Allegiant Travel (ALGT) 28 Oct 212021 Q3 Earnings call transcript

Company Profile

Participants

Sherry Wilson	Director of Investor Relations
Maury Gallagher	Chairman and Chief Executive Officer
John Redmond	President
Scott Sheldon	Executive Vice President and Chief Operating Officer
Scott DeAngelo	Executive Vice President and Chief Marketing Officer
Drew Wells	Senior Vice President of Revenue and Planning
Greg Anderson	Executive Vice President and Chief Financial Officer
Kristen Schilling-Gonzales	Managing Director of Planning
Savi Syth	Raymond James
Conor Cunningham	MKM Partners
Dan McKenzie	Seaport Global Securities
Helane Becker	Cowen
Duane Pfennigwerth	Evercore ISI
Brandon Oglenski	Barclays
Andrew Didora	Bank of America
Catherine O’Brien	Goldman Sachs
Mike Linenberg	Deutsche Bank
Hunter Keay	Wolfe Research
Chris Stathoulopoulos	Susquehanna International Group

Call transcript

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Operator

Good afternoon, everyone, and welcome to the Q3 2021 Allegiant Travel Company Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] I would now like to turn the conference over to your host Ms. Sherry Wilson.

Sherry Wilson

Kirby. you, Thank Travel Allegiant quarter earnings XXXX Welcome Company’s call. to third

to President; handful with On our Officer; and Maury company’s EVP EVP and me DeAngelo, Sheldon, Gallagher, Wells, Officer; EVP Officer; call of Chief John Anderson, and help Financial and Planning; the the Chief Executive are Drew our answer Chief and Revenue today the questions. Chief SVP Scott Officer; our others of and company’s Redmond, a Scott Operating Greg our Chairman Marketing

statements forward-looking of based investors whether and Maury. visit I’ll publicly no site do the as at materialize. not it update will With plan. could obligation open a that on forward-looking any others one contain statements company’s place To underlying forward-looking We disclosed Various undue to The to more limit that the We turn factors or assumptions cause ir.allegiantair.com. commentary Relations earnings results actual free not it those statements, The events to and information up of call these information to will strategic our today. in to the rebroadcast implied filings start forward-looking with materially you well the statements that, by over our based and forward-looking are concerning factors release us are the to this of company’s question to differ result on or risk as may assumptions call, yourself SEC. and from Any be new ask view follow-up. which today future undertake feel statements. then and with our Investor cautions events, one as questions. future fully our We otherwise. statements, available company These comments on expressed and please the reliance risk performance to

Maury Gallagher

very good us for and loads saw QX. quarter earlier and and another We everyone. as versus Thank QX yields again. Sherry, had afternoon, good in you improved we you, joining Thank year this

ASMs in XXXX. this service versus scheduled the increased year Our XX% same quarter

mentioned to subsequently, I year the compared been growth was As of that grown XXXX profitable. system our QX in we versus carrier has in who only a and X.X% this has been their QX. and – the And I’m X.X% were increase this both substantial sequential in this growth aware release,

and their was and third get passengers. our and motors revving many associated quarter’s concerned. We spring out our all the were there were flagged And and some by the traffic focus gates of quickly to lack leisure – flags. all international of were plant refocus we looking industry in drag operational as low-cost flying stake airports their else. While results given were carriers for planting turf. they business challenges. the their Regardless, oats on looking oriented profitable, paint the and well new by feeling the to the of someone theme much impacted destinations, we’re out airlines. get and the Common had to to restart get the leisure our race This to Majors before

NFL traditional As volumes. business a Comparatively, a most focused substantial. airports result, demands airports, leisure at in your of of their Florida particularly operational fraction the destination on larger and were were cities operating

example XXXX of day. This activity one tied that Southwest My up of effect of touch of shift leisure the increases not leisure network Some labor for half a stating ATC their Airports carriers environment the where in added of U.S. unprecedented past Florida to Florida a And XXXX of evolution destination label compared is problems flying This substantial airplanes hampered flights by had leisure operational these this flight our airports substantial now were major to of as phenomena respectively. with the in is necessary recent growth. did activity comments for with overload. and this the have XXX% destination to in summer. personnel in difficult well. each was this operational the their increases of about indicative issues amazing this illustrative

we the I not said As were the industry experiencing summer. to this immune was challenges, past

compensation implemented past we the when have trip. years, we interrupt and For few generous a program customer’s a if

takes this the the of Our costs and minutes. few bad comments in our we mark. operational better unit to would associated will than Greg were of of one other help to average provide to a approach this have sting situation. back interrupted advantage one-time in If amount TLC expenses, costs have a trip out add on these make been more

You’ve heard on increasing carrier fuel every far comment so prices.

are still for but will carriers short-term are Capacity provide long-term price hedging, relief. only understand the increases. remedy reductions Some this fuel only

in could offset the this area firsthand substantial year, plan knowledge in XXXX half cuts capacity we year costs to digit put at this while And energy skyrocketing increasing on least a this We damper them on first percentages, have costs. we made by of and growing fuel coming the the low-double growth.

you As and models flex flexibility our us allows down to better than up repeatedly, we others. told

to we’re year’s grow We as where we XXXX excited the early pandemic. been an consistent a at. last I’m quickly and about to have years, retreat if but shown we’ve did ability over able also needed

in excellent shape. We’re

some $XXX during will these $X.X is net debt. Sunseeker over substantially Our restarted financing we of $XXX and completed only additional difficult recently and We billion sheet times. balance million the comments. And end finish The million quarter had line to in a John cash improved have we construction.

maker revenue X.X profits. years, our These industry revenues unit further have comments will Scott revenues well. They’re third-party leading have difference incremental nicely. through This efforts and talked providing a as about DeAngelo been the Our part all we’ve associated with strategy increasing of us that previously. paying is dividends. are Allegiant

markets the the the months to to a past COVID-related as first to model Delta – not we this we’ll COVID, the continued been absences line, year nicely variant are this has by We continue and our we we’ve past depths and in industry believe half. structure past industry this climb as return but a summer, in of We of labor our has experienced the continue were our few well leaders. been outbreak. continuing straight that lead XXXX, the back seen profitability demand of be complicated and to climb out And the non-competitive from route of normalcy spite this I from pandemic up increase the will the of volatility and

now day There’ve the been the have team past transporting as and year this front out Lastly, entire to warriors Thank no who members been time, day our to a years maker difference their is line, and I different. on our and usual, you everyone. in our in to thank the consistently destinations. success passengers want John? the half for

John Redmond

this like company, to before. move ever labor you and help day out everyone. pandemic this have the Like supply Thank our of pandemic. the shortages, chain us seen upheaval I’d by all Maury, of to much, beyond opportunity challenges who take afternoon, brought good The every this incredible and on throughout have of or team and operational members challenges none experienced forward shockwave creating thank to to company led Maury, very go above

and Again, the getting may your and rising I continued as thankful efforts we all for understanding. as occasion are to am it are through You be. painful it

these financial irregular after costs associated for challenges, ops. still a Given quarter great had adjusting unprecedented one-off we with

to As we results improve. our continue fix adjust and challenges, will to these

here the is well. revenue expect and are In QX to regards Our XXXX XXXX couple QX strengthening, Sunseeker, QX updates. as exceeding we to exceed of

As the with million Castlelake transaction previously announced been $XXX completed. financing has

as million traunch on has Travel the as $XXX on couple Allegiant course working long-term project people resort fund been well. great has expect days. of to relationship. first Construction looks next the with partner approximately resumed We golf the today. a the a in on to a in Construction forward XXX Castlelake resumed

in expect will tower QX these be completed off by the QX year. top in The this projects hotel as The We towers suite topped off expected XXXX. end be two of XXXX. should to

will And Sunseeker segment QX begin in in XXXX data the resume to expect past did as showing well. reporting separately reservations We as beginning XXXX, we taking also pre-pandemic. we QX

excess and provide calls, fully help helpful XXXX. Again, to diluted special the to provided also I gallon year EPS for programs I’m As points these on payroll charges, assume a million we are around the on EBITDA be accruals. $XXX $X.XX a Furthermore, with expect basis. in of data fuel bonus a benefit COVID-related these an a things the excess see all on points expect thought all an net which to full full points of share. would All are data $X.XX it XX%, at how data directional adjusted year. for margin past I’ve understand providing earnings exclude an some from basis, done you would be adjusted support

yearend and $XXX expect $X.X addition around his balance In net we to Greg these that, more provide million. to And cash I’ll with detail will commentary. of above, turn in around data debt points over it And Scott around Sheldon. the of billion

Scott Sheldon

of domestic operations. have operational a Perhaps obvious industry headwinds two afternoon, that had our the stating capacity John, released the our everyone. who without of and were a good schedules From or we one ambitious peers perhaps to market. more third our you, common this cycle. But in Thank on summer earning or similar quarter corresponding results the standpoint, and U.S.

approved shift strain challenges. environment of enough in additional average aircraft we early to the summer and to be year added surge in to complemental growth we June XX% our July gross And the the the departure the took XX% Furthermore, route complexities, August those much distribution improvement the XX% nearly of destination among all cancellations. execute employees smaller simply felt XX% infrastructure as in up to we and of XXXX our respectively. half was years quarter and continued to Third to number exited and flight which we has labor back too were some late scheduled abnormally up and to recover. had crews were we mid-sized were two staffing nearly growth and puts over operating schedule. and markets, Despite departures frontline on be basis Delta high at expected and Unfortunately, necessary course seeing stay an variant our

were our down as trends, In performance to we those to but see operating core starting metrics historical compared were trend up. addition,

workforce IROPs. frontline summer, to as spike types Greg we our commentary of XX% on the impacted Over have as leads as a from by August. we more the of of definitive calendar with other course turn will and/or COVID much July had

safety Looking higher of and risk into environment. and the a into on operational to number we’re the revenue and demand half optimistic from build the a in num some back That team year areas. trying remain of nets XXXX, said, for being – Drew

on schedule consistent to And Our ops mitigate team as one the challenges support IBT ratifying establish look XXXX staff, I’d we the and disagreement to continues bargaining congratulate our supply labor March before passenger all volume. first and One represented to quality two work buffers quick disruptions. us help personnel and by mine planning marketplace. comment labor more believe focus MRO like ensure number execute helps with I to areas maintenance stores to competitive sign to our technicians, control collective make the agreement, appropriate in maintenance of that chain for their we are a off,

to And line. network thank our get the across was this appreciate to to very finish straining involved our we coming professionalism pause, spike. XX our I I COVID much the XXXX me, variant in all know service in like and and of their time members closing, by positions look the latest everyone’s our a fill for long of is effort XXXX face – much As to needed Delta for I’d but schedule. excuse team this restricted

organization will have been our Scott over unwavering for And and partners why the Your continue be I’ll to our of our is backbone the and and and members tremendous consumers loyalty successful. to efforts team organization DeAngelo. with are that, commitment face it and their turn to has

Scott DeAngelo

customer the Allegiant to a is X% awareness, the quarter, experience, we visitors varying increased importantly, more and negatively repeat pandemic allegiant.com customers And at August headwinds Scott. a Simply visitors X versus bookings brand and history. degree year. by seen first marketing XXXX the since the Despite level considerable increase portion late to Thanks, fact third both continued which more transactions called to its sentiment more our while rate perspective, drove measure is still marketing negative for bumps customer allegiant.com showing From at impact lowest modest brand demand increased continued customer the than while beginning Delta bookings Delta far Allegiant turned August sensory allegiant.com our in at of XXXX increased those variant want. Allegiant The of during And and times as to this heightened time they similar put level to what impacted the web mid-July. in that of shine, during variant the January, attracting the buy since to we’ve sentiment September, quarter any to visits makes we attracting despite right that and by and visitors along points road resiliency, in weekly out visitation X% our recovery. app among during to it tracking levels. the managed site despite more to than was headwinds, of web survey its increased easier Delta and highest and the levels the find to and bookings it early enhanced efficacy its

again and more All customers the more of ways. convert these and in new attract cost enhancements combined returning lowest to

they drove nearly repeat saw compared repeat time Bookings visitors XX% customers first X% mobile week, we send via did cost lowest balance total healthy And each those or XXXX. increase. XXXX. and targeted saw one to nearly clicking Allegiant for customers a to allegiant.com from bookings. and into than account time increase from channels more that’s a our Specifically, customers customer on link those or now e-mails both that directly in to of the And app visits of the coming allegiant.com of XX% visitors by first million nearly by XX X.X% translated entering website is a us our URL in

card, first We to XXXX, allegiant.com. versus just was are to just more asset car everything year, the Allways at they during and stays engagement across growth customer travel. by also airline of program, our branded was for product hotel only of card voted acquisition again greater redesign their did our earlier quarter card launched revenue deeper Allegiant X% of third-party XX% to light quarter rentals The third-party Rewards our ever revenue, also under which the the the spending wallet third continue Allways Mastercard, on achieve the credit and year service and introduction nearly Rewards beyond compared was of co-brand up app co-brand but in comprises air by web levels now not XXXX. growth customers non-credit we Choice umbrella World approach offer credit scheduled at this Today Overall, The credit co-brand versus this allegiant.com which card continued enhancements portion leisure launched A nation loyalty passenger over in in of consecutive is past products for stream the being once quarter. the Readers’ the in top USA Award. that

of cardholders traditional and the travel of new best on leisure in our that than best in quarter second has one versus various the programs number and app. in the the new program’s number recall the Contributing card four saw number months way In history. signups the that cardholders we history. new the may more in our fall, we decline top new XX% were the headwinds acquisition was number five cardholder the of this to new acquire XXXX. total, this cardholder the achieved mobile acquisition Historically, despite months early quarter, You quarter performing up introduction growth the been three instant and continued website. credit And our enrollment of in in by

meaningful and Already, rewards, their attachment redesigned with air are programs point winning, Left and the friendly other end, of we’ve the million technology the Card helping Target to margin playing our of Building and These aircraft third-party earning spend Allegiant credit in are year now well with and viewers ancillary loyalty broadcast that is above XX% products. of on web after quarter. by has to we all of success sports card into important and Allways joined much transaction more visits addition XX% as combining launched Circle of mobile rental their our XX% us even joined So of and by leisure these XXXX and Rewards than simple, upcoming days website Allegiant of our travel, than enhancements primarily functionality past combined consumer aspects off entertainment XX non-members. increased games first as and be bookings roles to portfolio third-party model, car, beyond the now products app more the we and forward, soon And the are that made Rewards most games the this and and stadium, in app to highest our live Stadium, popular inspiration during to per and sell driving as tech including four results Allways distribution third-party driven redemption Apple expanded in the bookings hotel, from expectations. the co-brand at events. and across exceeding as driving levels mobile that programs up members itineraries. this season’s for like our by

NFL game that hotel off, launched the packages Stadium include As travel, season travel kicked stay Allegiant and tickets. we air

allegiant.com. first Vegas package nearly booked for time customers, a revenue for ever a our showcase serve beyond the of high the represent ability it’s way to Allegiant. these to flown they a profile packages customers, And sell While XX% driver, on they’ve first And aircraft. to of one-third as to that Stadium these had Las hotel the time do through point, Allegiant don’t material it’s they

that believe in Allegiant summary, for Vegas sorts sports to broader to is that we’re is a positive partnership, is part Stadium central doing. the nationwide world. and jewel this the that, are continue repeat Stadium elevating affordable, entertainment will on Las but brand they Allegiant subside, at not Allegiant directly to headwinds to Beyond itself air best brand destination the wildly their of from seeing increased destinations our the advertising of on leisure share, the as arena travel we’re Thanks Drew. Vegas of of what it the Allegiant only And and of also the we pass and now allegiant.com. we their with destination spending thriving, see of for customers crown over impact, leisure to Allegiant become with claim non-stop new products ultimately Stadium exist, dumped we is In to offer capital greatest they large do, from a maximize travel, to they accessible as increasing array positioned share, the demand Vegas Las the leisure earth. Las but has able I’ll have

Drew Wells

Thank I’m than Scott. for the XXXX came XX%. this Total of afternoon. Thanks with on everyone XQ pleased X.X% service immensely in revenue you, revenue growth quarter joining higher results. us third ASM scheduled

revenues rapidly. remarkable first the the complex ancillary restore team XXXX redesigned with to performance, to do continue likely once running browse and again, the The the impact level, on We among loads XX% environment take a generate load continues RM balance the levels factor led factor load results. of side. market U.S. so and pandemic scheduled the job The yields above rates, July handling a bundled first XX.X% to and on as changes a the on task do positive even as charge over carrier website quarter. and the the ground for are service best to carriers hit finished the with We

with case, staffing for our This spikes. as the off disruption, dramatically of before put of additional fall, fuel key COVID ASMs the the goes. schedule the upcoming summer continue XQ rising the bulk goes always is scheduling the TSA test, to costs, peak chain for seasonal down and first we our in the the the model As we pull quarter, that issues, to is potential potential supply flexibility to and quarters, with half

seven are weekend two in organization ensure will success. with and flexibility quarter routes seasonal continue We and and several third the After in this and the routes. to work one enterprise maintain events hyper successful inaugurating, lockstep specific to

we we the of our fourth. connecting launch will XX% X points cities. in third quarter fourth hit ASM that, system $X.XX, communicated, quarter will in markets between a With cost in with markets react than first we of a in rising third planned exceeded if now of we Similarly, X those than XX% capacity quarter the rates we’ve new come previously buffer XX buffer. percentage XX% or We their scheduled of fourth also existing in with dots expect XX%. growth lower expect XX% lower to that point previously the the XX Allegiant fuel. in We down of ASMs and communicated, per service to nearly have months last Despite the gallon as time, we roughly to typical only and that, part, the decade

were where months to positioned ago. are We we similarly today XX

and next The revenue summer So on the our travelers today has research last we’ve border demand holiday holiday the cross for peaks of considerably the to line on border quite strong. starting than with Thanksgiving on finished reopening cadence the in vaccinated the a meaningful period same a would bullish Normally, having shown airports. with I quarter year impact near booking looks base. adjusted more be prospects. books seasonally be has higher fourth to quite travel month of The

count case granted on eerily over XX,XXX number similar a to However, an of past several the the new weeks. different U.S. hovering around is October average XXXX, trajectory seven-day late

an plus total plus recovery of achieve another variance, positive can factor we to November That load book I’m expectation such, some I running and to in headwinds. believe worry X%. our positive with and of potential a the both spike in continue XQ believe it we As and said, of bit the related away excitement with will And X.X% XX% forecasting some of December. lead revenue quarter built

have headline for versus year, rest the was the a as look the stage limited fairly for the XXXX half set in low we will we XXXX, comps year. first that X% to to growth the catalyst some of and As growth of provide help

much to are setting with to success three between up for ensure I’d detail balance through and operational over finding Greg. to June more in working are time. the integrity. We’ll pass We in that, months the beyond provide we and have And growth company proper to still like

Greg Anderson

thank good afternoon, Drew, you, and everyone.

on quarter tone $X.XX, we share net positive of per second our for adjusted the adjusted third So reported income. our business the current of quarter, earnings consecutive

the expectations, operations. unusual While are experienced and These The not they irregular elevated labor, constraints ferry $XX non-recurring initial we for was this quarter’s third during incidents these unique million flights. of half adjusted Allegiant, we areas events million. chain results systemic. fell nor quarter IROP to cost Roughly driven $XX by was do incremental this are around contract such total impact as below supply believe incremental and

The of we which up, in aspire to for paid our million more interrupt to take This their do other compensation related quarter, impacted Maury our IROP half significantly we XQ customers these of to program $XX and if care as trips. to them, costs we past teed passengers.

purpose to addition eligible intended in we $XXX compensation provide $XXX to them may reaccommodation. passenger per and between compensate example, also impact our immediate of a to the twofold. customers, support to The additional is For credit issued vouchers for providing

First, total third and as backdrop, the drives years. and plans. accountability circumstances our really well unusual customers greater Allegiant. disruptions bigger important disrupt better the our of difficult increased that when XX.X% their course, our two costs as year flight over making the financial, same impact adjusted quarter human of for by picture, and it assist But equally to to to second, With

million has year. capacity been XX% have over growth This system would costs IROP just on cost under increase of However, $XX total two excluding outlined. XX.X% the in year

Turning expected towards quarter. growth of XX%. the Despite capacity fourth

down We at our expect the and unit costs pressure by ground largely two fuel driven airports be increased to providers. year flat year. to slightly service excluding This over cost is

CASM-X implies CASM-X XQ expected levels. adjusted XXXX at year around XXXX Our full a

noted gallon. currently As per $X.XX are gallon rise a increase as at of we sequential costs quarterly earlier, continue to per fuel, fuel paying $X.XX

per However, equates we of profitable increase an quarter costs, quarter. on EPS. and and fuel elevated our third our consumption of fourth $X.XX expect to to financial at roughly per exceed these Based $X remain even fuel quarters fuel gallon adjusted million results

and the in to as today, of Moving end have sheet, improvement we cash the billion $X.X balance XQ. of from total

remaining NOL of this since million, in a – as the debt net our of refund. our Also, month, $XXX XX% received our earlier As $XXX is and cash beginning million we from the decrease of in the around pandemic. today,

$X.X by just full our XXXX, expect purchasing we initiative, reinvest have down of a our is debt and of year. beginning the non-aircraft $XXX since debt parts some million. year primarily And This with than guide in in to $XXX current more our into this prepayments. CapEx. was $XX which driven along to brings million of total we increase by the strategic of $XX airline of the paid form the million balances, Year-to-date, billion, increase our decrease back For roughly X% million other the

speak. expect we to next innings, we XXXX, towards Looking and provide plans an update are in the time mid finalizing our capacity XXXX

Day/Call a of weeks. December, status and exploring keep possible in we’ll the you Investor actually in are coming We apprised

with XXXX in our area establish we spring confident capacity, our and capacity we of in the to are unique the growth rising intend and to harnessing up appropriate. labor digits the fuel flexibility Given a model, for baseline uncertainties when chain of double constraints, supply if ability low and

then the team choppy to incremental environment quality getting experienced by grow staffing and historical of trained about In to estimate flight bringing couple cost getting And addition, mechanics. greatly as abates, we working our XXXX, should when expect the steps aid the levels. have into $XX of performance attendants this ahead heads. would, and Advancing members ahead what on namely normally during we a growth action hires million a of we by of XXX members naturally these in team compared towards frontline pilots, incremental these

can the when our $XXX not. And discounted in spare parts and and examples in these as compared of that significantly $XX are $XX we million most acquired pandemic, of levels. looming To-date, since of few to carriers significantly onset follows an with mindful are have strategically direct offsetting savings examples, XX%, engines we we their Similarly, prices where discount the are we pressures pandemic, the our We did purchased inflationary increased aircraft we the finally, the pressures, pre-pandemic during our savings. such another average million debt of industry estimate are in million here. spare for we

includes million our categories. airline we $XXX As be $XXX closing, year aircraft result, million, maintenance with the between around This two be gross full over down a other year with year. expect year expense full driven XXXX XXXX interest million. $XXX in around which capital CapEx, roughly is primarily remaining leases should CapEx fleet, In by gross split our to in heavy XX%

XX fleet includes be XX of the aircraft our placed XX the reminder, count into which XXXX or to be plan our XXX. a are are next in have service end already a next service close throughout placed fleet capital lease. total to year bringing incremental included year, As been in these Eight slated guide. by under be and to aircrafts XXXX expected six of CapEx Of XXXX, year acquired to structured that aircraft will in have

million. the As gauge comprised composition CapEx of gallon end to a XXXX, XXXX XXX are a fuel of XXXX on XXX have $XX The basis. in fleet benefit be fleet environment seat of ASM more to full XXX rising seat net additional aircraft. roughly capital will year XX% seat efficient they per larger expected aircraft, in compares aircraft cash as aircraft which XX%, favorably a most our committed our only our By result of these year is than be leases, an

year $XX XXXX Q&A. per year we’ll at $X.XX And year by per levels. open is efficiency compared this up XXXX full X% gallon, to efficiency to expect to and million a that, ASMs increased roughly gallon three over increase savings fuel it fuel in worth with We

Operator

of from Raymond Savi, open. is the now question [Operator Instructions] line Syth your comes line First Savi from James.

Savi Syth

good Hey, afternoon, everyone.

with. right year there end liquidity quick the about think a you or building this kind in? billion. something question past? in being of And fourth the coming Greg, to right are the way actually start the building different – cash by year. Just now the is than there to is being the talked other $X.X guidance billion kind $X.X now Is cash I inputs the quarter of of Or

Greg Anderson

to we’re operational inferences – just just other inputs, any there’s that billion a flow. build It’s the And think over I cash little think going we’re don’t $X.X right bit cash I Savi. through now.

Savi Syth

And then planning. XXXX a clarity bit more little just on

And like comfortable is Is of kind how operations more clarity you’re and the in above of low about then it, operations kind hiring digits. it? thinking the kind about for a or looking done bit sounds of you’ll thinking operating how you’re it then into for XXXX? little hiring that just grow if that levels you’re kind single on So of with

Greg Anderson

Yes.

of is peak March dovetail hired XXX and upwards summer. our obviously sort We have, We flying addition full. into would pilots these pipeline in to of

of give spike We right But are attendants, in attrition a very low sorts little for the just – Flight growth very, that those competitive. one. big we bit is would the it’s of underwater I summer. it now. that’s came fairly digit is to when stable Mechanics a seeing particularly those were terribly think mean, I not numbers attrition being materially yet. of any double on the sides, you

any of probably so areas, we up to most. of where catch have the out that’s And the

Scott DeAngelo

Yes.

maybe can I what clarify which I now the look I Maury to digit think to as just things, say, maybe clarify, that So low-double from. well, heard I just you wanted

Savi Syth

makes Sorry. Thank sense. that you. Yes,

Maury Gallagher

Savi. Thanks,

Operator

of Conor the open. from your of line Conor, comes question line Partners. MKM now is Cunningham Next

Conor Cunningham

Everyone, thank you.

the that’s on for don’t Just yet. I finalized budget think been Sunseeker,

given just XXX. think I previously inflationary soft like, than cost and may guided So all just think issues was would I curious supply sit today, the pressures. you what of chain XXX to, higher to it’s where had kind that that which

just haven’t in sit maybe now it curious finalized that you So on general. or right may where why

John Redmond

It’s to product or a is industry that’s don’t world of that it rest is. supply experiencing I disruptions. And there’s immune think the the I an chain think. these a We good and point,

going So that are to higher. the we be know costs

We’re still total but working higher, through the exactly maybe even XX% to XX% how slightly be much higher. in could on it range project the

understand a this lot and the that of more move into think I QX. will we into as end year of we probably

disruption chain not also the understanding but supply timing. of that costs, on on it’s only So better impact

thrown are regard. paced kind We that open were into of XXXX, turmoil course, in of – of to now April pre-pandemic been everything’s

call the it’s be. working through even issues, will, But So the and costs, XXX, to the we eventually timing it, five, now you give throughout both we higher. we to that us going maybe I as be, pandemic, if carrying like range But to working be over were mentioned order going of but what two too know of just slightly be – we’re in XX%, at just to and it’s those on the magnitude we’re before, took above number costs through. XX% early and specificity XXX, know it’s could any will degree that

Conor Cunningham

Okay.

I with then to slowing of Okay. about That’s affair the just everyone – talks you of airlines to that other helpful. bring infrastructure one non-fuel about. capacity always know pandemic. lot pressures ratio growth dealing And changes back the more the and during talked that they’re a historical like made fueled cost that maintain settle no But potential given very need any to

the you drive has risk just is that I to a a mean, And I historically and run else I’m right no file? idea the think is that to So everyone’s it’s here one capacity with reason think does. the going you the basically what been and curious good I confidence What up, to industry now. and it point gives growth cut like I struggling just you bring caught why

speak general. high that just to we if in So can you playing see level dynamics the out

Maury Gallagher

differently. Well, February they we’d on on, we’re in. worked they XX%, facing the if summer just where do At our were weren’t they we rippled airplanes XXXX, having in that’s probably personnel our summer. the today, in times, maintenance everybody last of our all XX% for MROs, it and work COVID made through you’re here the spot had decisions December, January, sitting of

we with of mentioned it. now a can issues them uncertainty personnel, got a what with COVID count of on? a have we’ve to organization through in we bit going So the the problems our lot labor basis that’s as Scott maintenance different right in

where need assessing, be. we to we’re the So personnel

it is capacity. haven’t to they full gotten very business in hiring irony still The We’re everybody of I hiring yet, is, back mean, actively. this

as Long-term, our drum. own own what some have. to the to – you incongruities of beat So there’s we’ve always kind our of run

now Yes. very on to it’s But business while No. we I almost to. you our still just a to time don’t this ran February case as Swiss forgotten the And getting do mean, that’s And materially. as a really we’ve are growing, quarter. the focused handle have that’s than we’ll quality to go on watch And term heard like And with more point. really foremost, in structure. we January, beauty in double reassess be we’ll I digits? at about how of run that and first doing irony the acceptable root appropriately. then short non-competitive But and our in our next good think the grow on a deal Could we operation may to of we through again, And the back on. like growth competitive, changing into going have is interruptions. that count something XX% XXXX. the model is been we’re can our industry And case, talk and solid March. to others Well, what see a the be we always and of as IROPs low we’re definitely us. brand on the long-term not thought of got it DeAngelo like First be is, and Scott we’re

come I my to bullish problems. to But these if where going our said on business through, So comments, that we’re take but and I like – get that should going the there own operational we model a very, Long-term, powerful be we’re us. stuff a look in the for not – sacrifice our customers at can, as with revenue quicker, and very I’m personnel that repetitive is coming very very are you De’s stuff. meaningful. revenues guys to Scott really that’s That’s third-party at,

Conor Cunningham

it. you. Thank appreciate I

Operator

Securities. Dan line of now from comes McKenzie question line Global is Dan, Seaport open. Next of your the

Dan McKenzie

thanks. afternoon Hey, Few guys. questions Good here.

you the just of more challenges, protect one, can within that place control, what that. what and I’m focus. isn’t the I’m being bit more, Going number chain supply infrastructure back confidence number clarify areas you can a the if a what two your is that of to So on hoping wondering little elaborate the over is the operations little holidays? is just bit to level the in

Maury Gallagher

the to Let maintenance airline. more flight I there make pilots, attendants, where than is is At me don’t an give probably are thing ours. over sufficient do to think certainly difficult Sunseeker and construction. schedule think as little is I’ll overview Scott, sure their job. say, for this isn’t would chain we a bad, main point, have over we can the problems I it The John airline us. supply turn the And And

days. that Scott? very XX focused we’re on So next the for

Scott Sheldon

get We’ll Yes. the through holidays.

its XXXX one six outside of a events, MROs from has countries. a We have might about we’re materials have going tales when But case. the coming country. that to maintenance about lot you I different that Thanksgiving. when mean, think sourced long, is little a you of own inductions, operate have with is corner each of of XX out number couple We sort bleed XX into think the in list the heavy

months. We’re nine definitely trying the our to simplify execution through first given

to online. it guys trying up, MROs their we’re remember quarter, operations the planes to hit If get wake are as first back you scrambling us

make we additional we’re allow just that’ll then iron the in trying have to Greg the chain. supply And as need. much buffers, we So ahead us to on BJ’s either get are trying sure as teams and build they that to can

of have bunch We conversions a packs year, next that max correct? is

Maury Gallagher

onsite. Everything should be

Scott Sheldon

Airbus conversions. okay. a our piece is Onsite, big That getting just packs for was max kits

build We’re buffers. opening the high a a can planes much very for it’s larger Like, span, us in that these but in bit sort up increase corrosion. of anything structural some priority a little of to refining package of a really

Maury Gallagher

all the all we debt Everybody, thought like, that. we back in the Demand there’s to back. quarter, cuts. variables just and Dan, first just on But we switch finish runs was were just it We a would the thought by we came into when it turn thousand XXXX.

over eggshells walking to everybody’s trying they sure probably don’t around under-deliver. think on promise make and So

can So accordingly to obviously and back it as but go. we we’re control, going learning we’re pull we we variables will,

Greg Anderson

mantra. time. have We that like Dan, and the make until add the a just parts to chain place the it’s on that one sure comment and supply at really may we at right around I that And right right want the parts Greg. the more to

the we trying guide now max $XX million a those initiative, the so some where an get levels proactively better experience and out get to been for acquired this wasn’t year support $XX inventory that we that. and getting experienced increased that about million Just CapEx gone to little $XX bit parts year, We parts from and talked perspective. always we’ve our we worth of operations past to have can spent in. continue like on ahead, but million more of – constraints try given increase ahead the this time that we’ve we strategic and and the for case, We’ve

Dan McKenzie

That’s Yes, least helpful. second it on question thanks comprehensive here, answer. like at I November XX% very from looks flying, guess. And for that over holiday me overall can capacity in that, comes December from please guess, Drew, of then see, correct I what and the I but

holidays. of that’s dollars. tens a And over demand, And peak vaccinated? the just just is fourth the to level in peak. command change in could really the capacity revenue seems have So like getting – quarter scheduled you the pardon percent of here, with small what in dynamic move guess, holiday It revenue of given I just is the a me, off at what children respect couple flying getting millions I’m by for questions, factored of forecast, then versus the what

Drew Wells

my point. be as on when of and Yes. upside back upside take part in hardest and one of would particularly, you’re built no building vaccinated to as much there sure, quarter, it we comes not peers more forecast, fourth see being I’m I have at so this in they the environmental we that I’m kind I’ll effective it concerns that, into today. children and it are like for variability prevailing. It’s see with there last mean, spot because agree. loaded, is time the

contemplating. something currently not So I’m that’s

an of about peak just and I week, In in example. of off Christmas is off for caution peak if same day What on October, of not day being peak, peak an looking the heart off we’re days. as terms would or is ASMs you’re XX% off peak that, day thinking the our in

in holidays bit there’s it of little a probably misleading in pertains as particular. So that to

Dan McKenzie

good. you time the Thanks Okay. Very guys. for

Maury Gallagher

Thanks, Dan.

Operator

line the Becker from is of now comes question Helane, Helane open. your Cowen. of line Next

Helane Becker

very you everybody. very much. for time. And Hi, much thank Thanks your

guess, maintenance. you’re the you we ahead about are sure heavy think as of of should level the aircraft for think inducting in next total about for, I mean, it this said into but forecasting XX I thought going into think not next you was aircraft and How but year aircraft getting I coming is you’re aircraft I network, that XX on So hiring, it for year? are inducting? comfortable what you attrition who

Scott DeAngelo

this have that’s I should – historically, we labor, complex I just are would these easier. two inductions of Obviously, less reminded inductions and really yes, mentioned much that otherwise Helane. that are XX Hey, the BJ all, the coming induction FAA me which have. mean, but the from trace, makes

Greg Anderson

Melbourne And I Helane induction just went Scott, at induction XXX% focused that that and that is on tail we right times. out is aircraft facility, an for we we this all have just where up maybe a to set the facility knows add to can

we went out there. that buffers make unique sure we and for anticipation And this aircraft did that and these have this year that to pipelines was coming have so some in we earlier this in that – induction we these built

Helane Becker

if included you And not said remember may contract guidance. people the some can announced was is that meaningful, today, it then But I help you in on increase with contract – how cost that just that you. – not, Got that And don’t many be it’s the one? covers. can labor I I the that give associated on us think

Greg Anderson

contract’s little XX% Yeah. makes year we I roughly in contract would way, per wages. worth of and directional a it Helane, of front salary to included it’s And the loaded. kind then maintenance guidance that is the provided. million to five-year Greg. It roughly frame I it’s $XX our And bit and that is the guess, up XX%

Helane Becker

having actually, you to Are attract bonuses you people? signing pay to are – Okay. having

Greg Anderson

Yes.

Helane Becker

thought, no, Okay. of what but I that. That’s kind that’s I’m hearing

your Team, for help. Okay. thanks

Greg Anderson

Thanks, Helane.

Operator

is line the of Pfennigwerth your Duane from Evercore now Duane, comes question ISI. of Next line open.

Duane Pfennigwerth

Hey, thanks.

XQ impacted XQ was sequential operation. you more to CASM IROP move to in in obviously, XQ, with from suboptimal with just the Just respect that the it than

if So that of it, baking I fourth quarter. then a getting back about that how CASM-X in qualitative mentioned you’ve guidance are on you digit apologize or you thinking much how do get the us capacity, low of back are you But double know And year-over-year? lot you given here. in

Greg Anderson

around down off pretty a think same think low just knock percentage our because those sequential on versus And and on we of we so Greg. XXXX I I’ll anticipate question perhaps could in couple costs excluding first. And basis. IROPs, don’t it’s would Duane, mind, that a then CASM-X second It’s levels, I the that quarter your digits, be $X.XXX. part double third gross on worth ASMs quarter. are Keep be fourth the close points think level. Hey,

training, of little have So you you areas, there. through bit a then coming got item, line pressure pilot And there’s so a some some different there. headwinds the in couple other pilot training

some put that that and pressure bit on a up little of op along ramped getting So expense with there. Sunseeker

in basis. we too, Sunseeker things think about We mentioned starting and the bring And hiring $X talked I those quarterly with is that. op on and XXX then a roughly think employees incremental like million $X.X expense million. those frontline it to we

take basis, would roughly But quarter slightly would account yes, be the I little into it bit. gross fourth ASMs. on just too But higher third that reduction I think then, add off, So a in a think on than quarter.

Duane Pfennigwerth

Okay. bit. follow me little up you a you lost offline maybe, with can I

Greg Anderson

line… the I punch Yes, guess

Duane Pfennigwerth

ASMs will think you up IROP, Ex CASM lower. are be because sequentially,

Greg Anderson

pressure the And on there. board crew one labor, about Yes. on quickly their starting coming the the two talked being ramp to up being op more then points, other Sunseeker incremental XXX the that. With costs then we members

And the associated just training So $X.X that’s that that pipeline with million. mentioned. labor then about I

put as would the that compared quarter. that to third slight on So pressure

Duane Pfennigwerth

you. Thank Okay.

Operator

line of comes Next your from the line Brandon, is question of Barclays. now Oglenski Brandon open.

Brandon Oglenski

Hey, guys.

that can for looking, could clarify in sorry, wanted quarter. I the that? I fourth Greg, So heard taking you just to the thanks Was a follow backwards profitability question. there? better up just comment also thought be say we that I

Greg Anderson

of to through the I be higher profitability, compared we we capacity the based guide third in that expect guide quarter. think as cost. on And the put kind out then Sequentially, fourth just to framework No. the and walked quarter there. revenue the That’s we on

Brandon Oglenski

And CASM have maybe like Okay. something be you correctly is lower you levels. these to next if be driven? you just you’re I’m can hearing targeting of disruptions XXXX thinking that could year, then sounds some and It didn’t if gauge close

Greg Anderson

not Yes. – I that talked mean, that so are the that’s in – have about these number we certainly included I expect X.X%. year, going getting disruptions that’s to we next that not

see if an we’re not is I benefit, capacity, some there that. planning you’ll increase on in but think,

I We’re increase based where digits now we expect a however, for But double slightly, capacity that’s in XXXX will. you CASM-X, on if guidance, $X.XXX that’s think planning we sit we take I the roughly in up of points be on or the answer number yes, that X short and you right low do But the we if do put the increase guidance $X.XX out I that percentage that provided. worth think every could the is, there CASM-X. directional ASM,

Brandon Oglenski

looking that to be more guys, And I you’re If question. the travel the do should that. Appreciate well. could to these strategic the these property opportunities Sunseeker, it. that ramp appreciate both guess, are you at of just development are we sneak at strategy I compare in sales can and another one one up be as and you in there. I the thinking, so other seeing growth, how Okay. third-party complimentary with avenues future look

Scott DeAngelo

certainly is say. add could [indiscernible] ahead we go today to and I’ll the other you XXX there. complimentary. sell let’s XXX, There’s odd stands places one Scott of some hotels right Sure. want Sunseeker a is DeAngelo the start and here. in in

major way, to turn I or brands over of on play, by And that other Sunseeker We’re So I’ll properties Sunseeker of belong hey, let the gets able in brands that on think one steer by an there. these as, to this. name my off Then speak by and time, the product and restaurant clear that want I Redmond I John large, steer want lot a asset there’s any other, right? they one, sell. the to If we to each light or given hotel. say, and

clear. and you So will if nice can we keep the lanes,

John Redmond

opportunities, you In addition look Sunseeker which to said, what the at standalone when are Scott obvious. beyond

Las they there impact demand synergy you It’s you open is have load at Vegas these The in Orlando here. airline kind and got being Sunseeker with like products with down a or the look what factor other on with markets happens there. of when the the

there’s an there as Scott as So opportunities mean, the et card well and I credit open once but getting opportunity now, amazing credit activity opportunity through additional for has signups, card. you we’re resort can signup it cetera. drive some you

part And are your you don’t have offer see can may I missed, I’m another resort opportunities two – those sorry. as So major I question synergy well. there’s of

Brandon Oglenski

you. guys No, it. I Thank addressed think you

John Redmond

Okay.

Operator

line the Next Andrew, question is comes line now America. Bank Andrew your of of from open. of Didora

Andrew Didora

airline right, guess, an questions. afternoon, the you’ve bigger Maury, Thanks good I picture everyone. returns. for here, built Hi, that good like, generates

been You’ve used focused aircraft. buying on

market budget and on increases And everything too the about change deals seeing like, point you here. get decide what the in get parts, spare and you or either stop the that we’re at does and you much construction earlier. budget With plans talked You to Sunseeker spend here.

Maury Gallagher

stop you’re I would up question? if asking little Sunseeker expensive. it Broke there, we Andrew, a too that think bit got Is building your

Andrew Didora

given airline returns. strong I’ve direction budget much that such change bit? what too Yes, maybe built At little just you’ve a a return, an does that’s you generating get pretty right. the point you

Maury Gallagher

of people we’re in now opportunity that. a half like and Just just go close Florida leisure spring Florida where everybody’s Southwest to based gone. not – even and will every flights is know you we is the want we saw certainly couldn’t leisure, comments heard we demand their That’s this on be Florida that else what better what The my now, place. to down touching with up be there it’s everything day.

Andrew Didora

Okay. I guess Drew…

Maury Gallagher

budget any increases conquer will Revenue here.

Andrew Didora

like different hearing gave a airlines you what the of peak think Can versus just peak I a environment. kind sale Drew, XQ. off guess peak of in so fair off or from the I the late. XQ But been e-mails XX% a lot maybe lot Can difference you about Okay. about is I’ve lot that getting maybe of sense try been half to November, ASM we’ve and quantify of peak commentary talk triangulate us between anything some to on maybe say sort what what of right first is off times? peak? is give those off and you Thanks. now that booking help between versus gap Thanksgiving the maybe peak peak of where week up versus

Drew Wells

earlier I but Sure. revenue high probably level. per And November. you you’re flight higher that a somewhere would expect I you’ll take that looking maybe for you’re bit time know an at answer this XX% get ballpark, Thanksgiving by that, in can little grow don’t flights than that’ll necessarily looking here, running the hit. a your Northern at I in departures

So there’s gap. a sizeable pretty

Sherry Wilson

Andrew? for there still you are Operator,

Operator

proceed the Shall on question? Yes. we next

Sherry Wilson

Yes.

Operator

right. All

your Sachs. from Catherine, Next open. Catherine line question line is of O’Brien now the comes from Goldman

Catherine O’Brien

days of multi-part just partnerships I you or XXX% packs had increased of XXXX? that. co-brand see to or card is Is continuing. of everyone. a if something and the is don’t lower third-party. Thanks for through know so these supply than pricing? when over room If driven about is different afternoon, question nights that hotel guess, Thanks third-party by good the per materially? just but are up products pricing, that strength there significantly is Great now a time. walk down how driven? us kind Is your it for the Drew, I Hey, it’s can on Scott I rental that

Scott DeAngelo

you Scott. Drew, can in. and This is bet. You start I’ll add

surge last continued is that co-brand lion So of the mentioned there. and certainly, quarters two share a we over it the

do now up throughput And car thing. However daily is XX% is for XXXX solves identified shopping the increasing every that but those But that rental hotels looking is then can get levels a up variety checks per drivers in XX rental I will has hotel. based demand things them. day or expect for sheet lot of now. one their of only we’ve also own that right supply rate. I’m technical there’s main for cart may put you average a with hotels Right that recall but and of at are last site days, person price drivers the out mentioned that that time, a revenue be to we and materially not able lower the do a we about that at rental on days, then to co-brand unlock here that. there. and on car versus But course big OTAs up

Drew Wells

for the pushing into of out it a July the until right where part here. and future fall daily still have the through But some call foreseeable that why was into bit Not manifest. to fall cars the it rates cars rental probably piece would a on we lot rental actually didn’t of hotels quarter summer thesis higher because entire Yes. and were sizes. kind now talked of add margin bit the with in of Delta and the of inventory We price the high persevered underlying a spec floor and the thought people about both little high a of

Maury Gallagher

XXXX, enterprise with Let give some started I me carrier and just in is the know. overview. long-term a only we’re that relationship This background

that, the chunk with every we fact, this as a integrated if we airline, of so in of the we’re kind good tightly not And than virtually most other enterprise it. more In because do space. sell

pricing. manual is There’s our activities. pricing able no their so engine And to drive

putting XX,XXX I So the you car, maximize the to The we’re with airline ahead the are buy seeing through sure revenues offering if seamless price things side. very out opportunity that revenues. side and think best you’re going flowing car, unit substantially of plus you’re today. cars and together in industry. packages And that that sticker seeing rental car a are to on I’m same And you’re in seeing with is

Catherine O’Brien

little remarkable. on question it’s Sunseeker quick a bit Yes, Conor’s the a just of Maybe budget. on one a follow-up to

I’m sounds in the wrong. like on the to ability that the correct increase? also does on, closed have case moves in that you if the draw Do the around, you upsize the Castlelake agreement budget but Thanks. less could budget XXX, it financing maybe Just than me case you

John Redmond

it. the able you, back haven’t we dollar very to the with any don’t I’ll went one nor we’re if take significant which we to be a amount, anticipate Having budget expected north we that see upsizing, our existing – go for agreement capability of conversations them said about to where in – is had a being but for liquid don’t to Castlelake, that, upsize a beyond having with we provide finance, what position. does

like know, It’s shape. budget’s millions. you by to going past of run great As hundreds not this us we’re in

numbers or like at talking not We’re that. looking

not anything it As we’re of XX%, beyond or hearing or seeing but could I experiencing those XX% mentioned types before, be percentages. or

ever anything don’t like forward. we materializing So going see that

Catherine O’Brien

Okay.

So would cash financing just out do r deal. one. Thanks. you’d another come extra or that of look most hand likely Thanks for to that on

John Redmond

at just something as being comes look that would of We cash that out hand. on

Catherine O’Brien

Great. Thanks.

Operator

is Next line from Doherty line your question Shannon open. the Deutsche of Shannon, now of comes Bank.

Mike Linenberg

here Mike on it’s a Hey, question Shannon. of asking Linenberg behalf

actually… I So

Maury Gallagher

saying? – somebody is got that you it you’re Mike, what heavier, Is Michael?

Mike Linenberg

and I’m for to go retire getting ready Maury you. work

Maury Gallagher

Yes, right.

Mike Linenberg

I actually, at countries. on to this you’re days, or hotel Are your the and Allegiant this Sunseeker XXX been John airline of historically Are first with maybe standard. selling even said in just I so out don’t we’re you opening point seeing XXXX, resort is a of XXX, year look to you XXX, you maybe Allegiant schedule, open nights planning typically guess what selling and think and with first frontier extending bundle sell schedule quarter for XXX, and maybe or months, some has I that When out, about you kind the listen, beyond of XXXX. take, Hey, considering the going six, not the it’s seven start sort you know, quarter sell March, I piece?

John Redmond

explore. It’s is sale. we a on We’re past, this go know before not, conversations that. us we something it’s had stuff. not it all opportunity that driven pandemic all, could and And regarding for We to it’s obviously by this in requirement the an

would So if with sale go that. product, if we you will, definitely to wanted a as only ability We without do to the there. land package the on

Drew Wells

out Yes. been. we we’re historically we’ve not where quite to like far as Mike, would as be

next window. than but that there get to over to so. or we’ll trying XX, that be the I’d last consulting, months. without further we push out in further to XX back back say able we’ll we’re XX what or I expect So expect have the out year XX-month I be pushing

Scott DeAngelo

having One like in add, a room, credit that time. advance. credit hotel months hotel and months in one XX out of book lot you’re you drives a sold F&B you at you well, room your exploring those flight in time credit, a would of be and to to flight effect as book you areas I because schedules there’s that partners an in X, music your that tactics the X, a get buying XX an like major that much you Sunseeker, I that stay would get be can we’re may and that Is case, when from sporting other at this allegiant.com this book events to back Allegiant also of at out thing events getting when our you closer tell interest

So connection there’s flight schedule in make hotel sync. and inventory perfect to have the both the needing a versus to variety of the ways

Mike Linenberg

Yes, go I – ahead. think

Maury Gallagher

to other a e-mails one audience. well, thing are million sending out Michael, we’re week thing, XX other who The XX

big the while the seen in going play right box. out the power it to into direct-to-consumer the come the hotels all So just the of good, of airplanes over are is they and new over Vegas, And love get time we’ve here. here

opinion and it’s airline, the during months not the my but months know that saying to the So won’t we we this be, have to thing airline in going I’m have don’t XX XX up first we fill certainly use have don’t I to, to beyond. to

Mike Linenberg

very a I lot, know better Yes. college people that go are, is know the settled. et the everything they planners, you’ll had out than we’ll when in of cetera. I Look opportunity do and whether what the way go curve you the but John points. build when mentioned an fares we see for fare out, you probably that are you’d a a but lower you wedding, the be That I, the further get the guys think far graduation, more, is to load find or is factor the think the And that to out and it you call are have pricing for many I better interesting year it’s want things one cases,

to you may able into so tap And be that.

you load being being and that’s maybe exception bill I down a people road, cost lot hurt. plan a the and the fact. With a are getting nice think you’re far and that But about be the concerned situation get that in revenue you’re if that and could input I books out higher where think on to that of could inflationary allowing that’s

John Redmond

don’t disagree at all. with We you

back the year won’t operating thing and we hotel. is XXXX be always take to we’re step think remember have the the only a I

going brand, So transactions awareness. we traction be package into accelerate. XXXX than to where the into of XXXX, get out, back year land end to the with when and going that’s more there’s XXXX know mean, probably transitory moving transactions. package I it’s you only a we’re activity the get will more with or as the But type

know that we a of first longer-term of this So for as something or looked a being it something because We of fill requirement year but at necessary not was absolute part lag. the that not ever to requirement it’s an hotel, it’s operations. strategy,

Mike Linenberg

great. Okay,

talking I’m And was to out thought make interested. is of even When not very this respect not we’re airports that and carriers I you get yourself here it to airport record say, are the like least into operate that a the one I congested opportunities could interesting having misheard, to trade and about came Newark quick know about and point whether think expensive going and that’s Liberty own on from hand. quick. make a follow-up, it’s it a group at DCA, to your were argue an Just on maybe guys ruling one but strategic I kind I new to DOT with very Newark, with you

why it LAX quick pretty and others. well out not the went done the And you’ve was misheard. say records airports maybe on and like On like in interested. hand, you curious airport other you’ve And you’re done I’m to just seemed it I pretty and we’re in well. again,

Kristen Schilling-Gonzales

Hey, Michael, it’s Kristen.

So…

Mike Linenberg

Hey Kristen.

Kristen Schilling-Gonzales

– So wasn’t the in size to really to a came It then and with out just able timely pick main the that fashion. up slot bundle. we the of be operate that that, we’d was quick in reason that on that something

So at us for trade work not was – for other we options all to we to wouldn’t our fulfill wasn’t but it have for on able that, requirements. large such just worked maybe it once, slot the with and group a be going

Mike Linenberg

everyone. Thanks, Kristen. Thanks, enough. Fair

Maury Gallagher

Thanks, Michael.

Operator

Next Hunter, Hunter of comes Keay the line question is now from your Research. line Wolfe open. of

Hunter Keay

on X%. the I’m to – But should I I the item being about passenger annual – your commentary up with trying are The line is, starting Thank real stuff The and that year sales pre-COVID you. card about is all million customer low going sales guess great. or Scott just the next and cost square $XXX XX% DeAngelo forward? question the a by million here. think acquisitions around you with whole cars the rental cost marketing ecosystem that’s and acquisitions only from marketing, spent $XX count I and about up understand up which the is should

Scott DeAngelo

and mentioned some of costs There the rightly No, incentives we’ve things with in it’s There certainly came are signups. card increased definitely call items no, OTAs with marketing. there advertising They’re holder, are there. a in and card line necessarily not as and holder the both search. new one-time straight you But in competitors battled production as related couple a also things out in there’s that, absolutely out paid there. and pandemic associated latter. general and be in just some and certain around role, that shouldn’t just associated And

Hunter Keay

when think do Right. then you peers about give their had, just you relative number just fair. mean for be operational to you someone All that month, it. the to Maury to Got challenges this the one, number requirement not how about two, you. is opens? asking think a And your Thank you operations guys once business, be every going have because and you’re lowest single the Sunseeker I there because you

someone if not to vacation. give for they And have their flight, experience entire a may bad in book the asking You’re Sunseeker you again. they

on importance to once best the come thought have Sunseeker expense So the that? any in opens in with sort industry ops the you might have about being that of

Maury Gallagher

whole time. and XXXX Yes. and time. and the go seeing XX% if in on whole mean at it so XX% you’re as numbers, Hunter, No, back tightly was as definitely I what reliability the and we look was industry bunched to far think you I industry on group the like considered

I think everybody within a running XX XX reliability mid factor. and was just high, XX

ascribe don’t lot can do wanting we be to were right a we We times there. want X leave perhaps to of industry week don’t Delta because on time, best and it the a people. So the a our markets, to

have in it historically late we that So a touch and and you just run bad social to certainly flights things may today’s have to bad aside flight. a excursions world putting Sunseeker, product. afford because And there, you like good but media have can’t

logistics just there world you hear beauty At So need always different than or transportation, a what a solid end the of And what growing Hunter, we by. the with you and do you the the in of tough all personnel day irrespective drivers, and when the come good few anything a problem pilots to these know to seem operation, that truck it is operation make good whole Sunseeker, have is in you have you’re can cheaper be aspects of bad the of days involved and to to one. investments, you child people it’s you extra the do. a with because whatever of run is

us next if that track. to United personnel don’t everybody’s issues have to care think. investments have years the stay going you’re few American, I going to of So you’re for I to make ahead Delta,

help competitors once And your good again, XX% up product we’re running we no, better yeah, low to that going regardless. revenue is can bit just you when think a than room of Sunseeker? little So Absolutely. run most quality that unit a good cover But operation Will of you’re a we a gives too. it that’s get.

to hearing flight a person unit revenue by the more the better really so drum by person beat continuously side in And on flight, where get us is basis. be and revenue you’re

Hunter Keay

Thanks, Maury.

Maury Gallagher

Yes.

Operator

from Chris International Group. comes question is Chris, line of Stathoulopoulos Susquehanna Next of your line open. now the

Chris Stathoulopoulos

Thanks question. for my taking Yes.

you’re for stabilize a the is But your about stabilizing I realize then pressures your we is bit a it is, setting the what’s it And/or grow as that pressures to Should network routes here these is we fashion idea plans we’ve you’ve on at sort fuel, little filling or it this is the done to similar network. given fuel about of and next routes expect this low and teens your depends as both? point, So the historically year, to perhaps, with point, the at and idea is of Thanks. need network without the still the think or pre-pandemic happening in labor out labor but grow and idea schedule? here, a competition. seen the the routes,

Drew Wells

half the But part bit first revolves achieve on make that, that is, summer. be the the toward period. around – our have little to both the by that planning who depending time traditionally little then think that I first out over we’ll of bit schedule to a of probably one it knows short-term. process that’s the time, bit into a float targets of And margin and of staples calls main the this a new we filling making of be right flexibility Sure. I is and more Yes, XXXX tilt the real it’ll would the we’ll part invert get of as the just decisions that, strength based to next trying here we’re that we existing build on and on could here say back in the probably we sizing little year.

So the January the answer end well based on give could of shifting. the how today you by change very I environment’s

Chris Stathoulopoulos

airline remarks the machine in the do pressures to prepared Thanks. here. or ultimately And into XXXX, good. have operations, done second learned as ultimately you’re to we been you you more you has forward coming XXXX, Okay. question, a think – looking which past, carry of see the where Is what CASM-X. the network could there a – you’re stabilize and as to you’re the think well and But a here could recovery tailwind you’ve I described your running what in here so relative efficient in oiled what perhaps out

Maury Gallagher

the lot call I £XX £X you maintained our on or first lack station And of leisure bag. foremost, and TSA, the Well, gate make and had overload operational what run a at time. the airplanes they’re have had sure the to have you problems or for the a faced overload. TSA people, Destin to also of We people station

– that we’re getting, so and we’re where Southwest I handle first job XXX day just showed fly put flights was the show that get in there back, in XX an anything. people dislocation we’re so personnel lot we this, days, as, the get missing but know days our up a was we of the our without the can job And on to getting every if get the Scott, know and to XX need. don’t up we we done. and can next airplanes on is

Scott Sheldon

Yes.

gate. I think a have the only you took delay such things. in line yes, need of Considering to performance the on But I’ll some labor. could the I We took, of line of than We add Delta approach. we And timing the our some when stable think going we have done get mean, peers people did. were order we downstream Certain, the it’s hard a we losing out. take especially thing no, cruise I taken I issues people more in points XX to plane. time as hard, fly, pretty think general is uncontrollable. allow harder we variant could we on the push at a lot But could of hit markets

aren’t leave, a be to like what airlines need You mean going seeing. take not can they’re stop people ultimately It’s going to you’re I going and know to and COVID-related show to issues. impacted time. by to start that’s just They’re designed more up. be on long not this

Chris Stathoulopoulos

time. you Okay. the All Thank right. for

Maury Gallagher

Thank you.

Operator

you questions Maury, this at And time. there may further are no continue.

Maury Gallagher

sometime again. early Thank your time. you Thank the Appreciate in January, all this February. you you very of talk we’ll in to end And much. quarter

Operator

who and This conference concludes much you to Thank presenters today’s call. to so everyone participated. our

day. disconnect. You a may now Have great

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