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Financial report summary
?Competition
Southwest Airlines • United Airlines • United Airlines • Schneider Electric SE • Spirit Airlines • Frontier • Sun Country AirlinesRisks
- Increases in fuel prices or unavailability of fuel would harm our business and profitability.
- Increased labor costs could result from industry conditions and could be impacted by labor-related disruptions.
- The inability to attract and retain qualified flight crew and other airline personnel could limit our growth plans and operations and adversely affect our business and results of operations.
- Our reputation and financial results could be harmed in the event of an accident or restrictions affecting aircraft in our fleet.
- We rely heavily on automated systems to operate our business and any failure of these systems could harm our business.
- Unfavorable economic conditions may adversely affect travel from our markets to our leisure destinations.
- The successful operation of our Sunseeker Resort is dependent on commercial and economic factors, some of which are beyond our control.
- FAA limitations could impact our ability to grow in the future.
- Our indebtedness, debt service obligations and other commitments could adversely affect our business, financial condition and results of operations as well as limit our ability to react to changes in the economy or our industry and prevent us from servicing our debt and operating our business.
- Covenants in our senior secured notes, revolving credit facility and construction loan could limit how we conduct our business, which could affect our long-term growth potential.
- Any inability to obtain financing for aircraft under contract could harm our fleet growth plan.
- Our maintenance costs may increase as our fleet ages.
- We rely on third parties to provide us with aircraft, facilities and services that are integral to our business.
- Our business could be harmed if we lose the services of key personnel.
- Risks Associated with the Airline and Travel Industry
- Our operating results could be affected by outbreaks of communicable diseases.
- The airline industry is highly competitive and future competition in our under-served markets could harm our business.
- A future act of terrorism, the threat of such acts, or escalation of U.S. military involvement overseas could adversely affect our industry.
- Changes in government laws and regulations imposing additional requirements and restrictions on our operations could increase our operating costs.
- Airlines are often affected by factors beyond their control, including air traffic congestion, weather conditions, increased security measures, and a reduction in demand to any particular market, any of which could harm our operating results and financial condition.
- Risks Related to Our Stock Price
- The market price of our common stock may be volatile, which could cause the value of an investment in our stock to decline.
- Our corporate charter and bylaws include provisions limiting voting by non-U.S. citizens.
Management Discussion
- •Total operating revenue was a company record of $2.5 billion, up 9.0 percent as compared to 2022, on a total system capacity increase of 1.9 percent.
- •Full-year TRASM was 13.38 cents, a record annual TRASM, up 7.0 percent as compared to 2022 on scheduled service capacity increases of 1.7 percent.
- •Average total fare was $142.15, up 5.6 percent compared to 2022, including total average ancillary revenue of $72.90, up 7.6 percent from 2022.