Frontier Group Holdings Inc (ULCC) 2023 Q4 法說會逐字稿

Good day, and thank you for standing by, and welcome to the Frontier Group Holdings, Inc. fourth quarter 2023 earnings conference call. (Operator Instructions) Again. Please be advised that today's conference is being recorded I would now like to hand the conference over to your speaker today, David Erdman, Senior Director, Investor Relations. Please go ahead.

美好的一天，感謝您的耐心等待，歡迎參加 Frontier Group Holdings, Inc. 2023 年第四季財報電話會議。（操作員說明）再次。請注意，今天的會議正在錄製中，我現在想將會議交給今天的發言人，投資者關係高級總監 David Erdman。請繼續。

Thank you. Good morning, everyone. Welcome to our fourth quarter 2023 earnings call. Today's speakers will be Barry Biffle, Chief Executive Officer; Jimmy Dempsey, President; and Mark Mitchell, Chief Financial Officer.

謝謝。大家，早安。歡迎參加我們的 2023 年第四季財報電話會議。今天的演講者是執行長 Barry Biffle；吉米·登普西，總裁；和財務長馬克·米切爾。

It will deliver brief prepared remarks and then we'll get to your questions on today's call, we will be presenting supplemental materials, which can be viewed on the webcast platform with a PC or a smartphone. If you're not accessing the call from either or technical issues arise. You can follow along by downloading the presentation from our website at dot FLY, frontier.com/events and presentations before yielding Let me quickly review the customary Safe Harbor provisions, which are included on Slides 2 and 3. During this call, we will be making forward-looking statements which are subject to risks and uncertainties.

它將發表簡短的準備好的評論，然後我們將在今天的電話會議上回答您的問題，我們將提供補充材料，您可以透過個人電腦或智慧型手機在網路廣播平台上觀看這些資料。如果您無法從任一方撥打電話，或出現技術問題。您可以從我們的網站 dot FLY、frontier.com/events 下載演示文稿，然後再進行演示。讓我快速回顧一下幻燈片 2 和 3 中包含的慣用安全港條款。在本次電話會議中，我們將做出前瞻性陳述，這些陳述存在風險和不確定性。

Actual results may differ materially from those predicted in these forward-looking statements. And additional information concerning risk factors which could cause such differences are outlined in the announcement we published earlier along with reports we file with the SEC.

實際結果可能與這些前瞻性陳述中的預測有重大差異。我們先前發布的公告以及我們向 SEC 提交的報告中概述了有關可能導致此類差異的風險因素的更多資​​訊。

We will also discuss non-GAAP financial measures, which are reconciled to the nearest comparable GAAP measure in the appendix of the earnings announcement presentation supplementing this call. I'll now yield the floor to be to Barry to begin his comments Barry?.

我們還將討論非公認會計原則財務指標，這些指標與補充本次電話會議的收益公告簡報附錄中最接近的可比較公認會計原則指標進行了調整。我現在請巴里開始他的評論，巴里？

Thank you, David, and good morning, everyone. Before beginning the brief slide presentation, I'd quickly recap I'd like to quickly recap the fourth-quarter results. We generated a pretax margin of nearly 1% for both the fourth quarter and the full year.

謝謝大衛，大家早安。在開始簡短的幻燈片簡報之前，我想快速回顧一下第四季度的業績。我們第四季和全年的稅前利潤率接近 1%。

Our fourth quarter results significantly outperformed guidance on strong operational performance and cost execution with our chasm. Excluding fuel 8% lower than the prior year quarter, we achieved a 99.5% completion factor on industry leading average system utilization of 11.3 hours during the quarter and the highest on-time arrivals and departures for the month of December. Since 2015, excluding pandemic year 2020.

我們第四季的業績顯著優於對強勁營運績效和成本執行的指導，但我們存在差距。不計較上年同期下降 8% 的燃油，我們在該季度實現了 99.5% 的完成率，平均係統利用率為 11.3 小時，處於行業領先地位，並且在 12 月份達到了最高的準點到達和出發時間。自2015年起，不包括2020年大流行年份。

Our operational performance during the December to January holiday season was also notable with 15% more departures than the prior year holiday season, making it our busiest in airline history in addition, our completion rate and on-time arrivals and departures during the holiday period all ranked as our best post-pandemic performance.

我們在 12 月至 1 月假期期間的營運表現也很出色，出發航班比去年假期增加了 15%，成為我們航空公司歷史上最繁忙的假期。被評為我們大流行後的最佳表現。

I want to take a moment to thank all of Team frontier for producing such great results and taking care of our customers. While I'm pleased with the operational performance and that we generated a positive pretax margin for the fourth quarter and full year. I'm disappointed in the absolute result. We are, therefore focused on taking meaningful steps to address the challenges that impacted our results during 2023 and on returning to double-digit margins.

我想花點時間感謝 Team Frontier 的所有人，感謝他們取得如此出色的成果並照顧我們的客戶。我對營運業績感到滿意，並且我們在第四季度和全年實現了正的稅前利潤。我對絕對結果感到失望。因此，我們致力於採取有意義的措施來應對影響我們 2023 年業績的挑戰，並恢復兩位數的利潤率。

Turning to slide 5. One of the largest challenges, many low-cost and ultra-low-cost carriers faced in 2023 was the industry's oversupply of capacity in leisure markets with Las Vegas and Orlando being two significant examples.

轉到投影片 5。許多低成本和超低成本航空公司在 2023 年面臨的最大挑戰之一是該行業在休閒市場的運力供過於求，拉斯維加斯和奧蘭多就是兩個重要的例子。

Both markets have experienced rapid and disproportionate growth compared to 2019 when demand and capacity were far more balanced as total US domestic capacity increased just over 4% since 2019. Total industry capacity in Las Vegas and Orlando grew by a combined 20% and are expected to continue to grow in 2024 based on current published schedules. This has resulted in a relative resin and margin headwind to many LCCs and ULCCs and Frontier is no exception.

與 2019 年相比，這兩個市場都經歷了快速且不成比例的增長，2019 年需求和產能更加平衡，美國國內總產能自 2019 年以來僅增長了 4% 多一點。拉斯維加斯和奧蘭多的行業總產能合計成長了 20%，根據目前公佈的時間表，預計 2024 年將繼續成長。這導致許多低成本航空和超大型航企面臨相對樹脂和利潤逆風，Frontier 也不例外。

On slide 6, no one's more aggressive and engaging in self-help to address overcapacity in leisure markets and Frontier. By summer, we plan to reduce Las Vegas and Orlando combined capacity by 11 points of our system share year over year, reducing the share of these markets by one-third.

在投影片 6 中，沒有人比這更積極主動地採取自助措施來解決休閒市場和 Frontier 的產能過剩問題。到夏天，我們計劃將拉斯維加斯和奧蘭多的綜合容量同比減少 11 個百分點，從而將這些市場的份額減少三分之一。

To be clear, we're not retreating from our network footprint and either market. We are merely cutting what we believe is marginal unprofitable flying to return both freight bases to a rational operating optimal position for our cost structure and remain the low-cost leader in both markets.

需要明確的是，我們不會退出我們的網路足跡和任何一個市場。我們只是削減我們認為邊際無利可圖的航班，以使兩個貨運基地恢復到我們成本結構的合理運營最佳位置，並保持兩個市場的低成本領導者地位。

Turning to slide 7, our network growth in 2024 is focused on exporting higher fare, visiting friends and relative markets. The market mix of routes by the summer will increase industry average fares in those markets by 5% year over year.

轉向投影片 7，我們 2024 年的網路成長重點是出口更高的票價、拜訪朋友和相關市場。夏季航線的市場組合將使這些市場的行業平均票價較去年同期上漲 5%。

Not only are we chasing higher fare markets. The total revenue pool of industry revenue in our network this summer will be up over 50% despite only growing capacity 12% to 15%, meaning we need a much smaller share of industry revenue, extremely constructive for increasing resin. Additionally, the historical data suggest VFR routes tend to ramp quicker and reach maturity sooner than leisure routes.

我們不僅追求更高的票價市場。今年夏天，儘管產能僅成長12% 至15%，但我們網路中的產業收入總收入池將成長50% 以上，這意味著我們需要的產業收入份額要小得多，這對於增加樹脂非常有建設性。此外，歷史數據表明，目視飛行規則航線往往比休閒航線成長更快、更早成熟。

Turning to slide 8. Another significant challenge we faced last year was the extended ATC ground delay programs, which negatively impacted our completion factor and utilization, particularly during the summer peak.

轉到投影片 8。我們去年面臨的另一個重大挑戰是延長 ATC 地面延誤計劃，這對我們的完工率和利用率產生了負面影響，特別是在夏季高峰期間。

To address this, we are executing on the network simplification strategy that we discussed on our last earnings call with a focus on increasing the percentage of aircraft that returned to base nightly to greater than 80% by peak summer this year.

為了解決這個問題，我們正在執行我們在上次財報電話會議上討論過的網路簡化策略，重點是在今年夏季高峰之前將每晚返回基地的飛機百分比提高到 80% 以上。

We expect this strategy to enable expanding our industry-leading utilization and improve reliability a key element of our plan is leveraging our 13 crew bases, including our recently announced crew bases in Cleveland, Cincinnati, Chicago and San Juan, Puerto Rico.

我們希望這項策略能擴大我們領先業界的利用率並提高可靠性，我們計劃的一個關鍵要素是利用我們的13 個船員基地，包括我們最近宣布的位於克利夫蘭、辛辛那提、芝加哥和波多黎各聖胡安的船員基地。

Single day trips flown from our crew bases, support, operational reliability, recoverability and higher fair. Our relative cost advantage to the industry outlined on slide 9 is a key factor in our ability to stimulate demand with low fares and it increased to over 40% in 2023.

從我們的機組基地起飛的單日旅行、支援、操作可靠性、可恢復性和更高的公平性。投影片 9 中概述的我們相對於產業的相對成本優勢是我們能夠以低票價刺激需求的關鍵因素，到 2023 年這一優勢將增加到 40% 以上。

We believe unit cost leadership is fundamental to our long-term profitability and expect Frontier will remain the lowest unit cost provider in the United States, particularly as significant cost savings materialize from our network simplification strategy. We expect that our network simplification strategy will underpin the $200 million of associated annual run rate cost savings, which should be implemented by the end of 2024.

我們相信，單位成本領先對於我們的長期獲利能力至關重要，並預計 Frontier 將繼續成為美國單位成本最低的供應商，特別是在我們的網路簡化策略實現了顯著成本節約的情況下。我們預計我們的網路簡化策略將支援每年節省 2 億美元的相關運行成本，該策略應於 2024 年底實施。

As we highlighted on our third quarter earnings call. Further, our order book is heavily weighted to the high gauge A3 21 neo, which will contribute meaningfully to our ability to control costs as we continue to increase gauge Accordingly, we expect 2024 for adjusted chasm ex-fuel to be down 1% to 3% on a stage adjusted basis, just 1,000 miles.

正如我們在第三季財報電話會議上所強調的。此外，我們的訂單主要以高軌距A3 21 neo 為主，隨著我們繼續增加軌距，這將對我們控製成本的能力做出重大貢獻。因此，我們預計2024 年調整後的鴻溝（不含燃料）將下降1% 至3% % 在階段調整的基礎上，僅為 1,000 英里。

As highlighted on Slide 10, we plan to leverage our network product brand and distribution to diversify our revenue and drive sequential revenue improvement.

正如幻燈片 10 所強調的，我們計劃利用我們的網路產品品牌和分銷來實現收入多元化並推動收入連續成長。

I've spoken extensively about network enhancements, so let's briefly review the latter initiatives. Last week, we launched our an innovative Betfair's product to cater to cost-sensitive small business travelers while providing a premium experience for one low price. We've rebranded our stretch product to promote our premium economy seating starting at $19, consistent with our recent launch of our get it all for less campaign.

我已經廣泛討論了網路增強功能，所以讓我們簡單回顧一下後面的舉措。上週，我們推出了一款創新的 Betfair 產品，以滿足對成本敏感的小型商務旅客的需求，同時以低廉的價格提供優質的體驗。我們重新命名了我們的彈性產品，以促銷起價為 19 美元的高級經濟艙座椅，這與我們最近推出的「花更少錢買到一切」活動相一致。

As we showcased last quarter, our relaunched Frontier Miles program features enhanced elite status tiers that can be earned faster and offers the highest credit card spend based travel reward earn rate in the industry for each dollar of spending with the Frontier, Barclays MasterCard, a new website and new mobile app as well as NDC are expected to launch by late 2024 and should provide significant distribution, merchandising and conversion benefits as well as improved brand positioning. Further, we've seen competitive overlap proceed in recent months.

正如我們上季度所展示的，我們重新推出的Frontier Miles 計劃具有增強的精英身份等級，可以更快地獲得，並提供業界最高的基於信用卡支出的旅行獎勵賺取率，每使用Frontier、巴克萊萬事達卡（一種新的信用卡）消費即可獲得業內最高的獎勵。網站和新的行動應用程式以及NDC 預計將於2024 年底推出，並應提供顯著的分銷、銷售和轉換效益以及改進的品牌定位。此外，近幾個月來我們發現競爭重疊仍在繼續。

To the extent carriers further engage and capacity rationalization, this would drive additional unit revenue benefit to Frontier, which will be accretive to our guide. However, we've only included the published reductions in our base case on slide 11, network cost and revenue initiatives are expected to drive profit and growth in the business. We expect our pre-tax margin for the full year 2024 to be in the range of 3% to 6%, with capacity growth of 12% to 15% and adjusted CASM down 1% to 3% on a stage adjusted basis to 1,000 Mile. First Quarter 2024 guidance is reflective of seasonality and off-peak dynamics expected during the quarter. Our guidance is based on fuel pricing as of February.

如果營運商進一步參與和運力合理化，這將為 Frontier 帶來額外的單位收入收益，這將增加我們的指南。然而，我們僅在投影片 11 的基本案例中包含了已發布的削減，網路成本和收入計劃預計將推動利潤和業務成長。我們預計 2024 年全年的稅前利潤率將在 3% 至 6% 之間，運力增加 12% 至 15%，調整後 CASM 按階段調整後下降 1% 至 3% 至 1,000 英里。2024 年第一季指引反映了該季度預期的季節性和非高峰動態。我們的指導是基於截至二月份的燃油價格。

Turning to the final slide, with full year benefit of our network cost and revenue initiatives, we expect 2025 to be between 10% and 14% pre-tax margins. This includes the expectations of new labor agreements with pilots and flight attendants as both recently became amendable.

轉向最後一張投影片，由於我們的網路成本和收入計畫全年受益，我們預計 2025 年稅前利潤率將在 10% 至 14% 之間。這包括與飛行員和空服人員簽訂新的勞動協議的期望，因為這兩項協議最近都可以修改。

That concludes the slide presentation, and I'll now hand the call over to Jimmy for a commercial update.

幻燈片演示到此結束，現在我將把電話轉給吉米以獲取商業更新。

Thank you, Barry, and good morning. Everyone. fourth quarter revenue was $891 million, reflecting ROS of $8.9 down 15% on 15% capacity growth on an 8% decrease in average stage length. This represents a 4 point year-over-year sequential improvement from the third quarter, driven by stabilizing demand trends as we enter '20 into 2024, we are now seeing improving revenue trends better than our earlier expectations and see positive momentum as we transition to our new network and deliver on multiple revenue initiatives.

謝謝你，巴里，早安。每個人。第四季營收為 8.91 億美元，反映出 ROS 為 8.9 美元，下降 15%，運力成長 15%，平均階段長度減少 8%。這代表著與第三季相比同比連續改善了4 個百分點，這是在進入20 世紀20 年後需求趨勢趨於穩定的推動下，進入2024 年，我們現在看到收入趨勢的改善好於我們先前的預期，並且隨著我們向我們的新網路並實現多項收入計劃。

We expect the revenue trends to continue to show positive year over year sequential improvement. We carried a record 8.1 million passengers during the quarter with a 99.5% completion factor as well. On-time arrivals and departures in December were our highest since 2015, excluding the pandemic year of 2020. During the quarter.

我們預期收入趨勢將繼續呈現逐年的正面改善。本季我們運送了創紀錄的 810 萬名乘客，完成率也達到了 99.5%。12 月的準時抵達和出發航班是自 2015 年以來的最高水準（不包括 2020 年大流行年份）。本季期間。

As Barry mentioned, we made steady progress toward our objective to increase the percentage of F. and back flying, including the announcement of four new crew bases, a Cleveland, Cincinnati Chicago and San Juan Puerto Rico Cleveland basis expect to open in March, I would employ 110 pilots and 255 flight attendants in its 1st year.

正如巴里所提到的，我們在提高飛行和返航比例的目標方面取得了穩步進展，包括宣布四個新的機組人員基地，克利夫蘭、辛辛那提、芝加哥和聖胡安波多黎各克利夫蘭基地預計將於三月開放，我第一年將僱用 110 名飛行員和 255 名空服員。

The Cincinnati basis is scheduled to open in May and will employ 80 pilots and 160 flight attendants. The Chicago-based will serve both O'Hare and Midway and employ 110 pilots, along with 200 flight attendants already based there. And finally, San Juan will be our 13th crew base and will employ 90 pilots and 200 flight attendants and in its 1st year, we've been the fastest-growing airline in Puerto Rico, more than doubling seat capacity since 2019 and offering 14 nonstop routes from San Juan alone, Puerto Rico is playing a key role in our Caribbean and Latin America growth strategy. Not only because it's a popular tourist destinations, but large populations of Puerto Ricans reside in the US mainland and they frequently travel to the island to visit friends and family or to work remotely.

辛辛那提基地計劃於 5 月開業，將僱用 80 名飛行員和 160 名空服員。這家總部位於芝加哥的航空公司將為奧黑爾機場和中途島機場提供服務，並僱用 110 名飛行員以及已經駐紮在那裡的 200 名空服員。最後，聖胡安將成為我們的第13 個機組人員基地，將僱用90 名飛行員和200 名空服員，在成立的第一年，我們已成為波多黎各成長最快的航空公司，自2019 年以來座位容量增加了一倍多，並提供14 個直飛航班僅從聖胡安出發的航線，波多黎各就在我們的加勒比海和拉丁美洲成長策略中發揮關鍵作用。不僅因為它是一個受歡迎的旅遊目的地，而且大量波多黎各人居住在美國大陸，他們經常前往該島探望朋友和家人或遠端工作。

Frontier is well situated to capture a disproportionate share of this volume as we now serve more routes to Puerto Rico from the U.S. than any other carrier. Moreover, we recently announced a significant expansion of our network as part of our strategy to grow in higher fare routes. During the second quarter, we launched nonstop service from 38 airports with our largest concentration of routes and visiting friends and relatives markets from Dallas Fort Worth, Charlotte, Raleigh-Durham, Los Angeles, New York, Minneapolis, St. Paul and San Juan.

邊疆航空處於有利地位，可以佔據這一貨運量的不成比例的份額，因為我們現在提供的從美國飛往波多黎各的航線比任何其他航空公司都多。此外，我們最近宣布大幅擴展我們的網絡，作為我們發展高票價航線策略的一部分。第二季度，我們開通了從達拉斯沃斯堡、夏洛特、羅利-達勒姆、洛杉磯、紐約、明尼​​阿波利斯、聖保羅和聖胡安出發的航線最集中的38 個機場和探親友市場的直飛服務。

Finally, early last month, we officially launched our reimagined Frontier miles loyalty program, and we're seeing positive trends, memberships and engagement, particularly at elite levels of increase. We have also observed observe improved spending on the Cobra brand credit card. In fact, December spend was over 10%. Europe was up over 10% year over year and was the highest level on record. While it's still early, we expect to see continued improvement in spend throughout 2024.

最後，上月初，我們正式啟動了重新設計的 Frontier 里程忠誠度計劃，我們看到了積極的趨勢、會員資格和參與度，尤其是精英級別的增加。我們也觀察到 Cobra 品牌信用卡的支出增加。事實上，12 月份的支出超過了 10%。歐洲年增超過10%，創有紀錄以來的最高水準。雖然現在還為時過早，但我們預計 2024 年支出將持續改善。

That concludes my remarks. So I'll yield the call to Mark.

我的發言到此結束。所以我會把電話轉給馬克。

Thank you, Jimmy. We generated a pre-tax margin of 0.7% on a GAAP basis and 0.8% on an adjusted basis in the fourth quarter, well above our guidance range on solid operational performance that Barry touched on earlier and cost related factors.

謝謝你，吉米。第四季度，我們的稅前利潤率（以 GAAP 計算）為 0.7%，按調整後計算為 0.8%，遠高於巴里早些時候提到的穩健營運績效和成本相關因素的指導範圍。

As a result of our fourth quarter performance, we also generated a pre-tax margin of 0.9%. For the full year, total revenue was $891 million, down 2% compared to the 2022 quarter. Fuel expense was roughly in line with the prior year quarter as the 12% benefit from lower fuel prices and 3% improvement in our industry-leading fuel efficiency to 105 ASMs per gallon was offset by the increase in consumption from capacity growth of 15%. Fuel expense for the quarter reflects an average cost per gallon of $3.18 which was slightly below the low end of our guidance range.

由於第四季的業績，我們的稅前利潤率為 0.9%。全年總收入為 8.91 億美元，較 2022 年季度下降 2%。燃料費用與去年同期大致持平，因為燃料價格下降帶來了12% 的收益，以及行業領先的燃料效率提高了3%，達到每加侖105 ASM，但產能增長15% 帶來的消耗增加抵消了這一影響。本季度的燃油費用反映了每加侖的平均成本為 3.18 美元，略低於我們指導範圍的下限。

Adjusted nonfuel operating expenses in the fourth quarter totaled $590 million, or $0.59 per ASM 8% lower than the prior year quarter. Improvement in adjusted chasm, excluding fuel, was driven by a $36 million lease return cost benefit during the quarter from the execution in December of an extension of 4A320 ceo aircraft leases that were otherwise scheduled to return in 2024.

第四季調整後的非燃料營運支出總計 5.9 億美元，即每 ASM 0.59 美元，比去年同期下降 8%。調整後缺口（不包括燃油）的改善是由於 12 月執行的 4A320 ceo 飛機租賃延期執行帶來的 3600 萬美元的租賃返還成本效益推動的，該飛機原本計劃於 2024 年返還。

Moving forward, we will continue to be opportunistic with our fleet management, including attractive aircraft lease extension opportunities.

展望未來，我們將繼續在機隊管理中抓住機遇，包括有吸引力的飛機租賃延期機會。

Our adjusted non-fuel operating expenses also benefited during the quarter from efficiencies realized across the business, given the strong operational performance and our continued focus on costs. While our fourth quarter pretax income was $6 million, we generated a net loss of $37 million, driven by the recognition of a $37 million non-cash valuation allowance against our US federal and state net operating loss deferred tax assets, which wasn't contemplated in our effective tax rate.

鑑於強勁的營運業績和我們對成本的持續關注，我們調整後的非燃料營運費用在本季度也受益於整個業務實現的效率。雖然我們第四季的稅前收入為600 萬美元，但我們產生了3700 萬美元的淨虧損，這是由於我們沒有考慮到我們的美國聯邦和州淨營業虧損遞延稅資產確認了3700 萬美元的非現金估值備抵。在我們的有效稅率中。

Our adjusted net income of $1 million for the quarter excludes this adjustment as it's a significant special non-cash item. It's important to note that these NOLs generally don't expire and can therefore continue to be used against future taxable income. Given our full year adjusted pretax guidance of 3% to 6%, we presently expect to utilize a substantial portion of NOLs this year.

我們本季調整後的淨利潤為 100 萬美元，不包括此項調整，因為它是一項重要的特殊非現金項目。值得注意的是，這些 NOL 通常不會過期，因此可以繼續用於抵扣未來的應稅收入。鑑於我們全年調整後的稅前指引為 3% 至 6%，我們目前預計今年將利用大部分 NOL。

Any corresponding reversal to this adjustment as we generate taxable income would also be excluded for non-GAAP purposes. We ended the year with $609 million of unrestricted cash and cash equivalents and $139 million net of total debt. In addition, we have unencumbered loyalty and brand-related assets, which we believe could generate significant additional liquidity. If desired, we had 100, 36 aircraft in our fleet at year end after taking delivery of four A. three 21 neo aircraft and returning to a three 20 ceo aircraft during the quarter, we expect to take delivery of six a. three 21 neos in the first quarter of 2024 and a total of 23 A. three 21 neo aircraft in 2024, all of which are anticipated to be financed through sale leaseback transactions.

當我們產生應稅收入時，任何相應的調整逆轉也將被排除在非公認會計原則之外。截至年底，我們擁有 6.09 億美元的非限制性現金和現金等價物，淨債務總額為 1.39 億美元。此外，我們擁有不受阻礙的忠誠度和品牌相關資產，我們相信這些資產可以產生大量額外的流動性。如果需要的話，在接收了四架A.三架21 Neo 飛機並在本季度恢復三架20 CEO 飛機後，我們的機隊在年底擁有100 架36 架飛機，我們預計將接收六架A.3飛機。 2024 年第一季將生產三架 21 Neo 飛機，2024 年將總共生產 23 架 A.三架 21 Neo 飛機，所有這些飛機預計將透過售後回租交易融資。

With that, I'll turn the call back to Barry for closing remarks.

之後，我將把電話轉回給巴里，讓他作結束語。

Thanks, Mark. Our objective for 2024 for clear, every member of team is focused on executing our network cost and revenue initiatives, improving our operational reliability, and delivering an enhanced experience for our customers with a network growth focus on high fare VFR markets alongside our commitment to remain the lowest cost provider in the United States. I'm confident these measures will drive higher margins in the business.

謝謝，馬克。我們2024 年的目標很明確，團隊的每個成員都專注於執行我們的網路成本和收入計劃，提高我們的營運可靠性，並透過專注於高票價VFR 市場的網路成長以及我們的承諾，為我們的客戶提供增強的體驗。美國成本最低的提供者。我相信這些措施將提高業務利潤率。

Thanks, everyone.

感謝大家。

For joining the call today, and we will now open up for question.

今天加入電話會議，我們現在開始提問。

(Operator Instructions) Duane Pfennigwerth, Evercore ISI.

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

Hey, good morning. Tom, just on the unit cost guidance, can you give us some thoughts on how we should think about stage length this year or is there a way to maybe convert that guide to kind of a nominal unit cost guidance? And just broad strokes, what would the underlying kind of tailwinds and headwinds be from it from a unit cost perspective?

嗨，早安。湯姆，就單位成本指導而言，您能否給我們一些關於今年應如何考慮舞台長度的想法，或者是否有辦法將該指南轉換為名義單位成本指導？簡單來說，從單位成本的角度來看，潛在的順風和逆風是什麼？

Well, so Duane, I think what's important, though, is our stages going down. So I think to be intellectually honest, that's why we're pinning it to 1,000 miles and we expect to be down 1% to 3% on a stage adjusted basis, but we expect it to be closer to 900 for the year.

好吧，所以杜安，我認為重要的是我們的舞台下降。所以我認為老實說，這就是為什麼我們將其固定在 1,000 英里，我們預計在階段調整後會下降 1% 到 3%，但我們預計今年將接近 900 英里。

Okay.

好的。

I've got one.

我有一個。

Yes, just maybe broad strokes, the underlying kind of tailwinds and headwinds year over year.

是的，也許只是粗略地說，年復一年潛在的順風和逆風。

So when you look at that guidance for the full year. I mean that is underpinned by the network simplification that we've touched on and getting our own back flying to over 80% of that is going to drive the $200 million of annual run rate cost savings that we expect to have fully implemented by the by the end of the year.

因此，當你查看全年的指導時。我的意思是，這是我們所涉及的網路簡化的基礎，而我們自己的網路簡化率將達到80% 以上，這將推動每年節省2 億美元的運行成本，我們預計到2020 年將完全實現這一目標。年底。

Additionally, as we go through the year on the 23 aircraft that we're taking, delivery of those are three 21 neos. So you'll continue to get the gauge benefit there. And so I think those are the main drivers of the 1% to 3% down comp and in the chasm stage length adjusted.

此外，當我們回顧今年我們所使用的 23 架飛機時，交付的飛機是三架 21 neos。因此，您將繼續在那裡獲得儀表優勢。因此，我認為這些是 1% 至 3% 的下降補償和調整的鴻溝階段長度的主要驅動力。

Okay. Appreciate those thoughts.

好的。欣賞這些想法。

And then I'm sure you get the question a lot as a team and maybe it's Barry, maybe it's Jimmy. But yes, to the extent that spirit becomes available again, can you just gauge your interest or to the extent you be tempted to reengage there. Is there any price on the equity where it would make sense from your perspective? Thanks for your thoughts.

我相信作為一個團隊，你們會經常被問到這個問題，也許是巴里，也許是吉米。但是，是的，在精神再次可用的情況下，你是否可以衡量你的興趣或你想重新參與其中的程度。從您的角度來看，股票的價格是否合理？謝謝你的想法。

Thanks, Duane. Is the first time I've been asked that question. We are 100% focused on our business and delivering profits for our shareholders. I'm so sorry, but we don't have anything in entertaining to talk.

謝謝，杜安。這是我第一次被問到這個問題。我們 100% 專注於我們的業務並為股東創造利潤。很抱歉，我們沒有什麼有趣的話題可以聊。

Very clear. Thank you.

非常清楚。謝謝。

(Operator Instructions) Savanthi Syth of Raymond James.

（操作員說明）Raymond James 的 Savanthi Syth。

Hey, good morning. I'm just kind of curious what your thoughts are as you kind of roll forward this network changes and where utilization would go?

嗨，早安。我只是有點好奇，當您推進此網路變更時，您的想法是什麼以及利用率將走向何方？

And along those lines, I think how the pilot trends are looking at in terms of being able to complete those utilization targets?

沿著這些思路，我認為試點趨勢如何看待能夠完成這些利用目標？

Well, I'll talk about the pilots, and I'll let Mark talk about utilization. But Tom, on the pilot side, we've seen a dramatic change in the marketplace. I think I mean, you've seen the regionals looking at this and I think when you see the regionals being able to be staffed, I think that tells you everything you know about the about the shortage of pilots. So we don't see any challenges there.

好吧，我將談論飛行員，然後我將讓馬克談論利用率。但是湯姆，在試點方面，我們看到市場發生了巨大的變化。我想我的意思是，你已經看到地區部門正在考慮這個問題，我認為當你看到地區部門能夠配備人員時，我認為這告訴了你關於飛行員短缺的一切。所以我們沒有看到任何挑戰。

I'll start. And then yes. And then relative to the utilization. So in the fourth quarter, we delivered 11.3 hours on a total system basis because we progress with the network simplification, we expect the utilization to increase as we go through the year, and we'll continue to push to drive that drive that higher.

我開始吧。然後是的。然後相對於利用率。因此，在第四季度，我們在整個系統的基礎上交付了11.3 小時，因為我們在網路簡化方面取得了進展，我們預計利用率會隨著全年的成長而增加，我們將繼續努力推動這一速度的提高。

Appreciate that. And then if I might just a clarification question on doing color or for them. Is labor costs in any kind of labor cost increases in the 2024 that I know you mentioned in London later in the 2025 outlook.

感謝。然後我是否可以澄清一下有關顏色或為它們做的問題。我知道您稍後在倫敦提到的 2025 年展望中提到，2024 年勞動成本是否會出現任何形式的勞動成本成長？

Now these just opened a lot of people that have been opened for multiple years are starting to include it on. We didn't include it in 24, but we have included for 25.

現在這些剛開業，許多已經開業多年的人都開始將其納入其中。我們沒有將其包含在 24 中，但我們已將其包含在 25 中。

Thank you.

謝謝。

(Operator Instructions) Ravi Shanker, Morgan Stanley.

（操作員指令）Ravi Shanker，摩根士丹利。

Good morning, everyone. This is Katherine on for Ravi. Thank you for taking my question about six months ago at our live video conference. You kind of talked about structural pressures from ATC and plain restrictions, which it sounds like you are expecting deliveries.

大家，早安。這是拉維的凱瑟琳。感謝您大約六個月前在我們的即時視訊會議上提出我的問題。您談到了來自空中交通管制和普通限制的結構性壓力，聽起來您正在期待交付。

But I was just curious what the lay of the land is today know, have those pressures eased? Are you trying to work around them? Is there an opportunity for a bigger reset and operating model to kind of deal with the current environment?

但我只是好奇現在的情況如何，這些壓力是否有緩解？您是否正在嘗試解決這些問題？是否有機會進行更大的重置和營運模式來應對當前的環境？

Yes. No, thanks for the question. I mean, we don't expect the situation to change. I think the weather's been a little more time to the industry, but we do continue to see kind of hints of these extended ground delay programs.

是的。不，謝謝你的提問。我的意思是，我們預計情況不會改變。我認為天氣給行業帶來了更多的時間，但我們確實繼續看到這些延長地面延誤計劃的暗示。

So the I think the next test is kind of Presidents' Day weekend and you've got all the all the weekends through the spring break season and Easter particularly you have to watch Florida and what that does to ground delay programs on.

因此，我認為下一個測試是總統日週末，整個春假季節和復活節的所有週末，特別是您必須觀看佛羅裡達州以及這對地面延誤計劃的影響。

But we are not waiting for the situation to change to improve our trajectory. We are taking control of the situation and we are designing our schedule around these issues and expect them to continue through the spring and summer.

但我們不會等待情況改變來改善我們的發展軌跡。我們正在控制局勢，我們正在圍繞這些問題設計我們的時間表，並預計這些問題將持續到春季和夏季。

And when we look at last year, we had 7% of our of our flights that were canceled in the summer and the majority of those like 90% were related to multi-day trips. And so we have to change the network to ensure that we combat these challenges and overcome the reliability issue. So but we feel really good about it because if we make everything look like the open back that we had, we expect to continue to improve our reliability as we've seen in recent months.

回顧去年，我們有 7% 的航班在夏季被取消，其中大多數（約 90%）與多日旅行有關。因此，我們必須改變網絡，以確保我們應對這些挑戰並克服可靠性問題。所以，但我們對此感覺非常好，因為如果我們讓一切看起來像我們擁有的開放式背部，我們預計將繼續提高我們的可靠性，正如我們最近幾個月所看到的那樣。

Got it. Thank you. And just as a quick follow-up, I was curious how close-in bookings are trending? I know there was kind of a slight drop-off last Labor Day.

知道了。謝謝。作為快速跟進，我很好奇近距離預訂的趨勢如何？我知道去年勞動節略有下降。

So any color on what you think normal behavior might look like? Thanks for the questions.

那麼您認為正常行為可能會是什麼樣子呢？感謝您的提問。

Yes, Jimmy, kind of alluded this. We'll let him answer that question, sir.

是的，吉米，有點暗示了這一點。先生，我們會讓他回答這個問題。

And look like what we've seen over the last kind of four or five months is a bottoming of booking trajectory in the early part of Q4 by the end of Q2 or Q3. And then we've seen as I mentioned in the prepared remarks, we've seen a transition to an improving revenue market as we progress through Q1.

看起來我們在過去四、五個月看到的是，預訂軌跡在第四季初期到第二季或第三季末觸底。然後，正如我在準備好的發言中提到的那樣，隨著第一季的進展，我們已經看到收入市場向改善的轉變。

And so we're actually quite encouraged by what we see. But we're obviously working very hard internally in terms of so restructuring the network that's providing a significant improvement as you progress through March, April, May, and June. And also you're seeing very strong demand in the short term, improving close-in pricing. So built into our guide is a sequential improvement over the last few quarters on our on our unit revenues.

因此，我們實際上對所看到的感到非常鼓舞。但顯然，我們內部正在非常努力地重組網絡，隨著 3 月、4 月、5 月和 6 月的進展，網絡將得到顯著改善。而且您也看到短期內的需求非常強勁，從而提高了近期定價。因此，我們的指南中包含了過去幾季我們單位收入的連續改善。

Thank you.

謝謝。

(Operator Instructions) Brandon Oglenski, Barclays.

（操作員說明）Brandon Oglenski，巴克萊銀行。

Hey, good morning, everyone. Thanks for taking the question. Jimmy, maybe if we can follow up there so I would assume that you have some acceleration built into your 2Q revenue outlook.

嘿，大家早安。感謝您提出問題。吉米，也許我們可以跟進，所以我假設您的第二季度收入前景有所加速。

Was that what you're seeing in the bookings?

您在預訂中看到的是這樣的嗎？

And can you compare and contrast that with Easter holiday timing not to be too near term here, but I guess it must be the network changes you're making that you're seeing the positive improvements. Is that correct?

您能否將其與復活節假期時間進行比較和對比，不要太近，但我想這一定是您所做的網絡更改，您看到了積極的改進。那是對的嗎？

Yes, yes, I mean, we've if you look at the announcement we made recently, you see a big network shift happening March, April, May, June, and that network shift as drug is driving significant improvement in our revenue and a revenue turn like one of the things that we're focused on is entering a bigger revenue pool, but also actually in markets that have higher fares and so that is giving us a better revenue outcome that we're seeing across the business. It's early and you know, we have the big network shift happens during March, April, May, and June, as I said.

是的，是的，我的意思是，如果你看一下我們最近發布的公告，你會發現三月、四月、五月、六月發生了巨大的網絡轉變，而這種網絡轉變作為藥物正在推動我們的收入顯著改善，並且收入轉變就像我們關注的事情之一是進入更大的收入池，但實際上也在票價更高的市場中，因此這給我們帶來了我們在整個在業務中看到的更好的收入結果。現在還很早，你知道，正如我所說，我們在三月、四月、五月和六月期間發生了重大的網路轉變。

And so we'll see that progress. But the early signs are very, very good. And obviously, Easter comes back, as you mentioned, into this quarter, and we've got to deal with that. Overall, that's positive for this quarter. Obviously, it's out of April and but we think some of the changes we're making actually will drive longer-term support for growth in the business, particularly around utilization of peak periods where we're entering more VFR markets.

所以我們會看到這項進展。但早期跡象非常非常好。顯然，正如您所提到的，復活節將在本季度回歸，我們必須處理這個問題。總體而言，本季的情況是正面的。顯然，現在已經是 4 月了，但我們認為我們正在做出的一些改變實際上將推動對業務成長的長期支持，特別是在我們進入更多 VFR 市場的高峰期的利用方面。

I guess anticipated in that improvement into 2Q and 3Q, just more, you are in the first quarter is more of it commercial revenue base or is that also the expectations that your cost can come down in maybe a more controllable operating environment this summer well?

我想預計第二季和第三季的改善，只是更多，你在第一季更多的是商業收入基礎，或者這也是你的成本可以在今年夏天更可控的營運環境中下降的預期？

Yeah. I mean, look, with part of the guide today is clearly our costs are on a very good trajectory there on a different trajectory to the entire industry where our unit costs are actually coming down. Obviously, we stage it was just the 2000 miles, just to give you a fair comparison.

是的。我的意思是，看，今天的指南的一部分顯然是我們的成本處於非常好的軌道上，與整個行業的軌道不同，我們的單位成本實際上正在下降。顯然，我們只設定了 2000 英里，只是為了給你一個公平的比較。

That's a really good thing. We're working very hard on the business and on extracting significant amount of cost out. That's a lot of that is driven by the network shift that we're doing. That helps the business. But what we're doing is in trying to improve sequential revenue as you progress through this year.

這真是一件好事。我們正在非常努力地開展業務並降低大量成本。其中很大一部分是由我們正在進行的網路轉變所推動的。這對生意有幫助。但我們正在做的是，隨著今年的進展，努力提高連續收入。

Clearly year over year, as you get into the second half of this year, you have an easier comp from a from a unit perspective. But what we're seeing at the moment gives us a lot of hope on our optimism around the improving revenue environment as we progress through this year.

顯然，年復一年，當你進入今年下半年時，從單位角度來看，你會得到更容易的補償。但我們目前所看到的情況讓我們對今年收入環境改善的樂觀態度充滿希望。

Okay. Thank you.

好的。謝謝。

(Operator Instructions) Michael Linenberg, Deutsche Bank.

（操作員指示）Michael Linenberg，德意志銀行。

But we hear you and good morning, everyone. Hey, on I think on the last call, Jimmy, you talked about on some of the potential issues that you could have later in the year with the GTF on and I know you had indicated that it was somewhat fluid and you're in conversations with Pratt. Do you have a better sense about any potential groundings that we see later this year? If at all, it's a 2024 event.

但我們聽到了你們的聲音，大家早安。嘿，我想在最後一次通話中，吉米，你談到了今年晚些時候 GTF 開啟時可能會遇到的一些潛在問題，我知道你已經表示情況有些不穩定，而且你們正在進行對話與普拉特。您對我們今年晚些時候看到的任何潛在停飛有更好的了解嗎？如果有的話，那也是 2024 年的事件。

Yes, Mike, this is very. We expect the financial impact, we expect no financial impact from the GTF.

是的，麥克，這非常。我們預計會產生財務影響，但預計 GTF 不會產生財務影響。

Okay. And then on Barry, since I have you my second on when I look at your network and I look at some of the routes that you do fly to, I know on you've talked of VFR but there are some markets that you're in where you actually have a decent presence in what I would characterize as business markets. I know in the past you did cater to some price sensitive on the business side, maybe it was 5%, maybe it was 10% on, but I'm only bringing this up because I when I look at one of your recent offerings, some of your product offerings there is a bit of a code of business type or sort of product type that you are rolling out maybe to take advantage of some of the network changes.

好的。然後，關於巴里，因為當我查看您的網絡並查看您確實飛往的一些航線時，我知道您已經談到了 VFR，但也有一些市場是您所關注的。在我所說的商業市場中，你實際上擁有不錯的影響力。我知道過去你們確實迎合了一些對業務方面價格敏感的需求，也許是 5%，也許是 10%，但我只是提出這一點，因為當我看到你們最近提供的一項產品時，你們提供的某些產品有一些業務類型或產品類型的程式碼，您可能會推出這些程式碼以利用某些網路變更。

Can you talk about that and maybe there's some opportunity with your presence in these big markets, you know, Chicago and LA and Atlanta on et cetera. Any thoughts on that would be great.

您能談談這一點嗎？也許您在芝加哥、洛杉磯和亞特蘭大等大市場中存在一些機會。任何對此的想法都會很棒。

Thanks for taking my questions.

感謝您回答我的問題。

Sure. So look, I mean, we're not making a major strategy shift to go after business. I mean, historically, we've been in the mid-single digits for business travel and the majority of those we believe are small business. But yes, we've heard from our customers, they would like to see on a kind of a bundled fare available through third party channels.

當然。所以，我的意思是，我們並沒有為了追求業務而做出重大策略轉變。我的意思是，從歷史上看，我們的商務旅行一直處於中個位數，而且我們認為其中大多數都是小型企業。但是，是的，我們從客戶那裡聽說，他們希望看到透過第三方管道提供的一種捆綁票價。

That's something we haven't had in the past. And so we have launched that the biz fare, which includes a bag carry-on bag and includes it actually premium economy, seating of it's available as well as flexibility. No change cancel fees.

這是我們過去沒有過的。因此，我們推出了商務票價，其中包括隨身攜帶的行李包，以及實際上的高級經濟艙，其座位可用且靈活。無變更取消費用。

So it's a great product for small businesses, save them money obviously, we don't have the frequency. That's the big airlines do. But I think for some people that want to save money and it's a great product, but which didn't have anything if they did have a managed travel, a partnership with a travel agency, we just didn't have a solution for them. And now we do. And so I look at you can kind of do the math. If you just get a few points of this at 30% to 50% higher fare, it is a great way to diversify our revenues and improve our overall routes.

所以這對小型企業來說是一個很棒的產品，顯然可以為他們省錢，我們沒有頻率。大航空公司都是這麼做的。但我認為，對於一些想要省錢的人來說，這是一個很棒的產品，但如果他們確實有託管旅行、與旅行社合作，那麼他們就沒有任何東西，我們只是沒有為他們提供解決方案。現在我們做到了。所以我認為你可以做一下數學計算。如果您能以高出 30% 至 50% 的票價獲得其中的一些積分，那麼這是實現我們收入多元化和改善整體航線的好方法。

Very good. Thank you.

非常好。謝謝。

(Operator Instructions) Scott Group of Wolf.

（操作員說明）斯科特狼群。

Hey, thanks. Good morning. So I wanted to just go back to Q4 for a second, just on the cost side. So if you look at just cost ex-fuel, third quarter was $645 million, fourth quarter dropped to $590 million. And then the Q1 guide, it goes right back to [$650 million]. So any help on what happened in Q4?

嘿，謝謝。早安.所以我想回到第四季度，談談成本方面。因此，如果僅考慮不包括燃料的成本，第三季為 6.45 億美元，第四季降至 5.9 億美元。然後是 Q1 指南，它又回到了[6.5億美元]。那麼對第四季發生的事情有什麼幫助嗎？

Yes.

是的。

So yes, Scott, to give you the broad strokes on Q4, right, to that $590 million as I highlighted in the prepared remarks, includes the $36 million benefit from the four A. three, 20 ceo lease extensions that will be executed. If you adjust for that rate, you're at [$626 million]. And from there looking at that number to what we're what we're guiding in the in the first quarter that takes into consideration the seasonality that comes to play in Q1.

所以，是的，斯科特，讓您大致了解一下第四季度的情況，對吧，正如我在準備好的發言中強調的那樣，這5.9 億美元包括將執行的4 個A.3、20個執行長租約延期帶來的3,600 萬美元收益。如果您調整該比率，您將處於[6.26 億美元]。從這個數字到我們在第一季的指導，考慮到第一季的季節性因素。

Right.

正確的。

So payroll tax related on seasonality, de-icing, I mean, you've got a growing fleet as well, right? And so those additional costs. So at the end of the day, I think that's the walk from Q4 to Q1.

因此，工資稅與季節性、除冰有關，我的意思是，你們的機隊也在不斷增長，對嗎？等等這些額外的費用。所以歸根結底，我認為這就是從 Q4 到 Q1 的步行路程。

Okay. That's helpful. And then can you just talk about I know you said you're assuming improving resin throughout the year just but maybe what your overall sort of resin growth expectation is? And just how to think about, right, the cadence of margins from down 4% to 7% in Q1 to down to up to 36% for the for the year I just want to understand, like where do you think you're ending the year on a margin run rate?

好的。這很有幫助。然後你能談談我知道你說過你假設全年都會改善樹脂，但也許你對樹脂增長的整體預期是什麼？我只是想了解，如何思考利潤率從第一季下降 4% 到 7%，到今年下降到 36% 的節奏，例如你認為你會在哪裡結束年的保證金運行率？

We don't actually guide resin, but look, I think you can look at the initiatives that we've talked about and kind of play those out, they continue to roll out as we move through the year. So you would obviously expect the cadence of that is that you will continue to see more accretive at rather some improvement as you move through the year as the initiatives mature and go out, I mean, you take the Betfair for example, that we just talked about a moment ago, we just launched it last week.

我們實際上並不指導樹脂，但是看，我認為你可以看看我們討論過的舉措並實施這些舉措，隨著我們在這一年的發展，它們將繼續推出。因此，你顯然會期望這種節奏是，隨著這一年的計劃成熟和推出，你將繼續看到更多的增值，而不是一些改進，我的意思是，你以Betfair 為例，我們剛才談到大約不久前，我們上週剛推出了它。

I mean, it's we're starting to discuss with certain corporations, getting it on their shelf and getting there. But there's just a lot of different paths to revenue diversification that we're focused on, but they all have slightly different timings as we move through the year.

我的意思是，我們開始與某些公司討論，將其上架並實現目標。但我們關注的收入多元化途徑有很多不同，但隨著我們全年的發展，它們的時間安排都略有不同。

And then I guess ultimately, what I'm trying to get to is where are we going? Where are we going from a margin perspective, the rest of this year? Because I'm trying to get to 10% to 14% next year with labor. So just anything you could do just like to sort of help on the bridge.

然後我想最終，我想達到的是我們要去哪裡？從利潤率的角度來看，今年剩下的時間我們會走向何方？因為我想明年透過勞動力達到 10% 到 14%。所以你能做的任何事情就像在橋上提供幫助一樣。

Well, we've given you the first quarter and we've given you our year. So you can kind of while we didn't breakout quarters two through four, you can kind of do the algebra to figure out what that takes to hit that number. And I think if you if you take that into the second half of the year, you will see that the run rate of that delivers well against 2025.

好吧，我們已經向您提供了第一季的情況，也已經向您提供了全年的情況。所以，雖然我們沒有突破第二到第四節，但你可以做代數來找出達到這個數字需要什麼。我認為，如果你把這一點放到今年下半年，你會發現 2025 年的運行率會很好。

And then keep in mind, as you look at 24 and as we deliver on the network simplification plan and the revenue initiatives and cost initiatives that are there and you move into 25, you're getting the full year benefit, right of all of those items that are being put in place in 2024. I think that's important to note as you consider 25 versus 24.

然後請記住，當您查看 24 時，當我們交付網路簡化計劃以及現有的收入計劃和成本計劃時，您將進入 25 期，您將獲得所有這些收益的全年收益2024 年實施的項目。我認為當您考慮 25 與 24 時，請務必注意這一點。

Okay. Thank you.

好的。謝謝。

(Operator Instructions) Stephen Trent, Citi.

（操作員指示）Stephen Trent，花旗銀行。

Good morning, gentlemen, and thanks for taking my time to be taking the time to answer my questions. I was wondering just on a from a clarification perspective, um, could you refresh my memory and maybe your question for Mark, if you guys will be including any sale leaseback gains and OpEx. Thank you.

早安，先生們，感謝您抽出寶貴的時間回答我的問題。我只是想從澄清的角度來看，嗯，你能否刷新我的記憶，也許你向馬克提出的問題，如果你們將包括任何銷售回租收益和營運支出。謝謝。

Yes, I mean, we have consistently and consistent practice in the past and as we go forward, sale leaseback gains are a credit to operating expenses.

是的，我的意思是，我們過去一直堅持一貫的做法，隨著我們的前進，售後回租收益將計入營運費用。

And any sort of a high level, would you sort of ballpark on where that could end up for this year for example?

任何一種高水平，你能對今年的最終結果進行大概的預測嗎？

we don't call that out. But I think I think the best thing to think about, Stephen, is that the reason why it's there is because had we debt financed. It's the most fair way to compare it. So they get the benefit on the debt financing side, we did it through the sale leaseback, but on, but we don't actually call that specifically out, but it wouldn't have nowhere to people to have that. I mean the P&L impact will be similar to those.

我們不會這麼說。但我認為，史蒂芬，我認為最好考慮的是，它之所以存在，是因為我們是否有債務融資。這是最公平的比較方式。因此，他們在債務融資方面獲得了好處，我們透過售後回租做到了這一點，但是我們實際上並沒有具體指出這一點，但人們不會無處獲得這種好處。我的意思是損益影響將與那些類似。

We definitely, yes, no, it makes sense.

我們肯定，是的，不，這是有道理的。

Makes sense or not, and I appreciate that. And just one last question. I know there on the sort of cross border view, you have one of your competitors having its codeshare with a Mexican carrier potentially getting not renewed by the Department of Transportation, how are you guys thinking about your relationship with Volaris in that regard? Thank you.

不管有沒有道理，我都很欣賞。還有最後一個問題。我知道從跨境角度來看，您的一個競爭對手與一家墨西哥航空公司有代碼共享，可能不會被運輸部更新，你們如何看待與 Volaris 在這方面的關係？謝謝。

We're really excited about our partnership with Volaris. It's been disappointing, obviously that given the challenges over the last few years and their category that we haven't been able to exploit that partnership. But we're excited to get that turned on this year and we expect to do great things with it. We're larger now we have a greater brand presence. We have more distribution power coming on, but we're seeing them growing as well and their position. But we never had a TI. with Polaris. It's just a true partnership where we have a codeshare and overall marketing partnerships. So we're excited to get it turned on.

我們對與 Volaris 的合作感到非常興奮。顯然，考慮到過去幾年的挑戰及其類別，我們未能利用這種夥伴關係，這令人失望。但我們很高興今年能啟用它，我們希望用它來做一些偉大的事情。現在我們規模更大了，我們的品牌影響力也更大了。我們將擁有更多的分銷能力，但我們也看到它們和它們的地位也在不斷增長。但我們從來沒有參加過TI。與北極星。這是真正的合作夥伴關係，我們擁有程式碼共享和整體行銷合作夥伴關係。所以我們很高興能開啟它。

And I guess, you know, if you think about it, I guess we'll have a little bit more of a level playing field if what they're saying come through.

我想，你知道，如果你想一想，我想如果他們所說的話得以實現，我們將會有一個更公平的競爭環境。

Okay. Appreciated. Very, thank you.

好的。讚賞。非常感謝。

(Operator Instructions) Conor Cunningham, Melius Research.

（操作員說明）Conor Cunningham，Melius Research。

And thank you on just back to the underserved markets and the economic changes that you're making there, it seems like you're indicating that and a lot of this stuff is new unit revenue accretive, which I think is a bit surprising to some of us is the brand and the fares just being that well, received, but historically you would think of a spooling period being like over a year, two years. So just any thoughts around on what's being on why the success so far?

感謝您剛剛回到服務不足的市場以及您在那裡所做的經濟變革，看來您正在表明這一點，其中很多東西都是新的單位收入增長，我認為這對某些人來說有點令人驚訝我們的品牌和票價都很好，很受歡迎，但從歷史上看，你會認為假脫機期大約是一年、兩年多。那麼，對於迄今為止為何取得成功，您有什麼想法嗎？

I think if you in normal course I think those assumptions are correct. But having been a part of, processes like this over the last 30 years, I think you have to consider that where we're pulling this capacity from is a negative opportunity cost. So when you're not doing well financially on those, the redeployment in many cases is almost immediately accretive when you move to better market opportunities. I mean, I'll give an example,

我認為如果你在正常情況下我認為這些假設是正確的。但在過去 30 年裡，作為這樣的流程的一部分，我認為你必須考慮到，我們從何處獲得這種能力是負機會成本。因此，當您在這些方面的財務狀況不佳時，在許多情況下，當您轉向更好的市場機會時，重新部署幾乎會立即增值。我的意思是，我舉個例子，

If you find something four times a day and the fourth frequency didn't add any more revenue, but you had all those costs moving that frequency somewhere else that gain to the to the network is 100% incremental.

如果您每天發現某件事四次，而第四個頻率沒有增加任何更多收入，但您將所有這些成本將該頻率轉移到其他地方，那麼網路的收益就會 100% 增量。

Okay. That's helpful. Makes sense. And then on all these new products that you're talking about, biz fare premium economy and the global loyalty changes. I was just wondering if you could probably if you could give some context to just the contribution, you're talking about a seven point improvement in pretax margin. So what portion of these new products is what's occurring in 2025?

好的。這很有幫助。說得通。然後，關於您正在談論的所有這些新產品，商務票價高級經濟艙和全球忠誠度的變化。我只是想知道您是否可以為貢獻提供一些背景信息，您正在談論稅前利潤率提高了 7 個百分點。那麼 2025 年又會出現哪些新產品呢？

Thank you.

謝謝。

Yes. Appreciate the question. But we haven't actually broken that out in detail, but I can tell you the majority of the benefit of both this year and next year is going to come from the network and the shift to the VFR flying and away from the oversupplied leisure markets. And then each one of the others are smaller contribution. And we have an expected huge things from the business, for example, we think that takes a while to mature.

是的。感謝這個問題。但我們實際上還沒有詳細說明這一點，但我可以告訴你，今年和明年的大部分好處將來自網路以及轉向 VFR 飛行以及遠離供應過剩的休閒市場。然後其他每個人的貢獻都較小。我們對業務有巨大的期望，例如，我們認為這需要一段時間才能成熟。

Obviously, the frequent flyer things take time to mature, but early signs are fantastic, right. I mean, as Jimmy mentioned, earlier, you think the credit card spend alone, I mean, within a month of launching it at the spins up over 10% year over year, so which is just huge. So but sorry, we're not giving a breakdown of that one of those components at Target.

顯然，飛行常客的事物需要時間才能成熟，但早期跡象非常棒，對吧。我的意思是，正如吉米之前提到的，你認為信用卡單獨支出，我的意思是，在推出信用卡後的一個月內，其旋轉速度同比增長超過 10%，所以這是巨大的。因此，但抱歉，我們不會對 Target 的其中一個元件進行詳細說明。

(Operator Instructions) Andrew Didora, Bank of America.

（操作員指示）Andrew Didora，美國銀行。

Hi, good morning, everyone. I'm Barry. Yes, look, I know your back half margins are going to look slightly better than what you're what's coming through in 1Q but maybe going back to Scott's point, provide a little bit more color on sort of the bridge on how you get from back half margins to your 2025 goal. I guess what kind of a some what kind of headwinds are you assuming from a labor? How are we thinking about kind of incremental revenues or any color you can provide on kind of bridging back half 24 to 25 margins I think would be very helpful for folks.

嗨，大家早安。我是巴里。是的，看，我知道你的後半邊距看起來會比第一季的情況稍好一些，但也許回到斯科特的觀點，在橋樑上提供更多的顏色來說明你如何從實現2025年目標的一半利潤。我猜你認為勞動力會帶來什麼樣的阻力？我們如何考慮增量收入或您可以提供的任何顏色來彌補 24 到 25 的利潤，我認為這對人們非常有幫助。

Sure. Look, as I said a while ago, we've given the first quarter within the year. So you can you can do the simple algebra and soft ForEx to figure out what that has to be. Obviously, as we've discussed, the diversification of the revenue has multiple components that actually unfold through the year. And so obviously that will have better greater benefit in six months from now than it will two months from now.

當然。看，正如我剛才所說，我們已經給出了今年第一季的數據。所以你可以做簡單的代數和軟外匯來弄清楚那是什麼。顯然，正如我們所討論的，收入的多元化有多個組成部分，這些組成部分在全年中實際展開。顯然，從現在起的六個月內，這將比兩個月後帶來更大的好處。

And so I think when you play that out that actually and then you annualize that in the back end into 2025, you can easily cover what we expect to be somewhere in around a quarter of a penny for the headwind of our labor deals. But some we believe that we can solidly get back to the 10% to 14% range for 2025 as a result.

因此，我認為，當你實際解決這個問題，然後將其年化到 2025 年時，你可以輕鬆地彌補我們預期的大約四分之一美分左右的金額，以應對我們勞動力協議的不利影響。但我們相信，到 2025 年，我們可以堅定地回到 10% 至 14% 的範圍。

Okay, got it. And Mark, just the $36 million benefit you had in 4Q from the lease extensions go away how long are these leases extended for? Does that $36 million kind of come back in 25 at all? How should we how should we think about that?

好，知道了。馬克，您在第四季度從租約延期中獲得的 3600 萬美元收益就消失了，這些租約延期了多長時間？25 年後這 3,600 萬美元能收回來嗎？我們該如何思考這個問題？

Yes. Yes. So these are eight year leases that we extended out 12 years. And so that $36 million is out far into the future. So that's not a 25.

是的。是的。因此，我們將八年租約延長了 12 年。因此，3,600 萬美元是遙遠的未來。所以這不是25。

Okay, got it. Thank you.

好，知道了。謝謝。

(Operator Instructions) James Kirby of JPMorgan Securities.

（操作員指令）摩根大通證券的 James Kirby。

Hey, good morning, guys. Just filed with Savvis question earlier with the pilot pipeline, there are media reports earlier last month on just slowing down the training and pushing some out home. Is that a function of less flying? Or is that just a function of less turnover? And any color you could share there?

嘿，早上好，夥計們。上個月早些時候，剛剛向薩維斯提出了試點管道的問題，有媒體報告稱，只是放慢了培訓速度，並將一些人趕回家。那是少飛的功能嗎？還是這只是營業額減少的結果？你可以在那裡分享什麼顏色嗎？

Yes, we've seen thanks for the question. We've actually seen against what our earlier expectations were kind of a slowdown in attrition. And so we've seen that coupled with no other kind of canaries in the coal mine around the industry. So you've just seen a big change in that. And so to give you an idea, we've needed in round numbers around 30 pilots a month, right? And to get those with attrition for the last several years, we generally hire 60.

是的，我們已經看到感謝您的提問。事實上，與我們先前的預期相反，我們看到了人員流失的放緩。因此，我們看到了這一點，再加上整個產業的煤礦中沒有其他類型的金絲雀。所以你剛剛看到了這方面的巨大變化。所以給你一個想法，我們每個月需要大約 30 名飛行員，對吧？為了吸引那些在過去幾年中流失的員工，我們通常會僱用 60 名員工。

Right. And so what happens is that fit that if you if your attrition dries up, you could because of the timing it takes, call it six to eight months to get to the full kind of training of a new first officer, then you have a training of a captain and kind of to create a crew.

正確的。所以發生的情況是這樣的，如果你的人員流失殆盡，你可以因為需要六到八個月的時間來接受新副駕駛的全面培訓，然後你就可以接受培訓一個船長和一個船員。

So if you see a material change in the attrition, you could actually very quickly be to 300 pilots for way too many. In addition to that, we're seeing efficiencies in the Outback schedule, which is going to actually change kind of our needs of pilots per airplane.

因此，如果您看到人員流失發生重大變化，實際上很快就會有 300 名飛行員，因為數量太多了。除此之外，我們還看到了內陸計畫的效率，這實際上將改變我們對每架飛機飛行員的需求。

But then I would just also add that we have actually we invested significantly in our in our in our programs to bring in pilots. So we have a cadet program. We have a rotary transition program for military. We have our college programs.

但我還要補充一點，我們實際上已經在我們的專案上投入了大量資金來引進飛行員。所以我們有一個學員計劃。我們有一個軍事輪調過渡計劃。我們有我們的大學課程。

And so we have a really robust our pipeline, and we're seeing a lot more stickiness with the people. So like people we've hired in the last like 1.5, two years have a much lower attrition rate than people that we hired more than more than 1.5 0.5 years. And the other thing is we have over 700 cadets in our pipeline, right now. So if you just do the math and cadets alone, we have over two years' worth of supply. So some I think that I think the marketplace has changed dramatically in the last one to two years.

因此，我們擁有非常強大的管道，我們看到人們的黏性大大增強。因此，就像我們過去僱用的 1.5 年、兩年以上的員工一樣，其流失率比我們僱用超過 1.5 年至 0.5 年的員工要低得多。另一件事是，我們目前有超過 700 名學員在培訓中。因此，如果您只計算學員的數量，我們就有超過兩年的供應量。所以我認為市場在過去一到兩年裡發生了巨大的變化。

Got it. That's great color. I appreciate that, Barry. And second question, I if I recall correctly, your prepared remarks, you mentioned competitive pressures rescinding in certain markets. And just wonder if you can elaborate on what type of markets those are? I believe you mentioned it's not embedded in guidance, but is that is that trend you see continuing as the year goes on in terms of rationalizing the rationalization of capacity?

知道了。那顏色真棒。我很感激，巴里。第二個問題，如果我沒記錯的話，您準備好的發言中提到了某些市場的競爭壓力正在取消。只是想知道您是否可以詳細說明這些市場是什麼類型？我相信您提到它並未納入指導，但您認為隨著時間的推移，在產能合理化方面，這種趨勢會持續下去嗎？

Yes. Look, so we I mean, so let me be clear. So we've seen some capacity receipt against this approach. The biggest examples we saw Spirit leave out of out of out of Denver. We've seen capacity against us in Puerto Rico and other places start to recede and look, we can look at deal just like everybody else can and understand that the fares that but some of these carriers, we're seeing our some of the lowest quartile of the revenue and the best way to stop losing money and stopped doing things that lose money.

是的。聽著，我的意思是，所以讓我說清楚。因此，我們已經看到了針對這種方法的一些容量接收。我們看到的最大的例子是精神隊在丹佛以外的地方。我們已經看到波多黎各和其他地方對我們不利的運力開始消退，我們可以像其他人一樣看待交易，並了解除了其中一些航空公司之外，我們看到的票價是最低的收入的四分之一以及停止虧損和停止做虧損事情的最佳方法。

So I think people are making rational decisions around the system. We expect people to continue to do that. But we have only captured in our guide the changes that we've seen thus far, but we would expect to see a continued kind of rationalization of oversupply especially in a lot of these leisure markets.

所以我認為人們正在圍繞這個系統做出理性的決定。我們希望人們繼續這樣做。但我們在指南中只記錄了迄今為止所看到的變化，但我們預計會看到供應過剩的持續合理化，特別是在許多休閒市場。

Got it. It's just I appreciate the question.

知道了。只是我很欣賞這個問題。

Sure.

當然。

(Operator Instructions) Christopher Stathoulopoulos, Susquehanna Financial Group.

（操作員指示）Susquehanna Financial Group 的 Christopher Stathoulopoulos。

Thank you, everyone, and good morning. So I guess, Barry, I'm going to trying to get to the margin question in a different way on. And it's important here given the change here in your network, deemphasizing LASMCO. But if we take out the benefit of product, which is going to take some time to mature, but we think about the cadence of resin for this year and for next.

謝謝大家，早安。所以我想，巴里，我將嘗試以不同的方式解決保證金問題。考慮到網路中的變化，不再強調 LASMCO，這一點很重要。但如果我們除去產品的優勢，這將需要一段時間才能成熟，但我們會考慮今年和明年樹脂的節奏。

Ultimately, again, outside of if we just hold product constant a piece of that or a big piece of that arguably is going to be about where you're flying and how we can argue for or against any sort of you know, seasonal outperformance, et cetera, with respect to yields.

最終，再次強調，除了我們保持產品不變之外，其中一部分或很大一部分可以說是關於你的飛行地點以及我們如何爭論或反對任何你知道的季節性表現，等等，關於收益率。

So my question is, if you could just put a finer point on, you know, where you're growing and to your point, we can all look at the deal schedules today, but want to better understand that. And then ultimately, as we think about the moving pieces for next year, is that a sort of a similar composition and Part B or C, do you need to make any changes with this shift with respect to the aircraft type or anything?

所以我的問題是，如果你能更詳細地闡述你的成長點以及你的觀點，我們都可以看看今天的交易時間表，但希望更好地理解這一點。最後，當我們考慮明年的移動部分時，這是一種類似的組成和 B 部分或 C 部分，您是否需要對飛機類型或其他方面的這種轉變進行任何更改？

And so far is nuanced around crew scheduling and alike? Thank you.

到目前為止，船員調度等方面是否存在細微差別？謝謝。

So, no, we don't expect any change to our aircraft or I think our scheduling is becoming simpler because of what we talked about with the simplification of the network as far as the markets that we're chasing, I mean, it's very clear. I mean, we mentioned this earlier, but just the average fare across the system. So you take all of the markets that we will be flying in the summer and you look at those markets compared to the same markets last year and average fare is up 5% on the total.

所以，不，我們預計我們的飛機不會有任何變化，或者我認為我們的日程安排變得更加簡單，因為我們談到了網絡的簡化，就我們正在追逐的市場而言，我的意思是，這非常重要。清除。我的意思是，我們之前提到過這一點，但只是整個系統的平均票價。因此，您可以查看我們將在夏季飛行的所有市場，並將這些市場與去年相同的市場進行比較，您會發現平均票價上漲了 5%。

So that just tells you that with the new flying, we are chasing significantly higher. I think the fares more in the 15 to 20 Buck range, higher on the things that we're actually going into. So these are significantly higher priced markets than we're into today.

這只是告訴你，隨著新的飛行，我們正在追求更高的目標。我認為票價在 15 到 20 美元之間，比我們實際要做的事情更高。因此，這些市場的價格比我們今天進入的市場要高得多。

Second thing is I'll point you back to another thing that we said in the slides is that the revenue pool itself. So the total revenue pool in all of the industry that we're flying year over year will be up over 50%. And so when you're only growing 12% to 15% and the revenue pool is going to 50%, you need a smaller share of a much bigger pie.

第二件事是我將向您指出我們在幻燈片中所說的另一件事是收入池本身。因此，我們飛行的整個行業的總收入將年增 50% 以上。因此，當您僅成長 12% 到 15% 而收入池將達到 50% 時，您需要在更大的蛋糕中佔據更小的份額。

So it just kind of really derisks the business in a big way. And I think it kind of lowers competitive friction if you think about it, but specifically for the routes, I mean, obviously, we have talked about in our 13 bases, and we're going to grow significantly, especially from the ones that we've announced recently. We just announced a bunch of new routes out of out of San Juan, we announced a bunch of new routes out of out of Dallas Fort Worth, which is a base that we just opened last year and we've got some more announcements in the weeks to come.

所以這確實在很大程度上降低了業務的風險。我認為如果你考慮一下的話，這會減少競爭摩擦，但特別是對於航線，我的意思是，顯然，我們已經在我們的 13 個基地討論過，我們將顯著增長，特別是從我們最近已經宣布了。我們剛剛宣布了一系列從聖胡安出發的新航線，我們宣布了一系列從達拉斯沃斯堡出發的新航線，這是我們去年剛開設的基地，我們在未來幾週。

We've got to some this week, some actually next week and then probably a few more announcements later this month. But I think you'll find in general. And all of these are markets with considerably higher fares than the marketplace we were in last summer, which we think will be significantly improving our resume trajectory.

我們本週將發布一些消息，實際上下週將發布一些消息，本月晚些時候可能會發布更多消息。但我想你會發現一般情況。所有這些市場的票價都比我們去年夏天所在的市場高得多，我們認為這將顯著改善我們的恢復軌跡。

Understood. Thank you. For that color. And my second question, the 80% or more than 80% excuse me out and back, if you could bridge that for March's anticipated two thirds, you know, what needs to be done to realize that and more importantly is how do you sustain that? Thank you.

明白了。謝謝。為了那個顏色。我的第二個問題，80% 或超過80% 的人，請原諒我來回走動，如果你能在3 月份預期的三分之二的時間裡彌補這一點，你知道，需要做什麼才能實現這一點，更重要的是你如何維持這一點？謝謝。

So actually, we just went through this yesterday. And in fact, if you look at our March schedule, we're actually already there. And the 80% range to Outback were not scheduled with our crew there. And that's because, for example, we the Cincinnati base doesn't open until May, but we actually have the flying already kind of set up as if it was out and back. But there will be a lot of people still in hotels. So what happens as we flow through the next several months is the schedule doesn't change materially from an Outback perspective of the metal.

事實上，我們昨天才剛經歷過這件事。事實上，如果你看看我們三月的時間表，我們實際上已經在那裡了。前往內陸地區的 80% 航程並未安排在我們的機組人員那裡。這是因為，例如，我們的辛辛那提基地要到五月才開放，但實際上我們已經做好了飛行準備，就好像它往返一樣。但仍有許多人住在飯店。因此，從內陸金屬的角度來看，接下來幾個月的時間表不會有重大變化。

But what happens as we opened the bases and we have the crew members based in those cities, they become an Outback crew pairing. So you've actually already kind of done the majority of the simplification. It just gets easier every month as you flow through and we get there by June with the final opening of San Juan, which we expect. So Cleveland is in March, we've got to Chicago and Cincinnati in May. And then we have San Juan Puerto Rico in June.

但是，當我們開放基地並且我們的機組人員駐紮在這些城市時，會發生什麼，他們成為內陸機組人員配對。所以你其實已經完成了大部分的簡化。隨著您流經每個月，事情會變得更加容易，我們預計在 6 月聖胡安最終開放時就能到達那裡。克里夫蘭是三月，我們五月要去芝加哥和辛辛那提。然後我們將在六月舉行波多黎各聖胡安會議。

Great. Thank you.

偉大的。謝謝。

Thank you. At this time, I'd like to turn it back to you, Barry.

謝謝。這次，我想把它還給你，巴里。

Before for closing remarks, and I want to thank everybody for joining us today. We're really excited about the results that we're putting forth in our guide and as well as our expectations as we move through the year and into next year, a lot of great things going on with the Company. So we appreciate everybody joining us today and we look forward to updating you on our progress and our success next quarter.

在結束演講之前，我要感謝大家今天加入我們。我們對指南中提出的結果感到非常興奮，也對今年和明年公司的期望感到非常興奮，公司將發生很多偉大的事情。因此，我們感謝今天加入我們的每個人，我們期待向您報告下季度我們的進展和成功的最新情況。

This concludes today's conference call. Thank you for participating, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。