Spirit Airlines Inc (SAVE) 2024 Q1 法說會逐字稿

Thank you for standing by. My name is Pam, and I will be your conference operator today. At this time, I would like to welcome everyone to the Spirit Airlines first-quarter 2024 earnings conference call. (Operator Instructions)

謝謝你的支持。我叫帕姆，今天我將擔任你們的會議操作員。此時此刻，我歡迎大家參加精神航空 2024 年第一季財報電話會議。 （操作員說明）

Thank you. I would now like to turn the conference over to DeAnne Gabel, Senior Director for Investor Relations. You may begin.

謝謝。我現在想將會議交給投資者關係高級總監 DeAnne Gabel。你可以開始了。

Thank you, Pam. Presenting on today's call are Ted Christie, Spirit's Chief Executive Officer; Matt Klein, our Chief Commercial Officer; and Scott Haralson, our Chief Financial Officer. Also joining us are other members of our senior leadership team following our prepared remarks, we will take questions from the analyst. Today's discussion contains forward-looking statements that are based on the Company's current expectations and not a guarantee of future performance.

謝謝你，帕姆。 Spirit 執行長 Ted Christie 出席了今天的電話會議。 Matt Klein，我們的商務長；和我們的財務長史考特·哈拉爾森。我們高階領導團隊的其他成員也加入了我們，在我們準備好發言後，我們將回答分析師的問題。今天的討論包含基於公司目前預期的前瞻性陳述，而不是對未來績效的保證。

It could be significant risks and uncertainties that cause actual results to differ materially from those contained in our forward-looking statements, including but not limited to, various risks and uncertainties discussed in our reports on file with the SEC. We undertake no duty to update any forward looking statements and investors should not place undue reliance on these forward.

重大風險和不確定性可能導致實際結果與我們的前瞻性陳述中包含的結果有重大差異，包括但不限於我們向 SEC 提交的報告中討論的各種風險和不確定性。我們不承擔更新任何前瞻性陳述的責任，投資者不應過度依賴這些前瞻性陳述。

Looking In comparing results today, we will be adjusting all periods to exclude special items unless otherwise noted. For an explanation and reconciliation of these non-GAAP measures to GAAP, please refer to the reconciliation tables provided in our first quarter 2024 earnings release, a copy of which is available on our website under the Investor Relations section at ir dot Spirit.com.

在今天比較結果時，除非另有說明，否則我們將調整所有期間以排除特殊項目。有關這些非 GAAP 指標與 GAAP 的解釋和調節，請參閱我們 2024 年第一季度收益發布中提供的調節表，該調節表的副本可在我們網站 ir dot Spirit.com 的投資者關係部分找到。

I will now turn the call over to Ted Christie, Spirit's President and Chief Executive Officer.

現在我將把電話轉給 Spirit 總裁兼執行長 Ted Christie。

Thanks, Dan, and thanks to everyone for joining us on the call today. We are coming to you this morning from our new spirit central campus in Dania Beach. We celebrated our grand opening a couple of weeks ago, marking a major milestone and a new chapter in our more than 30-year history. In addition to allowing us to consolidate our corporate offices and all of our Fort Lauderdale based training facilities, the new campuses convenient to Fort Lauderdale Airport.

謝謝丹，也謝謝大家今天加入我們的電話會議。今天早上我們將從位於達尼亞灘的新精神中心校園來找您。幾週前，我們慶祝了開幕典禮，標誌著我們 30 多年歷史中的一個重要里程碑和新篇章。除了讓我們能夠整合我們的公司辦公室和所有位於勞德代爾堡的培訓設施外，新校區還方便前往勞德代爾堡機場。

It also provides access to the fabulous amenities at Dana Point for our support center team and our pilots and flight attendants when they are in town for training. Until recently, we thought the branding of the new facility might be blue, but now we are proud to boldly display, our signature Spirit, yellow, looking back a couple of months, we still feel strongly it was a serious miss reading of both the evidence and the law for the federal court to enjoin our merger with JetBlue and aside from the waste of taxpayer funds and the damage done to two proud companies through this process, the fact that DOJ, even broader case, the block of merger between two carriers with less than 8% combined market share, just shows how uninformed the government is about our dynamic airline business, particularly in the post-COVID era, our industry has changed dramatically today.

它還為我們的支援中心團隊以及在城裡接受培訓的飛行員和空服人員提供了使用達納角一流設施的機會。直到最近，我們還認為新設施的品牌可能是藍色的，但現在我們很自豪地大膽展示我們的標誌性精神，黃色，回顧幾個月，我們仍然強烈地感覺到這是對兩個聯邦法院禁止我們與捷藍航空合併的證據和法律，除了浪費納稅人的資金以及透過這一過程對兩家自豪的公司造成的損害之外，司法部甚至更廣泛的案件，阻止兩家航空公司之間的合併合併後的市場份額不到 8%，這表明政府對我們充滿活力的航空業務知之甚少，特別是在後新冠疫情時代，我們的行業如今已經發生了巨大的變化。

Nearly all the profits of the entire US airline industry are concentrated in just two companies while the smaller non-legacy carriers scrambled to restore profitability and what seems ever more like a rigged game. Big Four are the beneficiaries of this new normal American consumers are the long-term losers in the beginning of our consolidation process in 2022, we advocated strongly for a merger between the two largest ULCCs and tried to outline the challenges with the proposed JetBlue transaction but our shareholders did not listen, while not our first choice.

整個美國航空業的幾乎所有利潤都集中在兩家公司身上，而規模較小的非傳統航空公司則爭先恐後地恢復盈利能力，這似乎更像是一場被操縱的遊戲。四大是這種新常態的受益者美國消費者是我們2022 年整合過程開始時的長期輸家，我們強烈主張兩家最大的ULCC 之間的合併，並試圖概述擬議的捷藍航空交易所面臨的挑戰，但我們的股東沒有聽，同時也不是我們的第一選擇。

We believe the merger with JetBlue would as an alternative still be very positive for consumers and our other constituents we were well aware of the regulatory risks that might prevent the merger from successfully closing. As such, over the last year, we have been simultaneously developing a stand-alone plan to derisk the business and improve our financial performance.

我們相信，與捷藍航空的合併作為替代方案對於消費者和我們的其他成員來說仍然非常積極，我們很清楚可能會阻止合併成功完成的監管風險。因此，在過去的一年裡，我們一直在同時制定一項獨立計劃，以降低業務風險並改善我們的財務表現。

The JetBlue merger agreement had several operating restrictions that limited what we can do to rightsize the business address overstaffing levels caused by the issues with GTF engines on our NEO aircraft and make the necessary changes to our product and strategy to adjust to the evolving industry environment. We no longer have those restrictions and are swiftly taking numerous actions that we believe will lead to cash flow generation and profitability. Thank all our Spirit team members for their contributions to our first quarter results and their unwavering dedication and patience as we deploy our plan to return to sustained profitability.

捷藍航空合併協議有多項營運限制，限制了我們調整業務規模、解決因 NEO 飛機 GTF 發動機問題造成的人員過剩水平以及對我們的產品和戰略進行必要改變以適應不斷變化的行業環境的能力。我們不再有這些限制，並且正在迅速採取許多我們相信將帶來現金流和獲利能力的行動。感謝我們所有 Spirit 團隊成員對我們第一季業績的貢獻，以及他們在我們部署恢復持續盈利能力的計劃時堅定不移的奉獻精神和耐心。

Moving on to our first quarter 2024 results, we reported an adjusted net loss of $160 million during the quarter, we started to see benefits from the tactical and strategic network changes we have made over the last few months. We have a long way to go to margin health, we are making steady progress. Operationally, we were negatively impacted by adverse weather and air traffic control related delays, particularly along the eastern seaboard and in Florida. We were also affected by the civil unrest in Haiti. However, our system-wide controllable completion factor for the quarter that is excluding events outside our control, was 99.9%. Kudos to the entire operational team for a job well done.

接下來是 2024 年第一季的業績，我們報告本季調整後淨虧損為 1.6 億美元，我們開始看到過去幾個月進行的戰術和戰略網路變革所帶來的好處。我們在確保利潤健康方面還有很長的路要走，我們正在穩步取得進展。在營運方面，我們受到惡劣天氣和空中交通管制相關延誤的負面影響，特別是在東海岸和佛羅裡達州。我們也受到海地內亂的影響。然而，在排除我們無法控制的事件後，本季我們全系統的可控製完成率為 99.9%。感謝整個營運團隊的出色工作。

With that, here's Matt and Scott to share more details about our first quarter performance and the actions we have taken that set us up well to execute to our go forward plan. Matt, over to you.

接下來，馬特和斯科特將分享有關我們第一季業績的更多詳細信息，以及我們為執行未來計劃而採取的行動。馬特，交給你了。

Thanks, Ted. I too want to thank the entire Spirit team for their contributions from the support center to the frontline to the flight deck. And everywhere along the way, our team does an exceptional job delivering great service and the best value in the sky to our guests.

謝謝，泰德。我還要感謝整個 Spirit 團隊從支援中心到前線再到飛行甲板所做出的貢獻。一路上，我們的團隊都出色地完成了工作，為我們的客人提供卓越的服務和空中的最佳價值。

Now moving on to our first quarter revenue performance. Total revenue for the first quarter was approximately $1.3 billion, a decrease of 6.2% year over year. As we have previously noted, there has been a significant amount of industry capacity growth in the markets we serve and gaining new traction and full loads in the nonpeak periods has been difficult given this backdrop, we pulled down the schedule on the off-peak days of the week to a greater degree than usual in January and February. And looking back, we believe that was the correct strategy for that timeframe.

現在轉向我們第一季的營收表現。第一季總營收約13億美元，較去年同期下降6.2%。正如我們之前所指出的，我們所服務的市場的行業產能大幅增長，在這種背景下，在非高峰期獲得新的牽引力和滿載是很困難的，我們縮短了非高峰期的時間表一周的變化程度比一月和二月的平常大。回顧過去，我們相信這在當時是正確的策略。

From a yield perspective, the first half of March was also a bit choppier than we had anticipated due to some competitive fare activity. But demand was strong in the peak spring break period and total revenue results were in line with our expectations. Total resin for the first quarter was $0.0938, a decrease of 8.2% year over year on a sequential basis moving from Q4 2023 into Q1 2024.

從收益率的角度來看，由於一些競爭性的票價活動，3 月上半月也比我們預期的更加波動。但春假高峰期需求強勁，總營收結果符合我們的預期。第一季樹脂總量為 0.0938 美元，從 2023 年第四季到 2024 年第一季季減 8.2%。

As we had anticipated, we achieved a substantial improvement in total unit revenue. On a per segment basis, fare revenue per segment declined 16.3% year over year to $48.08. Non-ticket revenue per segment declined slightly by 1.4% year over year to $68.95 for the full quarter. As we continue to see the demand and competitive environments develop, we know that we must also change with the times. You have already seen us move our aircraft into different parts of our network, and that will continue to happen as we look for the best places to maximize revenue.

正如我們預期的那樣，我們的單位總收入取得了實質改善。以航段計算，每個航段的票價收入年減 16.3% 至 48.08 美元。全季每個細分市場的非門票收入較去年同期小幅下降 1.4% 至 68.95 美元。隨著我們不斷看到需求和競爭環境的發展，我們知道我們也必須與時俱進。您已經看到我們將飛機轉移到網路的不同部分，隨著我們尋找實現收入最大化的最佳地點，這種情況將繼續發生。

We will continue to test out new merchandising strategies, which we anticipate will change how we think about the components of total revenue generation and ancillary revenue continues to be a critical part of our business, but we believe there are opportunities to maximize revenue that may involve shifts of revenue from the ancillary bucket into the ticket yield bucket, we will continue to iterate until we find the right balance in Formula operationally from a network design perspective.

我們將繼續測試新的銷售策略，我們預計這將改變我們對總收入產生的組成部分的看法，輔助收入仍然是我們業務的關鍵部分，但我們相信有機會最大化收入，這可能涉及收入從輔助桶轉移到門票收益桶中，我們將繼續迭代，直到從網路設計的角度找到公式操作上的正確平衡。

We are still being impacted by Jacksonville center, ATC issues given the length of time it takes to train controllers, it has been difficult for the center to keep pace with the large amount of industry capacity increases, therefore, to help with our operational performance, we are purposely limiting our growth into and out of Florida. Without these self-imposed limitations, we would likely be at least a few percentage points larger in Florida than we are today.

我們仍然受到傑克遜維爾中心的影響，考慮到培訓管制員所需的時間，該中心很難跟上行業容量的大量增長，因此，為了幫助我們提高營運績效，我們有意限制進出佛羅裡達州的增長。如果沒有這些自我施加的限制，佛羅裡達州的規模可能會比今天至少大幾個百分點。

Looking ahead to the second quarter, there remains an elevated amount of capacity chasing leisure demand. Several carriers have commented on the capacity increases in Latin American markets, but the situation remains quite pronounced in domestic markets as well. We have exited a few cities and suspended service to others, making adjustments to better align our capacity with markets where the supply and demand trends are more in balance as a continuous exercise.

展望第二季度，追逐休閒需求的運能仍增加。幾家航空公司對拉丁美洲市場的運力增加發表了評論，但國內市場的情況仍然相當明顯。我們已經退出了一些城市，並暫停了對其他城市的服務，不斷進行調整，以更好地適應供需趨勢更平衡的市場。

We are broadening our network in some cities where we've been relatively too small. In the recent past, we have added some new routes with less than daily flight schedules. We're rethinking how we attempt to take advantage of seasonal changes in certain cities. And we're also in a position where we now expect to introduce fewer new cities to our network in the immediate future.

我們正在一些我們規模相對較小的城市擴大我們的網絡。最近，我們增加了一些新航線，航班班次少於每日。我們正在重新思考如何利用某些城市的季節性變化。我們現在也預計在不久的將來將更少的新城市引入我們的網路。

Given the dislocation in domestic demand trends last year, combined with our encouraging booking trends earlier this year, everything had pointed to an improving domestic demand environment and we would believed we would see continuous improvement. And while the domestic environment does continue to improve to date, it has done so at a slower rate than we had initially anticipated.

鑑於去年內需趨勢的錯位，加上今年早些時候我們令人鼓舞的預訂趨勢，一切都表明內需環境正在改善，我們相信我們會看到持續改善。儘管迄今為止國內環境確實在持續改善，但改善速度比我們最初預期的要慢。

We do expect to continue to see ongoing improvements through the summer with the peaks performing well in order for our forecast materialize, we will need to see the off-peak and shoulder periods improve, but that is anticipated to be the case. In the meantime, we will make material modifications starting in June that will have a positive impact to the brand, the guest experience and ultimately to unit revenues.

我們確實預計整個夏季將繼續看到持續的改善，高峰表現良好，為了實現我們的預測，我們需要看到非高峰期和平峰期的改善，但預計情況確實如此。同時，我們將從六月開始進行重大修改，這將對品牌、賓客體驗並最終對單位收入產生積極影響。

We are estimating Second Quarter 2024 travel will be down 8% to 9.5% compared to the second quarter last year on a capacity increase of about 2% year over year. We estimate that approximately 3 percentage points of this decline can be specifically attributed to the weakness in Caribbean and Latin American revenue trends, we estimate second quarter 2024 total revenue will range between $1.32 to $1.34 billion.

我們預計 2024 年第二季的出行量將比去年第二季下降 8% 至 9.5%，但運力年增約 2%。我們估計，這一下降的大約 3 個百分點可具體歸因於加勒比海和拉丁美洲收入趨勢的疲軟，我們估計 2024 年第二季度的總收入將在 1.32 至 13.4 億美元之間。

Looking further out the GTF engine availability issues and the phasing of AOG aircraft being taken out of service together with limited visibility on when these aircraft will be returned to service makes it difficult to accurately predict the number of assets we will have to produce capacity for the full year 2024, we estimate we will have an average of about 25 AOG.s finishing the year with about 40 AOG.s.

進一步考慮 GTF 發動機的可用性問題以及 AOG 飛機逐步退役的情況，以及這些飛機何時恢復服役的可見性有限，使得我們很難準確預測我們必須為未來的產能生產的資產數量到2024 年全年，我們估計平均將有約25 個AOG.s，全年結束時將有約40 個AOG.s。

Based on this assumption, we anticipate year over year capacity for Q3 will be up high single digits, and Q4 is expected to be down low single digits for the full year 2024 capacity is now estimated to range between flat to up low single digits versus full year 2023. Again, this is a fluid situation. So this is just our baseline estimate for now. And at this point, it does not include any potential mitigation efforts from Pratt & Whitney that could improve the forecast. We estimate we will start 2025 with over 40 AOG aircraft, and that number will grow throughout 2025 and could end next year with somewhere around 70 aircraft on the ground from this issue.

基於這個假設，我們預計第三季的產能年增將成長高個位數，而第四季預計將下降低個位數，2024 年全年產能預計將在持平到低個位數成長之間變化。所以這只是我們目前的基線估計。目前，它不包括普惠公司任何可能改善預測的潛在緩解措施。我們估計，從 2025 年開始，我們將擁有超過 40 架 AOG 飛機，而這一數字將在 2025 年持續成長，到明年年底，可能會有大約 70 架飛機因該問題而停飛。

Additionally, taking into account the aircraft deferrals, we recently announced our working assumption for 2025 is that capacity will be down high single digits versus full year 2024. Again, the situation is very fluid, and we will do our best to update you as we gain further insight or if our working assumptions change.

此外，考慮到飛機延期，我們最近宣布了 2025 年的工作假設，即運力將比 2024 年全年下降高個位數。見解或我們的工作假設是否有改變。

And with that, I will now turn it over to Scott.

現在，我將把它交給斯科特。

And thanks, Matt, and thanks to the entire Spirit team for first quarter was a bit of an emotional rollercoaster. And I think our team for staying focused on running the business and delivering the best value for our guests. There was a lot of activity. In the first quarter, we terminated our merger with JetBlue, finalized the building of our new headquarters executed on many of the items in the first phase of our go forward stand-alone plan and began laying the framework for Phase two of the plan.

感謝馬特，感謝整個 Spirit 團隊，第一季的情緒有點過山車。我認為我們的團隊專注於經營業務並為我們的客人提供最大的價值。有很多活動。第一季度，我們終止了與捷藍航空的合併，完成了新總部的建設，執行了我們前進獨立計劃第一階段中的許多項目，並開始為第二階段計劃奠定框架。

This plan is the next evolution for Spirit, and I will cover some of the steps we've already taken content as a few tidbits to share in his closing remarks as well. But we are keeping most of the competitive details confidential for a bit longer.

這個計劃是 Spirit 的下一個發展，我將介紹我們已經採取的一些步驟，作為一些花絮，在他的結論中分享。但我們將對大部分競爭細節保密一段時間。

I will wrap up with a brief overview of the quarterly results and then share some views on the second quarter regarding our stand-alone plan, it has been evolving over the past couple of years with more refinement happening over the past few months. While we were optimistic that the JetBlue transaction will be consummated, we were thoughtfully planning the airline in the event that was not allowed to proceed once the merger was terminated.

最後，我將簡要概述季度業績，然後分享對第二季度有關我們獨立計劃的一些看法，該計劃在過去幾年中不斷發展，在過去幾個月中發生了更多細化。雖然我們對捷藍航空交易的完成持樂觀態度，但我們也對航空公司進行了深思熟慮的計劃，以防合併終止後不允許繼續進行交易。

We began executing on the first phase involves some updates to our financial and operational infrastructure. The first was to finalize the AOG compensation agreement with Pratt & Whitney for 2024, which we did in March. This agreement should add approximately $150 to $200 million of liquidity benefit to the business in 2024.

我們開始執行的第一階段涉及對我們的財務和營運基礎設施的一些更新。第一個是與普惠公司敲定 2024 年 AOG 薪酬協議，我們在 3 月完成了這項協議。該協議預計將在 2024 年為該業務增加約 1.5 至 2 億美元的流動性收益。

Next, we completed a deferral agreement with Airbus to move deliveries from the second quarter of 2025 through the end of 2026 to delivery positions in 2030 and 2031. This will improve 2024 liquidity by about $230 million, given the reduced capacity from the AOG.s and the further reductions in capacity from the deferrals. We began actioning items to rightsize the rest of our business to our future path. This involves several initiatives, and it unfortunately means that we will need to furlough up to 260 pilots in September.

接下來，我們與空中巴士公司完成了一項延期協議，將交付時間從2025 年第二季到2026 年底轉移到2030 年和2031 年的交付位置。的流動性增加約2.3 億美元。我們開始採取行動，調整其餘業務的規模，以適應未來的發展方向。這涉及多項舉措，不幸的是，這意味著我們需要在 9 月讓多達 260 名飛行員暫時休假。

We plan to action other rightsizing initiatives throughout the business as the year progresses to achieve our $100 million cost reduction goal. In addition, our advisers assisting us with addressing our loyalty bond and convertible notes due in September of '25 and May of 2026, respectively. Again, having initial discussions with our bondholders have both notes, a large majority of the holders have organized and have hired advisers as well.

隨著時間的推移，我們計劃在整個業務範圍內採取其他精簡舉措，以實現 1 億美元的成本削減目標。此外，我們的顧問也協助我們解決分別於 25 年 9 月和 2026 年 5 月到期的忠誠債券和可轉換票據。同樣，與我們的債券持有人進行的初步討論都有這兩種說明，絕大多數持有人已經組織起來並聘請了顧問。

The initial discussions have been constructive even though the discussions have been limited, the current plan is to have resolution with both noteholders this summer. One of the important gating items in this discussion is presenting the go forward Spirit plan to the advisors and possibly some collection of bondholders in order to reach a resolution. Therefore, all of the actions to date and going forward need to be done in a specific order and real will require some patience to get to the finish line.

儘管討論有限，但最初的討論是建設性的，目前的計劃是在今年夏天與兩位票據持有人達成解決方案。本次討論中的重要控制項目之一是向顧問以及可能的一些債券持有人提出前進精神計劃，以便達成解決方案。因此，迄今為止和未來的所有行動都需要按照特定的順序完成，並且真正需要一些耐心才能到達終點。

Now for the results of the quarter, during the quarter, we managed costs well and ran a good airline coming in fourth out of 10 major airlines and a completion factor for the quarter. Our financial results were at the good end of our original guidance. Our initial guidance included over $30 million of credits from AOG aircraft that we thought would be recognized during the quarter as an offset to other operating expense upon further review of the relevant accounting guidelines. The credits will be treated as vendor compensation for GAAP purposes and recognized as a reduction to the cost basis of goods and services purchased from Pratt & Whitney and primarily amortized over the life of the respective assets.

現在來看本季的業績，在本季度，我們很好地管理了成本，運營了一家良好的航空公司，在 10 家主要航空公司中排名第四，本季度的完成率也很高。我們的財務表現符合我們最初的指導方針。我們的初步指導包括來自 AOG 飛機的超過 3000 萬美元的信貸，我們認為在進一步審查相關會計準則後，這些信貸將在本季度確認為其他營運費用的抵銷。這些抵免額將被視為符合公認會計原則的供應商補償，並被視為從普惠公司購買的商品和服務的成本基礎的減少，並主要在相應資產的使用壽命內攤銷。

Well, from a liquidity perspective, the credits will be applied in 2024 most of the benefit of the credits will be recognized through earnings over future years. In the quarter, we earned $30.6 million of AOG credits. Of this, only $1.6 million was recorded as a credit within maintenance materials and repairs on the income statement. Unfortunately, the accounting for these credits makes it difficult for the income statement to reflect the full economic impact, and we will have a negative effect on our margin by around two full points for the year.

那麼，從流動性的角度來看，這些積分將在 2024 年應用，大部分積分的好處將透過未來幾年的收益來確認。本季度，我們獲得了 3060 萬美元的 AOG 積分。其中，只有 160 萬美元作為維護材料和維修的貸項記錄在損益表中。不幸的是，這些抵免的會計處理使得損益表難以反映全面的經濟影響，而我們今年的利潤率將受到大約兩個整點的負面影響。

We will do our best to help explain the accounting, but we may need to add some further guidance guidance metrics to help lay out the economic and cash impact of the compensation. As I have mentioned on prior calls, while the credits do help mitigate the damage of AIG's, we still estimate that our margins have penalized by an additional two to three points. The impact on our business associated with these Pratt engine issues cannot be understated despite the estimated amount of AOG credit recognized in the P&L during the quarter being significantly less than what was earned.

我們將盡力幫助解釋會計，但我們可能需要添加一些進一步的指導指標，以幫助闡明補償的經濟和現金影響。正如我在之前的電話會議中提到的，雖然信用確實有助於減輕 AIG 的損失，但我們仍然估計我們的利潤率又受到了兩到三個點的損失。儘管本季損益表中確認的 AOG 信用額估計大大低於實際賺取的金額，但這些普拉特引擎問題對我們業務的影響不可低估。

Total operating expenses were in line with our initial guidance due to operational efficiencies that resulted in better than expected labor expense and passenger disruption expense as well as lower than expected airport rents and landing fees due to network changes in airport signatory rebates on a year-over-year basis, first quarter operating costs were about flat. Operating margin was negative 13.9%.

由於營運效率提高，勞動力費用和旅客中斷費用好於預期，並且由於機場簽約回扣的網路變化，機場租金和著陸費低於預期，因此總營運費用與我們最初的指導一致與去年同期相比，第第一季營運成本基本持平。營業利益率為負 13.9%。

Had we been able to recognize all of the AOG credits earned during the quarter. Our operating margin would have been negative 11.6%. We ended Q1 with $1.2 billion of liquidity, which includes unrestricted cash and cash equivalents, short-term investments and the $300 million of available capacity under our revolving credit facility. During the quarter, we took delivery of seven new A3 20 new aircraft and retired five A3 19 Sears ending the quarter with 207 aircraft in our fleet.

我們是否能夠認可本季獲得的所有 AOG 積分？我們的營業利益率為負 11.6%。第一季末，我們擁有 12 億美元的流動資金，其中包括不受限制的現金和現金等價物、短期投資以及循環信貸安排下的 3 億美元可用能力。本季度，我們接收了 7 架新 A3 20 飛機，並退役了 5 架 A3 19 Sears，本季結束時我們的機隊共有 207 架飛機。

We also finalized the sale leaseback transactions for the remaining five aircraft from the 25 sale leasebacks that we announced in December, we completed 20 of the transactions in December of '23 and the remaining five were completed in early January, resulting in net cash proceeds of $99 million bringing the total for all 25 aircraft to $419 million.

我們也完成了 12 月宣布的 25 架售後回租中剩餘 5 架飛機的售後回租交易，其中 20 架交易於 23 年 12 月完成，其餘 5 架於 1 月初完成，淨現金收益為9,900 萬美元，使所有25 架飛機的總價值達到4.19 億美元。

For the second quarter, we estimate our operating margin will range between negative 11.0% to negative 9% or between negative 8.5% and negative 6.5% when adjusting for the difference between ALG. credits estimated to be earned and the estimated AOG. credit to be recognized through earnings. We estimate the credits earned in the second quarter will be about $42 million, of which we estimate will recognize about $7 million. We estimate fuel cost per gallon will average $2.80, with total operating expenses ranging between $1.460 billion and $1.465 billion.

對於第二季度，我們預計在調整 ALG 之間的差異後，我們的營業利潤率將在負 11.0% 至負 9% 之間或負 8.5% 至負 6.5% 之間。預計獲得的學分和預計 AOG。信用透過收入來確認。我們估計第二季獲得的積分約為 4,200 萬美元，其中我們估計將確認約 700 萬美元。我們估計每加侖燃料成本平均為 2.80 美元，總營運費用在 14.60 億美元至 14.65 億美元之間。

And with that, I'll turn it back over to Ted for closing forms.

這樣，我會將其轉回 Ted 來填寫結帳表格。

Thanks, Scott. It's been only two months since our merger agreement. Jetblue was terminated, but we have already made significant progress on the first phase of our stand-alone plan. As we approach the summer, we plan to share more details on the status of negotiations with the public bondholders of our loyalty notes and our 2026 convertible notes.

謝謝，斯科特。距離我們達成合併協議才過兩個月。捷藍航空被終止，但我們已經在獨立計劃的第一階段取得了重大進展。隨著夏季臨近，我們計劃分享更多有關與公共債券持有人就我們的忠誠票據和 2026 年可轉換票據進行談判的情況的詳細資訊。

Once that is complete, we will take the time to clarify the strategy for the next phase of Spirit. We have work to do to improve the Company's revenue, production and margin opportunity, and we intend to discuss the details of our go-forward business ready strategy at an Analyst Day in early August.

一旦完成，我們將花時間闡明精神下一階段的策略。我們還有很多工作要做，以提高公司的收入、產量和利潤機會，並且我們打算在八月初的分析師日討論我們的前瞻性業務準備策略的細節。

Between now and then we will be deploying some elements of the revised approach to the market. We do not intend to discuss the details on a piecemeal basis as it is competitively sensitive. But I can say that we have been listening to our guests and general airline passengers and have been reviewing the competitive set of products in the industry.

從現在到那時，我們將向市場部署修訂後方法的一些要素。我們不打算零碎地討論細節，因為它具有競爭敏感性。但我可以說，我們一直在傾聽客人和普通航空公司乘客的意見，並一直在審查業內具有競爭力的產品組合。

The core components of our model work well density and utilization to drive cost efficiency and product assortment to give consumers choice. However, it is clear that we need to introduce introduce some changes to reflect the new dynamics in the industry and to make Spirit a more compelling option for the traveling public. Some of these changes to our merchandising and pricing strategy are already being tested in some of our markets, and the results appear to be in excess of our expectations from a volume and yield perspective.

我們模型的核心組件在密度和利用率方面表現出色，可提高成本效率和產品種類，為消費者提供選擇。然而，很明顯，我們需要引入一些變革來反映行業的新動態，並使 Spirit 成為對旅行大眾更具吸引力的選擇。我們的銷售和定價策略的一些變化已經在我們的一些市場進行了測試，從數量和產量的角度來看，結果似乎超出了我們的預期。

It is early but very encouraging. These are challenging times for the smaller US domestic airlines. But I have confidence in the Spirit team and the work that we have done to date to reestablish ourselves as a disruptive force in the market, and now back to DeAnne for Q&A.

雖然還很早，但非常令人鼓舞。對於規模較小的美國國內航空公司來說，現在是一個充滿挑戰的時期。但我對 Spirit 團隊以及我們迄今為止為重新確立市場顛覆力量所做的工作充滿信心，現在回到 DeAnne 進行問答。

Thank you, gentlemen. With that, Pam, we are ready to begin the question and answer session from the analysts.

謝謝你們，先生們。帕姆，我們準備好開始分析師的問答環節了。

Thank you. We will now begin the question and answer session. (Operator Instructions)

謝謝。我們現在開始問答環節。 （操作員說明）

Brandon blank ski, Barclays.

布蘭登空白滑雪，巴克萊銀行。

Hey, good morning, everyone, and thanks for taking the question. Ted, you mentioned in your prepared remarks how you feel like maybe the industry is feeling even right here post pandemic with the profits focused at a couple of carriers and you note the struggles of low-cost carriers.

嘿，大家早上好，感謝您提出問題。泰德，您在準備好的發言中提到，即使在大流行之後，您也認為該行業的感受如何，利潤集中在幾家航空公司身上，並且您注意到低成本航空公司的困境。

But what do you think potentially beyond just control of the market share is driving this difference? Do you think it's a fundamental shift by consumers just desiring that have, you know, the backup of the network airline or premium products. I don't know what have you diagnosed as the underlying challenge?

但您認為除了市場份額的控制之外還有什麼可能導致這種差異？您認為這是消費者的根本轉變嗎？ 他們只是希望擁有網路航空公司或優質產品的支援。我不知道您認為潛在的挑戰是什麼？

Thanks for the question. So I say there's a few things. First of all, corporate travel demand is not back to where it was pre-COVID, even though it appears to be moving in the right direction. We don't normally carry a lot of that, but that is that is a demand segment that does not exist to the extent it did pre-COVID. And so that's changing at least the way the airlines are competing for traffic.

謝謝你的提問。所以我說有幾件事。首先，商務旅行需求並未回到新冠疫情之前的水平，儘管它似乎朝著正確的方向發展。我們通常不會承擔很多這樣的需求，但這是一個需求領域，在新冠疫情之前並不存在。因此，這至少改變了航空公司爭奪客流量的方式。

There are more seats available for leisure based AFFAIRS because there isn't as much on corporate demand, soaking up some of that. So to the extent that that continues to improve, that will give credence to the whole normalization thought that we're starting to on that, that we indicated we're starting to see and will help put the balance back in place. But as it relates to fundamentally shifting consumer behavior. As I said in my closing, we've been studying the way people are behaving.

有更多座位可用於休閒活動，因為企業需求不多，可以吸收其中的一些。因此，在這種情況持續改善的情況下，這將為我們開始的整個正常化思想提供可信度，我們表示我們開始看到這一點，並將有助於恢復平衡。但因為它涉及消費者行為的根本轉變。正如我在結束語中所說，我們一直在研究人們的行為。

We've been using the opportunity of the last couple of years to review where we would be from a stand-alone perspective. And while we still believe that costs matter and we're still going to be a very low cost airline and we will attack that vigorously going forward, by the way, beyond whatever the $100 million target is, we're going to continue to pursue on an efficient model. There are components of the way people are buying that are different than they were five or six years ago.

我們一直利用過去幾年的機會從獨立的角度審視我們的發展方向。雖然我們仍然相信成本很重要，而且我們仍將成為一家非常低成本的航空公司，並且我們將大力推進這一目標，但順便說一句，無論目標是什麼，我們都將繼續追求建立在高效的模型上。人們的購買方式在某些方面與五、六年前有所不同。

And while we were at the forefront of introducing this type of model and an a-la-carte product, 15 plus years ago of the changes we've made to our product have been more nuanced over the last decade, and I think this affords us an opportunity to recast that some and while we were a hyper successful business in the 20 tens. We also recognized that some of that could have been at the sacrifice of the experience that our guests were having onboard the airplane, and we've made moves to improve that.

雖然我們處於推出此類模型和點菜產品的最前沿，但 15 多年前，我們對產品所做的改變在過去十年中更加細緻入微，我認為這可以提供我們有機會重塑這一點，而我們在20 世紀是一家非常成功的企業。我們也意識到，其中一些問題可能會犧牲乘客在飛機上的體驗，我們已採取措施改善這一點。

We are a better operator today. Our on-time performance is more in line with what we want to expect, but we also want to afford our guests, the opportunity to buy products and services that currently Spirit doesn't have available. And I think that's a chance for us to really move up it faster than people could appreciate. Clearly, we need the market to continue to perform the domestic demand and market needs to reach some level of stability.

今天我們是一個更好的運營商。我們的準時表現更符合我們的期望，但我們也希望為我們的客人提供購買目前 Spirit 尚無的產品和服務的機會。我認為這對我們來說是一個機會，能夠以比人們想像的更快的速度真正提升它。顯然，我們需要市場持續履行內需，市場需要達到一定程度的穩定。

But we feel confident in the plan that we've got that we can attack the market well with low costs and deliver products that people want more affordably than they're currently getting on some of the other airlines. And I think that could be a real a real boon to our to load factor and yield for us.

但我們對我們的計劃充滿信心，我們能夠以低成本很好地攻克市場，並以比目前其他一些航空公司更便宜的價格提供人們想要的產品。我認為這對我們的負載率和產量來說可能是一個真正的福音。

I really appreciate that response time. And I guess, do you feel culturally that you have the team in place now, especially given all the ups and downs you guys have gone through here to act with urgency to really right the ship in terms of operating profitability?

我真的很感謝這段回覆時間。我想，從文化上來說，你是否覺得你現在已經擁有了團隊，特別是考慮到你們在這裡經歷了所有的起起落落，需要採取緊急行動，真正糾正這艘船的運營盈利能力？

Well, certainly has been a seesaw a couple of years on, and I appreciate the comment, but yes, um, you know, this is a this is a group that was birds in and in changing the industry and making adjustments. We've been an action oriented management team for my entire experience here, and I'm I'm blessed to have the group around me and I've been glad to be a part of it and we get the urgency. So this is something that we've been waiting to take advantage of.

嗯，幾年過去了，這確實是一個蹺蹺板，我很欣賞這個評論，但是，是的，嗯，你知道，這是一個在改變行業和做出調整的團體。在我在這裡的整個經歷中，我們一直是一個以行動為導向的管理團隊，我很幸運有這個團隊在我身邊，我很高興成為其中的一員，我們感到緊迫。所以這是我們一直在等待利用的東西。

Perhaps, you know, if the deal did not happen. We had to prepare for the fact that the deal would happen. That was the deal that was voted on by our shareholders, and that's what we agreed to do. But now that that's over, this is a chance for us to really move things along quickly. I think you've seen some evidence of that in a large a lot of it, as Scott outlined, has been balance sheet and cost and income and growth rate related stuff. But there's more to come this summer and we're moving with all due taste and urgency.

也許，你知道，如果交易沒有發生的話。我們必須為這筆交易的發生做好準備。這是我們股東投票通過的交易，也是我們同意做的事情。但現在一切都結束了，這對我們來說是一個真正快速推動事情進展的機會。正如斯科特所概述的那樣，我認為您已經在許多方面看到了一些證據，其中包括資產負債表、成本、收入和成長率相關的內容。但今年夏天還會有更多的事情發生，我們將以應有的品味和緊迫感採取行動。

Thank you.

謝謝。

Scott Group, Wolfe Research.

斯科特集團，沃爾夫研究。

Thanks, and good morning. I wanted to just focus on the liquidity and some of the creditor stuff. What can you just remind us minimum liquidity you're targeting, whether any additional sources of liquidity, any more sale leasebacks you can do anymore PDPs to get back.

謝謝，早安。我想只關注流動性和一些債權人的問題。您能提醒我們您的目標是最低流動性嗎​​？

And then in terms of the creditor resolution this summer, maybe just at a high level, I'm guessing you want to get into too many specifics. What are some of the what are the options sort of on the table here?

然後就今年夏天的債權人決議而言，也許只是在較高層面上，我猜你想討論太多細節。這裡有哪些選項？

Hey, Scott, this is Scott. So yes, I think the process for us with the bondholders has been has been constructive so far, we expect that to be sort of finalized through the summer. And then when you think about sort of cash liquidity minimums for us, we haven't publicly disclosed outside of the sort of $400 million minimum for our loyalty bond and $450 million minimum for our revolver. We haven't disclosed anything in regards to our credit card holdback agreement, but we are well above those those minimums today as well.

嘿，斯科特，這是斯科特。所以，是的，我認為我們與債券持有人的進程到目前為止一直是建設性的，我們預計這將在今年夏天完成。然後，當你考慮我們的現金流動性最低限度時，我們沒有公開披露忠誠度債券最低 4 億美元和左輪手槍最低 4.5 億美元之外的資訊。我們尚未披露有關信用卡扣留協議的任何信息，但今天我們也遠高於這些最低要求。

So we think we have and enough liquidity, and we expect to start generating some cash as we move forward into the back half of the year. And so we feel good about where we are and we do have some ability to generate more liquidity. Obviously, we have some financeable assets still remaining probably expected to see some time in the future here as we think about enhancement going forward. But we have the ability to move forward. But really, we got to get the business generating operating cash, and that's really what the go-forward plan is about.

因此，我們認為我們擁有足夠的流動性，並且預計隨著下半年的到來，我們將開始產生一些現金。因此，我們對自己的處境感到滿意，而且我們確實有能力產生更多流動性。顯然，當我們考慮未來的增強時，我們仍然有一些可融資資產，預計在未來一段時間會出現。但我們有能力繼續前進。但實際上，我們必須讓業務產生營運現金，這就是前進計畫的真正目的。

Okay. And then when I look at this Q2 rather than guide, and I guess I'm wondering, do you feel like you're seeing any book away impact just given sort of all that and the noise involving Spirit right now? And do you have any thoughts there? And then I know you made a comment that you think off peak it gets better. Just any color on why you think that happens? Thank you.

好的。然後，當我看這個 Q2 而不是指南時，我想我在想，你是否覺得你正在看到任何一本書的影響，只是考慮到所有這些以及現在涉及精神的噪音？你對此有什麼想法嗎？然後我知道你發表了評論，你認為高峰期過後情況會更好。有什麼顏色可以解釋為什麼會發生這種情況嗎？謝謝。

Yes, sure, Scott. This is Matt. We aren't seeing anything right now that would indicate that you're when you're asking about noise in the marketplace affecting affecting our our booking patterns or anything of that nature of what we do think is happening, which is what is being alluded to here is that we have to make some changes and what our customers want today is a little different than what we're offering today. So we have to make some changes to get there.

是的，當然，斯科特。這是馬特。我們現在沒有看到任何跡象表明您在詢問市場中的噪音影響我們的預訂模式或我們認為正在發生的任何類似性質的事情，這就是我們所提到的我們必須做出一些改變，而我們的客戶今天想要的東西與我們今天提供的東西有些不同。因此，我們必須做出一些改變才能實現這一目標。

And as we as we make those changes and as we move through the summer and out and then hit after the summer, we would expect to see things start to improve because of what we're what we've done thus far is created a great model and a great program but what ended up happening is throughout COVID and coming out of COVID, we've seen a lot of competitive activity at price points that are used to be sort of a place that we would play in and others are now playing in on those same price points.

當我們做出這些改變時，當我們度過整個夏天、走出去，然後在夏天結束後，我們期望看到事情開始改善，因為我們迄今為止所做的一切創造了一個偉大的目標。很棒的計劃，但最終發生的事情是在整個新冠疫情期間以及從新冠疫情結束後，我們看到了很多價格點上的競爭活動，這些價格點過去是我們玩的地方，而其他人現在也在玩。

So we have to make changes and what we're looking to do is going to be as Ted alluded to, is creating on different kinds of opportunities for more breadth of of service and product. And then we'll just end up seeing some how that plays through. It's going to take a little bit of time for things to really kind of take hold and fully fully materialize. But we expect to see incremental improvement and accretion to the bottom line as we start to make changes.

因此，我們必須做出改變，我們要做的就是像特德提到的那樣，為更廣泛的服務和產品創造不同類型的機會。然後我們最終會看到它是如何發揮作用的。事情真正落地並完全實現需要一點時間。但當我們開始做出改變時，我們預計會看到逐步的改進和利潤的增加。

And that's where we expect to see help in the shoulder. And the off-peak periods of peak periods are relatively good and it's the off peaks in the shoulders is where we need to is really where we need to see the comeback, which is where we're used to do pretty well. And we're not doing well and there's periods right now, and that's where we expect to see the improvement and help us overall down the line.

這就是我們期望看到肩膀上的幫助的地方。高峰期的非高峰期相對較好，肩膀上的非高峰期才是我們真正需要看到復甦的地方，這也是我們過去做得很好的地方。我們做得不好，現在有一些時期，這就是我們期望看到改進並幫助我們整體發展的地方。

Okay. That's helpful. Thank you, guys, appreciate it.

好的。這很有幫助。謝謝你們，謝謝你們。

Duane Pfennigwerth.

杜安·芬尼格沃斯。

Thanks. Good morning, Ted and team. Just a couple of cash flow questions. First, on deferred heavy maintenance, can you just talk about what your expectation would have been this year before any credits and how we should think about that line item on a net basis after the $150 to $200 million credit and credit.

謝謝。早上好，泰德和團隊。只是幾個現金流問題。首先，關於延期的大型維護，您能否談談今年在任何信貸之前的預期是什麼，以及在 150 至 2 億美元的信貸和信貸之後我們應該如何考慮該項目的淨額。

So Dwayne, are you asking about the the the estimated cash CapEx that we would spend this year, primarily, I guess Citizens is what you're referring to exactly.

那麼，德韋恩，您是否詢問我們今年將花費的預計現金資本支出，主要是，我想公民正是您所指的。

Yes, thanks.

對了謝謝。

Yes, we were sort of forecasting in sort of $175 to $200 million range for cap maintenance, and that's still probably about the case, most of that's going to be the work and that will we'll use the credits to offset some of that.

是的，我們預測上限維護費用為 175 至 2 億美元，情況可能仍然如此，其中大部分將是工作，我們將使用積分來抵消其中的一部分。

Okay. So that $175 offset by one $175, it looks like in the first quarter it was a net outflow of about $20 million. Again, any I guess any finer point you can put on that would be helpful.

好的。因此，175 美元被 175 美元抵消，看起來第一季的淨流出約為 2000 萬美元。再說一次，我想你能提出的任何更好的觀點都會有所幫助。

Yes. I mean, we'll spin, look, I mean, we'll spend more than the credits this year and prep from CAT maintenance and other parts and other things associated. So if you're trying to get at the usage of the credits? Yes, we will likely be able to use all of the credits and beyond in the period of part of that will be kept maintenance, but some as within other expenses and then the P & L's.

是的。我的意思是，我們將旋轉，看，我的意思是，我們今年將花費比學分更多的費用，並從 CAT 維護和其他零件以及其他相關事物中進行準備。那麼，如果您想了解積分的使用情況呢？是的，我們很可能能夠在部分維護期間使用所有積分及其他積分，但有些積分會在其他費用以及損益表中使用。

Thanks. And just on other liabilities, it looks like it was about $120 million use of cash in the March quarter. Can you talk about what is driving that? What are the moving pieces in that line? And if there's any seasonality is kind of a front-loaded investment that is in the back half and any color on that line would be helpful.

謝謝。僅就其他負債而言，三月季度的現金使用量約為 1.2 億美元。您能談談是什麼推動了這個趨勢嗎？該行中有哪些移動部分？如果有任何季節性，那就是一種前置投資，位於後半部分，該線上的任何顏色都會有所幫助。

They do a little of the detail on the we'll get back to you on that one of the Energa.

他們做了一些關於 Energa 的細節，我們會回覆您。

Okay. Thank you.

好的。謝謝。

Syth Savanthi, Raymond James.

賽斯·薩凡西，雷蒙德·詹姆斯。

Hey, good morning, everyone, and probably for Scott. Just on the $100 million cost reduction goal. I was curious what you're seeing as you've seen and as alluded to, you're going to have capacity reductions again next year. Does the $100 million right-sized to where you get to by the end of this year? Or is it contemplating is the right cost structure you need to be for next year as well pace of a year.

嘿，大家早上好，可能還有史考特。就在 1 億美元的成本削減目標上。我很好奇你所看到的情況，正如你所看到的和所提到的，明年你將再次削減產能。今年底，這 1 億美元的規模是否適合您所達到的目標？或者是否正在考慮明年所需的正確成本結構以及一年的節奏。

The first move of this is to really right-size to where we are at the end of the year, and that's sort of a run rate number the $100 million of. Obviously a lot of that will happen in the back end of the year. As we think about the furloughs and other rightsizing of some of the labor groups that we have internally, we rightsize some of the airport facilities that we have and other pieces of the organization.

第一步是真正調整規模，使其達到年底的水平，這相當於 1 億美元的運行率。顯然，很多事情都會在今年底發生。當我們考慮對我們內部的一些勞工團體進行休假和其他調整規模時，我們對我們擁有的一些機場設施和組織的其他部分進行了調整。

But that's sort of the run rate based on at this year's capacity, depending on the number of AOG.s that we have next year, we'll have to reevaluate reevaluate where we are with all the components of the P & L, but hopefully we get some energy mitigation relief from Pratt in the numbers, not as high as Matt mentioned in his prepared remarks, that could be as high as 70 next year. Hopefully, the numbers a little bit lower and easier to manage for us, but we'll have to reevaluate in 2025.

但這是基於今年產能的運行率，取決於明年我們擁有的 AOG 數量，我們將不得不重新評估損益表所有組成部分的情況，但希望我們從普拉特那裡得到了一些能源緩解減免的數字，但沒有馬特在他準備好的演講中提到的那麼高，明年可能會高達70。希望這個數字能稍微低一點並且更容易管理，但我們必須在 2025 年重新評估。

I said at that meeting for Matt, just on the revenue side, you mentioned three points of pressure, I think, whereas pressure this quarter is from international. Is that kind of alluding to the fact that kind of domestic is having just as much pressure at. And I was just kind of curious, as you think to we do the schedule and I realize this mostly in the off peaks, but does your overlap changes? Is there any kind of patterns in how you're changing those schedules?

我在馬特的那次會議上說過，就收入而言，我認為您提到了三點壓力，而本季的壓力來自國際。這是不是在暗示這樣一個事實：國內也面臨同樣大的壓力？我只是有點好奇，正如你所認為的，我們會制定時間表，我意識到這主要是在非高峰時段，但是你的重疊情況會改變嗎？您改變這些日程安排的方式有什麼模式嗎？

Yes, sure. Thanks, Savi. So the on the those additional points are out there because we would still be seeing some unit revenue weakness in the domestic network as well. So the Latin American Caribbean network is sort of on top of that, bringing down the system average a bit more and and this is we've had geographic issues with this part of our network in the past, and it's always come back around and we expect it will again in the interim, we have made some important important moves in our from our international and US territory network. We've suspended a significant number of cities for now.

是的，當然。謝謝，薩維。因此，這些額外的要點是存在的，因為我們仍然會看到國內網路的一些單位收入疲軟。因此，拉丁美洲加勒比網路是最重要的，它使系統平均水平進一步下降，這是我們過去在這部分網路中遇到的地理問題，而且它總是會回來，我們預計在此期間會再次出現，我們已經在我們的國際和美國領土網絡中採取了一些重要舉措。目前我們已經暫停了相當多的城市。

We've exited on one Route one city permanently in that network as well. And so we're just like everybody else, I guess, kind of just digesting the capacity that's put in place there during the in the early days of COVID of kind of coming out of COVID, so to speak or even during COVID, a lot of traffic went to went to that region of the world of our network.

我們也在這個網路中永久退出了一條路線、一個城市。因此，我想，我們就像其他人一樣，只是消化在新冠疫情早期或結束後所建立的能力，可以說，甚至在新冠疫情期間，很多的流量流向了我們網絡世界的那個區域。

And a lot of that, a lot of that demand is still shifted to other parts of the world. So over time, that will come back to to Latin America and the Caribbean, and we were thinking there'd be a little bit more of that happening right now than what we're seeing. Of course, there is capacity increases going on as well. So it's just a little bit of too much supply.

其中許多需求仍然轉移到世界其他地區。因此，隨著時間的推移，這種情況將會回到拉丁美洲和加勒比地區，我們認為現在發生的情況會比我們看到的要多一些。當然，產能也在不斷增加。所以只是供應量有點太多了。

Yes, in that part of our network also, I would say that a lot of the moves that we are making are intended to find some opportunities where where we can go, where we think there are underserved opportunities. And that's a lot of the network additions that we put in place. I think it's important to also remember, and this is true for any airline, not just for us is that anyone can add capacity in any route. This is a very dynamic industry and anyone can move capacity wherever they want whenever they want.

是的，在我們網路的這一部分，我想說，我們正在採取的許多舉措都是為了在我們可以去的地方、我們認為機會不足的地方尋找一些機會。這就是我們添加的大量網路內容。我認為重要的是要記住，這對任何航空公司都是如此，而不僅僅是我們，任何人都可以在任何航線上增加運力。這是一個非常充滿活力的行業，任何人都可以隨時隨地將產能轉移到任何地方。

So moving the network around is incredibly important. Of course, it is. But what's also important is making sure that we have a product that we can present to tour to our customers to our guests. That makes us top of mind for them again, like we used to be and we're going to do that. And that's also as important or possibly more important than thinking about just the network itself.

因此，行動網路非常重要。當然如此。但同樣重要的是確保我們有一個產品可以向我們的客戶展示給我們的客人。這讓我們再次成為他們的首要考慮，就像我們以前一樣，我們也會這樣做。這也比只考慮網路本身同樣重要，甚至可能更重要。

That's helpful. Thank you. And thank you.

這很有幫助。謝謝。謝謝你。

Thank you.

謝謝。

Jamie Baker, JPMorgan.

傑米貝克，摩根大通。

Okay. Good morning, everybody. And so first question on competition. You know, obviously one would assume that it markets with multiple competitors. You know, tend to be potentially less lucrative than markets with them. Maybe just one competitor, Mike, my question really relates to the behavior of competition in those more competitive markets.

好的。大家早安。關於競爭的第一個問題。你知道，顯然人們會認為它與多個競爭對手進行行銷。你知道，往往比有它們的市場更有利可圖。也許只有一個競爭對手，麥克，我的問題確實與那些競爭較激烈的市場中的競爭行為有關。

What I'm being asked is whether any airlines and you don't need to name names, but whether they're behaving more aggressively towards Spirit, given some of the challenges you've been discussing this morning is is there any is there any truth to that? Or is it just sort of plain vanilla competition as usual, too many seats too few people that sort of thing?

我被問到的是，是否有任何航空公司，你們不需要指名道姓，但他們是否對精神航空表現得更加激進，考慮到你們今天早上討論的一些挑戰，有沒有？或者這只是像往常一樣的普通比賽，座位太多，人太少之類的事情？

Thanks. Jamie, it's Ted of kick off. If Matt wants to add anything he can. Well, first of all, the industry has always been very competitive. So I think that that's some that's been the case and the power is concentrated today. So it does if you strip away from what appears to be a very lucrative transatlantic market and on the credit card based revenue of the loyalty programs of the bigger airlines. If you take those things out, they're losing money. And I think that speaks to how they're competing domestically.

謝謝。傑米，我是特德，要開球了。如果馬特想添加任何內容，他可以添加。首先，這個行業的競爭一直非常激烈。所以我認為情況確實如此，而且今天的權力是集中的。如果你放棄看似利潤豐厚的跨大西洋市場以及大型航空公司忠誠度計劃的基於信用卡的收入，情況就會如此。如果你把這些東西拿出來，他們就會賠錢。我認為這說明了他們在國內的競爭方式。

And so what we have to do is make sure we have the right product suite. And to Matt's point, we're positioning the airplanes in the right place. Now there are definitely airlines that are focusing on on different things. I think you could see there's at least one or two airlines that are reaching for as much premium as they can get their hands on and thinking about their brand in a certain way.

因此，我們要做的就是確保我們擁有合適的產品套件。對於馬特來說，我們正在將飛機放置在正確的位置。現在肯定有一些航空公司專注於不同的事情。我認為你可以看到至少有一兩家航空公司正在爭取盡可能多的溢價，並以某種方式思考他們的品牌。

And there are a couple of others who are really just going down market and we're going to compete around that as we always do on but I think there is a little bit of a dislocation the way the market showing on the bigger airlines are competing, and we're just going to have to pivot, which is actively what we're doing right now, keeping our focus on the cost structure, but also getting ready to introduce some products that we think could really be competitive that can actually aid our unit revenue.

還有其他一些公司實際上只是進入下游市場，我們將像往常一樣圍繞這一點進行競爭，但我認為大型航空公司的市場競爭方式有點混亂，我們必須進行調整，這就是我們現在正在積極做的事情，將我們的注意力集中在成本結構上，但也準備推出一些我們認為真正具有競爭力的產品，這些產品實際上可以幫助我們的單位收入。

So what would you add to that?

那你會添加什麼？

The I would I would say from a from a tactical perspective, I think I would just call the competition that we're seeing quite normal of airlines move, move around all the time in terms of how they compete and what's important to them at that time. So some airlines get a little more aggressive some get a little less and then it changes around. So I understand your question, Jamie, but I don't know that there's anything specifically different that I would call sort of pattern emerging of any sort.

我想說，從戰術角度來看，我想我會稱我們所看到的航空公司的競爭是很正常的，在競爭方式以及對他們來說重要的方面一直在變化。因此，有些航空公司變得更加激進一些，有些則減少了一點，然後情況就改變了。所以我理解你的問題，傑米，但我不知道有什麼特別不同的東西，我稱之為某種模式的出現。

Okay, that's helpful. And then second question, when we think about the order book and assuming that the air craft market remains as it is for the foreseeable future, should we be thinking about sale leasebacks down the road being made form of cabin relief?

好的，這很有幫助。第二個問題，當我們考慮訂單並假設飛機市場在可預見的未來保持不變時，我們是否應該考慮以客艙減免的形式進行售後回租？

You know, I don't recall this being a part of your DNA, but you're obviously talking today about making some brand changes, product changes that sort of thing. So I'm just wondering if if Spirit might, you know, kind of pivot towards that model? And I'm basically trying to square this with what you have said about potential double EPS potential WTZ. So any any color there would help?

你知道，我不記得這是你 DNA 的一部分，但你今天顯然在談論進行一些品牌改變、產品改變之類的事情。所以我只是想知道 Spirit 是否會轉向這種模式？我基本上試圖將這一點與您所說的潛在雙 EPS 潛力 WTZ 結合。那麼任何顏色都會有幫助嗎？

Well, let me let me jump off and Scott, you can you can I think what you may be referring to is sale leasebacks as for chasm relief, meaning potentially using the financing to offset expense by recording gains we wouldn't do that from Iceland.

好吧，讓我讓我跳下來，斯科特，你可以我想你可能指的是銷售回租作為鴻溝緩解，這意味著可能使用融資來通過記錄收益來抵消費用，我們不會在冰島這樣做。

Yes, that's not something we don't view that as an operating activity. You could do it by the way, and it could be an effective form of financing on both, but I don't know that it's an operating activity. So we do sale leasebacks today. Obviously, we just don't we strip it out when we talk about it so it may continue to be a form of financing going forward.

是的，我們並非不將其視為一項營運活動。順便說一句，你可以這樣做，這可能是兩者的有效融資形式，但我不知道這是一種經營活動。所以我們今天進行售後回租。顯然，當我們談論它時，我們不會將其剔除，因此它可能繼續成為未來的一種融資形式。

We do have owned airplanes today. Scott alluded to the potential for incremental liquidity coming from WTC market because we have some outstanding double ETCs today, but I think we look at the value of the order book as an asset. And that's why when we did our deferral program, we held onto the delivery slots because we think when the time is right down the road, we want to continue to modernize the fleet when when Pratt gets their act together on this will be a very powerful cost benefit versus a number of our peers domestically, the fuel burn advantage will translate into real margin points. And so it will get there. And we want to be a part of that. So anything you want to on?

今天我們確實擁有飛機。 Scott 提到了 WTC 市場增加流動性的潛力，因為我們今天有一些出色的雙 ETC，但我認為我們將訂單簿的價值視為一種資產。這就是為什麼當我們執行延期計劃時，我們保留了交付時段，因為我們認為時機成熟時，我們希望繼續對機隊進行現代化改造，當普拉特齊心協力時，這將是一個非常強大的力量與國內許多同業相比，燃油消耗優勢將轉化為真正的利潤點。所以它會到達那裡。我們希望成為其中的一部分。那你想穿什麼嗎？

I think you hit it head on.

我認為你正面擊中了它。

Okay. Thank you, both. Appreciate it.

好的。謝謝你們倆。欣賞它。

Andrew Didora, Bank of America.

安德魯·迪多拉，美國銀行。

Hey, good morning, everyone. Maybe first question for Matt or maybe Ted, I know it's early Com, but Scott spoke to possibility of generating cash flow as we move through the year. So how are you thinking about the unit revenue potential in the back half, given the easier comps and lower capacity across the industry or maybe to ask another way, what kind of resin do you need in the back half of the year to really begin generating positive operating cash flow?

嘿，大家早安。也許是馬特或泰德的第一個問題，我知道現在還處於早期階段，但斯科特談到了我們在這一年中產生現金流的可能性。那麼，考慮到整個行業的比較容易比較和產能較低，您如何看待下半年的單位收入潛力，或者也許換個方式問，您在下半年需要哪種樹脂才能真正開始產生經營性現金流為正？

Yes, Andrew, thanks. So I'm not going to speak specifically to what unit revenue we need to start generating operating cash flow. But what I can what I can talk to is we expect fully expect that the changes we start implementing this summer. And then we'll talk about lot more about other things that we would we would do come August at our Analyst Day will be accretive to to our profitability.

是的，安德魯，謝謝。因此，我不會具體談論我們需要多少單位收入才能開始產生營運現金流。但我能說的是，我們完全期待今年夏天開始實施的改變。然後我們將更多地討論我們將在八月份的分析師日做的其他事情，這些事情將增加我們的盈利能力。

So that will take time to develop and some things will be immediate benefits we expect and some things will take a little bit longer to roll out. I would tell you that on what's important here, too, and I neglected to say this earlier is that on terms of the product itself, we have quite a difference in terms of how guests think about spirit and how they recommend spirit to their friends and friends and relatives relative to people who have not tried the product for ever or have not tried the product in quite some time.

因此，這需要時間來開發，有些東西將是我們期望的即時的好處，有些東西將需要更長的時間才能推出。我想告訴你，這裡也很重要，我之前忽略了這一點，就產品本身而言，我們在客人如何看待烈酒以及他們如何向朋友推薦烈酒方面存在很大差異，從未嘗試過該產品或相當長一段時間沒有嘗試過該產品的人的親戚朋友。

It is a shocking difference between people that experienced the product versus people that only hear what they hear in the news in the media and that has to change. There is a significant number of people in this country who do not think about Spirit when they book their travel and that will change. And as that changes, that means we will be widening the funnel and that funnel will allow us to then push up yields and then over time flow through to other parts of loyalty.

體驗過該產品的人和只聽到媒體新聞的人之間存在著令人震驚的差異，而這種差異必須改變。這個國家有相當多的人在預訂旅行時不會考慮 Spirit，這種情況將會改變。隨著這種變化，這意味著我們將擴大漏斗，而該漏斗將使我們能夠提高收益率，然後隨著時間的推移流向忠誠度的其他部分。

So instead of just being transactional with our guests, which largely we've done in the past, we will begin to become more relationship driven with our guests and everything we're talking about doing and thinking about doing will lead will lead there and over time. And like I just said earlier, we expect some of this will be cash flow positive quickly and other things will take will take time to develop. So I think that's probably the best way for me to describe what's coming and how we think about the back half of the year.

因此，我們不再只是與客人進行交易（這在很大程度上是我們過去所做的），我們將開始變得更加以與客人的關係為驅動力，我們正在談論的、正在做的和正在考慮做的一切都將引導到那裡並結束時間。正如我剛才所說，我們預計其中一些將很快實現正現金流，而其他事情則需要時間來發展。所以我認為這可能是我描述即將發生的事情以及我們如何看待下半年的最佳方式。

And I might add, you know, as we head towards the back of the year on the road to cash generation and eventual profitability. Well, it's important that we get the product aligned, as Matt alluded to, and that will be we think a near-term contributor could be notable, but not not as significant as it will when it builds over time, but the rest of it has to also come from the airline's cost structure and from its efficiency.

我可能會補充一點，你知道，今年年底我們將踏上現金生成和最終盈利的道路。嗯，正如馬特提到的那樣，我們必須讓產品保持一致，這就是我們認為近期的貢獻者可能會值得注意，但不會像隨著時間的推移而構建時那麼重要，但其餘的還必須來自航空公司的成本結構及其效率。

If we look right now today, we've announced a cost target just to rightsize, as Scott said, to get us into 2024. But most of that cost reduction hasn't taken place yet. We're still burdened with incremental expenses that start to reach run rate in the third and fourth quarters, and that's probably a point or two of margin right there.

如果我們現在看，我們已經宣布了一個成本目標，正如斯科特所說，只是為了調整規模，讓我們進入 2024 年。我們仍然背負著增量費用的負擔，這些費用在第三和第四季開始達到運行率，這可能是利潤率的一兩個點。

And then we look at on the retirement of the three nineteens and while we have challenges with aircraft on ground on the neo fleet still and an increasing percentage of the total fleet in NEO aircraft, the fuel burn advantage, right there is probably as much as another point, which starts to really roll through in the back half of this year. And then we've been moving utilization on AAOG adjusted basis north, but we're still not all the way back. We're better, but not all the way back. And that's probably another point of margin right there. So we're talking about efficiencies that get us three to four points of margin in the back half of the year we're optimistically thinking on.

然後我們看看三個十九飛機的退役，雖然我們在新機隊的地面飛機方面仍然面臨挑戰，而且新機隊在總機隊中所佔的比例越來越大，但燃油消耗優勢可能高達另一點，今年下半年開始真正發生。然後我們一直在將 AAOG 調整後的使用率向北移動，但我們仍然沒有完全回歸。我們好多了，但還沒有完全恢復。這可能是另一個邊緣點。因此，我們正在談論的效率可以讓我們在下半年獲得三到四個百分點的利潤率，我們樂觀地認為。

And then the last thing, besides the revenue improvements that that Matt alluded to is the network pivots that he and the network team have been going through really don't show in force until the month of May like we're seeing them right now. And so we'll get some benefit out of that in the second quarter, but it's really much better in the third and fourth, and that could be as much as a couple of points of margin.

最後一件事，除了馬特提到的收入改善之外，他和網路團隊一直在經歷的網路轉型直到五月才真正顯現出來，就像我們現在看到的那樣。因此，我們將在第二季從中獲得一些好處，但第三季和第四季的情況確實要好得多，而且可能會有幾個百分點的利潤。

We think so those things you start to add them up, get us right, probably right, where we need to be from a cash generation perspective, not anywhere near where we need to be from a profitability perspective. And that's where we have to make the rest of the pivots to to push the airline further forward. But we can't just rely on some on the unit revenue side of things. We are a cost business. We recognize that and we think we have room to improve that to help our cash flow generation.

我們認為，這些事情你開始把它們加起來，讓我們正確，可能是正確的，從現金生成的角度來看，我們需要達到的目標，而不是從盈利角度來看我們需要達到的目標。這就是我們必須將其餘的重點轉向推動航空公司進一步前進的地方。但我們不能只依賴單位收入方面的一些東西。我們是一家成本企業。我們認識到這一點，並認為我們還有改進的空間，以幫助我們產生現金流。

That's great, Ted. Thanks so much. I'll leave it there. Thank you.

太棒了，泰德。非常感謝。我會把它留在那裡。謝謝。

Conor Cunningham, Melius Research.

康納·坎寧安，Melius 研究中心。

Thank you. Tom, just on the Pratt frac credits, you have like a $50 million spread right now for 2024. Are the outcomes there just dependent on the days on the ground and what maybe is turnaround times? And then maybe as a clarification, how much of that is for 2024 and how much is for 2023? Just trying to get a clean number as we think about potential compensation and '25 given all the other issues there. Thank you.

謝謝。湯姆，僅就普拉特壓裂積分而言，您現在對 2024 年的價差約為 5000 萬美元。然後也許需要澄清一下，其中 2024 年的金額是多少，2023 年的金額是多少？只是想得到一個乾淨的數字，因為我們考慮潛在的補償和 25 考慮到所有其他問題。謝謝。

Yes, hey, Conor. So the $50 million spread is obviously based on the number of AOG days and the turn times worse we're seeing today are upwards of a year or so there. This is kind of what Matt mentioned earlier, some of the mitigation efforts for the AOG. primarily for probably '25. It will be reduce turn times as they as they get better, get more materials and to help push those through.

是的，嘿，康納。因此，5000 萬美元的價差顯然是基於 AOG 天數，而我們今天看到的更糟糕的周轉時間長達一年左右。這就是 Matt 之前提到的 AOG 的一些緩解措施。主要是為'25'設計的。隨著他們變得更好，獲得更多材料並幫助推動這些工作，週轉時間將會減少。

And to your to your latter question around how much is 2023, probably about $30 million of that as for prior period credits that have accumulated and so the remaining is going to be for 2024.

對於你的後一個問題，2023 年有多少，其中可能有大約 3000 萬美元用於累積的前期積分，所以剩下的將用於 2024 年。

Okay. That's super helpful. And then you mentioned the need for off-peak to improve to hit your revenue assumption. I didn't know if that was a second quarter comment or a full year, and just how much does it need to does off-peak need to kind of perk up for you to hit your plan? Thank you.

好的。這非常有幫助。然後您提到需要改進非高峰時段以達到您的收入假設。我不知道這是第二季的評論還是全年的評論，以及非高峰期需要多少精力才能讓您完成計劃？謝謝。

Yes, sure. So in terms of the second quarter, we're baking into second quarter what we expect to be happening now. So we do need to see some slight improvements from what we saw say earlier on in the first quarter. And we're seeing some of that happen. I wish it was faster and it just speaks overall to what we were just talking about earlier about what we need to do in order to become more attractive. Again, I'm out there.

是的，當然。因此，就第二季而言，我們正在將我們預期現在發生的情況納入第二季。因此，我們確實需要看到與第一季早些時候所說的相比有一些細微的改進。我們看到其中一些正在發生。我希望它更快，它只是總體上說明了我們之前談論的關於我們需要做什麼才能變得更具吸引力的內容。再說一遍，我在外面。

So it all all of the things that we're talking about doing are well, I don't want to get this confused here. They will also help peak periods as well. It's just that what we do, where we do see that the off-peak and the shoulder periods is where we're having the most challenges, and that's where we need. We need the most self-help in order to bring those back up to what we used to see in off peaks. We did a lot of cancels on Tuesdays and Wednesdays in the early part of this year. We do that every year. We generally do that in September and October. We'll be finalizing how we think about that here shortly for the fall, and that's fine. That helps unit revenue. But at the end of the day, we need. We need to make sure that we can produce on those days of the week as well so that we can also contribute overall on to the operating margin on the bottom line itself.

所以我們正在談論的所有事情都很好，我不想在這裡混淆。它們也將有助於高峰期。這只是我們所做的，我們確實看到非高峰期和平峰期是我們面臨最大挑戰的地方，而這正是我們需要的地方。我們需要最大程度的自助，才能使這些恢復到我們過去在非高峰期看到的水平。今年年初，我們在星期二和星期三取消了許多訂單。我們每年都會這樣做。我們通常在九月和十月這樣做。我們很快就會在秋天敲定我們對此的看法，這很好。這有助於單位收入。但歸根結底，我們需要。我們需要確保我們也能在一周中的這些日子裡進行生產，這樣我們也可以為利潤本身的營運利潤做出整體貢獻。

Great. Thank you.

偉大的。謝謝。

Michael Linenberg, Deutsche Bank.

麥可‧林伯格，德意志銀行。

Oh, hey, Adam. Good morning, everyone. Hey, I just you know, as I think about your unit revenue guide for the June quarter and your top line guide, I know on that you highlighted some of the some of the issues that have driven called the subpar results. How much of it is on with respect to new market development? It does look like you're adding a lot of new city pairs. How much does it take like what's the timing for those markets to ramp up? Presumably there's promotional activity initially to build traction. Just give us a sense of maybe how much exposure you have to developments in the ramp-up time?

哦，嘿，亞當。大家，早安。嘿，我只是你知道，當我想到你的六月季度的單位收入指南和你的頂線指南時，我知道你強調了一些導致業績不佳的問題。其中有多少是用於新市場開發？看起來您確實添加了很多新的城市對。這些市場的成長需要多少時間？想必最初會進行促銷活動來吸引人們的注意。請讓我們了解您在啟動時間內對發展的了解有多少？

Yes. Thanks, Mike. So we have announced on quite a few new routes. A lot of them are day a week, not all of them a lot of them are on. So the actual exposure we have right now in Q2 is really is really not that high. It's actually relatively low as we move into Q2 as we move into Q3 and Q4, that number will increase a little bit. But as of right now, I wouldn't necessarily say that that that that's something where we've over rotated of there.

是的。謝謝，麥克。所以我們已經宣布了相當多的新航線。其中很多是每週的一天，但並不是所有的都在。所以我們現在在第二季的實際曝光率確實沒有那麼高。當我們進入第二季度時，它實際上相對較低，當我們進入第三季和第四季時，這個數字會略有增加。但截至目前，我不一定會說那是我們過度輪替的地方。

We wouldn't be very careful with how we how we how we do this because we also recognize that new routes bring risk and we're trying to derisk as much as we can. So we'll be smart about it and we're doing some things that we haven't done as much in the past.

我們不會非常謹慎地考慮如何做到這一點，因為我們也意識到新航線會帶來風險，而我們正在盡力降低風險。所以我們會很聰明，我們正在做一些我們過去沒有做過的事情。

And then on top of that, there's a couple of cities that we've been smaller and we've been larger in them in the past and cities that we need to kind of reestablish some of our position there. We think that will help overall. So I hope that helps.

最重要的是，有一些城市我們過去規模較小，但我們在這些城市中規模較大，我們需要在這些城市重建我們的一些地位。我們認為這總體上會有幫助。所以我希望這會有所幫助。

Okay, great. No, that does. Thanks. And then just second question to Scott, as I think about liquidity, I know in the past you gave us a year-end number. It does seem like that the demand trends are maybe a little bit behind trend. I'm not sure how much that impacts year-end liquidity guide. But as I think about just seasonality and going from the March quarter to the June quarter, given the fact that Easter was earlier this year and sort of squaring it with the revenue guide is it conceivable that the ATL could be down?

好的，太好了。不，確實如此。謝謝。然後是史考特的第二個問題，當我想到流動性時，我知道你過去給了我們一個年終​​數字。需求趨勢似乎確實有點落後於趨勢。我不確定這對年終流動性指南有多大影響。但當我考慮季節性因素並從 3 月季度到 6 月季度時，考慮到今年復活節較早，並且與收入指南相一致，ATL 可能會下降嗎？

I don't know, $100, $150 million quarter over quarter. And again, that's just one part of operating cash flow, but is my thinking about it right? Any I realize it's sort of a multi-prong question, but any clarity would be great. Thanks.

我不知道，季度環比是 100 美元還是 1.5 億美元。再說一遍，這只是經營現金流的一部分，但我的想法正確嗎？我意識到這是一個多方面的問題，但任何清晰度都會很棒。謝謝。

Yes, thanks, Mike. Yes, I think the ATR actually probably for the first quarter was a little bit lower heading into the second quarter. Bookings were a little light because I think it is part of some of the cash generation negative in the second quarter, but we do expect that to turnaround and I think for the full year will probably be a little bit lower than we initially guided to probably in the [1.2 to 1.3] range at the end of the year. And then it doesn't include any additional financings that are still possible. But we think we'll sort of be cash neutral, if not cash, positive for the remaining part of the year. So we'll have to kind of kind of see how the second half plays out great.

是的，謝謝，麥克。是的，我認為第一季的 ATR 實際上可能會在第二季之前稍微低一些。預訂量有點少，因為我認為這是第二季度現金產生負數的一部分，但我們確實預計情況會好轉，我認為全年的預訂量可能會比我們最初指導的要低一些年底在[1.2至1.3 ]範圍內。而且它不包括任何仍然可能的額外融資。但我們認為，在今年剩餘時間內，我們將保持現金中性，即使不是現金，也是正面的。所以我們必須看看下半場的表現如何。

Very helpful. Thank you.

很有幫助。謝謝。

Chris Stathoulopoulos, Susquehanna.

克里斯·斯塔索洛普洛斯，薩斯奎哈納。

Good morning. Thanks for taking my question. So scatter to the high single-digit capacity guide for 3Q, I'm guessing is departure driven. You spoke to adding capacity. I believe you said in markets where you have a smaller presence and you've given a lot of color on you know what your thoughts around peak versus off-peak, but if you could help kind of frame the composition of capacity for 3Q, both as it relates to departures and how you're again, thinking about allocating peak versus nonpeak?

早安.感謝您提出我的問題。因此，分散到第三季高個位數的容量指南，我猜測是偏離驅動的。您談到了增加容量。我相信你說過，在你的業務規模較小的市場中，你已經給出了很多色彩，你知道你對高峰和非高峰的想法，但如果你能幫助構建第三季度的產能構成，那麼因為它與出發以及您的情況有關，考慮分配高峰期還是非高峰期？

And then part B, you know, you spoke to what's happening here within Florida and short haul, Latin America. Do you believe that industry capacity within these markets, which are primary to spirits should eventually normalize? Thank you.

然後 B 部分，你知道，你談到了佛羅裡達州和拉丁美洲的短途航班正在發生的事情。您是否認為這些烈酒主要市場的產業產能最終會正常化？謝謝。

Yes, I'll start. This is Scott on utilization or there's some puts and takes in there. Obviously, with deliveries coming through the year as well as increase AOG.s and changes and sort of summer utilization as we head into the peak. So it we'll have a higher non AOG. fleet utilization. But overall utilization on a fleet basis may be down a smidge just because the number of EOG's. And so that sort of plays into the utilization piece but with the deliveries will be up in the sort of higher single digits on a capacity basis in Q3, that will flatten out in Q4 to probably down a bit in Q4 versus Q3? Right.

是的，我會開始。這是斯科特的利用率，或者有一些投入和投入。顯然，隨著全年交付量的增加以及 AOG 的增加，隨著我們進入高峰，夏季利用率也會改變。所以我們會有更高的非 AOG。機隊利用率。但由於 EOG 的數量，機隊的整體利用率可能會略有下降。因此，這會影響利用率，但隨著第三季容量的交付量將以更高的個位數成長，第四季將趨於平緩，第四季與第三季相比可能會略有下降？正確的。

And Chris, on your other part of your question there, we expect some stage will be down a little bit, but it's not going to be dramatic. So we would anticipate likely maybe slight slightly more departures than you would see from overall ASM growth. But it should be it really should kind of normalize itself out to be pretty much flat in terms of how the ASMs will be will be produced. And also, I would tell you that I think you asked about Latin America normalization so soon.

克里斯，關於你問題的另一部分，我們預計某個階段會有所下降，但這不會是戲劇性的。因此，我們預計，與整體 ASM 成長相比，偏離的情況可能會稍微多一些。但就 ASM 的生產方式而言，它確實應該正常化，變得相當平坦。另外，我想告訴你，我認為你這麼快就問了拉丁美洲正常化問題。

So supply and demand are very powerful things they always work themselves out. So the answer your question is yes, and we'll have to see kind of how that plays out and how the timing is we have a great cost structure. Our cost structure allows us to compete and it's all about making sure we can generate revenue on a lot of the things that we're talking about doing will also benefit us Latin America and Caribbean part of our network as well.

因此，供給和需求是非常強大的事情，它們總是會自行解決。所以你的問題的答案是肯定的，我們必須看看它是如何發揮作用的，以及我們擁有良好的成本結構的時機。我們的成本結構使我們能夠競爭，這一切都是為了確保我們能夠在我們正在談論的許多事情上產生收入，這也將使我們網路中的拉丁美洲和加勒比地區受益。

Okay. And then my second question. So as we think about '25, you gave it down. I think it's high single-digit capacity guide. You have all these rightsizing efforts as it relates to costs, $100 million in cost savings, effectively reshaping the cost base AOG.s, admittedly are moving target, but you know, and post pandemic demand arguably normalizing here. But if we put this all together, as it stands today and looking at our models, do you believe that spirit can stay below $0.08 within chasm? Thank you.

好的。然後是我的第二個問題。所以當我們想到25年時，你放棄了它。我認為這是高個位數的容量指南。您進行了所有這些與成本相關的調整規模的努力，節省了1 億美元的成本，有效地重塑了AOG.s 的成本基礎，誠然，目標正在不斷變化，但您知道，大流行後的需求可以說正在正常化。但如果我們把這一切放在一起，就像今天的情況一樣，看看我們的模型，您是否相信烈酒可以在鴻溝內保持在 0.08 美元以下？謝謝。

I mean, there's a lot of puts and takes here. I mean, we have some, you know, some of the initiatives from that, what Ted mentioned around utilization, we have some of our standalone plan initiatives that that will influence some of that stuff. But I think we're probably targeting a number around that actually.

我的意思是，這裡有很多的變化。我的意思是，我們有一些，你知道，其中的一些舉措，特德提到的有關利用率的舉措，我們有一些獨立的計劃舉措，這將影響其中的一些內容。但我認為我們的目標實際上可能是圍繞著這個數字。

Okay. Thank you.

好的。謝謝。

Tom, we have time for one more question.

湯姆，我們還有時間再問一個問題。

Dan McKenzie, Seaport Global.

丹·麥肯齊，海港全球公司。

Is underway are expected to be accretive to profitability. Does the current plan contemplate profitability in any quarters this year or at least can it get you to a breakeven operating margin?

正在進行中預計將增加獲利能力。目前的計劃是否考慮了今年任何季度的盈利能力，或者至少能讓您實現盈虧平衡的營業利潤率？

If we missed the first part of that question. Dan.

如果我們錯過了這個問題的第一部分。擔。

first part is really does the current plan contemplate profitability in any of the quarters this year? And if not, can at least get you to a breakeven operating margin?

第一部分是當前計劃是否確實考慮了今年任何季度的盈利能力？如果不能，至少可以讓您達到損益兩平的營業利潤嗎？

Yes, I think we're looking out for this back half of the year to be on an operating basis positive for Q3 and Q4 on a net basis, we'll be kind of right at just above breakeven on a net basis. Q4 is going to be right at probably breakeven, but we think we'll be sort of cash neutral, maybe generate a little bit of cash, you know, in the back half of the year while.

是的，我認為我們預計今年下半年第三季和第四季的營運基礎淨值將呈現正值，淨值將略高於損益平衡點。第四季可能會達到損益平衡，但我們認為我們將保持現金中性，也許在今年下半年產生一點現金。

Okay, nice. And yet, Ted, the consumer bill, I believe Spirit was in favor of the new the new DOT rules. And I'm just wondering if you can share some perspective about the incremental cost of the operation from compliance with this new set of rules and what has to happen to reduce that, that cost headwind? And I guess what I'm wondering is you might need to carry more spare aircraft maintain a higher headcount or is the cost of the new rules just de minimus?

很好太棒了。然而，特德，消費者法案，我相信精神支持新的交通部新規則。我只是想知道您是否可以分享一些關於遵守這套新規則所帶來的營運增量成本的觀點，以及如何減少這種成本逆風？我想我想知道的是，您可能需要攜帶更多備用飛機來維持更高的人員數量，或者新規則的成本只是微不足道？

Thanks, Dan. I don't know on perhaps where you got your feet, but we're not in favor of those rules and I think the industry is digesting them as we speak and trying to decide how they're going to provide feedback. And there was a process in place by which feedback should have been solicited. I don't believe it was done as robustly as it's not in the past.

謝謝，丹。我不知道你的立場如何，但我們不贊成這些規則，我認為在我們發言時業界正在消化它們，並試圖決定他們將如何提供回饋。並且應該有一個徵求回饋的流程。我不認為它做得像過去那樣穩健。

So on, you know, the airline industry does a good job of taking care of its passengers and its guests when they are disruptive. We've always been forward leaning on our ability to get guests. We accommodated where we can to offer refunds. We do all that stuff anyway. And the competitive pressure is what at best at making sure each airline does the right thing for their own for their own traveling public. So for now, we'll let this play out and see what happens next, I think.

所以，你知道，航空業在乘客和客人造成乾擾時很好地照顧他們。我們一直依靠我們吸引客人的能力。我們盡可能提供退款。無論如何我們都會做所有這些事情。競爭壓力最多只能確保每家航空公司為自己的旅行大眾做正確的事。所以現在，我想，我們將讓這件事發生，看看接下來會發生什麼。

Okay. Thanks for the clarification.

好的。感謝您的澄清。

And with that, thank you all for joining us today. Please contact Investor and Media Relations. If you have any further questions.

在此，感謝大家今天加入我們。請聯絡投資者和媒體關係部。如果您有任何進一步的問題。

Ladies and gentlemen, that concludes today's call and thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束，感謝大家的加入。您現在可以斷開連線。