjusted net loss of $79 million. As a reminder, our comments today will include forward-looking statements about future performance, which may differ materially from our actual results. Information on risk factors that could affect our business can be found within our SEC filings.

今天上午，Air Group 報告第一季度 GAAP 淨虧損 1.42 億美元。排除特殊項目和按市值計價的燃料對沖調整，Air Group 報告調整後的淨虧損為 7900 萬美元。提醒一下，我們今天的評論將包括有關未來業績的前瞻性陳述，這些陳述可能與我們的實際結果存在重大差異。有關可能影響我們業務的風險因素的信息可以在我們提交給美國證券交易委員會的文件中找到。

We will also refer to certain non-GAAP financial measures such as adjusted earnings and unit costs, excluding fuel. And as usual, we have provided a reconciliation between the most directly comparable GAAP and non-GAAP measures in today's earnings release. Over to you, Ben.

我們還將參考某些非 GAAP 財務指標，例如調整後的收益和單位成本，不包括燃料。和往常一樣，我們在今天的收益發布中提供了最直接可比的 GAAP 和非 GAAP 指標之間的對賬。交給你了，本。

Hello, and good morning, everyone. Before I begin, I want to welcome Ryan St. John as our new Head of Investor Relations. Ryan is a 15-year veteran of Alaska and also leads our financial and resource planning groups. I'm excited to see Ryan step into this role and know he will do a great job in it. I also must acknowledge Emily Halverson, who Ryan is replacing. Emily stepped into the IR role at the onset of the pandemic, not the easiest time to learn how to do this important and challenging work. Emily has been fantastic as our Head of IR, but this change will allow her to fully focus on leading our accounting and financial reporting functions as our controller.

大家好，早上好。在開始之前，我想歡迎 Ryan St. John 成為我們新的投資者關係主管。 Ryan 是一名在阿拉斯加工作了 15 年的老兵，還領導著我們的財務和資源規劃小組。我很高興看到 Ryan 擔任這個角色，並且知道他會做得很好。我還必須感謝 Ryan 正在接替她的 Emily Halverson。艾米麗在大流行開始時就開始擔任 IR 角色，這不是學習如何完成這項重要且具有挑戰性的工作的最簡單時間。作為我們的 IR 主管，Emily 表現出色，但這一變動將使她能夠作為我們的財務總監，完全專注於領導我們的會計和財務報告職能。

So now turning to our results. Despite our first quarter loss, I am pleased to report that our operational and financial performance trended positively as we progressed throughout the quarter. We are actively driving improvements in our business, and I believe we are well positioned to capitalize in the second and third quarters. It's important to note that Alaska, along with the entire industry, historically experiences weaker results in the first quarter, and our loss is primarily a reflection of our current network seasonality.

所以現在轉向我們的結果。儘管我們第一季度出現虧損，但我很高興地報告，隨著我們在整個季度的進展，我們的運營和財務業績呈積極趨勢。我們正在積極推動業務的改進，我相信我們已準備好在第二和第三季度進行資本化。重要的是要注意，阿拉斯加以及整個行業在第一季度的業績歷來較弱，我們的虧損主要反映了我們當前的網絡季節性。

In the past, Alaska has found ways to breakeven or earn a small profit in the first quarter. Therefore, we are setting a target to reduce our first quarter profit seasonality over the next few years. That's the right goal for us to have in the future, and it will have a meaningful impact on our full year results. The start of this year has presented more challenging weather conditions than we've seen historically. Persistent storms, regular snow and elevated icing conditions throughout January and February across all our geographies, including California, led to higher cancellation rates than normal.

過去，阿拉斯加已經找到了在第一季度實現收支平衡或賺取微利的方法。因此，我們設定了一個目標，即在未來幾年內減少第一季度利潤的季節性變化。這是我們未來的正確目標，它將對我們的全年業績產生重大影響。今年年初的天氣狀況比以往任何時候都更具挑戰性。整個 1 月和 2 月，我們所有地區（包括加利福尼亞州）的持續風暴、定期降雪和結冰條件升高，導致取消率高於正常水平。

Additionally, volcanic ash in Alaska and the Pacific Northwest recently disrupted our operations for several days. Despite these challenges, we still operated with one of the best on-time rates year-to-date. We will continue to prioritize operational performance, and we remain committed to delivering a reliable experience for our people and our guests, especially as we move into peak demand periods. Although we can't control what Mother Nature throws at us, I have set a goal for our teams to significantly harden our operational resiliency before next winter and to reduce cancels and customer impacts from weather to the greatest extent possible.

此外，阿拉斯加和太平洋西北部的火山灰最近中斷了我們幾天的運營。儘管面臨這些挑戰，我們仍然以今年迄今為止最好的準點率之一運營。我們將繼續優先考慮運營績效，我們將繼續致力於為我們的員工和客人提供可靠的體驗，尤其是在我們進入需求高峰期時。雖然我們無法控制大自然對我們的影響，但我為我們的團隊設定了一個目標，即在明年冬天之前顯著增強我們的運營彈性，並儘可能減少天氣對取消和客戶的影響。

The total impact of storms in Q1 were in the order of $13 million. But most importantly, this quarter, we delivered on metrics that were squarely within our control. First quarter capacity, revenue and unit costs, excluding fuel, all landed within our originally guided ranges. I am particularly encouraged to see less close in variability and greater stability when forecasting company performance than we've seen in the past 3 years as stability returns, our ability to execute on our cost and commercial initiatives improves. Looking ahead, our outlook and priorities remain unchanged as we continue to execute on our strategic initiatives.

第一季度風暴的總影響約為 1300 萬美元。但最重要的是，本季度，我們交付了完全在我們控制範圍內的指標。第一季度產能、收入和單位成本（不包括燃料）都在我們最初的指導範圍內。與過去 3 年相比，隨著穩定性回歸、我們執行成本和商業計劃的能力提高，在預測公司業績時，我特別感到鼓舞的是，變化性更小，穩定性更高。展望未來，隨著我們繼續執行我們的戰略舉措，我們的前景和優先事項保持不變。

Our teams remain focused on returning us to the foundational strengths that have served Air Group well for decades. These strengths, including operational excellence, disciplined cost management, high productivity and low overhead will continue to be the primary drivers of consistent, profitable growth, and we are making good progress on several fronts. Our productivity trends are improving. Total passengers per FTE is up 6% compared to last year, and we have increased total aircraft utilization by 14%.

我們的團隊仍然專注於讓我們恢復幾十年來為 Air Group 提供良好服務的基礎優勢。這些優勢，包括卓越運營、嚴格的成本管理、高生產率和低管理費用，將繼續成為持續盈利增長的主要驅動力，我們在多個方面取得了良好進展。我們的生產力趨勢正在改善。與去年相比，每 FTE 的乘客總數增加了 6%，我們的飛機總利用率提高了 14%。

In fact, our mainline utilization has exceeded 2019 levels. Absentee and attrition rates have declined across all work groups, including pilot attrition rates after the ratification of our new contract back in October. With several labor contracts signed last year, we are looking forward to reaching a deal with our flight attendants and aircraft technicians soon to complete the cycle. Our move to a single mainline fleet is driving better economics. We have improved fuel efficiency by 4% year-over-year this quarter or the equivalent of $25 million and 7 million fuel gallons saved as a direct result of the superior MAX aircraft in our fleet.

事實上，我們的主線利用率已經超過了 2019 年的水平。所有工作組的缺勤率和離職率都有所下降，包括我們在 10 月份批准新合同後的試點離職率。去年簽署了幾份勞動合同，我們期待盡快與我們的空乘人員和飛機技術人員達成協議，以完成整個週期。我們轉向單一干線機隊正在推動更好的經濟效益。本季度我們的燃油效率同比提高了 4%，相當於我們機隊中性能卓越的 MAX 飛機節省了 2500 萬美元和 700 萬加侖燃油。

This is equivalent of taking 15,000 cars off the road each year. Additionally, our upgauging strategy, which adds 28 more seats per aircraft than the A320s we replaced, allows us to unlock growth efficiencies without adding departures within an already constrained operating environment. As a result, we are now producing 20% more ASMs per aircraft than we did at this time last year.

這相當於每年減少 15,000 輛汽車上路。此外，我們的升級戰略（每架飛機比我們更換的 A320 多增加 28 個座位）使我們能夠在不增加已經受限的運營環境中的離港情況下釋放增長效率。因此，與去年同期相比，我們現在每架飛機生產的 ASM 數量增加了 20%。

Finally, our balance sheet continues to be a pillar of strength. Our trailing 12-month return on invested capital has continued to improve, reaching double digits for the first time since the pandemic began. Our financial strength has also allowed us to support a long history of shareholder returns, and during the first quarter, we officially restarted our share repurchase program to offset dilution and remain on target to spend at least $100 million this year.

最後，我們的資產負債表仍然是我們的支柱。我們過去 12 個月的投資資本回報率繼續提高，自大流行開始以來首次達到兩位數。我們的財務實力也使我們能夠支持長期的股東回報，並且在第一季度，我們正式重啟了我們的股票回購計劃以抵消稀釋，並保持今年支出至少 1 億美元的目標。

As we approach our busy Q2 and Q3, we are well prepared for peak summer flying. We have taken proactive steps to prepare our airline, including doubling our pilot training throughput compared to the same period last year and providing a 1-day immersive care retreat to 14,000 guest-facing employees. This retreat emphasized our core values of being kind-hearted and doing the right thing as well as focused on self-care, team care and guest care, which are essential to our culture. This has become even more important and necessary in leadership's view post-pandemic.

隨著我們接近繁忙的第二季度和第三季度，我們已經為夏季飛行高峰做好了充分準備。我們已採取積極措施為我們的航空公司做好準備，包括與去年同期相比，我們的飛行員培訓量增加了一倍，並為 14,000 名面向客人的員工提供為期 1 天的沉浸式護理靜修。這次務虛會強調了我們的核心價值觀，即心地善良、做正確的事，以及專注於自我保健、團隊關懷和賓客關懷，這些對我們的文化至關重要。在大流行後領導層看來，這變得更加重要和必要。

Our people are integral to our success, and I am proud of the work they do preparing our airline to meet demand while performing at a high level of operational excellence. We have taken deliberate steps to build momentum coming out of this recovery and to fortify our ability to deliver on our targets. As we look forward, we have line of sight to returning to strong double-digit adjusted pretax margins this quarter. And assuming a stable economy, we remain confident that we will deliver our full year adjusted pretax margin of 9% to 12% and earnings per share of $5.50 to $7.50, which we believe will be at or near the top of the industry.

我們的員工是我們成功不可或缺的一部分，我為他們所做的工作感到自豪，他們為我們的航空公司做好準備，以滿足需求，同時實現高水平的卓越運營。我們已採取深思熟慮的步驟，以從這次復蘇中獲得動力，並加強我們實現目標的能力。展望未來，我們有望在本季度恢復到強勁的兩位數調整後稅前利潤率。假設經濟穩定，我們仍然有信心實現 9% 至 12% 的全年調整後稅前利潤率和 5.50 美元至 7.50 美元的每股收益，我們相信這將達到或接近行業最高水平。

Despite the potential for a recession and softening in some sectors of the economy, travel demand remains strong. And while our industry and business may face continued economic volatility in 2023, it remains to be seen if there will be any negative impact on revenue. At Alaska, we have a proven track record of adapting and navigating challenging environments. As we progress on our road map to profitable growth, we are already seeing the benefits of restoring our historical strengths as a single fleet operator and unlocking new commercial initiatives. This positions us well in any environment to continue to deliver on our financial commitments and drive our long-term success. And with that, I'll turn it over to Andrew.

儘管某些經濟部門可能出現衰退和疲軟，但旅遊需求依然強勁。儘管我們的行業和企業在 2023 年可能面臨持續的經濟波動，但是否會對收入產生任何負面影響還有待觀察。在阿拉斯加，我們在適應和駕馭具有挑戰性的環境方面有著良好的記錄。隨著我們在實現盈利增長的路線圖上取得進展，我們已經看到恢復我們作為單一車隊運營商的歷史優勢和開啟新的商業計劃的好處。這使我們在任何環境中都能很好地繼續履行我們的財務承諾並推動我們的長期成功。有了這個，我會把它交給安德魯。

Thanks, Ben, and good morning, everyone. My comments today will focus on our first quarter results and in particular, on March, which I believe is more indicative of what we see going forward. I will also share our thoughts on second quarter trends and guidance.

謝謝，本，大家早上好。我今天的評論將集中在我們第一季度的業績上，尤其是 3 月份的業績，我認為這更能說明我們對未來的看法。我還將分享我們對第二季度趨勢和指導的看法。

First quarter revenues totaled $2.2 billion, and that's up 31% versus the first quarter of 2022 with capacity up 14% over the same period. This marked a significant milestone for us as we finally restored capacity to pre-pandemic levels, a 3-year journey. Load factor came in at 80%, exceeding last year's load by 3 points as we lap the effects of Omicron in early 2022. Even when comparing our results to 2019, we delivered strong revenue progression throughout the quarter with January unit revenues up 13%; February up 15%; and March up 19%.

第一季度收入總計 22 億美元，比 2022 年第一季度增長 31%，同期產能增長 14%。這對我們來說是一個重要的里程碑，因為我們終於將產能恢復到大流行前的水平，這是一個為期 3 年的旅程。由於我們在 2022 年初超越了 Omicron 的影響，負載率為 80%，比去年的負載高出 3 個百分點。即使將我們的結果與 2019 年進行比較，我們在整個季度實現了強勁的收入增長，1 月份的單位收入增長了 13%； 2 月上漲 15%； 3 月份上漲 19%。

The strong results in March are a good indication of where we're headed as we look to the second quarter. Total March revenue came in above our record-breaking March last year on both higher capacity and higher yields while our pretax margin was nearly 2 points better despite higher fuel prices. Throughout my tenure at Air Group, this airline has been solidly profitable 10 months of the year, with January and February always being the most difficult due to our network configuration and predominantly leisure consumer base. [Layover] and business travel that hasn't fully recovered plus exceptionally high fuel prices, and it made for a tough quarter.

3 月份的強勁業績很好地表明了我們展望第二季度的方向。由於更高的容量和更高的收益率，3 月份的總收入高於我們去年創紀錄的 3 月份，而儘管燃料價格上漲，我們的稅前利潤率提高了近 2 個百分點。在我在航空集團任職期間，這家航空公司每年有 10 個月實現穩定盈利，由於我們的網絡配置和主要的休閒消費者群，1 月和 2 月始終是最困難的。 [中途停留] 和尚未完全恢復的商務旅行加上異常高的燃油價格，這讓我們度過了一個艱難的季度。

As Ben mentioned, we are committed to driving improvements in these months to accommodate seasonally low demand with an aim to return to breakeven or better in the first quarter in future years. Moving to business travel. Nearly all of our core hubs are in geographies where business has not returned as quickly as in other major economic centers throughout the country. Corporate layoffs and a heavy concentration in the tax sector being major contributors. Yet despite the lagging tech sector, which is roughly 50% to 60% restored to pre-pandemic travel levels, overall, business travel remains around 75% recovered by volume and 85% to 90% by revenue when compared to 2019 levels.

正如 Ben 所提到的，我們致力於在這幾個月推動改進，以適應季節性低需求，目標是在未來幾年的第一季度恢復盈虧平衡或更好。轉向商務旅行。我們幾乎所有的核心樞紐都位於業務恢復速度不如全國其他主要經濟中心的地區。企業裁員和高度集中在稅務部門是主要原因。然而，儘管科技行業落後，大約 50% 到 60% 恢復到大流行前的旅行水平，但總體而言，與 2019 年的水平相比，商務旅行的數量和收入仍然恢復了 75% 左右，收入恢復了 85% 到 90%。

I believe the lag in West Coast business travel is upside for us, which we have not factored into our revenue forecasts. There may be opportunity ahead as corporate travel budgets increase given some companies begin returning to the office and move into new fiscal periods later this year. We see continuing strength this year in premium and loyalty performance. First and Premium Class revenues were up 35% and 33% year-over-year, respectively, on higher payload factors and fares. This front cabin preference has persisted, and I expect this trend to continue.

我相信西海岸商務旅行的滯後對我們來說是有利的，我們沒有將其納入我們的收入預測。考慮到今年晚些時候一些公司開始返回辦公室並進入新的財政週期，隨著公司差旅預算的增加，未來可能會有機會。我們看到今年保費和忠誠度表現持續強勁。由於更高的有效載荷係數和票價，頭等艙和高級艙的收入分別同比增長 35% 和 33%。這種對前艙的偏好一直存在，我預計這種趨勢會繼續下去。

Bank cash remuneration also remains strong as we lap the anniversary of our renewed credit card deal with Bank of America. For the quarter, it was up 17% year-over-year. And with the launch of our new card benefits, acquisitions have exceeded our expectations. With the highest quarterly sign-ups in our history, surpassing 100,000 new cards during the quarter. Regarding network and alliances, we are progressing nicely on our plan to unlock selling capabilities for 10 airline partners on our website this year, with the goal of making alaskaair.com a gateway to the world for our guests. Since our last call, we've turned on selling capabilities for Iberia as partner #5, and work is currently underway to launch 3 more airlines by summer.

隨著我們與美國銀行續簽信用卡協議的周年紀念日，銀行現金報酬也保持強勁。該季度同比增長 17%。隨著我們新卡福利的推出，收購量超出了我們的預期。擁有我們歷史上最高的季度註冊量，本季度超過 100,000 張新卡。關於網絡和聯盟，我們計劃今年在我們的網站上解鎖 10 家航空公司合作夥伴的銷售能力，目標是使 alaskaair.com 成為我們客人通往世界的門戶。自我們上次通話以來，我們作為合作夥伴 #5 開啟了 Iberia 的銷售能力，目前正在努力在夏季之前推出另外 3 家航空公司。

While we know partner-enabled selling drives positive yield contributions to our network, Direct sales also offer a low-cost distribution channel that not only supports our partners but reinforces to our guests that Alaska Airlines can deliver on their global travel needs, which in turn keeps our guests within our network and loyalty program. I am excited to see this area of our commercial initiatives continue to grow and drive incremental benefit in line with our goals to enable 8% to 10% of our total revenues through Alliance Partners.

雖然我們知道合作夥伴支持的銷售可以為我們的網絡帶來積極的收益貢獻，但直銷還提供了一種低成本的分銷渠道，不僅可以支持我們的合作夥伴，還可以讓我們的客人確信阿拉斯加航空公司可以滿足他們的全球旅行需求，這反過來又讓我們的客人留在我們的網絡和忠誠度計劃中。我很高興看到我們的商業計劃在這一領域繼續發展，並根據我們的目標推動增量收益，即通過聯盟合作夥伴實現我們總收入的 8% 至 10%。

Turning to second quarter guidance. We have line of sight to delivering strong results above and beyond the record quarter we produced last year during the demand surge our industry experienced. For Q2, we expect total revenue to be up 2.5% to 5.5% year-over-year on capacity that is up 6% to 9%. While we experienced softness in close-in bookings in January and February, which is understandable given the lack of business travel that usually materializes during this period, we exited March seeing improved performance across the booking curve. Near term, we continue to see strength in demand with held yields sitting above both 2019 and 2022 levels as we move into the second quarter.

轉向第二季度指導。在我們行業經歷的需求激增期間，我們有望實現超越去年創造的創紀錄季度的強勁業績。對於第二季度，我們預計總收入將同比增長 2.5% 至 5.5%，運力將增長 6% 至 9%。雖然我們在 1 月和 2 月經歷了近距離預訂的疲軟，但考慮到在此期間通常不會出現商務旅行，這是可以理解的，但我們在 3 月退出時看到整個預訂曲線的表現有所改善。短期內，隨著我們進入第二季度，我們繼續看到需求強勁，持有的收益率高於 2019 年和 2022 年的水平。

My team is doing a great job optimizing the load and yield equation as capacity and demand remains more stable this year compared to last. I'm very excited to have Kirsten Amrine step into a new VP role overseeing both revenue management and network planning. Kirsten has spent her 16 years at Air Group in various roles in revenue management. Her deep knowledge and expertise have been an asset as we constantly learn how to manage our inventory to account for new shifts in booking patterns and make network adjustments going forward.

我的團隊在優化負載和產量等式方面做得很好，因為今年的容量和需求與去年相比更加穩定。我很高興 Kirsten Amrine 擔任新的副總裁一職，負責監督收入管理和網絡規劃。 Kirsten 在 Air Group 工作了 16 年，擔任過收入管理方面的各種職務。她深厚的知識和專業知識一直是我們的資產，因為我們不斷學習如何管理我們的庫存以應對預訂模式的新變化並進行網絡調整。

Brett Catlin has done a fantastic job at managing our network for the last 4 years, and he will be taking on direct responsibility for our loyalty and credit card programs, corporate sales and continuing his alliance responsibilities. These leadership changes will ensure that the commercial organization stays laser focused and coordinated on these critical revenue-generating levers. As Ben mentioned, our growth this year is primarily being driven by gauge and stage, a highly efficient form of expansion.

Brett Catlin 在過去 4 年中在管理我們的網絡方面做得非常出色，他將直接負責我們的忠誠度和信用卡計劃、企業銷售並繼續他的聯盟責任。這些領導層變動將確保商業組織在這些關鍵的創收槓桿上保持高度專注和協調。正如 Ben 所提到的，我們今年的增長主要是由規模和階段驅動的，這是一種高效的擴張形式。

Having returned to pre-pandemic levels of capacity at a system level, we are focused on building network depth in Portland and working to fully restore our network in many California markets. Looking to the remainder of the year, we.

在系統級別恢復到大流行前的容量水平後，我們專注於在波特蘭建立網絡深度，並努力在許多加利福尼亞市場全面恢復我們的網絡。展望今年剩餘時間，我們。

Are poised to produce strong results as we rebuild our network, upgauge efficiently and refine our revenue capabilities within this evolving demand environment. Importantly, we are performing in line with our internal targets and remain confident in delivering on our full year goals. We have proven product initiatives in place, and they will continue to drive value for our business as we move forward. And with that, I'll pass it over to Shane.

在這個不斷變化的需求環境中重建我們的網絡、有效地升級和完善我們的收入能力時，我們準備好產生強勁的結果。重要的是，我們的表現符合我們的內部目標，並對實現我們的全年目標充滿信心。我們已經實施了經過驗證的產品計劃，隨著我們的前進，它們將繼續為我們的業務創造價值。有了這個，我會把它傳遞給 Shane。

Thanks, Andrew, and good morning, everyone. As Ben mentioned, we experienced improved stability to the business this quarter, which was good to see. In my experience, the biggest challenge to operational and cost management historically has been volatility. And as that volatility subsides, our ability to drive consistent operational and cost improvements is enhanced. I'm encouraged that we were able to start the year with financial performance, absent fuel price impacts within our original guidance ranges. Alaska has a long history of delivering on our commitments and guidance, and we are focused on doing so again in the second quarter and for the full year.

謝謝，安德魯，大家早上好。正如 Ben 所提到的，本季度我們的業務穩定性有所提高，這是件好事。根據我的經驗，歷史上運營和成本管理面臨的最大挑戰是波動性。隨著這種波動性的消退，我們推動持續運營和成本改進的能力得到增強。我感到鼓舞的是，我們能夠以財務業績開始今年，在我們最初的指導範圍內沒有燃油價格影響。阿拉斯加在履行我們的承諾和指導方面有著悠久的歷史，我們專注於在第二季度和全年再次這樣做。

Turning to our balance sheet and liquidity. We remain well positioned with both. Our debt to cap finished the quarter at 48% and our net debt-to-EBITDAR stood below 1 turn at 0.8x. Both of these metrics are within our long-term target ranges. Debt payments were approximately $100 million for the quarter and are expected to be $50 million and $100 million in the second and third quarters, respectively. We generated $222 million in cash flow from operations during the quarter, while total liquidity inclusive of on-hand cash and undrawn lines of credit was a healthy $2.8 billion at quarter end.

轉向我們的資產負債表和流動性。我們在這兩個方面都處於有利地位。我們本季度的債務上限為 48%，我們的淨債務與 EBITDAR 的比率低於 1 倍，為 0.8 倍。這兩個指標都在我們的長期目標範圍內。本季度的債務支付額約為 1 億美元，預計第二季度和第三季度的債務支付額分別為 5000 萬美元和 1 億美元。本季度我們從運營中產生了 2.22 億美元的現金流，而包括手頭現金和未提取信貸額度在內的總流動性在本季度末為 28 億美元。

As our business normalizes and we continue to pay for aircraft deliveries, we will anchor toward the higher end of our target liquidity range of 15% to 25% of revenue or around $2 billion to $2.4 billion, inclusive of lines of credit. Our trailing 12-month return on invested capital surpassed double digits and closed the quarter at 10.6%. The last time we achieved double-digit trailing 12-month ROIC was, not surprisingly, February of 2020. It's nice for this metric to, once again, be well above our cost of capital, and our goal is to now remain above 10% and grow from there.

隨著我們的業務正常化和我們繼續支付飛機交付費用，我們將錨定我們目標流動性範圍的較高端，即收入的 15% 至 25% 或約 20 億至 24 億美元，包括信貸額度。我們過去 12 個月的投資資本回報率超過兩位數，本季度末達到 10.6%。毫不奇怪，我們上一次實現兩位數的 12 個月 ROIC 是在 2020 年 2 月。很高興這個指標再次遠高於我們的資本成本，我們的目標是現在保持在 10% 以上並從那裡成長。

We also restarted our share repurchase program this quarter and have spent approximately $23 million year-to-date, a marker on our way to returning to our long-term capital allocation goals. Turning to the performance of the business. We executed to our plan in the quarter, again, absent fuel price. First quarter CASMex was down 1% year-over-year on capacity up 14%, both within our guided ranges. Our teams did an excellent job delivering on their internal targets with the only source of significant variance being the cost of challenging winter weather that Ben mentioned, which was approximately $8 million of cost of the $13 million total impact.

我們還在本季度重啟了我們的股票回購計劃，今年迄今已經花費了大約 2300 萬美元，這是我們回歸長期資本配置目標的標誌。轉向業務績效。我們在本季度再次執行了我們的計劃，沒有燃油價格。第一季度 CASMex 同比下降 1%，運力增長 14%，均在我們的指導範圍內。我們的團隊在實現內部目標方面做得非常出色，唯一的重大差異來源是 Ben 提到的具有挑戰性的冬季天氣的成本，在 1300 萬美元的總影響中，這大約是 800 萬美元的成本。

Our completion rate exceeded our goal, while daily aircraft utilization increased 14% year-over-year, helping us return to pre-pandemic capacity. With the retirement of our A320s and Q400s in January, our total aircraft count was down 29 aircraft yet ASMs were up 14% versus Q1 2022, demonstrating the impact of both utilization and the benefits of our upgauging strategy. It's worth acknowledging that our capacity was at the high end of our guide and our CASMex fuel was just below our midpoint. I would like to see us return to our historical pattern of matching capacity outperformance with commensurate cost outperformance, and I'm confident we will ultimately see this. We are wholly focused on continuing to rebuild this muscle over the next several quarters.

我們的完成率超出了我們的目標，而每日飛機利用率同比增長 14%，幫助我們恢復到大流行前的運力。隨著我們的 A320 和 Q400 在 1 月份退役，我們的飛機總數減少了 29 架，但 ASM 比 2022 年第一季度增加了 14%，這證明了利用率的影響和我們升級戰略的好處。值得承認的是，我們的容量處於指南的高端，而我們的 CASMex 燃料剛好低於我們的中點。我希望看到我們回到我們的歷史模式，即匹配容量表現與相應的成本表現相匹配，我相信我們最終會看到這一點。我們完全專注於在接下來的幾個季度中繼續重建這種力量。

Fuel was a clear headwind in the first quarter. While crude prices were between $70 and $80 per barrel during the quarter, refining margins continued to be particularly volatile. Although they have been more stable in the past few weeks at what I would view as reasonable levels. Our first quarter fuel price was $3.41 per gallon versus our original guidance midpoint of $3.25 and versus $2.62 last year. This added more than $30 million of cost versus our guide, which equated to approximately 150 basis points in margin impact.

燃料在第一季度是一個明顯的逆風。雖然本季度原油價格在每桶 70 美元至 80 美元之間，但煉油利潤率繼續特別不穩定。儘管過去幾週它們在我認為合理的水平上更加穩定。我們第一季度的燃油價格為每加侖 3.41 美元，而我們最初的指導中點為 3.25 美元，去年為 2.62 美元。與我們的指南相比，這增加了超過 3000 萬美元的成本，這相當於對利潤率的影響大約 150 個基點。

For the second quarter, we estimate our price per gallon will be between $2.95 and $3.15. We hope this is a conservative guide as month-to-date, our all-in per gallon price is close to the $2.95 low end of our guide. At any fuel price within our range, we have line of sight to solid double-digit pretax margins for the quarter with any additional price favorability contributing direct upside opportunity to our results.

對於第二季度，我們估計每加侖的價格將在 2.95 美元到 3.15 美元之間。我們希望這是本月迄今的保守指南，我們的每加侖總價接近我們指南的 2.95 美元低端。在我們範圍內的任何燃料價格下，我們都可以看到本季度穩定的兩位數稅前利潤率，任何額外的價格優惠都會為我們的業績帶來直接的上行機會。

Turning to capacity and cost guidance. We expect capacity to be up 6% to 9% versus Q2 2022, and CASMex to be up 1% to 3%. While lower than the 14% year-over-year capacity increase in the first quarter, when comparing to 2019, our Q2 and first half capacity is roughly flat while we expect to step up to low single-digit growth in the back half of the year. From a cost standpoint, the first quarter year-over-year comparison benefited from $35 million of lease return costs rolling off, while this is not the case for the second quarter.

轉向容量和成本指導。我們預計與 2022 年第二季度相比，運力將增長 6% 至 9%，CASMex 將增長 1% 至 3%。雖然低於第一季度 14% 的同比運力增長，但與 2019 年相比，我們的第二季度和上半年運力大致持平，而我們預計下半年將實現低個位數增長年。從成本的角度來看，第一季度的同比比較得益於 3500 萬美元的租賃返還成本的下降，而第二季度的情況並非如此。

Along with lower sequential year-over-year growth, we have a slightly tougher cost comparison set up this quarter. For the full year, we still expect to reduce unit costs 1% to 3% as we drive productivity improvements, leverage the restoration of our full network and lap labor deals in the back half of the year. Regarding our fleet transition, September 2023 will be the final month we operate the Airbus fleet. At which point, we will retire the last 10 A321s from what was at one point a 72 aircraft fleet. This cements our future as a single fleet operator by 2024. And as a result of this acceleration, we expect to incur approximately $300 million to $350 million in special fleet transition charges through the end of the year.

除了較低的環比同比增長，我們在本季度進行了稍微嚴格的成本比較。對於全年，我們仍預計將在今年下半年推動生產力提高、利用整個網絡的恢復和勞務交易將單位成本降低 1% 至 3%。關於我們的機隊過渡，2023 年 9 月將是我們運營空客機隊的最後一個月。屆時，我們將從曾經擁有 72 架飛機的機隊中退役最後 10 架 A321。這鞏固了我們到 2024 年作為單一車隊運營商的未來。由於這種加速，我們預計到今年年底將產生大約 3 億至 3.5 億美元的特殊車隊過渡費用。

By fully retiring the Airbus fleet at the end of the third quarter, we expect all of our pilot training and associated transition costs should now be completed by year-end with very little spillover into 2024. We will plan to transition the remaining Airbus pilots in the fourth quarter of this year, which will set us up for a clean 2024 from a pilot training and dual fleet cost headwind standpoint. We still expect to deliver 8% to 10% capacity growth this year.

通過在第三季度末完全退役空中客車機隊，我們預計我們所有的飛行員培訓和相關的過渡成本現在應該在年底前完成，幾乎不會影響到 2024 年。我們將計劃在今年第四季度，從飛行員培訓和雙機隊成本逆風的角度來看，這將使我們為 2024 年做好準備。我們仍然預計今年將實現 8% 至 10% 的產能增長。

As we've mentioned before, following the setbacks we experienced last year, we derisked our 2023 capacity plan considerably and we'll remain conservative in our capacity commitments as we protect stability and prioritize reliability in our operation. which essentially means that we may continue to perform at the higher end of our guided capacity range if our completion rate continues to be strong.

正如我們之前提到的，在經歷了去年的挫折之後，我們大大降低了 2023 年容量計劃的風險，並且在我們保護穩定性並優先考慮運營可靠性的同時，我們將在容量承諾方面保持保守。這實質上意味著，如果我們的完成率繼續保持強勁，我們可能會繼續在指導能力範圍的較高端表現。

In closing, our management team has been very intentional in setting targets and ensuring we execute the steps necessary to deliver on them. We know we still have work to do. but we are encouraged by our recent results and are optimistic about the second and third quarters, which are our peak performance periods. We remain at the belief that we have core competitive advantages, the right business model and the right strategic initiatives to continue to drive outperformance versus our peers in whatever economic backdrop we encounter. And with that, let's go to your questions.

最後，我們的管理團隊一直非常有意識地設定目標並確保我們執行實現這些目標所需的步驟。我們知道我們還有工作要做。但我們對最近的業績感到鼓舞，並對第二和第三季度感到樂觀，這是我們的業績高峰期。我們仍然堅信，我們擁有核心競爭優勢、正確的商業模式和正確的戰略舉措，可以在我們遇到的任何經濟背景下繼續推動超越同行的業績。有了這個，讓我們回答你的問題。

(Operator Instructions) And our first question today comes from Savi Syth with Raymond James.

（操作員說明）我們今天的第一個問題來自 Savi Syth 和 Raymond James。

I wonder if you could talk about -- a little bit about what you're seeing in terms of kind of pass into travel changes versus pre-pandemic in terms of booking curve, seasonality, day of week or destination. Just curious on how that's progressing and how that's impacting how you're forecasting things.

我想知道你是否可以談談 - 就預訂曲線、季節性、星期幾或目的地而言，你所看到的旅行變化與大流行前的比較。只是想知道它是如何進展的，以及它是如何影響你預測事情的方式的。

Savi, we're still working and observing a we build back. But a couple of things I will share is that number one, I think the booking curve is back sort of to 2019 levels. So we're sort of seeing leisure booked further out again. So that's the first thing. I think second thing on the big day of week changes, Friday and Sunday are still CASM Kings. They generate the highest unit revenues of the week, but we've seen Saturday take a step change up, and that's been one of the strongest increase in unit revenue days of week. And so flying a bit more on Saturdays. I think Wednesday Tuesday are the weakest and then sort of Thursdays on Mondays. Another big change that's occurred is sort of the advanced booking window.

Savi，我們仍在努力並觀察我們的重建。但我要分享的幾件事是，第一，我認為預訂曲線有點回到 2019 年的水平。所以我們看到休閒活動再次被預訂得更遠。所以這是第一件事。我認為一周中重要日子的第二件事發生了變化，週五和周日仍然是 CASM Kings。他們產生了本週最高的單位收入，但我們已經看到星期六發生了變化，這是一周中單位收入增長最強勁的日子之一。所以周六多飛一點。我認為周三週二是最弱的，然後是周一的周四。發生的另一個重大變化是高級預訂窗口。

I think in my career, I've never seen 30-day advanced purchase barriers that have gone up. And we're seeing that across our network which sort of leads me to believe that essentially business travelers are actually booking further out than they have historically. And then the last thing I would mention as Ben has well articulated is we need to do a much better job at matching supply and demand and what seems to be a weaker January and February with business traffic essentially down 25% at this time.

我認為在我的職業生涯中，我從未見過 30 天提前購買壁壘上升的情況。我們在我們的網絡中看到了這一點，這讓我相信，從本質上講，商務旅客實際上比以往更遠地預訂了。然後我要提到的最後一件事，正如 Ben 所說的那樣，我們需要在匹配供需方面做得更好，而且 1 月和 2 月似乎較弱，此時業務流量基本上下降了 25%。

That's helpful color. And then if I might, on the fleet transition, the special charge that you talked about, is any of that cash this year? And just if you could talk a little bit more about how that transition went in the kind of the first part with the A320s and how that's informing how you do the A321 transition?

這是有用的顏色。然後，如果我可以的話，關於機隊過渡，你談到的特殊費用，今年有現金嗎？如果你能多談談 A320 在第一部分的那種過渡是如何進行的，以及它如何通知你如何進行 A321 過渡？

Savi, this is Emily. I will start on the cash, and then I'll hand it over to Nat to talk more about the fleet transition itself. Some of the cash will hit this year. I expect most of it -- most of what Shane mentioned, the 300 to 350 to hit over the next 12 months. We also have some cash that will be incurred this year related to the accruals that were taken last year. So as we work through the remainder of the A320 transition, it's all through the P&L already, but the cash is still going to be incurred in 2023.

薩維，這是艾米麗。我將從現金開始，然後我會把它交給 Nat 來更多地討論艦隊過渡本身。一些現金將在今年出現。我預計其中的大部分——Shane 提到的大部分，300 到 350 將在未來 12 個月內達到。我們還有一些現金將在今年產生，這些現金與去年的應計費用有關。因此，當我們完成 A320 過渡的剩餘部分時，它已經完成了損益表，但現金仍將在 2023 年產生。

And Savi, on the A321s, it's Nat. We're really excited as you gather from Shane, from Ben, from Andrew, really everybody at Air Group to get this fleet transition done and get to single fleet as fast as we can. The op plan is in motion. And now the last hurdle we've got to get over is to come up with an A321 exit plan, and we're getting close. Late-stage discussions with a bunch of parties, lessors, financial firms, other airlines, and our objective is to paper the transaction for the 10 aircrafts by the end of the second quarter. And we're confident the way we've structured it that we'll come out on an NPV and cash flow positive basis versus parking the aircraft to maturity and just making lease payments until then.

Savi，在 A321 上，是 Nat。當您從 Shane、Ben、Andrew 和 Air Group 的每個人那裡聚集在一起，完成機隊過渡並儘快實現單一機隊時，我們感到非常興奮。行動計劃正在進行中。現在我們必須克服的最後一個障礙是製定 A321 退出計劃，我們已經接近尾聲了。與多方、出租人、金融公司和其他航空公司進行後期討論，我們的目標是在第二季度末完成這 10 架飛機的交易。而且我們對我們構建它的方式充滿信心，我們將在 NPV 和現金流為正的基礎上出來，而不是將飛機停放至到期並在此之前只支付租賃費用。

Your next question comes from Conor Cunningham with Melius Research.

您的下一個問題來自 Melius Research 的 Conor Cunningham。

So the implied exit rate on cost is obviously awesome, but can you just speak to how you get to the high and low end of the full year guide? The reason why I ask is that the ARC seems -- the ARC in improvement seems pretty steep from up to the -- I think you're implying basically like down 6% in the fourth quarter. So I just want to understand the puts and takes and how you get there?

所以隱含的成本退出率顯然很棒，但你能談談你是如何達到全年指南的高端和低端的嗎？我問的原因是 ARC 似乎——ARC 的改善似乎非常陡峭——我認為你的意思是第四季度基本上下降了 6%。所以我只想了解看跌期權和看跌期權以及您如何到達那裡？

Conor, it's Shane. Yes, I think the biggest driver of the second half performance trend is going to be the lapping of labor deals. I think we talked about this the last couple of quarters. We've got about $75 million, $80 million of structural cost increase due to the 6 labor deals we signed last year, they start to lap in August, but the biggest one, of course, is our pilot deal that really starts to lap in Q4. So we'll be fully through the comp headwinds by the fourth quarter. That's the biggest one.

康納，是謝恩。是的，我認為下半年業績趨勢的最大推動力將是勞資交易的達成。我想我們在過去幾個季度討論過這個問題。由於我們去年簽署的 6 份勞務協議，我們有大約 7500 萬美元、8000 萬美元的結構性成本增加，它們在 8 月開始生效，但最大的當然是我們真正開始生效的試點協議Q4.因此，我們將在第四季度之前完全克服不利因素。那是最大的一個。

I think the other thing just to realize is as we grew the first quarter of this year on an absolute basis over the fourth quarter of last year. We held extra resources to do that. We typically go down in capacity Q4 to Q1. We stress the operation a bit and we made sure we had ample additional sort of resource to ensure that we didn't take a hit on completion rate or operational performance, which we did a really good job on the operations. So I think as we go forward, we'll get a little more productive with our resources, and then we'll start to lap these large labor deals.

我認為另一件要意識到的事情是，我們今年第一季度的絕對增長超過了去年第四季度。我們擁有額外的資源來做到這一點。我們通常會在第 4 季度到第 1 季度降低產能。我們稍微強調了運營，並確保我們有足夠的額外資源來確保我們不會對完成率或運營績效造成影響，我們在運營方面做得非常好。所以我認為，隨著我們的前進，我們會利用我們的資源提高生產力，然後我們將開始進行這些大型勞務交易。

Okay. Helpful. And then on the -- I think last quarter, there was like endless discussion between the link of fuel and revenue. Today, obviously, sure a lot lower than where it was in January. So you're reiterating your unit revenue assumptions, I think, for the full year. So I'm just trying to understand, why wouldn't we be at the lower end of the range of jet fuels here? I know that you have a lot going on. So maybe you could just talk a little bit about the revenue drivers that you have that could offset some of that.

好的。有幫助。然後在 - 我認為上個季度，燃料和收入之間的聯繫就像無休止的討論。顯然，今天肯定比 1 月份低很多。所以你重申了你全年的單位收入假設。所以我只是想了解，為什麼我們不處於噴氣燃料範圍的低端？我知道你有很多事情要做。所以也許你可以談談你擁有的可以抵消其中一些收入的驅動因素。

Conor, I'll start on the fuel. I think what -- I think we've always sort of felt like unit revenue is going to be more a function of capacity. Capacity may be more a function of economic sort of backdrop that economic backdrop probably is what drives fuel. But I think our sort of full year expectation for fuel was in the $3.15 range or $3.20 range. We haven't decided that it's going to be materially below that yet. You can see our Q2 guidance is a little bit below that, but certainly above what we're paying today. If we sort of felt like there was a lot of confidence that fuel was trending below $2.90 or something, yes, I think then we might have a slightly different perspective on unit revenues.

康納，我要開始加油了。我認為 - 我認為我們一直覺得單位收入將更多地取決於產能。容量可能更多地是經濟背景的函數，經濟背景可能是驅動燃料的因素。但我認為我們對燃料的全年預期在 3.15 美元或 3.20 美元範圍內。我們還沒有決定它會大大低於這個水平。你可以看到我們的第二季度指導略低於此，但肯定高於我們今天支付的價格。如果我們覺得有很大的信心燃料趨勢低於 2.90 美元或類似的東西，是的，我認為我們對單位收入的看法可能會略有不同。

But right now, we think it's too early to tell. Fuel has been super volatile. Refining margins have moved around a lot in the first quarter. So we just -- our sort of baseline expectation as what we originally guided to over the -- in the first part of the year, which is fuel in the $3.10 and change in unit revenues roughly flat for the full year.

但現在，我們認為現在下結論還為時過早。燃料非常不穩定。第一季度煉油利潤率波動很大。因此，我們只是 - 我們的基線預期與我們最初指導的一樣 - 在今年上半年，這是 3.10 美元的燃料，全年單位收入的變化大致持平。

Our next question will come from Brandon Oglenski with Barclays.

我們的下一個問題將來自巴克萊銀行的 Brandon Oglenski。

Andrew, I was wondering if you could come back to your comments about sequential RASM here and looking at it year-over-year as well. Looks like you're going to be up sequentially, but maybe down from where you were in 2Q '22. Can you talk to that dynamic?

安德魯，我想知道你是否可以在這裡回到你對順序 RASM 的評論，並逐年查看它。看起來你會按順序上升，但可能會比你在 2022 年第二季度的位置下降。你能和那個動態談談嗎？

Yes. I mean, I think, well, sequentially from Q1 to Q2, you see an absolute unit revenue increase of about 14.5% on sort of giving our seasonality. And as we've sort of shared, I think where we're at right now is our growth is obviously 9-plus percent as we move forward. And so essentially, our goal is to bring in traffic in line with our capacity growth at higher -- at essentially revenue -- at unit revenues that were essentially at the same level we achieved last year. So you're going to see them start to come down a little bit. We have, obviously, very tough comps, but I think big picture for us, the volumes are coming in as we sit here on Q2. And we're maintaining, give or take, a few points, our unit revenue increases that we achieved last year. So that's what goes into the guide, and that's how we feel pretty good about the second quarter.

是的。我的意思是，我認為，從第一季度到第二季度，您會看到絕對單位收入增長了約 14.5%，這是由於我們的季節性因素所致。正如我們分享的那樣，我認為我們現在所處的位置是，隨著我們前進，我們的增長率顯然超過 9%。因此，從本質上講，我們的目標是使流量與我們的容量增長保持一致——基本上是收入——單位收入基本上與我們去年達到的水平相同。所以你會看到它們開始下降一點。顯然，我們有非常艱難的競爭，但我認為對我們來說是大局，當我們坐在第二季度時，交易量正在增加。我們維持，給予或接受，幾個點，我們去年實現的單位收入增長。這就是指南中的內容，這就是我們對第二季度感覺很好的方式。

Okay. I appreciate that. And then can you give us any detail on business travel trends in your network, especially given Silicon Valley Bank in March?

好的。我很感激。然後您能否向我們提供有關您網絡中商務旅行趨勢的任何詳細信息，尤其是考慮到 3 月份的矽谷銀行？

Yes. I think on a macro level, and again, I just went back and looked at the ARC data as well as our own data around the weeks of all of that. And essentially, the booking levels, there's blips here and there, but they've sort of really been stuck at this back in our network at least 75% with revenues closer to 85% and 90%. And I think as we look forward, we're not forecasting it, but we're hoping to see as we move past some of these little shocks to the system that business travel comes back a little bit better than the 75% it's been at, but we're not expecting it.

是的。我認為在宏觀層面上，我又一次回過頭來查看 ARC 數據以及我們自己在這幾週內的數據。從本質上講，預訂水平，到處都是光點，但在我們的網絡中，他們確實停留在這一點上，至少 75%，收入接近 85% 和 90%。我認為，在我們展望未來時，我們並不是在預測它，但我們希望看到，當我們擺脫對系統的這些小衝擊時，商務旅行會比之前的 75% 好一點。 ，但我們並不期待它。

And we'll hear next from Ravi Shanker with Morgan Stanley.

接下來我們將聽到摩根士丹利的 Ravi Shanker 的講話。

The last response, you said in your prepared remarks that West Coast corporate travel is an opportunity for you and I completely agree. But at what point do you kind of say that, hey, that's taking too long or maybe that's just structurally not coming back as much as you think kind of given the job cuts there. I was wondering, do you envision a point where you're structurally thinking of moving away from West Coast corporate as much exposure as you've had and moving more towards a leader traveler?

最後一個回复，你在準備好的發言中說西海岸商務旅行對你來說是一個機會，我完全同意。但是在什麼時候你會說，嘿，這花了太長時間，或者可能只是在結構上沒有像你想像的那樣回歸，因為那裡裁員了。我想知道，你是否設想過這樣一個時刻，你會在結構上考慮從西海岸的企業中盡可能多地離開，並更多地轉向領先的旅行者？

That's actually a really good question, Ravi. I think where we are, for now, is that the close-in volumes aren't there. And so we're going to be biasing towards building the volumes outside of the typical business window. Actually, right now, leisure revenues are up about 130% versus 2019, very, very strong. And so we're going to continue to capitalize on that and watch that. And I think on the network side, some of the hub to hub heavy traditional business traffic markets, we're going to sort of trim back and maybe put that capacity elsewhere. So again, we're watching it. But I think that's going to be a big question as we move forward through this year.

這實際上是一個非常好的問題，Ravi。我認為，就目前而言，我們所處的位置是不存在收盤量。因此，我們將偏向於在典型業務窗口之外構建容量。實際上，與 2019 年相比，休閒收入目前增長了約 130%，非常非常強勁。因此，我們將繼續利用這一點並加以關注。而且我認為在網絡方面，一些樞紐到繁重的傳統業務流量市場，我們將進行某種程度的削減，並可能將這種能力放在其他地方。所以，我們再次關注它。但我認為隨著我們今年的前進，這將成為一個大問題。

Got it. That's helpful. And maybe as a follow-up. Kind of given your West Coast alliance and as a part of oneworld, how do we think about China reopening as a potential tailwind for you guys over the next 12 months? Kind of how do you size the multiplier effect of domestic travel once you have people coming in through the West Coast hubs?

知道了。這很有幫助。也許作為後續行動。考慮到你們的西海岸聯盟並且作為 oneworld 的一部分，我們如何看待中國在未來 12 個月內重新開放對你們來說是一個潛在的順風？一旦人們通過西海岸樞紐進入，您如何衡量國內旅行的乘數效應？

Ravi, it's Nat Pieper. Great question on China. And I can't speak specifically to that as we're kind of watching that with all of our Alliance Partners. What I can say is that we're really optimistic and bullish with the oneworld feed and linking our West Coast network to our partners, whether it's nonstop flights into Seattle, Japan Airlines to Tokyo, Finnair to Helsinki and then Los Angeles with Iberia. We're really seeing a lot of pickup and a lot of incremental revenue that's getting there. So as China opens over time, we'd expect to participate in that through our partners.

拉維，我是納特·皮珀。關於中國的好問題。我不能具體說明這一點，因為我們正在與我們所有的聯盟合作夥伴一起關注這一點。我能說的是，我們非常樂觀和看好 oneworld 提要，並將我們的西海岸網絡與我們的合作夥伴聯繫起來，無論是直飛西雅圖、日本航空公司飛往東京、芬蘭航空公司飛往赫爾辛基，然後是洛杉磯與 Iberia 的直飛航班。我們真的看到了很多回升和大量的增量收入。因此，隨著中國隨著時間的推移開放，我們希望通過我們的合作夥伴參與其中。

We'll move next to Andrew Didora with Bank of America.

我們將搬到美國銀行的 Andrew Didora 旁邊。

Andrew, just can you talk to how recovered your California market is right now? How do you think about the build up here? And we've actually heard anecdotally over the last few days from several folks just -- and seeing transcon fares pretty weak. What kind of dynamic do you think is going on there that from your seat?

安德魯，你能談談你的加州市場現在恢復得如何嗎？您如何看待這裡的建設？實際上，在過去幾天裡，我們從幾個人那裡聽到了軼事——並且看到 transcon 票價非常疲軟。您認為您的座位上正在發生什麼樣的動態？

Yes. I think we talk in macro levels about our growth and getting back flat with '19. The reality is Seattle is actually healthily above 2019. And the rest of the network and specifically California is still below 2019. And so in some respects, I think that's the right place to be. I think on a year-over-year basis, we've actually, in our network, at least being very happy with our unit revenue performance in the California market because we are building ourselves back to a stronger place. And so at the highest level, your comments are actually absolutely true. I think for us internally, we feel good that our California network is actually improving.

是的。我認為我們在宏觀層面上談論我們的增長並與 19 年持平。現實是西雅圖實際上健康地高於 2019 年。而網絡的其餘部分，特別是加利福尼亞州仍低於 2019 年。所以在某些方面，我認為這是正確的地方。我認為與去年同期相比，我們實際上在我們的網絡中至少對我們在加利福尼亞市場的單位收入表現非常滿意，因為我們正在建設自己回到更強大的地方。因此，在最高層面上，您的評論實際上是絕對正確的。我認為對我們內部而言，我們對我們的加利福尼亞網絡實際上正在改善感到高興。

Got it. And then thoughts on transcon?

知道了。然後是關於 transcon 的想法？

California transCon?

加利福尼亞州反壟斷局？

Yes.

是的。

Yes. Again, I think especially with our partnership with American and part of oneworld, we've got code on these flights, especially out of the Bay Area that's really helping. And I think we'll see what happens this summer, although it's not specifically West Coast, but I think the general New York areas, some of the slots are being pulled down a little bit. But again, I think we're in a better position than we were certainly last year as it relates to the transcon markets.

是的。再一次，我認為特別是通過我們與美國航空和 oneworld 的一部分的合作，我們已經獲得了這些航班的代碼，尤其是在真正有幫助的灣區之外。而且我認為我們會看到今年夏天會發生什麼，雖然它不是專門針對西海岸，但我認為整個紐約地區，一些時段正在被拉低一點。但同樣，我認為我們處於比去年更好的位置，因為它與 transcon 市場有關。

Got it. Understood. And then, Shane, what would have to happen for you to consider buying back more stock than just for dilution purposes?

知道了。明白了。然後，Shane，如果你考慮回購更多股票而不僅僅是為了稀釋目的，你會發生什麼情況？

Andrew, I might just add one thing. I think your sort of implication of the question is California is somewhat weaker in terms of recovery than a lot of the rest of the country. And I think that's generally true. We've done a good job putting the right supply in there, but it's all upside for us. And I think we're feeling good because we've got a chance to still be the industry's top margin producer and further upside when California does recover. It's the sixth largest economy in the world. It's going to come back...

安德魯，我可以補充一件事。我認為你這個問題的含義是加州在復蘇方面比美國其他許多地區要弱一些。我認為這通常是正確的。我們在提供合適的供應方面做得很好，但這對我們來說都是有利的。而且我認為我們感覺很好，因為我們有機會仍然是該行業最大的利潤生產商，並在加利福尼亞確實復甦時進一步上漲。它是世界第六大經濟體。它會回來的...

I wasn't saying that it was unexpectedly weak. I was just curious where it was in the recovery?

我並不是說它出乎意料地弱。我只是好奇它在恢復中的什麼位置？

Got you. No, I appreciate that. Yes, I think we're -- I think if we continue to trade at prices that we believe are a really good value, which is what we believe about our stock price today, we'll have a bias to do more than just dilution throughout the year. So we'll continue to talk about that internally and with our Board. But I think if prices are where they are today, we'll probably be more aggressive in the second quarter.

明白了不，我很感激。是的，我認為我們 - 我認為如果我們繼續以我們認為非常有價值的價格進行交易，這就是我們對今天股價的看法，我們將傾向於做更多的事情而不僅僅是稀釋全年。因此，我們將繼續在內部和我們的董事會討論這個問題。但我認為，如果價格保持在今天的水平，我們可能會在第二季度更加激進。

Your next question will come from Catherine O'Brien with Goldman Sachs.

您的下一個問題將來自高盛的 Catherine O'Brien。

So maybe just one more on the revenue. Your guidance is implying a reacceleration in RASM in 2Q from 1Q on a versus '19 basis that helps us (inaudible) for seasonality there. Can you just walk us through what drove the deceleration from year-end into 1Q and what you're seeing today that gives you confidence in a better 2Q? Is that just higher leisure mix? Or is there anything else driving that improvement?

所以也許只有一個關於收入的問題。您的指導暗示 RASM 在第二季度從第一季度開始與 19 年相比重新加速，這有助於我們（聽不清）那裡的季節性。您能否向我們介紹一下是什麼推動了從年底到 1Q 的減速，以及您今天所看到的讓您對更好的 2Q 充滿信心？那隻是更高的休閒組合嗎？還是有其他因素推動了這種改進？

Catie, just to touch on Q2 first. We're actually -- we have 63% of the second quarter's revenues in the books right now. And I think as I look forward, looking at what we've been booking in the last few weeks, both on the yield side and the traffic side, it's sitting very nicely in our guide. I think from Q4 to Q1, obviously, growth in the first quarter was very significant at 14%. Also, obviously, in what is our weakest quarter being January and February. I think as it relates to January and February, I do think that -- and this is on me that we -- had we known differently, we probably would have structured and shaped the network a little differently in January and February. And of course, we had some very difficult weathering issues there as well that didn't help. But -- that's really a big part of the deceleration. But again, as you can see in the graphs, we're back on up. We're accelerating back into March, April, May and June, and I think we're on a good trajectory.

凱蒂，先談談第二季度。我們實際上 - 我們現在有第二季度收入的 63%。我認為，當我展望未來時，看看過去幾週我們在收益方面和交通方面的預訂情況，它在我們的指南中的位置非常好。我認為從第四季度到第一季度，顯然第一季度的增長非常顯著，達到 14%。此外，很明顯，我們最疲軟的季度是 1 月和 2 月。我認為這與 1 月和 2 月有關，我確實認為——我認為我們——如果我們知道的不同，我們可能會在 1 月和 2 月以不同的方式構建和塑造網絡。當然，我們在那裡也遇到了一些非常困難的風化問題，但沒有幫助。但是——這確實是減速的很大一部分。但同樣，正如您在圖表中看到的那樣，我們又回來了。我們正在加速回到三月、四月、五月和六月，我認為我們正處於良好的軌道上。

Great. And then maybe one for Shane. So based on your commentary on two half capacity growth and then your comments on being considerate on completion, it sounds like there's a decent chance you're going to come in at the higher end of capacity guide. Should that inform our view on how CASM ultimately comes in? Or there are offsets that higher capacity where we shouldn't assume coming in at the higher end of the capacity moves us towards the better end of the down 1 to 3 similar to what we just saw in the first quarter?

偉大的。然後也許是給 Shane 的。因此，根據您對兩個半容量增長的評論以及您對完成時考慮周到的評論，聽起來您很有可能進入容量指南的高端。這應該告訴我們關於 CASM 最終如何出現的觀點嗎？或者有抵消我們不應該假設進入容量高端的更高容量使我們朝著下降 1 到 3 的更好端移動，類似於我們在第一季度看到的情況？

And I tried to address this bit in my script. We were at the high end in Q1 of capacity. We have built conservatism into the capacity guide. We certainly have more planes and more resources that we could fly harder if we wanted to put more capacity into the system. We're going to continue to prioritize operational reliability and stability, and we're going to watch the economy closely. So I think I said in the script that if we continue to complete flights at a high level, we could easily be at the high end of that range. And I think that's an absolute true statement, and that's kind of where we would expect to be at this point. I don't think we should infer too much in terms of a change in our posture on unit costs.

我試圖在我的腳本中解決這個問題。我們在第一季度的產能處於高端。我們已將保守主義納入容量指南。我們當然有更多的飛機和更多的資源，如果我們想在系統中投入更多的容量，我們可以更努力地飛行。我們將繼續優先考慮運營的可靠性和穩定性，我們將密切關注經濟。所以我想我在劇本中說過，如果我們繼續以高水平完成飛行，我們很容易達到該範圍的高端。我認為這是一個絕對正確的陳述，這就是我們目前所期望的位置。我認為我們不應該根據我們對單位成本的態度變化做出太多推斷。

Our goal long term would be to be on the high end of the capacity range and the low end of the CASMex range. That's where we want to get back to. We didn't do that in Q1. I think we'll get there. It's just a matter of rebuilding this muscle we need stability in the operation, which we now have. We need to lap some of the headwinds that we've got, which we're going to do. And I don't think we've forgotten how to work the cost muscle. We just need some time to go do it. And that's what we're going to focus on this year. And by the end of the year, I think we'll be in a position to outperform capacity and be on the better end of our CASM guides as well.

我們的長期目標是處於容量範圍的高端和 CASMex 範圍的低端。這就是我們想要回到的地方。我們在第一季度沒有這樣做。我想我們會成功的。這只是重建這塊肌肉的問題，我們需要在操作中保持穩定，我們現在已經擁有了。我們需要克服一些我們已經遇到的不利因素，我們將要做的。而且我認為我們沒有忘記如何處理成本問題。我們只是需要一些時間去做。這就是我們今年要關注的重點。到今年年底，我認為我們將能夠超越容量，並在我們的 CASM 指南中處於更好的位置。

Your next question comes from Duane Pfennigwerth with Evercore ISI.

您的下一個問題來自 Evercore ISI 的 Duane Pfennigwerth。

Just on the technology corporate recovery status one we've been looking for, for a while. I think you said 50% to 60%. Is that a revenue or a volume comment? And maybe you could just put it in context, was it at a higher level than that at any point last year? In other words, are you seeing any incremental weakness in tech business travel? Or is it kind of bouncing along the bottom where it has been for some time? .

就技術公司的複蘇狀態而言，我們一直在尋找一段時間。我想你說的是 50% 到 60%。這是收入還是評論量？也許你可以把它放在上下文中，它的水平是否比去年任何時候都高？換句話說，您是否看到科技商務旅行的任何增量弱點？還是它已經在底部反彈了一段時間？ .

Duane, it's Andrew. That's a volume metric that I just gave you. And there are some technology companies that are way worse than that and some that are actually way better than that. I think just going off memory, I think back in the third quarter of '22, I think we saw a resurgence a little bit of tech. And then we started to see it collapse by the back end of the year again. And just -- it just really has not changed. And my personal view is that literally, this is driven by the CFOs and a constraint on travel and budgets. And until that gets released, I don't think we're going to see an improvement.

杜安，是安德魯。這是我剛剛給你的體積指標。有些科技公司比這更糟糕，有些實際上比那更好。我想只是忘記了記憶，我想在 22 年第三季度，我認為我們看到了一點科技的複蘇。然後我們開始看到它在年底再次崩潰。只是 - 它真的沒有改變。我個人的觀點是，從字面上看，這是由首席財務官以及差旅和預算限制推動的。在發布之前，我認為我們不會看到任何改進。

It's Ben. Just on that, just being here on the West Coast and watching some of these big tech companies, mandate, return to office, new fiscal budgets coming. It's not in our forecast, but I think we just see a lot of upside going forward in the future. I think we're out of the trough, to answer your question, and we're hopeful that it gets better as these tech companies recover and get stable and then move forward with their business.

是本。就此而言，就在西海岸這裡，看著這些大型科技公司中的一些，強制執行，重返辦公室，新的財政預算即將出台。這不在我們的預測中，但我認為我們只是看到未來有很多上升空間。我認為我們已經走出低谷，回答你的問題，我們希望隨著這些科技公司的複蘇和穩定，然後繼續他們的業務，情況會變得更好。

Great. And then -- I appreciate that. And then just on revenue management generally and the trade-off between loads and yields any different approach going forward than maybe the one that you entered the March quarter with? And could you just contrast that approach right here and now versus how you thought about the world in 2019?

偉大的。然後——我很感激。然後就一般的收入管理以及負載和收益之間的權衡而言，與您進入 3 月季度時採用的方法相比，未來有什麼不同的方法嗎？您能否將此時此地的方法與您對 2019 年世界的看法進行對比？

Yes. That's -- you know what, for Kirsten and I, the load and yields trade-off is what keeps us up at night. It is a critical question. And I think really what we wrestle with on a daily basis is how much do we rely on the close-in both yields and volume. And to date, we've seen them be a little weaker versus -- certainly versus 2019. So I think as we continue to watch this, but I think when you go back to 2019, unit revenues were up a couple of points. Capacity was up a couple of points. It was a pretty stable nonexciting year per se, but I think the volatility that we've got going on and looking at how we manage these ebbs and flows is key. So I think as we go closer into summer and we are a high leisure carrier, and that's where we -- Q2 and specialty 3 is where we really do well. We're going to have to really wrestle with that question.

是的。那是——你知道嗎，對於克爾斯滕和我來說，負載和收益的權衡是讓我們徹夜難眠的原因。這是一個關鍵問題。而且我認為我們每天都在努力解決的問題是我們在多大程度上依賴於收盤價和交易量。到目前為止，我們已經看到它們比 - 當然比 2019 年要弱一些。所以我認為隨著我們繼續關注這一點，但我認為當你回到 2019 年時，單位收入上升了幾個百分點。容量提高了幾個點。這本身是一個相當穩定、平淡無奇的一年，但我認為我們所經歷的波動以及審視我們如何管理這些潮起潮落是關鍵。所以我認為隨著我們接近夏季，我們是一家高級休閒航空公司，這就是我們 - Q2 和專業 3 是我們真正做得好的地方。我們將不得不真正解決這個問題。

And your next question will come from Jamie Baker with JPMorgan.

你的下一個問題將來自摩根大通的傑米貝克。

Well, speaking of return to office mandates, here I am. So it's typically better to take local yields over connecting yields, just sort of a broader industry comment. But in light of this surging international demand dynamic right now year-on-year, is Alaska at a point where prioritizing fee to long-haul oneworld flights might make more economic sense? Or would that be sort of overstating the portion of the international [jury] that you take. I mean are you still better off chasing local yields in other words?

好吧，說到重返辦公室的任務，我來了。因此，通常最好採用本地收益率而不是連接收益率，這只是一種更廣泛的行業評論。但鑑於目前國際需求逐年激增，阿拉斯加是否處於優先考慮長途 oneworld 航班收費可能更具經濟意義的時刻？或者這會不會有點誇大了你在國際 [陪審團] 中所佔的比例。我的意思是，換句話說，你仍然更好地追逐當地收益嗎？

Jamie, it's a question that we're actually focused on right now. I will -- and I think we shared this on previous calls, but the traffic and the pro rates and the connecting and even the local from American is actually better than our system average. And so this is highly valuable traffic, especially with the surge in international. We have hired some international pricing folks as well. So as an RM team, we're getting more and more focus on this. As we shared at the highest level, 8% to 10% of all revenue coming from partners, International is obviously a subset of that, the domestic is obviously a much higher portion. But I do think that there is opportunity on certain markets and connecting markets to focus more on this area.

傑米，這是我們現在真正關注的問題。我會的——我想我們在之前的電話中分享過這一點，但交通和專業費率以及連接甚至來自美國的本地實際上都比我們的系統平均水平要好。因此，這是非常有價值的流量，尤其是在國際流量激增的情況下。我們也聘請了一些國際定價人員。因此，作為 RM 團隊，我們越來越關注這一點。正如我們在最高級別分享的那樣，8% 到 10% 的收入來自合作夥伴，國際顯然是其中的一個子集，國內顯然要高得多。但我確實認為某些市場和連接市場有機會更多地關注這一領域。

Okay. Interesting. And then second, when I think back to the start of COVID, One of the things that I wasn't initially thinking about or anticipating was the industry brain drain that has taken place. And maybe brain drain isn't the best term. I don't mean that in a derogatory sense, but gyrations in the C-suite, whatever you want to call it. As we think about your bench but also the broader industry, and I apologize I'm just kind of saying it out loud here, but is this a topic that your team gives much consideration to internally? And if it's a super question, just say so I'm sure my competitors will be thrilled.

好的。有趣的。其次，當我回想起 COVID 的開始時，我最初沒有考慮或預料到的一件事是已經發生的行業人才流失。也許人才流失不是最好的說法。我的意思不是貶義，而是 C-suite 中的旋轉，無論你想怎麼稱呼它。當我們考慮你的替補席以及更廣泛的行業時，我很抱歉我只是在這里大聲說出來，但這是你的團隊在內部考慮很多的話題嗎？如果這是一個超級問題，就這麼說吧，我相信我的競爭對手會很興奮。

No, Jamie, I would never say that's the dumb question. No, actually, it's a topic we talk about at the Board. As I look around the table here at my executives and my officers, we've had very -- we were fortunate, we've had very little turnover at the executive level at Alaska. But I think what you're talking about is an important topic is, how do you create a bench? How do you create succession? And it's something we're focused on and working on as we speak. So your question is valid. Again, short term, we're fortunate here. We haven't had that brain drain, but it's something to be aware of in the next 3 to 5 years.

不，傑米，我絕不會說這是個愚蠢的問題。不，實際上，這是我們在董事會討論的話題。當我環顧四周的高管和官員時，我們非常——我們很幸運，我們在阿拉斯加的高管層人員流動非常少。但我認為你所說的是一個重要的話題，你如何創造一個長凳？你如何創造繼承？這是我們在講話時關注和努力的事情。所以你的問題是有效的。同樣，短期內，我們在這裡很幸運。我們還沒有出現人才外流的情況，但這是未來 3 到 5 年內需要注意的事情。

Our next question will come from Stephen Trent with Citigroup.

我們的下一個問題將來自花旗集團的 Stephen Trent。

I was just curious what your thoughts are on U.S. infrastructure. So I know you guys and your competitors have done a lot of good work to make -- to ensure, for example, a smoother summer travel period. What are you seeing on the government side in terms of appropriately staffed TSA traffic control infrastructure investment? It looks like the House of rep and the White House can seem to agree on budget. So I'm wondering how you're seeing all that on a high level.

我只是想知道您對美國基礎設施有何看法。所以我知道你們和你們的競爭對手已經做了很多很好的工作來確保，例如，一個更順暢的夏季旅行期。在適當配備人員的 TSA 交通控制基礎設施投資方面，您對政府方面有何看法？眾議院和白宮似乎可以就預算達成一致。所以我想知道你是如何從高層次上看待這一切的。

Stephen, thanks for your question. So maybe the best way I can contrast it is back to 2019. So when I look at the capacity of the airline industry vis-a-vis today, it's roughly the same. So we have roughly the same amount of capacity than we did in 2019. I think the pinch point is air traffic controllers. As you see some of the actions that need to be taken in New York, I think in Florida, I think we've seen some in California and our L.A. market. So I think staffing on the federal side is the key pinch point.

斯蒂芬，謝謝你的問題。所以也許我可以對比它的最好方法是回到 2019 年。所以當我看看今天航空業的運力時，它大致相同。所以我們的容量與 2019 年大致相同。我認為關鍵點是空中交通管制員。正如你看到紐約需要採取的一些行動，我認為在佛羅里達州，我認為我們已經在加利福尼亞和我們的洛杉磯市場看到了一些行動。所以我認為聯邦方面的人員配置是關鍵的夾點。

And again, we're talking with our government counterparties and making sure that they hire and train appropriately. Infrastructure is another one. I think that airlines and government have to work on together to make sure the airspace is efficient. There's a lot of things that we can do in terms of technology to facilitate that. And I think that going forward, like I say, we're back to 2019 levels where we were already constrained. But going forward, I think we really need a solid plan to really facilitate this next generation of aerospace management.

再一次，我們正在與我們的政府交易對手交談，並確保他們適當地僱用和培訓。基礎設施是另一個。我認為航空公司和政府必須共同努力，以確保空域高效。我們可以在技術方面做很多事情來促進這一點。而且我認為，就像我說的那樣，我們會回到 2019 年已經受到限制的水平。但展望未來，我認為我們確實需要一個可靠的計劃來真正促進下一代航空航天管理。

And we'll move next to Mike Linenberg with Deutsche Bank.

我們將搬到德意志銀行的 Mike Linenberg 旁邊。

Andrew, your this objective about sort of reducing the seasonality of the company in the March quarter or at least finding a way to get to profitability. It seems like no management team at Alaska has really ever been able to crack the code in that regard. I think there's been like maybe a year here or there where we've seen profitability, but it was usually sort of peak. I guess absent, I don't know, building a hub in (inaudible), is it network? Is it just scaling back frequency in some of these corporate markets and maybe running airplanes -- more airplanes through maintenance, maybe your utilization goes down, but that's better? Or is it more on the cost side, just moving to a single fleet type and you get a nice tailwind there. I mean I'm just trying to figure out what you're thinking about. It's interesting.

安德魯，你的目標是減少公司在三月份季度的季節性，或者至少找到一種實現盈利的方法。似乎阿拉斯加沒有任何管理團隊真正能夠破解這方面的密碼。我認為大約有一年的時間我們已經看到了盈利能力，但通常是在某種程度上達到頂峰。我猜想缺席，我不知道，在（聽不清）中建立一個樞紐，它是網絡嗎？它是否只是縮減了其中一些企業市場的頻率並可能運行飛機——更多的飛機通過維護，也許你的利用率下降了，但那更好？或者更多的是在成本方面，只是轉向單一的機隊類型，你會在那裡得到一個很好的順風。我的意思是我只是想弄清楚你在想什麼。這真有趣。

Mike, it's Ben. It's a great question. So if you look at for us, March was very profitable. We almost hit a double-digit pretax margin. It was January and February that were the issues. So for us, like I got to be honest, I just set the mandate for my team and say, look, leaders change outcomes. We don't like the outcome in January and February, and we don't know the exact answer, Mike, to be honest. But the mandate has been given to the commercial team to say, look, there are things that we know if we dissect the data, airplanes can be moved. We can do things with our network, manage capacity. But you have to do that not only right before the quarter, you got to start thinking about it 9 months before, which is why we're setting the goal now.

邁克，是本。這是一個很好的問題。所以如果你看我們，三月是非常有利可圖的。我們幾乎達到了兩位數的稅前利潤率。問題是一月和二月。所以對我們來說，老實說，我只是為我的團隊設定了任務，然後說，看，領導者改變結果。我們不喜歡 1 月和 2 月的結果，邁克，老實說，我們不知道確切的答案。但是已經授權商業團隊說，看，如果我們分析數據，我們就會知道一些事情，飛機可以移動。我們可以用我們的網絡做事，管理容量。但是你不僅要在季度之前這樣做，你必須在 9 個月前開始考慮它，這就是我們現在設定目標的原因。

So Andrew needs to think about what he does in the second and third quarter as he builds capacity so he can manage the first quarter of next year. And so a lot of work to do, Mike. And hopefully, we can show that at least we've closed the gap to next year as we work on this thing. And to your point, it's not been consistently done, but at Alaska. We just like taking big audacious challenges that says let's change the narrative.

因此，安德魯需要考慮他在第二和第三季度的工作，因為他正在建設能力，以便他能夠管理明年第一季度。還有很多工作要做，邁克。希望我們可以表明，至少我們已經縮小了到明年的差距，因為我們致力於這件事。就您的觀點而言，它並沒有始終如一地完成，但在阿拉斯加。我們只是喜歡接受大膽的挑戰，讓我們改變敘述方式。

I know, very good. Now just one more. On just watching American sort of shift on their distribution and I'm sure you've been following the reports closely where it does look like that they're now focusing on their larger corporate accounts. And given that you guys have gotten closer and as part of the partnership, you, obviously, want to grow and build on that and then obviously bring in more corporate travel. Does that have an impact on you? And I guess, specifically, I'm saying where American has said that they're going to sort of back away at some of the smaller accounts, corporate accounts that maybe do less than $1.5 million or $2 million of sales.

我知道，很好。現在只有一個。只是看著美國人在他們的分佈上發生了某種轉變，我相信你一直在密切關注這些報告，看起來他們現在正專注於他們更大的公司賬戶。鑑於你們之間的關係越來越密切，並且作為合作夥伴關係的一部分，你們顯然希望在此基礎上發展壯大，然後顯然會帶來更多的商務旅行。這對你有影響嗎？我想，具體來說，我說的是美國航空所說的他們將在一些較小的賬戶、公司賬戶上退縮，這些賬戶的銷售額可能低於 150 萬美元或 200 萬美元。

And I know that may be an area that you play in. I mean, obviously, you have big corporates that you do business with, but when I think about Alaska historically, I mean given your network in size prior to oneworld prior to the American partnership, you probably had a disproportionate amount of your corporates were probably maybe small, medium enterprises. So I'm just curious if there's any sort of impact there, you're probably watching that closely. Any comments that you can make about that shift on American on the distribution and sales side.

我知道這可能是你參與的領域。我的意思是，很明顯，你有與你有業務往來的大公司，但當我從歷史上考慮阿拉斯加時，我的意思是考慮到你的網絡規模先於 oneworld 先於美國夥伴關係，您可能有不成比例的公司可能是中小型企業。所以我很好奇那裡是否有任何影響，你可能正在密切關注。您可以就美國航空在分銷和銷售方面的轉變發表任何評論。

Yes. I think obviously, it's well documented and some of the significant changes that American are doing specifically around NDC and the impact with GDS and all the rest of it. I think for us, we obviously have good and a lot of joint contracting with American and our larger corporates, and they've been working extremely well. One of Brett Catlin's priority one objectives is I think we under-index where we should in the small and medium enterprise. So I think it's not something we've focused on as much as we should. So again, if anything, given our West Coast footprint, we're going to be focusing a lot more on that. As it relates to NDC, we are well into our journey as well and more to come on that will be sort of fully up and running next year with OTAs and all that connected. And I think there's a good cost story there and there's a good product story there and more to come.

是的。我認為顯然，它有據可查，美國人正在圍繞 NDC 進行的一些重大改變以及對 GDS 和其他所有方面的影響。我認為對我們來說，我們顯然與美國和我們的大公司有很多很好的聯合合同，他們一直工作得非常好。 Brett Catlin 的首要目標之一是我認為我們在中小企業中應該低估的指標。所以我認為這不是我們應該關注的事情。因此，如果有的話，考慮到我們在西海岸的足跡，我們將更加關注這一點。由於它與 NDC 相關，我們也已經進入了我們的旅程，並且還有更多的事情將在明年與 OTA 和所有相關的方面全面啟動和運行。而且我認為那裡有一個很好的成本故事，那裡有一個很好的產品故事，還有更多。

We'll hear next from Scott Group with Wolfe Research.

接下來我們將聽到 Scott Group 與 Wolfe Research 的對話。

I want to just go back to the chart on the monthly RASM. So I think you said 63% of revenue is booked for the quarter. How much of June is booked at this point because there's obviously a big further step-up assumed in June? And how do I think about that further acceleration in June relative to some of your comments about RASM following fuel prices?

我只想回到每月 RASM 上的圖表。所以我認為你說本季度有 63% 的收入被預訂。 6 月有多少時間被預定了，因為 6 月顯然有進一步的大幅提升？相對於您在燃油價格之後對 RASM 的一些評論，我如何看待 6 月份的進一步加速？

Yes. So I think June, I'm going to just -- even on our load factor, I think we still got a good 45-plus points to go. So to your point, Scott, it is the lowest book of the summer, but I'll also say it is one of the strongest and highest demand as we go into summer there. So I think that's what the team is squarely focused on right now. And to my earlier comments, we need to get right, the mix between bookings further out and what we're going to allow to come closer in.

是的。所以我認為 June，我將 - 即使在我們的負載係數上，我認為我們仍然有 45 多分要走。所以就你的觀點而言，斯科特，這是夏季最低價的書，但我也要說，隨著我們進入夏季，它是最強烈和最高的需求之一。所以我認為這就是團隊現在正專注於的事情。對於我之前的評論，我們需要做正確的事，將預訂的時間和我們將允許的時間相結合。

Okay. And then, Shane, I just want to clarify is, you're still assuming 8% to 10% revenue growth for the year. And then the fuel hedges -- I know I've asked this before, but I'll ask it, doesn't feel like they're helping. Any thoughts about either changing how we hedge or just getting rid of hedges?

好的。然後，Shane，我只想澄清的是，你仍然假設今年的收入增長 8% 到 10%。然後是燃料對沖——我知道我以前問過這個，但我會問，感覺他們沒有幫助。關於改變我們對沖的方式或只是擺脫對沖的任何想法？

Scott, it's Nat. Consistent with the Alaska, you know, we are -- we play it for the long run. And hedging costs in the quarter was about $12 million. Long term, it was $170 million to the good last year. So we didn't get a lot of questions last year about changing the hedge program as you might expect. Since we've had this program specifically in place since 2015, buy in calls 20% out of the money, 18 months in advance. The program has been positive for us. It's all about limiting volatility and really trying to just put a box around it. So one quarter doesn't cause necessarily to change a multiyear process. But I think we're going to be intelligent about it and look at it over the long run. And if there are smart changes to be made, we'll make them.

斯科特，是奈特。與阿拉斯加一致，你知道，我們 - 我們從長遠來看。本季度的對沖成本約為 1200 萬美元。從長遠來看，去年的收益為 1.7 億美元。因此，去年我們並沒有像您預期的那樣收到很多關於更改對沖計劃的問題。由於我們自 2015 年以來就專門製定了此計劃，因此提前 18 個月以 20% 的資金購買電話。該計劃對我們來說是積極的。這一切都是為了限制波動性，並真正試圖在它周圍放一個盒子。因此，四分之一不一定會導致多年過程發生變化。但我認為我們會對此保持明智，並從長遠來看。如果需要做出明智的改變，我們會做出改變。

And then the 8% to 10% revenue, is that still the right number?

然後是 8% 到 10% 的收入，這仍然是正確的數字嗎？

Yes. Sorry, Scott, I didn't mean to not answer that question. Yes, that is still the right number for us for sure.

是的。抱歉，斯科特，我不是故意不回答這個問題的。是的，這對我們來說仍然是正確的數字。

And our next question comes from Helane Becker with TD Cowen.

我們的下一個問題來自 Helane Becker 和 TD Cowen。

I have two questions. My first question is in February this year, I think you lost a lawsuit. And in the Virgin America case, number one (inaudible) have you taken accruals for that? And b, will you appeal that decision? Or is it not appealable?

我有兩個問題。我的第一個問題是今年二月，我想你輸了一場官司。在維珍美國案例中，第一（聽不清）你是否為此計提了應計費用？ b，你會對那個決定提出上訴嗎？還是不能上訴？

Helane, it's Kyle. This litigation is a long road. We've been fighting this for about 7 years. It's the Virgin Group Royalty license matter pending in London. And the very first stage of that was a ruling by the judge in London, adopting Virgin Group's interpretation of our contract. There are additional proceedings coming, so continue to watch, and we'll keep you posted. On the accrual side, we have accrued $10 million at this point, and you'll see additional disclosures in our 10-Q in a couple of weeks.

海蘭，是凱爾。這場訴訟是一條漫長的道路。我們已經為此鬥爭了大約 7 年。這是在倫敦懸而未決的維珍集團特許權使用費許可事宜。第一階段是倫敦法官的裁決，採用了維珍集團對我們合同的解釋。還有更多的程序即將到來，所以請繼續觀看，我們會及時通知您。在應計方面，我們目前已經累積了 1000 萬美元，您將在幾週後在我們的 10-Q 中看到更多的披露。

Okay. That's very helpful. And then my follow-up question or another question, you guys announced recently, I think, within the last week or so that you're eliminating kiosks at the airport. And I'm just wondering how you're thinking about that? I know most people come to the airport with their boarding pass in hand, but how are you thinking about the acceptance rate of that among your clients?

好的。這很有幫助。然後是我的後續問題或另一個問題，你們最近宣布，我想，在上週左右，你們將取消機場的售貨亭。我只是想知道你是怎麼想的？我知道大多數人都拿著登機牌來到機場，但您如何看待客戶對登機牌的接受率？

Thanks for bringing that up, Helane. Actually, this is very exciting. And the reality is our lobbies are hugely congested. And we've actually started rolling these out. We've had about 7 or 8 stations done, including Portland. And what we're finding is at least a 10-point increase in people coming prepared to the lobby, checked in already, even paid for their bag. And so what it's going to do is there's a little bit of change in management, of course, but we've seen hugely positive results both from our guests and our agents.

感謝您提出這個問題，Helane。實際上，這是非常令人興奮的。而現實是我們的大廳非常擁擠。我們實際上已經開始推出這些。我們已經完成了大約 7 或 8 個站點，包括波特蘭。我們發現，準備好進入大廳、已經登記入住、甚至為行李付款的人數至少增加了 10 個百分點。所以它要做的是管理上有一點變化，當然，但我們已經從我們的客人和我們的代理人那裡看到了非常積極的結果。

And I think what you're going to see in the future is people only needing to check bags that are going to be milling around in the lobby. Only half of all passengers check bags. The rest need to go straight to security. We've had about 1/4 of those be in the lobby, using kiosks, do all sorts of things. And now we're fully mobile and we can do that outside. So I think you're going to see good productivity, efficiency and a much more pleasant lobby experience as we roll this out over '23 and '24.

而且我認為您將來會看到的是人們只需要檢查將在大廳裡轉來轉去的行李。所有乘客中只有一半會托運行李。其餘的需要直接去安檢。我們有大約 1/4 的人在大廳裡，使用信息亭，做各種各樣的事情。現在我們完全可以移動，我們可以在外面進行。因此，我認為當我們在 23 年和 24 年推出此功能時，您將看到良好的生產力、效率和更愉快的大廳體驗。

And Helane, it's Ben. Like our long-term vision is to have people come in just get their bag tag or have an electronic back tag, which we've already introduced, go to a self backdrop, drop your bag and get through security within under 5 minutes is the goal. So really, make it a wonderful, easy customer experience. So these are the things that we're rolling out in the next 12 to 18 months. It's really exciting for us on the innovation front.

海蘭，是本。就像我們的長期願景是讓人們進來只需拿到他們的行李牌或電子背牌，我們已經介紹過，去自助背景，放下你的行李並在 5 分鐘內通過安檢是目標。所以真的，讓它成為一個美妙、輕鬆的客戶體驗。因此，這些是我們將在未來 12 到 18 個月內推出的內容。在創新方面，這對我們來說真的很令人興奮。

That's really helpful, Ben. Are you able to lower facility costs then?

這真的很有幫助，本。那你能降低設施成本嗎？

Well, I think what we would do as we're growing, as my CFO here is on my right side, he would say, keep the same footprint but process more people. And I think that's the goal, right, is to increase the productivity of the real estate footprint we have, which is what we're all about.

好吧，我認為隨著我們的成長我們會做什麼，因為我的首席財務官在我的右邊，他會說，保持相同的足跡但處理更多的人。我認為我們的目標是提高我們擁有的房地產足蹟的生產力，這就是我們的全部目標。

Our next question will come from Chris with Susquehanna International.

我們的下一個問題將來自 Chris 和 Susquehanna International。

Ben, could you comment on the procedures in place to navigate, let's say, less than ideal operating conditions versus periods of strong demand, meaning how confident are you in Alaska's ability -- operational resiliency and ability to keep your completion factors north of, let's say, 95% when conditions are tough?

本，你能評論一下現有的導航程序嗎，比方說，與需求旺盛的時期相比，運營條件不太理想，這意味著你對阿拉斯加的能力有多自信——運營彈性和保持你的完成因素的能力，讓我們比如說，95% 條件艱苦的時候？

Chris, great question. I would say right now, as we head to the summer, I'm extremely confident. I think two things that have to be in place: One, you have to be staffed properly, and our staffing numbers are quite strong across every labor group. The second thing is, as we're getting our footing as we go back and you know our history, we've always had great performances. We have an operational playbook that we execute, and this is something that we've focused on is we have a timeline. We know exactly what to do and when, and that is starting to click in from what I see across all areas and all of our hubs. So I'm quite confident in our operations team, and I think we're going to have a great summer.

克里斯，好問題。我現在要說的是，當我們進入夏天時，我非常有信心。我認為有兩件事必須到位：第一，你必須配備適當的人員，我們的員工人數在每個勞工群體中都非常強大。第二件事是，當我們回去的時候站穩腳跟，你知道我們的歷史，我們總是有很棒的表現。我們有一個我們執行的操作手冊，這是我們一直關注的事情，因為我們有一個時間表。我們確切地知道該做什麼和什麼時候做，這就是我在所有區域和我們所有中心看到的開始點擊。所以我對我們的運營團隊很有信心，我認為我們會度過一個美好的夏天。

Okay. And then my follow-up on the stage engage focus this year, as we think about the cadence of second half CASMex, should we expect this benefit to flow through evenly through the second half? Or is this something that would be more fully realized as we exit 4Q? And I realize there's also implicitly some type of macro assumption around stage and certainly as it relates to gauge and any order book risk that you've contemplated there?

好的。然後我在今年的階段關注重點，當我們考慮下半年 CASMex 的節奏時，我們是否應該期望這種好處在下半年均勻流動？或者當我們退出第四季度時，這會更充分地實現嗎？而且我意識到在舞台周圍也隱含著某種類型的宏觀假設，當然因為它與你在那裡考慮過的指標和任何訂單簿風險有關？

Chris, yes, the CASMex cadence, I think we tried to -- we issued some slides that may help if you take a look at them. Certainly, the Q4 exit rate is the best rate of the year, but it's actually pretty ratable as you get through Q2 to Q3 than Q4. It's not like all of the benefit comes in Q4. So we'll have a chance to see how we're doing against that in the next 1.5 quarters or so. But yes, I think given that we're lapping the labor deals primarily in the fourth quarter, that's where you get the biggest sort of CASMex tailwind benefit.

克里斯，是的，CASMex 的節奏，我想我們嘗試過——我們發布了一些幻燈片，如果您看一下它們可能會有所幫助。當然，第四季度的退出率是一年中最好的，但實際上，當你從第二季度到第三季度比第四季度更穩定。並不是所有的好處都出現在第四季度。所以我們將有機會在接下來的 1.5 個季度左右看看我們是如何應對的。但是，是的，我認為鑑於我們主要在第四季度完成勞務交易，那是你獲得最大的 CASMex 順風效益的地方。

Thanks Chris and thank you everyone, for joining us. We'll talk to you next quarter.

感謝克里斯，感謝大家加入我們。我們將在下個季度與您交談。

And this concludes today's conference call. Thank you for attending.

今天的電話會議到此結束。感謝您的出席。