ALK - Earnings call transcript Q4 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. My name is Catherine, and I will be your conference operator today. At this time, I would like to welcome everyone to the Alaska Air Group's Fourth Quarter Earnings Release Conference Call. Today’s call is being recorded and will be accessible for future playback at alaskaair.com. All lines have been placed on mute to prevent any background noise. there a remarks session and speakers analysts. for the will question be answer After Instructions]. [Operator you. Thank

now would Alaska Investor Director to turn Air of Halverson. Emily I Relations, to Group's like the call over

Emily Halverson

on other and call. team you Good Catherine. us to fourth Q&A Shane earnings hand you'll prepared afternoon and In thank hear are our Several full Thanks Ben, for of updates Andrew, XXXX portion year questions Brandon members from and your for management during joining our today's also of remarks, our call. quarter answer leaders Tackett. Brad, the the

This adjustments. reported GAAP of and Alaska and excluding quarter the $XXX with basis net costs the latter afternoon, income Air Group adjusted merger both hedging million fuel on related fourth mark-to-market

share income XXXX. of of million per reported $X.XX consensus. $X.XX fourth earnings $X.XX, in call first earnings of Group's ahead $XX net results the adjusted compare adjusted the share These per for and adjusted to of Air quarter

pre-tax basis Our of our expansion. quarter the points margin sequential improvement expanded quarter marks This adjusted fourth fourth XX.X%. in to margin XXX

XXXX Group full per year and of earnings $X.X of $XXX Air net the reported million adjusted of record share $X.XX. billion, For adjusted revenues income

cash flow free Pretax margin XX% $X.X with adjusted flow billion, and was adjusted of of operating cash billion. $X.X

to capitalization and our XX.X%. return to debt ratio Our XX% was declines on invested capital

Information from business our looking results. include our As materially found on in our risk statements could a actual future will SEC expected which reminder, forward comments be differ our performance, may factors can today filings. affect on that

as measures earnings comparable unit the such to costs financial GAAP a reconciliation directly and between as release. earnings we and usual, call, On provided will measures, refer non-GAAP today's non-GAAP we've today's excluding in fuel. And most adjusted certain

opening remarks. And to now, for turn over the his Brad call I'll

Brad Tilden

and Thank good afternoon Emily, everybody. you,

and turning begin our marked we us that integrations the the returns on bulk Virgin point to to the of calls, in a last we got As XXXX America that discussed investment. we for couple feel see as

fantastic airline designed our more focus And as executing we we long-term importantly, on strengthen and on running competitive advantage. initiatives, a which our energy to

shared, adjusted to As adjusted XX% our expanded XXXX we pretax X.X pretax and to reported income by margin $X.X nearly our billion point Emily grew XX%. today that

it Our flow $X.X XX% was to cash operating exceptional as grew billion.

Our now we flow were and free XXX% also $X.X our of free as flow down of and now XX% cap borrow income our conversion We've to Virgin buy XX%. paid cash strong. to to is to America debt about $X Emily billion ratio billion down very the cash of net said,

for results for ROIC our to full-year reported far. per growth deliver our rate and share grew points the XXX These value terrific airline which is earnings the XXXX so highest XX%, owners. of any group XX.X% that In basis

and to $XXX dividend repurchases. return for talk shareholders value will million Brandon we've annual Of we XXXX our XXXX, through our returned capital a today. in will this include share plans dividends $X.XX announced in increased the moment which which about

experience guest commercial on the progress our drive pleased and to with We've fronts. made especially gains. designed many momentum we're on initiatives revenue But improve

For and service offering for operating our and Andrew safely both our customers. to unit exceptional operating his I performance be we for team genuine -- the this in thank quarter revenue caring to and best and full-year for employees our will want Frontline industry. the the and and I and congratulate the expect for fourth want growth reliably to

business matter value no I are things for inherently we nor not These overlooked, product is if on any deliver sometimes airline creation think opportunities can know that the all good. but that underlying

Condé Nast, U.S. outstanding J.D. that Power, believe Alaska have people. of leaders the just not and Newsweek Its we

-- and News all U.S.

to annual performance-based all up Tomorrow Alaska over go News Horizon out $XXX and our validate spoke bonuses to XXXX & in in employees. views. all million World will Report, pay

And XXth low-cost, over safety, performance our remarkable pay is service per and year. This out. about those focuses the financial XX on will program which us of average extra of pay the that all an is month year years

with our over plans results XXXX got shared to priority we the do. in these controllable XX% improving Investor one parts is to cycle to range pretax At This our our return our roadmap to XXXX. financial work Day of the we've Even in by margins number detailing the XX% performance of operation.

of that Brandon's XX with XX recognize CFO as for Brandon want our last take call. years. And served almost minute I I be Alaska earnings a has as for close, to years this been those to will has and

one Brandon and he's of abilities because communicates CFO is you in of he CFOs best know which an of and employees. as the our exceptional investment with plan clarity his to the well community, the financial as As the because been as use recognized our to industry

retirement. And step of us and very effective this Brandon new we're him CFO be in wish and miss into all Many see to you dearly. his Shane of will March will Tackett know the We well best role. at Xrd. wife excited Janet Shane Alaska's Alaska him

in been his grow Alaska we're role for analysis, nurture he of imprint management e-commerce, business in financial terrific to years labor continue revenue a with XX Alaska and and to to new and has people with the our leadership nearly relations. He CFO. understanding as planning Shane led Alaska. and anxious of and confident and has his has work see on leaves we We're how

and I for cities employees road and seven team for to weeks ahead. our meetings the energized The two operation we these throughout employee from were about leadership road goal on in returned found was our the network. of meetings the across strategy week XXXX Last share

safety, low-cost, takes on-time our relentless be can and industry an A know challenging, a to what win. This on focus service people high-efficiency it truly profile. operation, remarkable but financial low-fare,

grow. do well things the We will and to continue to continue

You'll others hear more today. this from about

call that, with the over to And turn I'll Ben.

Ben Minicucci

and XX% revenue and a laid our to that to a our closer we of everyone. fall Brad that and Thanks, achieving margins good our of initiatives At roadmap afternoon goal move the Day us series pretax XX% cost in XXXX, Investor would goal. of to

six the the plan in last addresses that and thrive next strengths on Building working strategic and vision areas company we momentum, builds our The for for the months on of our that increasingly years. five key consolidated a Alaska our opportunities to industry. plan sets been for for on competitive

The plan is reasons details, won't share comprehensive specific high focused we but that's and three for level obvious areas. at on

value facing how best-in-class And drive guest in best-in-class our The how is build our growth, How merchandisers. merchandisers. and which become brand network build first the California. of the unlock How includes the we we we we hubs. proposition How innovation. and employee we

we to nurture fantastic which And relations. in on and industry. culture. how strong we leaders addresses safety our which build excellent model, builds How our the how we third people, business continue is culture is operational Second that labor our excellence. develop And

appropriate robust Our creating allows generate path of being engine us focus our and to a financial returns the leaders that long on sustainability. term. over financial And

Alaska always durable We XXXX will a We safe. a Since we've X:X were and at that competitive been has run good industry because able continue outpaced [ph]. growth advantages. to grown to rate of our be operation. We're a this airline. do

service. remarkable can we have people Our fares. our And so low guests offer provide low costs, we

Of our key know to that or areas. advantages be discipline. enormous the ability required in these profitable is top of last each of the at preserving competitive we've near We the continued to as industry muscles these XX growth. Building years, demonstrated these

operate mindset. largest congestion seeing to changing Officer in we hubs will Beck, continue we're and focused so can laser increasing congested with challenging low is new his high and on our team productivity But that operational hubs Chief processes, in a Gary our cost, us. leadership Operating be excellence our

began the a had that generation. XXXX our improve impact through Recently, these efforts advantage building growth on believe additional building performance is key we these saw in another improve to our areas. our future in muscle airline, and there's We commercial opportunity and demand to merchandising as

these plans be a Andrew in will about sharing bit. more

Finally, our model. business

we achieving pretax are XX% a and to You know that unchanged. to that committed remains XX% margin

free returns flow Additionally, generation we specifically working capital. been allocation around of goals concrete to cash related and on capital

has guests this. been in You value create always often hear our of supportive talk the us for employees our about and board we

challenged us model clarity commitments also to owners. They've our same and long-term the to

hope philosophy on provides be spring we've should that to accountable the targets financial a share that we that held with management covers to. insights document So that we created our and investors this

document Annual Shareholder called our working it the of XX. Meeting Manual. is Owner's this The We more on at about title May plan share to

If for year. you dialing this do that, don't typically I that so suggest you

Before I to achievements hand I'd mention like during it quarter. over several the to Andrew,

ever. First, busiest holiday we travel completed season our

load to two over demand helped guests higher people quarter. by Both holiday fantastic XX than evidenced yield get falling and factors usual midweek, New destinations their in Year's Christmas million as Our was throughout weeks. elevated this

I want over of thank Christmas providing rough a excellent to for service our and people their operationally, busy And our despite guests them week couple weeks. efforts to

recent all workgroups the the of under technicians, ratification agreement with across are a the company Joint Bargaining integrated, completing merger after aircraft three the our with Second, in significant and milestone years America. Virgin Collective Boeing with Airbus

ever. its entire Horizon Third, may best-in-class President, Congratulations in at transformation. and XXXX, one unit performances team best with financial history a and Beck success, the management to and continued new CXXX how and including even performance. more Joe see the I operational Horizon forward going to in led the operational remarkable Gary lowest on delivered looking Horizon team of to cost moving and build them cost Sprague the have

success my of has on special building many reflect fueled brand with our Alaska, almost years the and I've our been we I our by our here know have with whom guests. people, that I been As for decades fantastic XX connection

truly unique to continue even we focus Our that on we as to kindness culture will grow. nurture continue and is and

cities and two were it Our energizing employee execute me weeks we gives this seven plan. meetings ambitious confidence, can and over the inspiring last

over And Andrew. to now,

Andrew Harrison

you've heard on good strong a others. afternoon everyone. very year commercial Thanks, Eco Ben the and note. The ended what business from

X.X% grew quarter increase. fourth in just capacity revenue total Our X.X% on the

I'm both performance three of X.X%, will unit York believe basis we growth solid was industry pleased and demand among which top Alaska. This leisure business the translates XXX quarter. improvement Transcon TRASM points. that New to over revenue and this Both were stories by California report exceed for

airlines. we year in from have combined with challenges the have Alaska's guests worked made This service markets and a high we the putting XXXX markets our team aircraft when a right both this Alaska for Our to is around. product impact those right quality in to hard positive win a is recover know the and early what true, and faced be turning testament to

a An important growth revenue to product. has our contributor been premium

classes. the XXXX, two fleet may our was prior into segmented mainline recall just You

First, fleet in main cabin main only the with regional cabin.

in mix represent XX% At mix rest we seats. airbus and that comprise with premium our premium grow complete class Today revenue the with line by of This first of as revenues of X% to class will generated time the revenues, of fleet. the the all total product just premium bring XX% main the product of cabin revenues. reconfiguration

of demand On see business, the seating Embraer XXXs. also regional our on side we the solid for premium

We manage product are we business. intentional premium about our how

out cabins members Our effectively peers. loyalty goal to benefits to our affordable, keep provide against generous is while our premium competing

revenue on merchandising of XX.X% more class the class the quarter, premium our we XX% cabin. and In was as more seats. into the will fourth on retrofit XX% focus revenues continue seats. on remainder XXXX first Premium up complete momentum of effective XX.X% were up This more

from our XXXX. and quarter our than generated cabin premium RASM improvement XX% was from six-point the a products higher fourth main by of

revenue. we this card include passenger commissions our again in revenues as plan once percentage saw well On front, credit revenues the mileage growth double-digit as a Revenues included redemption on quarter. loyalty

growth acquisition. the this quarter's strong This quarter's and four like caps to our the year. year-over-year note quarters consecutive that to loyalty of concluded performance a close of years growth also results incredible program off I'd RASM in since

on industry. than capacity shared Total highest represent you revenues in at basis point grew X% the billion our Day point the XXXX. X.X% up relative more An expectations full additionally, represents RASM for Investor basis approximately we've year of since in over XXXX of full-year the to fall this growth. is RASM and $X.X X.X% XXXX XX with XXX increase

and at pleased we about XXXX demonstrates that we our year an inflection are results We started beginning the of talking that this achieved. you

momentum the strength building forward carry in and will we focused that on built innovation. and merchandising, demand in generation imperative XXXX areas be squarely is of we it mentioned, Ben the As we

manage a over the predominately sales, cabin class, cabin has changed organization anticipate improve To our structural The past that dollar desires drivers that experience, undergone to and our segments save serve realignment were once driven of better ticket main execution guests. revenue fundamentally needs and a have premium revenue of including and of my the now segmented by initiatives first class, numerous the guest and the in loyalty recently where we decade, revenue. fully affairs houses

structure appointing our new VP is A the and Innovation. merchandising in key new performance. better The improve Merchandising today distribution will leader and long been was technology, organization as and organizational a Jain both also how guest revenue Charu business over and reflect e-commerce. a company This we'll the to and we include do commercial of enhancement division Senior responsibility experience

Charu that experience. and experience with who in generation, technology improving will the She'll tools was anchored innovation previously be developing and Alaska's only revenue leaders excellence. the CIO to our all employees we so brings our but drive deliver squarely guest merchandising, not be for products with can service working

confident will us the disciplines. drive a to We Charu's top leadership very position are that regain in

support. with the capabilities of half This pay a technology complete our well of project phase the investment, and We the will is network advanced front, along optimization XXXX. which forecasting in the revenue first underway. on to implementation multiyear Also is new system revenue plan management bring back

revenue incremental unlock and year potential the significant is million. revenue The to first the will small years in delivered supports around $XX While at in more capability follow.

such the As the carryover revenue revenue million, shared will fleeting of this annualization in the half of and price Half concentrated as half our XXXX Saver our represents cross first approximately the Fare XXXX the such other and of synergies includes and of year. this last changes. initiatives synergies and $XXX I initiatives of ancillary revenue on other be call, as

half Additionally, new years, expected to growth of on demand of the merchandising, some second larger generation opportunity focus is the most drive require of and of skewing additional technology. we're activation revenue innovation the initiatives the the to with the putting

will you progress of We XXXX our be the updating throughout revenue quarterly on guides. initiatives

approximately will we expected unit revenue our and be grow growth half between afternoon, and percentage. established half This point is guidance and first three Capacity quarter ranges. a X% to

early in period of of the the seasonal we've last is quarter seen relative weakest QX industry, the strength year. indications weeks While the in to

February changes our we is and expect to in patent our revenues network pricing outperform to to and January To-date, match load nice is quarter. been demand increases some in and stable network structural this to better resulting unit industry factor

commercial RASM XXXX we momentum, with a remains as great company margin by through one improvement the team's a guest XXXX. experience enter delivering and better strong year number higher priority

We've we've and successful demonstrated identify additional our identified will ability XXXX against be similarly confident execute high-quality self-help XXXX. measures the in to opportunities are and in that

Brandon turn And with that, Shane. and I'll it to over

Brandon Pedersen

Hey, thanks Andrew. Good afternoon everybody.

to transition to our through from As Shane as our part hear and today full-year of me we QX walk both you're XXXX. and performance going and talk about

pleased per doubled. were with earnings fourth our quarter income We Net nearly both and share results.

margin modest margin Our year strength of revenues, in the This the was better and fourth XX.X% pretax cost quarter largest. a against on plan XXX execution prices. our solid unit our basis points decline consecutive and again fuel was of improvement than last

on over laid path out executed at For the Investor well was XX%, our full-year our teams Profits initiatives last the adjusted increased pretax a improvement because XXXX on X.X progress Day. and margin to to point XX% margin. meaningful XX% our year we

some of increase X.X% December's on a unit did with costs, capacity capacity. happy and in couple adjustments accruals large claims benefit the to we year. also including weeks but that to high medical dollar accruals last came pilot saw late a quarter some given have in We We fourth percent the cost increase related of weather weren't disability employee result. reduction modest seven-tenths the Our adjustments and in

might $XXX. the an these $XX,XXX performance-based reduce year-end be adjustments structure payout benefits need to Brad to useful I a people. late the to PBP payouts program the costs manage mentioned our our programs year These by employee We improve to these thought of related our pay making and prospectively. better earned of by it connect adjustments

full-year our was performance solid. cost Overall,

in company and increased did on and notable aggressive teams CASM the across that operational It's a nice Our them. hitting job roles developing roles support both only plans ASM growth. X% then X.X% full-year our

achieve $XX employees, initial might our that that while agreement represented X% new guide. our and Bargaining growth. We with original You not AMPA absorbing costs in unit XXXX Collective recall IAM for to guidance associated the with for of cost was million the X.X%

lots our opportunity outstanding team get supply to their business took terms and corporate partners very and to we year-over-year still we to Productivity was steps of our size million to but Overhead by with or improve initiative chain helped back successful down peak performance. good, the $XX X.X% the of was have our work right staff.

fact agile. In more underway reporting make work to there's and structures simplify more us

Now over to Shane.

Shane Tackett

for today you, and and on then will capacity both afternoon touch briefly cost Thank everybody. And good our owners My plan guidance remarks fleet Brandon, and XXXX. manual. on

grow press X% midyear uncertain. and still remains pilot it service is between assume likely Boeing's training which capacity, sim-based MAX year. Regarding to last the does intent returned X% This for and week for this requirement to our release MAX given

Regarding would capacity the as new XXXX, excluding cost potentially well Alaska's X% service. believe guidance, agreement we up as the also required delivery will MAX timing, to to costs be excludes X% the with due returning training to for impact any about of costs with associated a impact any MAX to unit I related pilots. note, the

we further We'll structure. as that costs we we more and of that capacity continue grow have although have year. we continue I'm plan To aircraft our on process about gain to we happy cost will the are budget to wrapped our opportunity a the a update this guidance both our little XX receive our annual and again pretax just MAX margin, cost to discuss scheduled certainty timing

to As in we behind we efficiency know fares be low focus. the a that guests our long-term low integration, our modest to again only is prioritized secured degree need now and to we high-value relentless That low you to and health with ability that to our focus costs. on fares during be us cost our offer know, intentionally and offer and is

ahead. light headwinds, XXXX committed demonstrating discipline to aggressive in cost quarters continued While focus in our for a goals few of years we are the on large and are

For X% to ASM and unit the X% mentioned. QX specifically increase roughly Andrew that cost we expect growth

area Another of focus important our long-term is plan. fleet

have unit replace and MAX Xs with the give revenue us all while ability more lower more and to XXs larger generate would which opportunity either We AXXX to AXXX Airbus XX gauge, efficient asset, aircraft an XXXneos, or cost. of

moving timing transition looking of XXXX are do plans of incremental and economics the to of to we're also be fleet, smooth a ensures to training costs our one quarters done single manner meet The fleet We’ll this and finalizing over especially a compelling, main cash come. on years next our free in balanced up-gauging can return The ultimate several forward a is will be more objective. and will to in goals. have that the this topic we if capital flow

balanced Lastly, Ben the led spring. as excited which by balance more this something about years employees owners share these and about our later our company, owners manual, XX Brandon established has guests, cash generation flow history is talk our has of and consistent and our well. to you capital a to Alaska that we are past sheet help allocation, plus served

build and loyalty people. how career areas the memorializing several great with we serve margins. including excellence and guests. to will success have way documenting being also will and for free place including continued goals factors to build manual and pretax returns shareholders, our of It in the serve a and owners generation, on The ROIC by discusses our customers, a driven with this critical history operating to drive that cash importance create value And the leverage, offer flow we to

Ben share May this said, Meeting. Shareholder in As will at our we

over one Brandon. [Indiscernible] with last back that, And to

Brandon Pedersen

Thanks Shane.

funding, flow, of the million balance billion was $XXX billion in quarter before securities. marketable the improvement and $XXX we We over approximately with a year. to of resulting ended Turning cash cash $X.X cash net $X.X while million free sheet, a operating flow last in CapEx pension produced $X.X record billion

put the delivery exceptional two CapEx improve Free constraints at plan cash to low was generate cash we intentional than lower our MAX was XXX%. CapEx because order free flow on CapEx conversion to ago years ability flow. in approximately because was but of of also planned delays,

more was to sheet than allocation borrowed now Our Virgin of for debt We $XXX paid of balance we or billion capital off XX% that re-deleverage number sheet. America. to priority million XXXX acquire our paid one the balance $X.X off amount have

a debt-to-cap close quarter of ratio a months We ratio XX% debt-to-EBITDA with X.Xx. the and XX of net trailing with

We XX% also our funded. which to million pension made now contribution a defined-benefit $XX plans are

They've not mentioned hard treasury I done that that working to job. take great to debt, of the quarter prepay our restructure debt remains advantage low the was team but Last environment. to a only rate

We sheet of have that the balance X%. rate currently portfolio $X.X is overall is debt XX% remaining, of fixed billion and

per lines out and rounding mainline and $XXX year over our of Current next unencumbered fortress maturities only three credit. our aircraft the million undrawn EXXX average balance million $XXX sheet, years, XXX of

once in want and eclipsed X%, current be you the on again dividend returns On will to hope repurchases return of the increase that our confidence by we than expectation increase the or the is year. that share where $X.XX increase this Xx capital we’re will given that our leverage side, I basically board right that saw all going this signaling per share to poised we track that we're with profits shareholders time our XXXX million $XXX XXXX, it more assumption to that

the million our the owners second this expect highest with combined our to dividend, history. year, in return we When amount higher $XXX

Q&A, personal closing through thoughts to go lens. thought offer we I Before some a might I more

know our They special its underdog. are it, can't and about actually our I our of heard just this this might you've secret despite guests are determine they XX-year history being the but not our truth, sound resilient they all the company company the model that across connect way real with sauce a investors of how advantages. durable. is but cliche and and of First, But Sure competitive people. corners

to that's drivers couldn't new better our here plan the And have incredibly it have will around understanding finally, Its our is lucky strategic with about an this enthusiastic than CFO. watch. who awesome going we exceptional for more Second, of And of nobody leaders plan today. that an There that I where life. been fun we to come to business. especially make be Alaska table proper those have to the exactly Shane is work group right

And go to with questions. that, let's

Operator

question comes the [Operator Catherine line with from Instructions] Goldman your And of Sachs. O'Brien first

Catherine O'Brien

afternoon everyone. Good

think your all. on I'm start be by then cost know I'll there, And guess, question. off from remiss sure retirement, be I I'd I you by start Brandon off to that you saying with will but not miss congratulations the

So unit just capacity agreement -- outlook, any could on so and XXXX XXX any just headwinds you've cost similar this you're to costs points this your thinking unit this were basis XXXX costs? about amount walk expecting labor to [ph] that from X.X% cost back, which X% cost just XXX in includes points you're basis of up increase on highlight growth, year's as then Or in new And pickup featuring Can through headwind year? the what XXXX dropping facing be capacity. us tailwinds Thanks. help more big help year? explain you from

Shane Tackett

good do think really this [Indiscernible], I Katy, just that. I'll had Shane. in XXXX. we take a Hi, And Yes. year is

to a laid sort next If million you recall at that were XXXX after of we years. savings Day of over Investor going $XXX cost we in out of the multiyear couple articulated go that roadmap

did related down $XX chain was expenses, on constraining number I was supply think selling those this we Brandon overhead a which year. work of mentioned well done the that million. really

work more business, asset We side side of good. really to of the productivity the utilization on have all the business. do do that's So

need fleet the of need related stability the be couple to it upgraded more does we to cost growing way for place or two. headwind the Airbus to this a our do areas just lot airports of training, to was And that. X% driven year to returns X% which be are related In X% sort able in efficient which account beginning super grow the in can used the infrastructure constraints we be aging to as That that just are it or and think plan, and order or then, knowing unlock it earnest maybe of year of a in a support to we at, Boeing is a of X% and lease we structure, have crew going again to next unlocked understand some are have and need of I next year. those aircraft include more airport of we now There maintenance and that principally A do be over to to side. get we need while big item the and the on and sort expense costs Airbus both begin related for elevated cost.

Catherine O'Brien

Maybe great. that one. follow-up just one quick Okay, on

this Thanks. sense on some So do the CASM the could what give like you you us lease portion on that's color have of returns, any or driving year?

Shane Tackett

Yes. Katy, I of think know the we I on call. level do we've given detail that, that but don't think

Catherine O'Brien

more MAX. Got it. on And maybe just one the

to just remains in we shift that but the from reduction see forecast, by the your CapEx forward. lost should not couple of potential only price year. purchase of if going also due grounding Boeing, So this negatively impacted XXXX to from million later Could out were service through capacity peers MAX CapEx with of your $XXX MAX in downside timing the have reduce agreements reached

Nathaniel Pieper

are it's Katy, you? Pieper. Nat How

Catherine O'Brien

Thanks.

Nathaniel Pieper

schedules, think I now. planet delivery airline to have other every With potential right you the with we talking as airplanes on three as supposed were Boeing is We're last year know, more more seven and XXXX. there's come going take to in part and be It's looking and that. longer-term to going and on replacement our just fleet growth at of strategy forward

Catherine O'Brien

you. Thank Understood.

Nathaniel Pieper

Katy. Thanks

Operator

line Your Savi of next comes from Syth with question James. Raymond the

Savi Syth

good Hey, afternoon.

mentioned your -- CASMex, a I is think little of coin plan pretax you on that of but the Shane expand side to slightly question different bit Katy's to margin. Just

not maybe bit kind of outperformed you industry. the of little various you wondering quite with you'd continue curious as confidence revenue having about the gives be a kind on confidence if could So I to drivers the you -- what talk I'm initiative. all And revenue more there some side, was just like seems that? there able outperform in everybody clear it on and and these

Andrew Harrison

Hey, Savi, it's Andrew.

think I we're to see. that an to opportunity to we've do that things continue of had lot going a

initiate and and course cross economy we that of my synergies carriers as is, in The remarks, and other in quite basic their prepared I things. first already other are And in had the significant. do synergies of carryover the most shared have fleeting

that's So that's through. benefit come going the to

we from really other that stride seasonal business. team now are at magnificent getting is really things more network with first thing core groups quickly front. ops we what is initiative momentum getting quarter, job The integration tighter, on a about those hitting now. our doing the the we it. working away how saying the more schedules good our doing all feel focused moving better revenue job on are together focused is much The from We're of squarely efficient, revenue and and Overall, more in running productive squarely our are a working on I'm in

Savi Syth

might longer Brandon, And question this Brad a -- years for doing for Thanks. you pointed and been Alaska you I XX being of then think as if out, ask Alaska. part

when consider that different what over that time, see years are advantages maybe challenges you wondering this Just Alaska ago? that that maybe be to than And kind are see XX, of the you today have XX didn't you you today joined? what

Brandon Pedersen

maturing and business, well. better and and the operation also how on and years process as part across comes ago, focusing the we're cuts just across off a I Savi, XX leadership company way the than more What just that about finance would think discipline from Hi, service of us and that's interesting cuff. getting cuts team that an we as we question, a were more say is things the our

allow competitive to it's and a market an future. terms do continuing that I'm to that I going think profitably where said of forward, industry the grow some mix four share. carriers will just challenges intangible as of about and XX% in optimistic I have But got this advantages, us going tangible we've really company's some confident I'm In forward,

Savi Syth

you. Thank Okay.

Operator

the next Joe Your line question comes with Caiado Credit from of Suisse.

Joe Caiado

Hey, Congrats afternoon, go everyone. Shane. over good around of again, and to Sangita, Kyle Congrats Brandon congratulations there. lots to

more Have certain As you the this internally? putting an plan? up about your might even plan, of had CapEx flexibility MAX that think on you as Shane, delay it your work you with talked afford you that opportunity impacted the revisit as be you uncertainty fleet around as you delivery terms how decisions? five-year schedule seen together in Or or planning you're together was five-year process as Boeing? about about, you putting to could gauging, thinking actually

Nathaniel Pieper

again. Pieper Nat it's Joe, Hey,

with nine that us revenue Boeing's going the upgauge be to of did I with over XXXs the performance, to going cost benefits that months next the replacement to years growth. MAX the are and at us MAX we better with going the airplanes Later the our But performance. timing. five think there's fleet currently and focused covering AXXXs looking operate and XX what needs at and those rework to and acquisition that of for primary on been confident AXXXneo, X and really XX, replacement. our is for we're six covering we're mentioned this candidates better quarter, the requirements next Shane we're Alaska. good are start looking MAX for challenges come cause the to the some our to that the for a XX decision we've We're events the sequencing defining process.

it fourth this the answer of work quarter, quarter with summer, and an come we'll will year. we're up in confident We third through

Joe Caiado

certainly by intended And you. post forward compensation management philosophical meeting. understand more it the describe then more Thank come that owners maybe a be purpose? something at management. to documentary for little a would We proxy, bit formal accompanied structure? just sort of Is changes this a and more that. Is or its guide just that to annual look the that. can But quick Appreciate on question the document you details to manual,

Just document? you. how about should investors Thank that think

Chris Berry

of really but is our really style, philosophy, comprehensive sets and it Hey, long this management shares term guideposts latter. advantages, the It for Joe, financial these a it's, up competitive pretty our more is then performance. I document, mean, Chris our Berry.

that see its We'll those with out sausage you'll so manual. the detail time make we And announcements generally out. laid in you of all making, but after on how share that's the owners laid the more to more spend

Joe Caiado

Got it. Thanks, Chris.

Brad Tilden

from perspective the great Chris add gave board. just I sort might answer. some maybe a of

invest XX bring to Directors very ago. The people manual interested own don't of our out putting employees, trading lot term We respect to just when was speak a that do have the getting get shareholder not airline for communities, vehicle. it's the put months customers, feedback. two be And term for all to and great as how the is short articulate the invest months like We process. be we a investors want idea basic want want space to our come we it's don't that or idea or as to roster be about place getting value to we XX fun with we more stock our us more say, to in give I got us with -- to three over to decades, of Board this We this Our long a feel had it board be you and -- the people there, to be that to in mindset investors. to they we really I deal hope they what together, our is a I a you and the going had I of articulate a the we've filled want invest part But think we fantastic investment. for business. hope, industry, think

commitments is this want making So done some we've at of We when to well us taking what -- made know we've stab about a that do. commitments. we public putting sort

we said, feedback we're better but we'll get So this it's May, have Ben your and Chris out and get to it then roll anxious as along. move it has in to

Joe Caiado

Thanks, insight. that Brad. Appreciate

Operator

Hunter line the of from comes Wolfe question next with Your Keay Research.

Hunter Keay

congratulation you, a and real Ben, with pleasure dude. it's been Brandon,

Brandon Pedersen

Thanks Hunter.

Hunter Keay

Sure.

I a have So question.

Brandon Pedersen

it's say me dude? great Did working to been with you want you

Hunter Keay

and comments Ben That's No. your rising the Shane on airport you enough of made congestion hub me Thanks for for about costs. Giving some Buddy. comments now.

CTAC region? this So the view in second what's Thanks. company the on proposed airport

Brandon Pedersen

Field? Hunter, you're talking Paine

Hunter Keay

-- is city I'm that going second didn't region No, can a the the about in there talk in be talking proposal completely building point proposed airport from debated just some Council about about scratch. XXXX. some at the be to

Ben Minicucci

she's share Birkett and, in on great why don't Diana, this, Diana Hunter, a chance you and working jump been is This Yes. Rakow for to your thoughts on?

Diana Rakow

reading Sure. good, some Washington Thanks. Hunter, State News. you've been

at continue up board in X, be look could and asked legislature potential region. the the year region, Paine airport growing options Airports President others. certainly know on Field. we last set that constrained a Shane Jones, have commission's a make grow. across that to be That along recommendation airport And many in Vice region, want the capacity we to a to with passed we who space for sure we're our we another at January very could at that results. is of growth is commission to So, interested XXXX. and this for That the have governor the and to can bill by governor fantastic We in

Hunter Keay

to do So Do you happen? company mean, view? what's want view you Yes, what's it what's I it? your your your Or on

Diana Rakow

the one and that at more anxious do location the get happen. the Obviously, we We're a We set we sure CTAC. maybe glad it Yes. occurs. don't Commission end. more that, more a make capacity through that than than some do up. bias evaluation have it we're thoughtful underway to to one yet But and where. about location to there's to really We increase And have answer want maybe at was as need where

Hunter Keay

back about XQ. you Thanks. XQ, bad then network of good great. really that little Okay, initiatives. means question, revenue is bit. and in kind into like P&L And talked the the And and margins the creeping seasonality looks It Andrew, initiatives sort of second a in margins

balance about. years away that something ago, was a You from guys got the few of you kind talked and

network it sort does of in little return seasonal you're a that bit something your quarter-to-quarter of of also As of changes to you areas reintroduce to annual imbalance manage? sort earnings strength, results? Is to trying make

Andrew Harrison

on how been radar. squarely my That's Yes. that's team's

significant to very network we right by is load yield what factor seeing very, I'm And I'm made increases. because be now this January watching just decent very increases fact, company and moves. closely, frank, of In February quarter some very

lot I But So, more think I is be the we'll to and we in be our still network we around, challenge. first move as quarter But I get the think this first of a first a going in fourth as our line. always job we And probably little quarter stuff, upguage, is weakest. do going biggest other the quarter. our the forward, the think will as really

Hunter Keay

Okay. Thank you.

Operator

from next a line comes Our Michael of Linenberg with question Deutsche Bank.

Michael Linenberg

of the echo of and sentiment everybody, been just Brandon, it's great Hey, a else. run. to kind everyone

see than So expected returns earlier. I'm benefit non-op over. in in XXXX, better don't on But a can pension pension see if ask a pension you do XXXX? the note, we question, we mentioned question, but right. going know But you deflect have from your it I One in more to that in may maybe do

Brandon Pedersen

small non-op the definitely, favorable portion a year-over-year. be Yes, improvement will

Michael Linenberg

is the back trans was maybe XXXX? It changes. network industry. then at X% that, what and talk growth, bit low I'm just earnings months go that this your is like hauls. the question, XXXX? Maybe pulled longer and great. some X%, of was also to it's Okay, planning the about, on growth. we pretty I MAX, and we about Andrew. were because you to where When And more second pre margin where about supply sense all the seem my plus changed has you've some And and X%, even is But cons a maybe that look meaningful to sort post if growth is growth Thanks. Or XX back, number, to for relative think asking? MAX we That maybe does that had side, you've some how X%

Andrew Harrison

That's good question.

tried that think, deliberate like, that slowing MAX has honest. pushed would we sure, for the I just we would we say And little well, XXXX, integration us. on growth our get for be lower growth more were a XXXX than behind about through as our for these to all to the of this I the is decisions the and this we've through we X% move shared, fleet But can multi so bit. getting growth. and working crew to end as rest. I'm at X% to also, day, challenges forward of forward. some the But we're looking and it's And

Michael Linenberg

of that? I one the one and We picked word that's March, right? And first week, you just march Brandon, just great. to Okay, to presumably the because last investment upgrades week when grade, S&P should you assume

Brandon Pedersen

you, Bless man.

Michael Linenberg

Congratulations.

Brandon Pedersen

Thanks.

Operator

from with comes Helane Your of Cowen. question line next Becker the

Helane Becker

what wellness comments we're everybody going with Brandon, much [ph] with to else's looking next forward look your And very will working working to forward to you. and echo is Brandon, you looking I'm chapter operator, I Shane, seeing Thank you. like.

for questions. that any doing One you an pilot for contracts is item? contract? the like fact prospective two the Or are So is, accruals after

Brandon Pedersen

No. after us. for It's fact the an item

Helane Becker

in passenger it's ones and any too what's I'm of with wondering your various far. my is next soon lot especially With way international between agreements you're unrelated transfers seeing talked in some guys if so China. agreements to on kind if Asia, the going then declines airlines? question airlines, of co-chair in with have we've and of you those a China? know And And interline and about things Okay. Or --I airline

Andrew Harrison

us. International Helane, it's and connectivity some We've The of it. very to and looked Andrew. number is small for at China Asia from especially a

impacted at And we this now, growth been traffic because this. not has look so, and of at it as time our right

Helane Becker

or business flat going just rethink as Okay. business then your And Transcon, you not have other live Thank forward? to to you. seats, not one you you question. On grow to have grow that do decision going that are

Andrew Harrison

business. Thanks what's How and loyalty the our Actually, have been growth in restructured pricing by question, and product extremely seen. but encouraged we've the we've happened a Yes. the that Helane. fair I Transcom that's

now, board the going still right forward. have on that product even working very well for us. see is So we I And upside,

flat seeds I'm that live consider -- looking now right me we're that for not at. is So something

Helane Becker

you. Thank Okay, great.

Andrew Harrison

Thanks Helane.

Operator

comes Stifel. Joseph question DeNardi the from next Your of line with

Joseph DeNardi

everybody. evening, good congrats. Brandon, Hey,

Brandon Pedersen

Thanks Joe.

Joseph DeNardi

transition of little was and go felt commentary like cryptic. some a around the fleet with what the could the bit I capital that that

that So can that? commitments returning of how would cash over Thank clarity what capital in you Or could little more maybe provide terms a to through shareholders intensive the get you. maybe be business your around just bit period?

Shane Tackett

process over look chance look to certainly, around like Shane. precision there's position going But we're you have Alaska not those is Yes, we our what those some some lease through this that, aircraft. replace and with sort best more sort the best to lot to get in acquiring and go value leases. owner's could several we this shareholders the which the of have might goal planning but deal profitability, of time for don't like out today, at out replacing of a know know be good might lot roll very next with of years. is we'll because it's when a period of go A Joe, as XX we just And as is deal of about we manufacturers. as require that aircraft a to capital. But manual, our also this we over returns we or a deals assuming what to committed to the have say Hey, look the we're

Brandon Pedersen

follow-up, the CapEx Brandon for And just that do timing really not uncertainty but that the around of what the actually guidelines manual just free be a sheet commitments meeting balance to intended was just allow it's and reiterate It's maybe sure our all. flow to one we to strength cryptic and to year. what just cash Shane drive purposes said, will of some on at owners the the make generation. that's really But we're

Joseph DeNardi

and past then times Virgin you think, about much the how I down the have over Okay, or debt XX mentioned either Brandon you've Brad XX of months. paid

us what interpret so your should when in help like happens down? as So, -- is think Can all What, you we the it's that understand important. that something what view? important clearly why Thank paid just give that is you of is debt you.

Brad Tilden

billion, Brandon, for are billion profile. get that America sheet, debt ourselves And as $X.X before. proud quickly the could. we how I what of what investors can Yes, were paid financed X M&A balance we, it the conservative a super to important very back to sheet balance think we of different, financial we conservative of, as as think was a and we and you audit was Virgin here. well, value or we'd But me done If X.X we never that we go recall, to, of equity

times So we XX% of have mentioned whatever have X are now really XX billion paid and we that. it's off that proud or to

the do important other some is, think all this I of to today. of and trying reason the that's we're messaging is

move positions All forward. this of us to

certificate, things, are these brand done to let's mirror. There's better. and actually space. needs say for things it Sorry, for kinds now, trying -- what and go employees, make us we're you let's, great, of to behind through held stuff It's, but windshield so no We're to are front into and really the through continuing investors, where systems things -- looking reservations. and forward, the be customers the what that's while learn a is you always that and Now. great looking Alaska forward all single to much and But every investors make even customers, make that as loyalty let's are moving we're rear-view things. all eyes you big and a investors? airline There's put the that more are that great what

we've -- mindset. So messaging that's is I'm we're our but done it, to sure we're well the do. how that's what that trying not

Joseph DeNardi

Thanks, Brad.

Brad Tilden

Yes.

Operator

Your the of next line JPMorgan. Jamie from question Baker comes with

Jamie Baker

Hey there.

Another shout to me It's particular. try up to Brandon. to to important out in sentiments one hundred

mood planning aircraft two-week could at policy. identify typical Brad actually the send positive, compliance the of the run that areas enthusiastically Question won't spoke the I'm to it prepared gift. of my currency glass a an you run, but model and So, It’s you on dissatisfaction? Presumably as show a because amongst file about afoul gift remarks. that on is perfect road the in rank the

Ben Minicucci

that say weren't systems. all thing, were yes, they we the five systems borrows was Virgin will and that you needed really the that questions is takeaway company, of scheduling years. about big be there systems within better several America growth some the it's what this Hey, there the to for was operate my I’m stuff lot energized There big a within vision the next questions one Jamie, things, It’s and would good big related were biggest our things plan internal me, and it's I timekeeping But overall across really the anymore. Ben. the – over guys of thinking internal roadshows and hubs, with back so was to

was again, and all so we one like it fun. felt and as our big one, And that was it these years in gelling three doing shows it did the of stations lot felt inspiring. just road team, were people a These time was all that for the airline first

Jamie Baker

lot. thanks Okay, a

went Alaska, think of I a pre-merger back, when Second, through innovation. phase

I chain would were first RFID think self check they you the key with, to bag experiment customers tags, terminals. with the our printing when in that I remember enter

includes, customer also switching XXXX pushing terms just my the envelope going about it was more what phase? march wondering XX% of mandate not experiences, distribution. and a area? It's the this once I'm much, back margins that mean, was if think model again, that, to before I XX% a But the smartphones. in technology to or also for So choose impact too anything. that to Is not obviously I

Andrew Harrison

the this the Jamie, all if much and the you It about look It's it's and industry today, Andrew. is, about guys. I interaction the It's making it It's I absolutely airline guests. everywhere. together. for just that networks as anymore. of think guests. Hi, big at bringing about not is about fly easy Obviously the

what integration. I think And the distracted about excited Excuse And I order. too really we say organizationally, I'm to have also I by innovation the think we on think got it's an me. is and front okay

to. a of have true accountable innovation, subcommittee that We that's now, I on and the are focused board

real think you're going see I So, some momentum here. to

focus But the XXXX on few right. a won't started. You're be is us. big next years for

Jamie Baker

Excellent. care, appreciate everybody. Take I the color.

Andrew Harrison

Jamie. Thanks,

Operator

Pfennigwerth Your the line comes from Evercore. of question with next Duane

Duane Pfennigwerth

wishes this and a if non-compete you'd Brandon does Not it have Hey at Best thanks, about not be do long willing it. do, to much next you talk on chapter. the more sure to how But if you last? point. add

Brandon Pedersen

actually, Air focused going not And years. on to willing talk XX forward. about not last’s It it Group because it's

question next So please?

Duane Pfennigwerth

Fair back the hear enough. Great you're XXXX. in cash flow. stepping On to free up buyback

truly because outlined. a be you bigger math are you've the it like than what bit, it could checking Just substantially done feels little if re-deleveraging,

think are we a Or looking as cash about now? should So, for starting this you point? to build

Brad Tilden

the one. ended I'll with looking next it maybe well. That's We we five. probably ending year where we're build take as a about billion to that Duane, see Yes, not cash. year

dependent capacity more on with decision. going and are That's are more, we be under it's that all XXX. on program have the XXX. we're why doing doing. right up started will what be that repurchase we end at fleet we You our There But flexible do but you to to the than existing with math absolutely

So, we'll see. wait and

Duane Pfennigwerth

in in to say if with then analogy. sorry Thanks for taking one sneak baseball revenue could the and Andrew for I last your ability the questions. What availability to And Thanks. premium for you're inventory, respect inning one it? you both push, in the availability, would merchandise

Brad Tilden

upselling on we're as the say the putting I'd as final We're the Yes, sort took now got all innings the to to XXX of and inventory turning a And the all XX we've go got, there in shelf. job do and it. conversions. far of we've there. rest We better ways over to

Duane Pfennigwerth

you. Thank

Brad Tilden

Duane. Thanks,

Operator

Your Barclays. line Brandon next of with the question comes from Oglenski

Matthew Wisniewski

Hey, this Matt on Brandon. actually is Wisniewski for

additional just focused case whether the on impact First to towards is had in could of or growth about potentially be think Congrats, main shift year, quick One I then, you the the markets. not this how levers was regional else? it what line. I pulled returning, the it's Whether year potentially this mitigate should anything utilization about question. utilize, And year. Max Brandon. new that's on But color one thinking get Last we that some

Brandon Pedersen

Yes, distracted sorry, basically, -- got the I I'm on growth…

Matthew Wisniewski

going reasonably, Where was it’s where to geographically be…. it

Brandon Pedersen

regional some The some things want able mod pull, to, that might just possibly we XXX% have well. whether growth lines, And to, really squeeze then out, lines little other more do levers or a we to Airbus we the it's but paint some be is to lease mainline, extensions if as we is don't bit. shrinking needed

Matthew Wisniewski

thank Okay, you.

Brandon Pedersen

Matt. Thanks,

Operator

question Your of Walton UBS. Myles the comes line next with from

Myles Walton

question. your of side, X% of decision? have X% I options fleet main kind decisions you're on is growth the in the main versus and what XXXs and the XXXX looking for to line How the the in planning the from they taking and also did the to of line kind of for Thanks capacity to happen was in evening. the of context intertwined are the sequence? the exercise you for in wondering Good context regional the looking

Brad Tilden

I as all it's the flat just on shared regionals Just year, down. growth mainline this

Andrew Harrison

what done on growth months over recently, going on And question by about as to we the a next and want to plan we end fleet year decisions year a of Yes. do regional the with the fleet for options the to some period over do mainline, the about to we're miles, the several regional XX focus make we've, then we've five bunch of plan EXXX, well.

Myles Walton

operated economically the get fleet going And complexity evaluation of maintain benefit. lay that unique you a maybe Can is as type as that know out second fleet? the single to dual advantage of complexity the and that maybe having fleet what hinted you if the dual I you, single decide and have of of that and the at of you've remarks in a in the guys you to kind past prepared what seen you fleets the costs put,

Brad Tilden

have sure we'll ops. and we the regular of costs of single the maintain every aircraft. training, might there making I planes some provide some sort a the fleet, and I just mean, those We can at -- not if that more specific clearly cities the complicated But gets are just number. the the some right that of soft schedule right, to it flight around make maintenance, so lot revenue need get hard not we it, provisioning crew efficiency during out on quantify it's insignificant Myles, of you a we sorts are get and do just looked right Hey it's and have in a and to dual there hard things, sure associated costs with lost

Myles Walton

right, thanks. All

Operator

line Genovesi of from next Darryl Research. the Your comes with question Vertical

Darryl Genovesi

you the commercial initiatives. follow-up saw Thanks of just XXXX Andrew the Savi outperformance RASM that really to the for the Hey and a industry XXXX despite underperformance time. synergies as in guys. reversed Hi

will ask Particularly domestic to comp more you similar you outperformed to XXXX? in think successful industry start think XXXX? difficult? just be will you when you similarly, get toolbox So quarter actually the second wanted starting prior in the enough say the it you in be in you Do have that when RASM

Andrew Harrison

first here only going and some some year. is share would momentum revenues to what of comment think unit Yes, continue course to we every over but initiatives have to and that quarter, good on I this good again, the I'm I the grow quarter

Darryl Genovesi

for body overall you think But in itself. Investor the the Brandon, the Okay. front advance XX of because work done might And do over have message, then apologize I little differently Brandon Day years? speaks Shane, without completely what a running last

Shane Tackett

Brandon good was a particular but stickler good adopt us a But a I'll lunches, for same not at allowing that, of us the to enjoy was it to expected probably box work reality. message time.

Darryl Genovesi

came that up as CASM X% with in Okay. And this Brandon then this has [Indiscernible] you where you how sympathetic of way ex-guide? feeling Shane to completed airing the now grievances possible, situation when a

Brandon Pedersen

back really the Honestly, really we budget. the not we actually know have where love just to I'm do around, I I place XXXX a to that competitive everybody's getting reinforce question. And dodge aligned discipline advantage. in the

We have that don't rocks but focused that when are you tell I performance. to making comes as cost some And really you cost what the uncertainty sure to capacity, on the this was place respect we I'll thought know with it that advantage. of number headline X%

Darryl Genovesi

Congrats, guys. Right. Thanks lot a Brandon.

Brandon Pedersen

Thanks.

Brad Tilden

Operator, question. more time one we for have

Operator

the of Research. Okay, and Dan McKenzie your question comes last from with Buckingham line

Dan McKenzie

squeezing Nicely done, and for of Thanks else me everybody Hey, Congrats afternoon, Brandon here thanks course. good echoing Shane. here. in everybody.

initiatives I the you light fleet can green questions outlined they more into if you you a I Boeing, window just, couple way that revenue? So of you, booking integrate get specifically my shorter Shane, or offset revenue I you come, Max's filling for before a the And on new once go question once is Andrew I what how months. the booking getting plan so, like, some window, time to bit from kind challenges? to intended on system one And at they much wonder into two are So elaborate the in this of month could are plane is guess service? you how the guess a those building

Brandon Pedersen

pilots got fly. we've got we've Dan, that available to are Yes,

and the that maybe West of to we then these would days. we're the the XX a XX the and given is thing But it day, to market at we're that the what think over we're end build schedule, weave into first revenue going the start into enough will say just be have as I up to I is, able Coast. depending getting off, down on production flexibility, going number this spares to to fly period

Shane Tackett

lift But I we're one sell plan the we it's true, to or think way to the capacity Andrew, if other. going as

the to we So, to right, deploy window, not I'm shorten the going intend booking Max's. but

Dan McKenzie

see. I

then, growth repaired you Virgin the on and this year? prepared reconfiguration at And, seats Okay, premium plan seating premium the the What are reference very good. and of And where fleet? is the in on the the revenue remarks. premium

Brandon Pedersen

units to X opportunity got day, out XXX we've and convert, upsell there, nicely. now seats the the class slow there the and all got growing So to to the we're now going all of that's but growth the really from is conversions is which cabin significantly, the the all XX goes out Dan the premium that the really end where XX of at we've front seats, about

Dan McKenzie

Understood.

for the thanks time Okay, you guys.

Brad Tilden

And I understanding think that is is correct. my

last quarter. said, of tuning our with question Thanks Thanks the was McKenzie Ben quarter talk earnings I about and forward can first a join look after Dan in. you very where for shareholder everybody, being more the we much. part owner's manual. for of you think the I as call for to our and we Thanks, we this hope many talking

Operator

for in will Thank you conference call. air.com. for playback This today's available Alaska future participating be call at

You may disconnect. now

Alaska Air (ALK) 28 Jan 202019 Q4 Earnings call transcript