Sun Country Airlines Holdings Inc (SNCY) 2023 Q4 法說會逐字稿

Good day, and thank you for standing by, and welcome to the Sun Country Airlines Fourth Quarter 2023 earnings conference call. At this time, all participants are in a listen only mode. Since the speaker's presentation, there will be a question and answer session to ask a question. During the session, you'll need to press star one one on your telephone. You will then hear an automated list advising Johannes Ries. So a short question, please press star one. Once again, please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Christopher Allen, Director of Investor Relations. Please go.

美好的一天，感謝您的支持，歡迎參加太陽鄉村航空 2023 年第四季財報電話會議。此時，所有參與者都處於只聽模式。演講者演講後，將舉行問答環節提問。在會議期間，您需要在電話上一一按星號。然後，您將聽到一份自動列出的約翰內斯·里斯 (Johannes Ries) 的建議。這是一個簡短的問題，請按星號一。再次請注意，今天的會議正在錄製中。我現在想把會議交給今天的發言人、投資者關係總監克里斯托弗艾倫 (Christopher Allen)。請離開。

Thank you. I'm joined today by Jim Baker, our Chief Executive Officer, Dave Davis, President and Chief Financial Officer and a group of others to help answer questions.Before we begin, I'd like to remind everyone that during this call, the Company may make certain statements that constitute forward looking statements or remarks today may include forward-looking statements, which are based upon management's current beliefs, expectations and assumptions and are subject to risks and uncertainties.

謝謝。今天，我們的執行長吉姆貝克(Jim Baker)、總裁兼財務長戴夫戴維斯(Dave Davis) 以及其他一些人也加入了我的行列，幫助回答問題。在我們開始之前，我想提醒大家，在這次電話會議中，公司今天可能做出的某些構成前瞻性陳述或言論的陳述可能包括前瞻性陳述，這些陳述基於管理層當前的信念、期望和假設，並受到風險和不確定性的影響。

Actual results may differ materially. We encourage you to review risk factors and cautionary statements outlined in our earnings release and our most recent SEC filing. We assume no obligation to update any forward looking statements you can find our fourth quarter and full year 2023 earnings press release on our website at ir dot Sun Country.com. With that said, I'd like to turn the call over to Judy.

實際結果可能存在重大差異。我們鼓勵您查看我們的收益報告和最新的 SEC 文件中概述的風險因素和警告聲明。我們不承擔更新任何前瞻性陳述的義務，您可以在我們的網站 ir dot Sun Country.com 上找到我們的 2023 年第四季和全年收益新聞稿。話雖如此，我想把電話轉給朱迪​​。

Thanks, Chris. Good morning, everyone, and thanks for joining us today. Our diversified business model is unique in the airline industry due to the predictability of our charter and cargo businesses, we are able to deliver the most flexible scheduled service capacity in the industry. The combination of our schedule flexibility and low fixed cost model allows us to respond to both predictable leisure demand fluctuations and exogenous industry shocks. We believe due to our structural advantages, we'll be able to reliably deliver industry leading profitability throughout all cycles. We have much to be proud of and the way we finished 2023, many of the challenges of the post-COVID period are fading as we move into 2020 for our operations in the third quarter showed significant year-on-year improvement across every major major operating metric, D0 A14, completion factor and mishandled bag rate. Our completion factor, we only cancelled one scheduled service flight during the entire quarter, A14 increased 13 percentage points year on year without an increase in Target block times. In 4Q, we produced a declining year on year CASMex for the first time since COVID, one of the main contributors to our improving cost and operational performance is that we've been able to staff the airline closer to optimal. In fact, we've seen better staffing metrics across every major labor group. Improved staffing has allowed us to allocate additional peak capacity in scheduled service and to take advantage of close-in charter demand, maintaining speed peak schedule allocations has allowed us to fly almost 15% more ASMs in 4Q, with adjusted travel declining only 8%. We continue to operate in a strong demand environment across all three segments of our business with scheduled service continuing to receive the majority of our growth capacity, a trend we expect to continue into 2024.

謝謝，克里斯。大家早安，感謝您今天加入我們。由於我們的包機和貨運業務的可預測性，我們的多元化業務模式在航空業中是獨一無二的，我們能夠提供業內最靈活的定期服務運力。我們的日程安排靈活性和低固定成本模式相結合，使我們能夠應對可預測的休閒需求波動和外生行業衝擊。我們相信，由於我們的結構優勢，我們將能夠在所有周期中可靠地提供領先業界的獲利能力。我們有很多值得自豪的事情，我們完成2023 年的方式，隨著我們進入2020 年，後新冠疫情時期的許多挑戰正在消失，因為我們第三季度的運營在每個主要領域都顯示出顯著的年比改善營運指標、D0 A14、完成係數和誤處理行李率。我們的完成率，整個季度我們只取消了一個定期服務航班，A14 年比增加了 13 個百分點，而目標阻塞時間沒有增加。第四季度，自新冠疫情以來，我們的 CASMex 首次出現同比下降，我們改善成本和營運績效的主要因素之一是我們能夠為航空公司配備更接近最佳的員工。事實上，我們在每個主要勞工群體中都看到了更好的人員配置指標。人員配置的改善使我們能夠在定期航班中分配額外的高峰運力，並利用近期的包機需求，維持速度高峰時刻表分配使我們能夠在第四季度增加近15% 的ASM 航班，調整後的旅行僅下降8%。我們繼續在所有三個業務領域的強勁需求環境中運營，定期航班繼續獲得我們大部分增長能力，我們預計這一趨勢將持續到 2024 年。

Congratulations to the entire Sun Country team that delivered record full year 2023 revenue full year passenger volume and full year operating margin.

恭喜整個 Sun Country 團隊在 2023 年實現了創紀錄的全年收入、全年客運量和全年營運利潤率。

I wanted to highlight a few things that I'm excited about in 2024, I feel like we have good control of our unit costs. While we will continue to face headwinds, particularly with the heavy checks cycle of our fleet, we should be able to continue to lead the industry in cost trends going into 2024, demand is holding up really well for 1Q. We face challenging comps as we lap the exceptional yield environment of winter 2223 for 1Q, we are currently scheduled to fly over 15% more ASMs than prior year, with only an expected mid single digit decline in unit revenues. These positive revenue trends are mostly a result of growth being heavily weighted to peak period due to lessening staffing constraints. A few examples in December 2023 we flew 120% more ASMs in scheduled service during the last 14 days of the month as compared to the first 14 days industry capacity shifted about 3% in 1Q 2020. For March, we'll have about 60% more scheduled service ASMs than January. This was 47% in 1Q of 23. This schedule variability along with our cost structure is the moat around our business and is made possible by our multi-segment model. On the fleet side, we have three aircraft in various stages of delivery. These aircraft will be part of our control fleet of 63 airplanes. By the end of 2Q, we expect to be able to grow ASMs by around 40% versus 2023 levels with lease returns, utilization increases and upgauging. In addition to these airplanes, that should give us two to three years of growth while simultaneously producing exceptional free cash flow yields that come and that combination rarely happens in our industry. We have many projects that should help us keep momentum on operational costs and revenue trends into 2024 to highlight a few. In 2024, we were able to rebid we are able to rebid our credit card agreement, which we expect to result in materially better economics in 2023, we launched bag scanning technology that has had a material impact on MBR. That solution will be rolled out to our stations in the coming months. We automated our passenger recon process, which allows us to take more scheduled service risk during peak periods, we'll launch our app in a few months. Our crew rostering system will transition to PBS. later this year. And all the investments we've made in crew training are starting to pay off with the lowest training footprints we've seen since COVID.

我想強調一些 2024 年令我興奮的事情，我覺得我們很好地控制了單位成本。雖然我們將繼續面臨阻力，特別是我們機隊的大量檢查週期，但我們應該能夠在進入 2024 年的成本趨勢方面繼續引領行業，但第一季的需求保持良好。我們面臨著具有挑戰性的競爭，因為我們在第一季經歷了 2223 年冬季的特殊產量環境，目前我們計劃飛行的 ASM 數量比去年增加 15% 以上，預計單位收入僅出現中個位數下降。這些正面的收入趨勢主要是由於人員限制減少而導致成長在高峰期受到嚴重影響的結果。舉幾個例子，2023 年 12 月，我們在該月最後 14 天定期航班中的 ASM 數量增加了 120%，而 2020 年第一季的前 14 天產業運力變化了約 3%。3 月份，我們的定期服務 ASM 數量將比 1 月份增加約 60%。23 年第一季這一比例為 47%。這種時間表的可變性以及我們的成本結構是我們業務的護城河，並且是透過我們的多細分模型實現的。在機隊方面，我們有三架飛機處於不同的交付階段。這些飛機將成為我們由 63 架飛機組成的控制機隊的一部分。到第二季末，我們預計隨著租賃回報、利用率的提高和升級，ASM 的數量將比 2023 年的水準增加 40% 左右。除了這些飛機之外，這應該會為我們帶來兩到三年的成長，同時產生異常的自由現金流收益率，而這種組合在我們的行業中很少發生。我們有許多項目可以幫助我們在 2024 年保持營運成本和收入趨勢的勢頭，這裡重點介紹幾個項目。2024 年，我們能夠重新投標我們能夠重新投標我們的信用卡協議，我們預計這將在 2023 年帶來實質性更好的經濟效益，我們推出了行李掃描技術，這對 MBR 產生了重大影響。該解決方案將在未來幾個月內推廣到我們的車站。我們實現了乘客偵察流程的自動化，這使我們能夠在高峰時段承擔更多的預定服務風險，我們將在幾個月內推出我們的應用程式。我們的劇組排班系統將過渡到 PBS。今年晚些時候。我們在船員培訓方面所做的所有投資都開始得到回報，培訓足跡是新冠疫情以來最低的。

Finally, our growth brands have very little risk. We have high confidence in our Minneapolis expansion based on prior success. Further, based on ongoing discussions with Charter and cargo customers, I expect those segments to be able to keep growth pace with our scheduled service opportunities.

最後，我們的成長品牌風險很小。基於先前的成功，我們對明尼阿波利斯的擴張充滿信心。此外，根據與包機和貨運客戶的持續討論，我預計這些細分市場能夠與我們預定的服務機會保持成長步伐。

And with that, I'll turn it over to Dave.

有了這個，我會把它交給戴夫。

Thanks, Jude. We're pleased to report strong Q4 results, including an adjusted operating margin of 7.4%, which was well ahead of our guidance. Both our quarterly and full year 2023 results again demonstrate the resiliency and earnings power of our unique diversified business model 2023 was the third consecutive year of profitability for Sun Country and on an adjusted net income basis with one exception, we've been profitable and every full quarter since going public in March of 2021, we believe we finished the year with the highest or among the highest adjusted pretax margins in the industry at 9.9% this result was very similar to 2019 despite fuel being 38% higher this year. It's important to understand that our operating model is almost the opposite of the high utilization carriers. Our passenger business wise when demand and unit revenues are highest and we fly much less and off peak periods. The modest increase in unit costs this produces is more than offset by the resulting improvements in unit revenue. Additionally, our diversification across scheduled service, Charter and cargo operations leads to resiliency through business cycles. Our strong 2023 results allowed us to return 68.6 million to shareholders in the form of share repurchases since 2022, our share repurchases have totaled 93.6 million. I'll turn now to the specifics of our fourth quarter and full year results. First to revenue and capacity in the fourth quarter, total revenue grew 8.1% versus Q4 of 2022 to $245.5 million. Scheduled Service revenue plus ancillary grew 4.6% to 163.8 million scheduled service travel decreased 9.1% to $0.1073 as scheduled, ASMs grew by almost 15% for the full year. Total block hours increased by 9.8% Brent versus 2022. And our total revenue was $1.05 billion or 17.3% higher than prior year 2023 scheduled service plus ancillary revenue grew 15.7% to 730 million. Full year scheduled service traffic increased 7.6% on an increase of 7.2% scheduled ASMs.

謝謝，裘德。我們很高興報告第四季度的強勁業績，包括 7.4% 的調整後營業利潤率，遠遠超出了我們的指導。2023 年季度和全年業績再次證明了我們獨特的多元化業務模式的彈性和盈利能力2023 年是Sun Country 連續第三年盈利，在調整後的淨利潤基礎上（除一個例外），我們一直在盈利，並且每項業務都實現了盈利。自2021 年3 月上市以來的整個季度，我們相信我們以9.9% 的全年稅前利潤率為業內最高或最高之一，這一結果與2019 年非常相似，儘管今年燃油價格上漲了38%。重要的是要了解我們的營運模式幾乎與高利用率航空公司相反。當需求和單位收入最高時，我們的客運業務明智，我們的航班數量要少得多，而且非高峰期。由此產生的單位成本的小幅增長被單位收入的改善所抵消。此外，我們在定期服務、包機和貨運業務方面的多元化帶來了整個業務週期的彈性。2023 年的強勁業績使我們能夠以股票回購的形式向股東返還 6,860 萬股，自 2022 年以來，我們的股票回購總額為 9,360 萬股。我現在將談談我們第四季和全年業績的具體情況。首先是第四季的營收和產能，總營收較 2022 年第四季成長 8.1%，達到 2.455 億美元。定期服務收入加輔助成長 4.6%，達到 1.638 億次定期服務旅行，按計畫減少 9.1%，至 0.1073 美元，全年 ASM 成長近 15%。與 2022 年相比，布蘭特原油區塊總小時數增加了 9.8%。我們的總收入為 10.5 億美元，比前一年 2023 年的定期服務成長 17.3%，加上輔助收入成長 15.7%，達到 7.3 億美元。全年定期服務流量成長 7.6%，定期 ASM 成長 7.2%。

Looking forward to Q1 of 24, we're anticipating scheduled service ASMs to grow approximately 15% versus Q1 of 23, with scheduled service plus ancillary revenue growth outpacing the 4.6% year over year growth we saw in the fourth quarter. Charter revenue in the fourth quarter grew 8.8% to 46.9 million on block-hour growth of 7.8%. A portion of our charter revenue consists of reimbursement from customers for changes in fuel prices as we do not take fuel risk on our charter flying Q4 fuel prices dropped by 14% year over year. If you exclude if you exclude the fuel reimbursement revenue from both Q4 of 23 in Q4 of 22. Charter flying revenue grew 11.1% during the period, easily exceeding block-hour growth, producing a 3.1% increase in charter revenue per block hour versus last year. For the full year, charter revenue was $190.1 million, 17.6% higher than full year of 22. Charter revenue under long-term contracts was 80% of the total charter block hours as contracted charter flying grew 25.7% versus 2022. Fourth quarter cargo revenue grew 3.6% to 25.3 million on a 1.8% increase in block hours. For full year 2023, cargo revenue grew 10.4% to 99.7 million on a 5.8% increase in block hours. As you can see, we're continuing to grow at a profitable measured pace. Q1 of 24 total block hours are expected to grow between 8% and 11%, while total revenue should be between 310 and $320 million.

展望 24 年第一季度，我們預計定期服務 ASM 將比 23 年第一季度增長約 15%，定期服務加上輔助收入的增長將超過我們在第四季度看到的 4.6% 的同比增長。第四季包機營收成長 8.8%，達到 4,690 萬，區塊小時成長 7.8%。我們的包機收入的一部分包括客戶對燃油價格變化的補償，因為我們不承擔包機飛行的燃油風險。第四季度燃油價格年減了 14%。如果排除23年第4季和22年第4季的燃油報銷收入。包機飛行收入在此期間增長了 11.1%，輕鬆超過了每小時的增長，使得每每小時的包機收入比去年增長了 3.1%。全年包機營收為 1.901 億美元，比 22 全年成長 17.6%。長期合約下的包機收入佔包機總小時數的 80%，合約包機飛行量較 2022 年增加了 25.7%。第四季貨運收入成長 3.6%，達到 2,530 萬次，班輪運轉時間成長 1.8%。2023 年全年，貨運收入成長 10.4%，達到 9,970 萬人次，班次成長 5.8%。正如您所看到的，我們正在繼續以可獲利的可衡量的速度成長。第一季 24 個總區塊小時數預計將成長 8% 至 11%，而總收入應在 3.1 至 3.2 億美元之間。

Turning now to costs. Fourth quarter. Total operating expenses increased 7.7% on a 10.4% increase in total block hours. Adjusted Cason declined by 2.2% versus Q4 of 22. During the quarter, we saw solid cost control across the Company. As our pilot availability issues have eased, we've been able to achieve our growth plans and we're benefiting from the operating leverage in the business. Importantly, more pilot availability means fewer hours paid at premium rates and lower unit costs. For the full year, total operating expense increased 9.9% in line with total block-hour growth of 9.8%. Full year adjusted cash increased 6.4% to $0.075, with increases in the first half of the year driving this increase.

現在轉向成本。第四季。總營運費用增加 7.7%，總區塊時間增加 10.4%。調整後的 Cason 與第四季度的 22 相比下降了 2.2%。本季度，我們看到整個公司的成本控制紮實。隨著我們的飛行員可用性問題得到緩解，我們已經能夠實現我們的成長計劃，並且我們正從業務的營運槓桿中受益。重要的是，更多的飛行員可用性意味著更少的高費率支付時間和更低的單位成本。全年總營運費用成長 9.9%，與總區塊小時成長 9.8% 一致。全年調整後現金成長 6.4% 至 0.075 美元，上半年的成長推動了這一成長。

Regarding our balance sheet, our total liquidity at the end of Q4 was $205 million, which reflects $13.5 million in share repurchases during the quarter. As of January 31st, our total liquidity was 234 million. In 2023, we spent 218 million on CapEx, almost 200 million of which was for aircraft and engines. We expect these aircraft to provide the bulk of the passenger lift we need through 2025 as such we anticipate our full year 2024 CapEx to be approximately 100 million and our 2024 year ending in-service passenger fleet count to be 44 aircraft in addition to these aircraft, we expect to have three aircraft being inducted into our fleet and four aircraft on lease to other carriers. We expect to redeliver to Sun countries throughout 2025. We anticipate strong free cash flow generation in 2024, continue to maintain a very strong balance sheet. Our net debt to adjusted EBITDA ratio at the end of 2023 was 2.2 times, down from 2.7 times at the end of 2022. Since we do not have a significant debt burden, we have flexibility in how we deploy our cash.

就我們的資產負債表而言，第四季末我們的總流動資金為 2.05 億美元，這反映了本季 1,350 萬美元的股票回購。截至1月31日，我們的流動性總額為2.34億。2023 年，我們在資本支出上花費了 2.18 億美元，其中近 2 億美元用於飛機和發動機。我們預計這些飛機將在2025 年之前提供我們所需的大部分客運飛機，因此我們預計2024 年全年資本支出約為1 億架飛機，除這些飛機外，我們2024 年末的在役客機機隊數量將達到44 架，我們預計將有三架飛機加入我們的機隊，並將四架飛機租賃給其他航空公司。我們預計將在 2025 年重新交付給太陽國家。我們預計 2024 年將產生強勁的自由現金流，並繼續保持非常強勁的資產負債表。截至 2023 年底，我們的淨負債與調整後 EBITDA 比率為 2.2 倍，低於 2022 年底的 2.7 倍。由於我們沒有重大的債務負擔，因此我們可以靈活地配置現金。

Turning to guidance, we expect Q4 total revenue to be between 310 to 320 million on block-hour growth of 8% to 11%. We're anticipating our cost per gallon for fuel to be $3 and for us to achieve an operating margin between 17% and 21%. The fundamentals of our unique diversified business remain strong, and our model is highly resilient to changes in macro economic conditions. Our focus remains on profitable growth.

至於指引，我們預計第四季總營收將在 3.1 至 3.2 億美元之間，區塊小時成長率為 8% 至 11%。我們預計每加侖燃料的成本為 3 美元，營運利潤率將在 17% 至 21% 之間。我們獨特的多元化業務的基本面仍然強勁，我們的模式對宏觀經濟條件的變化具有很強的彈性。我們的重點仍然是獲利成長。

With that, we'll open it for questions.

這樣，我們將打開它來提問。

(Operator Instructions) Duane Pfennigwerth, Evercore ISI.

（操作員說明）Duane Pfennigwerth，Evercore ISI。

Hey, good morning. Thank you. Just on the this improved utilization and your ability to kind of flex back up again in the peaks, which which segment would you say is most constrained or maybe asked differently, how would you characterize the margins or margin opportunity across the three segments?

嗨，早安。謝謝。就利用率的提高以及您在高峰期再次恢復的能力而言，您認為哪個細分市場受到最大的限製或可能提出不同的問題，您將如何描述這三個細分市場的利潤或利潤機會？

Schedule services by far the highest margin and most affected by staffing constraints. So think about it like a like an S-curve or a sine wave. And if we have staffing constraints, that kind of pushes the peaks down because we can only produce a certain amount of block hours in any given period. So monthlies, typically the constraints and that yields these really expensive opportunity costs during peak periods. That's sort of becoming less of an issue as we staff the airline appropriately.

安排服務是迄今為止利潤率最高且受人員配置限制影響最大的服務。因此，可以將其想像為 S 曲線或正弦波。如果我們有人員限制，就會降低峰值，因為我們在任何給定時間段內只能產生一定數量的區塊時間。因此，每月通常會受到限制，並在高峰時期產生這些非常昂貴的機會成本。當我們為航空公司配備適當的人員時，這似乎不再是一個問題。

That's helpful. And so this the percentages that you put out there for March versus January, is that optimal? Or do you think as we kind of roll through the year, there's maybe even more peak capture, you could realize?

這很有幫助。那麼，這是您列出的 3 月份與 1 月份的百分比，這是最佳的嗎？或者您認為隨著這一年的推移，您可能會意識到，可能會有更多的峰值捕獲？

The latter. There's definitely more opportunity in March. So a good comp would be to look back at utilization in 2019 when we weren't constrained. And there's still about two hours per aircraft per day of production that we aren't able to achieve in 2023 or 2024 versus versus 19 out the fleet is older than it was then a little bit different dynamics as it relates to congestion in airports and things like that. So we won't achieve what we achieved them. But there's definitely plenty of opportunity for incremental flying. And the important aspect of that is that as we add more flying, it's coming kind of mid week March. But as you compare that opportunity to the average yield for the quarter?

後者。三月肯定有更多機會。因此，一個好的比較是回顧 2019 年我們不受限制時的使用率。而且，我們在 2023 年或 2024 年仍無法實現每架飛機每天生產約 2 個小時，而機隊的 19 架飛機比當時更舊，動態略有不同，因為這與機場擁堵和其他因素有關像那樣。所以我們不會取得我們所取得的成就。但肯定有很多增量飛行的機會。其中重要的一點是，隨著我們增加更多的航班，它將在三月的周中到來。但當您將該機會與本季的平均收益率進行比較時？

It's still above average. So we're increasing volume and unit revenues by growing peak period capacity.

它仍然高於平均水平。因此，我們透過增加高峰期產能來增加銷售量和單位收入。

Yes, that makes sense. And just for my follow-up. I don't know if there's any way to frame it, but in terms of premium pay overtime that you incurred in 2023 that you feel like you won't incur kind of going forward in any way to size that order of magnitude?

是的，這是有道理的。只是為了我的後續行動。我不知道是否有任何方法可以確定這一點，但就您在 2023 年支付的加班費而言，您覺得您不會以任何方式向前推進以達到這個數量級？

I'm not sure I can give you order of magnitude. I would just say that this is sort of what our current outlook is as we go forward, there's a minimum level of premium pay just because of the way that our contract works in any given month. So we'll need to pay that in 24, just like we did in 23, just like we did in 22. We only have two months right now dialed in at higher levels of premium pay in 2024 than the minimum amounts.

我不確定能否給你一個數量級。我只想說，這就是我們目前的前景，因為我們的未來，有一個最低水平的保費，只是因為我們的合約在任何特定月份的運作方式。所以我們需要在 24 年內支付這筆費用，就像我們在 23 中所做的那樣，就像我們在 22 中所做的那樣。我們現在只有兩個月的時間來設定 2024 年高於最低金額的保費水準。

So I think I'll just comment on the overall staffing situation. You know, things have gotten significantly better. We've talked now for several quarters about the initiatives that we've undertaken here to trying to improve the availability of captains in particular, I would say that those are bearing fruit, and we're seeing the kind of growth that we need and the kind of attrition levels that continue to occur favorably for us. So I think premium pay is sort of where it needs to be as well as on in our levels of upgrade and attrition. Now we could we could use more because, as you just talked about, there's more opportunity for growth here, but I think we're seeing that really steady progress.

所以我想我只想評論一下整體的人員配置。你知道，情況已經明顯好轉。我們已經討論了幾個季度我們在這裡採取的舉措，特別是試圖提高船長的可用性，我想說，這些舉措正在取得成果，我們正在看到我們需要的那種增長，這種人員流失水平繼續對我們有利。因此，我認為溢價是我們升級和減員等級所需要的。現在我們可以使用更多，因為正如您剛才所說，這裡有更多的成長機會，但我認為我們看到了真正穩定的進展。

Okay. Nice to see it come through. Appreciate the time.

好的。很高興看到它成功。珍惜時間。

Thanks, Duane.

謝謝，杜安。

Catherine O'Brien, Goldman Sachs.

凱瑟琳‧歐布萊恩，高盛。

Hey, good morning, everyone, and thanks for the time. I was just hoping to get some high-level puts and takes on 2024. How should we think about scheduled capacity growth through the rest of the year or just capacity growth overall falling that 15% growth in 1Q just in the context of you already have locked, you already have aircraft locked in. Sounds like pilot availability is getting much better. And then on the cost side, I did some quick math, and it looks like to get to the midpoint of your operating margin guidance. I'm getting the cost ex-fuel on a block hour basis up about 4%. Is that the right level to think about through the year as we see efficiency build and or Visa. I know you guys made the comments about you think you're going to lead the industry on the CASMex basis. I wasn't sure if that was it cost GAAP comment or year-over-year performance, and there's a couple in there, but thank you.

嘿，大家早上好，感謝您抽出時間。我只是希望在 2024 年能得到一些高水準的投入和接受。我們應該如何考慮今年剩餘時間的預定運力成長，或者只是在你已經鎖定飛機的情況下，第一季運力成長總體下降 15%。聽起來飛行員的可用性變得更好了。然後在成本方面，我做了一些快速計算，看起來已經達到了營業利潤指引的中點。我得到的成本（不含燃料）以區塊小時計算大約上漲了 4%。當我們看到效率建設和/或 Visa 時，這是全年考慮的正確水平嗎？我知道你們發表了關於你們將在 CASMex 基礎上引領行業的評論。我不確定這是否會影響 GAAP 評論或同比業績，其中有一些，但謝謝。

Yes, let's let me start with the with the cost question for next year. I don't have the block hour numbers off the top of my head, but let me give you give you just some some cash, some indicators, which I think are probably very similar to block hour. On the chasm front, I think you what we're expecting now is chasm to basically be flat to up low single digits.

是的，讓我從明年的成本問題開始。我腦子裡沒有區塊時間的數字，但讓我給你一些現金，一些指標，我認為這可能與區塊時間非常相似。在鴻溝方面，我認為我們現在期望的是鴻溝基本上持平到低個位數。

And here's here's the rationale on I think I mentioned last quarter, we have a program underway of accelerating some maintenance spend into 2024, which will have a modest bump to chasm, but pay significant dividends in 2025 and 2026 in terms of reduced unit costs by sort of bringing some more activities forward and packaging them into into the current checks. So that's going to be a little bit of a cost bump. But I think right now, looking forward, we're seeing, like I said, flat to low single digit chasm growth.

這就是我上季度提到的理由，我們正在進行一項計劃，將一些維護支出加速到2024 年，這將有一個適度的缺口，但在2025 年和2026 年，單位成本降低了2025 年和2026年，將帶來可觀的紅利有點像是推進一些更多的活動並將它們打包到當前的檢查中。所以這會導致成本增加一點。但我認為，現在，展望未來，正如我所說，我們看到的是持平到低個位數的成長鴻溝。

And my comment around relative chasm performance was mainly to identify and to kind of point out that were not subject to the major challenges, particularly on the fleet side that the rest of the industry is dealing with. So we don't have Geared Turbofan. We're not subject to new aircraft delivery delays. We don't expect to do any engine performance restorations aren't subject to OEM. escalation in 2024. We don't have MAX nines. There's just not that much pressure on our costs relative to the industry. So I think we'll continue to do to produce better trends, maybe not on an absolute basis. And then I guess on your question on capacity growth at like generally, we would think about it mid teen block-hour growth. Most of that will be allocated to skid service.

我對相對差距表現的評論主要是為了識別並指出哪些方面沒有受到重大挑戰，特別是在行業其他公司正在處理的船隊方面。所以我們沒有齒輪傳動渦輪風扇發動機。我們不會受到新飛機交付延誤的影響。我們不希望進行任何不受 OEM 約束的引擎性能修復。 2024年升級。我們沒有 MAX 9。相對於產業而言，我們的成本壓力並沒有那麼大。所以我認為我們將繼續努力創造更好的趨勢，也許不是絕對的。然後我想，關於您關於容量成長的問題，我們通常會考慮青少年區塊小時成長。其中大部分將分配給撬裝服務。

Got it. Super helpful. And then I know a lot of your competitors have spoken to stronger domestic trends as capacities come down. I know your model is more immune to, you know, overcapacity in the troughs when which has been the toughest periods when capacity is out of whack, but has this had any impact on pricing in the peak for you flex up your flying and any early reads on spring break or somewhere that you want to call out, you find encouraging things with time.

知道了。超有幫助。然後我知道你們的許多競爭對手都談到了隨著產能下降而出現的更強勁的國內趨勢。我知道你的模型更容易受到低谷運力過剩的影響，因為這是運力失常的最困難時期，但這對高峰期的定價有任何影響嗎？在春假或某個你想喊出來的地方閱讀，隨著時間的推移，你會發現令人鼓舞的事。

But yes, I mean, as I mentioned in my comments, as you know, spring breakup last year was spectacular and probably not repeatable and so we've seen a bit of a settling consistent with comments that you've heard other carriers make in the Mexico Caribbean markets, but this year will produce substantial travel and premiums to pre-COVID levels as consistent with my comments in the last several quarters, the domestic markets doing really well. I think as you know, we're seeing a rebound in Florida, which is important to us as we lap the E and challenges that West Florida was facing last year, sort of broadly, I think things are really good, consistent with other folks' comments, brands here with me anything and that's absolutely the case are.

但是，是的，我的意思是，正如我在評論中提到的，如您所知，去年春季的分手非常引人注目，而且可能無法重複，因此我們看到了一些和解，與您在其他運營商中聽到的評論一致。墨西哥加勒比市場，但今年將產生大量旅行和保費，達到新冠疫情前的水平，這與我在過去幾個季度的評論一致，國內市場表現非常好。我認為如你所知，我們看到佛羅裡達州出現反彈，這對我們來說很重要，因為我們去年已經完成了E 圈和西佛羅裡達州去年面臨的挑戰，總的來說，我認為情況真的很好，與其他人一致' 評論，品牌在這裡與我的任何事情，絕對是這樣的。

And the airline is digesting well, 20% capacity growth in March. So just speak to how the brand has been built in Minneapolis. We definitely continue to be and work very hard to be the leading leisure airline in that marketplace. And I think our results speak to that point and we're going to compete aggressively for that title going forward.

而且航空公司消化得很好，3月運力增加了20%。那麼就談談這個品牌是如何在明尼阿波利斯建立起來的吧。我們肯定會繼續並努力成為該市場中領先的休閒航空公司。我認為我們的結果說明了這一點，我們將在未來積極爭奪這一頭銜。

Great. Thanks for the time.

偉大的。謝謝你的時間。

Ravi Shanker, Morgan Stanley.

拉維‧尚克，摩根士丹利。

The morning, everyone. This is Katherine on for Ravi. You for taking my question. I was just curious about what you kind of mentioned this in your last question. But as the floor of chasm across the industry is expected to potentially push resume up, I was curious if that helps you guys take price or share scenario yes, I mean, generally, yes.

早安，大家。這是拉維的凱瑟琳。你回答我的問題。我只是好奇你在上一個問題中提到了什麼。但由於整個行業的鴻溝底部預計可能會推高簡歷，我很好奇這是否有助於你們接受價格或分享情況，是的，我的意思是，一般來說，是的。

But the things that make us less subject to capacity, you know, effects also reduce the impact of sort of unexpected grounding of the GTF fleet for example, we're just not we're not for good and for bad, we're just not as exposed and to the industry machinations, but it did take capacity out of the system as a net positive, I think, but we'd be like the secondary tertiary effect of like reallocation of capacity to backfill coal on the margin, some capacity of our network, maybe from ROA.s, but it's not material.

但是，那些讓我們更少受容量影響的事情，你知道，效果也減少了 GTF 艦隊意外停飛的影響，例如，我們只是不是，我們不是好是壞，我們只是不像行業陰謀那樣暴露，但我認為，它確實將產能從系統中剔除，這是一個淨積極的結果，但我們會像重新分配產能以補充煤炭的邊際效應一樣，一些產能我們網絡的一部分，可能來自ROA.s，但這並不重要。

And just as a quick follow-up. So I know close-in bookings across the industry were really strong in last year and even probably 2021 and then kind of dropped off in 23. What is that looking like now? And I'm curious if you guys what normal behavior might look like for close-in bookings, some country.

就像快速跟進。所以我知道整個產業的近距離預訂量在去年甚至 2021 年都非常強勁，但在 23 年有所下降。那現在是什麼樣子？我很好奇你們在某些國家近距離預訂的正常行為會是什麼樣子。

Austin remains really strong. I mean, we have the shape of the booking curve, which is sort of like aggregate bookings made any given time is very similar to pre-COVID levels. But at a higher fare. And so you know that I think the future looks a lot like the past in passenger behavior, I think yes, and things are really positive for anything else. On that you the scale.

奧斯汀仍然非常強大。我的意思是，我們有預訂曲線的形狀，這有點像任何給定時間的總預訂量與新冠疫情之前的水平非常相似。但票價較高。所以你知道，我認為未來的乘客行為看起來很像過去，我想是的，而且對於其他方面來說，事情都非常積極。就你的規模而言。

Thank you.

謝謝。

Mike Linenberg, Deutsche Bank.

麥克林伯格，德意志銀行。

You guys hear me. I get to know now we can start off. Just to follow up on. I actually have two questions here, but one a follow-up on Duane's question where you've talked about really being able to take advantage of call the marginal opportunity here. And I think in the past, you've characterized that you know being able to it will now take advantage of the fact that you can have a fixed cost base, you're able to sort of capitalize on that. I think you've characterized it as like a 40% operating margin incremental operating margin as you better utilize your asset base, you did sort of, you know, sort of backtrack and say, well, we're still going to be off of that two hours from where we could have been or where we were back in 2019 of that magnitude on a, call it the incremental opportunity here. Does that still come at? It was my math right, somewhere in the 40% range or so? Is that how we should think about it?

你們聽我說。我知道現在我們可以開始了。只是為了跟進。實際上，我在這裡有兩個問題，但其中一個是杜安問題的後續問題，您在其中談到真正能夠利用此處的邊際機會。我認為在過去，你已經描述過，你知道現在能夠利用這樣一個事實，即你可以擁有固定的成本基礎，你可以利用這一點。我認為你將其描述為隨著你更好地利用你的資產基礎，40% 的營業利潤增量營業利潤，你確實有點，你知道，有點回溯並說，好吧，我們仍然會離開距離我們本來可以達到的水平或我們在2019 年回到的水平還有兩個小時的時間，我們稱之為增量機會。那還來嗎？我的數學沒錯，在 40% 左右的範圍內？我們該這樣思考嗎？

Yes. I mean so what we're talking about there is not an operating margin, but rather a contribution margin. So profits in excess of variable costs, revenue in excess of variable cost. And yes, I mean, our march back variable contribution is in excess of 40%. So is it in July? So is it in the back of December? So as we grow those markets and grow those periods of time in the calendar, we would expect that level of contribution from those incremental flights? Absolutely.

是的。我的意思是，我們談論的不是營業利潤率，而是貢獻利潤率。因此利潤超過變動成本，收入超過變動成本。是的，我的意思是，我們的迴歸變數貢獻超過 40%。那麼是七月嗎？那現在是12月底嗎？因此，當我們發展這些市場並增加日曆中的這些時間段時，我們預計這些增量航班的貢獻水準是多少？絕對地。

Yes, Mike, I think I think what I think one of the things on the utilization comment, 2019, there were some unique things, particularly around military flying was really strong and other things that we that we were able to pick up. We're not saying that there's not two hours of opportunity. We're just there's this opportunity. We're just not maybe going to get back to the nine-plus hours that we did in 2019 because there were some unusual things, but there's plenty of opportunity on the utilization front to drive high variable contribution flying.

是的，麥克，我想我認為關於 2019 年利用率評論的一件事，有一些獨特的事情，特別是在軍事飛行方面非常強大，以及我們能夠獲得的其他事情。我們並不是說沒有兩個小時的機會。我們正好有這個機會。我們可能不會再回到 2019 年那樣的 9 個多小時的狀態，因為出現了一些不尋常的事情，但在利用率方面有很多機會來推動高可變貢獻飛行。

The downward pressure on utilization is going to come from the check cycle that Dave mentioned earlier, we have a higher sparing ratio than we've had in the past, and we're just we're going to we're going to make sure we execute real well. And operations, and that requires a little bit of conservatism on utilization.

利用率的下行壓力將來自戴夫之前提到的檢查週期，我們的備用率比過去更高，我們只是要確保我們執行得非常好。和操作，這需要在利用率上有點保守。

Great. And then just my second question. As we go back to fleet procurement and the like, and I appreciate your point about that. You're not dealing with the issues that a lot of other carriers are whether it's the GTF or the grounding of the MAX nine. But now it does seem like that going forward, one of the large OEMs basically will really only have one airplane that people care about. As you know, there's not a lot of interest in the MAX nine, it's going to be all about the MAX eight. And it seems like that's probably going to be the primary airplane of choice over the next couple of years, which will probably put a lot of upward pressure in the used market for eight hundreds and even use 900 ERs or maybe even seven hundreds.

偉大的。然後是我的第二個問題。當我們回到車隊採購等問題時，我很欣賞你的觀點。你沒有處理許多其他航空公司所面臨的問題，無論是 GTF 還是 MAX 9 的停飛。但現在看來，未來，大型原始設備製造商之一基本上只會擁有一架人們關心的飛機。如你所知，人們對 MAX 9 沒有太多興趣，人們都對 MAX 8 感興趣。看起來這可能會成為未來幾年的主要選擇，這可能會給二手市場帶來很大的上行壓力，使用 800 架、甚至使用 900 架甚至 700 架 ER。

What are you seeing in the market and down, it was obviously encouraging to see that you picked up two more eight hundreds from flydubai, so that plus the five from home. And so you have seven Shells of growth. Have you identified additional shells out there that are maybe that you've that you're working on right now? And what are you seeing on the pricing for these used airplanes? It would seem like that bid for those types of airplanes that have actually moved up given the constraints at the OEMs. Any color on that would be great. Thanks.

您在市場和市場上看到了什麼，很明顯令人鼓舞的是，您從迪拜航空又收到了兩架八百架飛機，再加上來自國內的五架飛機。所以你有七個成長的外殼。您是否已經確定了您現在正在開發的其​​他 shell？您對這些二手飛機的定價有何看法？考慮到原始設備製造商的限制，對那些類型的飛機的投標似乎實際上已經提高了。任何顏色都會很棒。謝謝。

But Mike, I think you, Kevin and operating lessors and every order they say how strong the market is for residual value, this is one-time that they're right. There is going to work. I mean, there are other challenges that the OEMs are having is kind of trickling into the used aircraft market and availability and pricing are both moving in the favor of owners of aircraft and we are comfortable then not having to do any deals for a few years and just cash flow. And we remain in the market. We're very active in airplanes out there trading hands. We're at the table, but our the bid-ask for us has really widened over the last several months. And and as you know, we only originated one aircraft over the last 12 months, and we may continue on that trend for the foreseeable future, say, two years.

但是麥克，我認為你、凱文和經營出租人以及他們的每一份訂單都說剩餘價值市場有多強勁，這一次他們是對的。要去上班了。我的意思是，原始設備製造商面臨的其他挑戰正在慢慢進入二手飛機市場，可用性和定價都對飛機所有者有利，我們很高興幾年內不必進行任何交易和只是現金流。我們仍然留在市場上。我們在飛機交易方面非常活躍。我們在談判桌上，但在過去幾個月裡，我們的出價確實擴大了。如您所知，我們在過去 12 個月內只研發了一架飛機，並且在可預見的未來（例如兩年）我們可能會繼續這一趨勢。

The point I was making, though is that we could grow this airline 40% without any incremental originating aircraft deals.

不過，我想說的是，我們可以在不增加任何原始飛機交易的情況下使這家航空公司成長 40%。

That's great. That's great color. Thanks. Thanks, everyone.

那太棒了。那顏色真棒。謝謝。感謝大家。

Brandon Oglenski, Barclays.

布蘭登·奧格倫斯基，巴克萊銀行。

Hey, good morning, guys, and thanks for taking the question for you. Dave, can you talk to us looking into April and the second quarter because you guys do have just based on the model and your peak are scheduled out in Minneapolis in 1Q, 2Q can be a little bit softer. So how do you see at least, you know, first half of the year playing out from a profitability perspective.

嘿，早上好，夥計們，感謝您提出問題。戴夫，您能否與我們談談四月和第二季度的情況，因為您確實基於模型，並且您的峰值計劃在第一季度在明尼阿波利斯，第二季度可能會稍微溫和一些。那麼，您知道，至少從獲利角度來看，今年上半年的情況如何。

So just a little bit at expectation setting, I mean, Easter's a lot earlier this year than it was last year. And so that will have a negative effect on April on a year-over-year comp basis, which is expected. And we had a really spectacular April of last year as I mentioned, that the winter of last year was really special, and that won't repeat itself. But just the trends that we've seen as we kind of lap the COVID recovery I've broadly maintained themselves. I mean, were we're looking at 25, 30% travel and sort of broadly over 19, you've got to adjust for these calendar shifts. But generally fares have kind of reset themselves at a stable, but a much higher level from 2Q for us is not nearly as good as 1Q and that'll obviously be the same this year but we're certainly really bullish about where we're booking right now.

因此，我的意思是，今年的復活節比去年早了很多。因此，這將對 4 月同比產生負面影響，這是預料之中的。正如我所提到的，去年的四月我們度過了一個非常精彩的四月，去年的冬天非常特別，而且這種情況不會重演。但隨著新冠疫情復甦，我們所看到的趨勢我基本上維持不變。我的意思是，如果我們考慮的是 25%、30% 的旅行以及大致超過 19% 的旅行，那麼您就必須針對這些日曆變更進行調整。但一般來說，票價會自行重置為穩定狀態，但對我們來說，第二季度的高得多的水平並不像第一季度那麼好，今年顯然也是如此，但我們確實非常看好我們的現狀立即預訂。

Granted. Yes. And I would also say that you've seen a continued ability of us to add capacity where we know we're going to be profitable sort of throughout the process and we work really closely with the operating team. So I would say there's a lot of work going on to understand where we can add some incremental capacity in the second quarter. So those keeping score with BO. and those sorts of things, it's not all in there yet. And I would echo Jim's sentiment. We understand what the world's going to look like in the second quarter and we have a plan for.

的確。是的。我還想說，您已經看到我們持續增加產能的能力，我們知道我們將在整個過程中實現盈利，並且我們與營運團隊密切合作。因此，我想說，我們需要做很多工作來了解第二季度我們可以在哪些方面增加一些增量產能。所以那些和BO一起記分的人。諸如此類的事情，還沒有全部包含在內。我同意吉姆的觀點。我們了解第二季世界將會是什麼樣子，並且我們有一個計劃。

So is it at a really good point? I mean, so our scheduling philosophy is one where we hold back some capacity and kind of allocated as bookings matriculate. And I think that that's the right way to run our business. Many airline schedule above the competitors notice and then they kind of cancel down as bookings have we have the opposite. So we'll have this little bit a couple of percentage points of capacity to allocate as we get closer, which will help as well.

那麼現在真的處於一個好的時機嗎？我的意思是，我們的調度理念是，我們保留一些容量，並在預訂註冊時進行分配。我認為這是經營我們業務的正確方式。許多航空公司的航班時刻表都高於競爭對手的注意到，然後他們就取消了預訂，因為我們有相反的預訂。因此，隨著時間的推移，我們將有一點點的容量來分配，這也會有所幫助。

I appreciate that. And then, Dave, maybe on in but patience and the offsets. I know you mentioned that you know, maybe lower premium pay this year, but what else do you have going on on the cost side? These will speak to?

我很感激。然後，戴夫，也許還需要耐心和補償。我知道你提到過，今年的保費可能會降低，但在成本方面還有什麼進展？這些都會講到什麼？

Well, I mean, I think I think cost control across the Company has been very solid, Tom, you know, on the US, so there's a lot of operating leverage here sort of as we grow, like we talked about a minute ago here on the aircraft side, we've basically got the shells we need to to fly in 2024 level so that, you know, operating leverage kicks in and we get a cash benefit from that. And you've also got a number of IT projects that we've been working now that I think are going to contribute to a lower chasm as well with the exception of this maintenance issue, which is sort of a decision that we've made, costs are well in control. I can't point to any one initiative. I just think across all of the areas of our company right now on costs are well in hand. Thanks, Brandon

嗯，我的意思是，我認為整個公司的成本控制非常穩固，湯姆，你知道，在美國，所以隨著我們的成長，這裡有很多運營槓桿，就像我們一分鐘前談到的那樣在飛機方面，我們基本上已經獲得了2024 年飛行所需的外殼，因此，營運槓桿開始發揮作用，我們可以從中獲得現金收益。我們現在也進行了一些 IT 項目，我認為這些項目也將有助於縮小鴻溝，但維護問題除外，這是我們所做的決定，成本得到很好的控制。我無法指出任何一項倡議。我只是認為目前我們公司所有領域的成本都得到了很好的控制。謝謝，布蘭登

(Operator Instructions) Christopher Stathoulopoulos, Susquehanna.

（操作員說明）Christopher Stathoulopoulos，薩斯奎哈納。

Good morning. Thanks for taking my question. What percent of your charters currently under contract and how much is up for renewal this year on?

早安.感謝您提出我的問題。您目前簽訂合約的包機百分比是多少？今年需要續約的金額是多少？

We have about 85% of our charter revenue right now is under long-term contract on, you know, as these pilots in other staffing issue to sort of resolve themselves, we want to drive a little more ad hoc revenue on. But right now, like I said, 85% ish or so is is is long term.I think we have any significant contracts up now.

我們現在大約 85% 的包機收入是根據長期合約簽訂的，你知道，隨著這些飛行員在其他人員配置問題上自行解決，我們希望增加更多的臨時收入。但現在，就像我說的，85% 左右是長期的。我認為我們現在有任何重要的合約。

And we're working closely with any that are. So we feel really good about the portfolio and they like what we're doing and we like being connected with them.

我們正在與任何此類機構密切合作。所以我們對這個產品組合感覺非常好，他們喜歡我們正在做的事情，我們也喜歡與他們建立聯繫。

Okay. Okay. Second question, see the sequential decline in block hours and cargo. Is that just reflective of a weak peak or perhaps a regional shift in Amazon's network between carriers system that I don't know if

好的。好的。第二個問題，看看區塊時間和貨運量的持續下降。這是否只是反映了弱峰值，或者可能是亞馬遜網路在運營商系統之間的區域性轉變，我不知道是否如此

That's a result entirely out of the C-check cycle and some weather disruptions that we had nothing to do with it. I mean, I can't comment on anything about what Amazon's planned book.

這完全是 C 檢查週期和一些與我們無關的天氣幹擾所造成的結果。我的意思是，我無法對亞馬遜計劃出版的書發表任何評論。

Okay, great. Thank you.

好的，太好了。謝謝。

Catherine O'Brien, Goldman Sachs.

凱瑟琳‧歐布萊恩，高盛。

Again. Thanks so much for the follow-up on the if you could just one quick one on on the share purchase program. You guys were pretty active the last two years. I think you've got 11 million, 11.5 left and CapEx is stepping down materially. You know, I guess any comments on are there any changes to how you're thinking about capital allocation? Or or should we just stay tuned on the shareholder returns front? Thanks so much.

再次。非常感謝您對股票購買計劃的後續跟進，您是否可以快速了解股票購買計劃。你們這兩年很活躍。我認為你還有 1100 萬，剩下 11.5，資本支出正在大幅減少。你知道，我想你對資本配置的看法有沒有改變？或者我們應該繼續關注股東回報？非常感謝。

Yes. First of all, your comment on the free cash flow generation is spot on. I mean our CapEx at the company will drop by more than half between 23 and 24 on if we deliver the kind of results that we think we're going to deliver. We're going to generate a lot of free cash and then we'll have to decide what we're going to do with that cash, you know, there is more share buyback is that we would definitely look at. We don't have a lot of debt that's economical to paid out. We don't have a lot of debt period. We don't have a lot of debt that's economical to really pay down early with sort of one exception. So what I think is as we go forward here, there will be decisions around do we do share buybacks. Do we pay down this one piece of debt that we can on?

是的。首先，您對自由現金流產生的評論是正確的。我的意思是，如果我們交付我們認為將交付的結果，我們公司的資本支出將在 23 至 24 之間下降一半以上。我們將產生大量的自由現金，然後我們必須決定如何使用這些現金，你知道，我們肯定會考慮更多的股票回購。我們沒有太多可以經濟地償還的債務。我們的債務期限並不長。我們沒有太多的債務可以經濟地提前償還，但有一個例外。因此，我認為，當我們繼續前進時，將會就我們是否進行股票回購做出決定。我們能還清這筆可以償還的債務嗎？

We're going to fully fund and we have been fully funding cost reduction and revenue generative initiatives on particularly on the IT side, we'll continue to do that, but that should be reflected in the 100 million I talked about for 24 CapEx. So we're in a good position to have a lot of flexibility on what we do, how we deploy our cash and 24 and 25.

我們將全額資助，而且我們一直在全力資助降低成本和創收計劃，特別是在 IT 方面，我們將繼續這樣做，但這應該反映在我談到的 24 資本支出的 1 億美元中。因此，我們處於有利地位，可以在我們的工作、如何部署現金以及 24 小時和 25 小時內擁有很大的靈活性。

That's great. Thanks so much.

那太棒了。非常感謝。

Thank you. And I'm currently showing no further questions at this time. I would like to turn the call back to Mr. Fricker, Chief Executive Officer for closing remarks.

謝謝。目前我沒有提出任何進一步的問題。我想將電話轉回給執行長弗里克先生，讓其致閉幕詞。

Well, thanks, everybody, for joining us today and have a great day and we'll talk to you in 90 days.

好的，謝謝大家今天加入我們，祝您有美好的一天，我們將在 90 天後與您交談。