Conor Cunningham • Melius Research LLC

Answer

Torstein Hagen, Founder, Chairman & CEO, explained that new destinations often use smaller vessels which require higher prices, so they are not dilutive. Regarding China, he confirmed they are marketing directly to Chinese consumers with four ships, a long-term strategy he believes is showing progress. Leah Talactac, President & CFO, also clarified a non-recurring $0.11 adjusted EPS impact from FX losses on Euro-denominated loans in Q2, which has now been mitigated through a natural hedge.

Ask Fintool Equity Research AI

Answer

EVP of Finance Linh Banh clarified that rather than holding back inventory, the company uses its dynamic revenue management system to price according to market conditions. Chairman and CEO Torstein Hagen addressed costs by highlighting the inherent efficiencies of their vessel designs, which makes them resilient to inflation. Banh added that while they expect SG&A leverage, they remain committed to investing in product quality.

Ask Fintool Equity Research AI

Answer

EVP of Finance Linh Banh clarified that rather than holding back inventory, the company uses its dynamic pricing system to react to market sentiment, citing a recent 2% rate increase for Rivers as an example. Chairman and CEO Torstein Hagen highlighted structural cost advantages from efficient vessel design. Banh added that cost management focuses on internal discipline and leveraging scale in SG&A while protecting product quality.

Ask Fintool Equity Research AI

Answer

CFO Leah Talactac emphasized the significant whitespace for growth within their primary markets and expansion in Asia, making core fleet growth the priority. EVP of Finance Linh Banh added that the Russia/Ukraine ships could be brought back online relatively quickly if possible, but noted they are older, refurbished ships with lower margins than the modern longships.

Ask Fintool Equity Research AI

Answer

CEO Ariane Gorin explained that for the consumer business, the international strategy is a focused approach on specific markets like Japan, Brazil, and Northern Europe, where they believe they can drive outsized growth. CFO Scott Schenkel noted that booking windows had shortened in Q2 but saw a pivot in early Q3 as cancellations were rebooked.

Ask Fintool Equity Research AI

Answer

CFO Scott Schenkel stated there were no unusual booking curve dynamics beyond the previously mentioned softness in U.S. domestic and inbound travel. CEO Ariane Gorin highlighted strong international performance in the B2B business, with 30% room night growth in APAC, and noted that consumer brand investments are surgical, with Brand Expedia seeing mid-teens growth in key Western European markets.

Ask Fintool Equity Research AI

Answer

CEO Ariane Gorin described the marketing improvements as an ongoing process of becoming more sophisticated in analyzing returns across marketing, loyalty, and promotional spending by brand and geography. She highlighted that packages and bundling are core to the Expedia brand's DNA, as they provide great value to travelers and drive higher repeat rates. This will remain a key area of focus.

Ask Fintool Equity Research AI

Answer

CEO Ariane Gorin explained that the added inventory allows Vrbo to target a new market segment focused on more urban, shorter stays, though it is still early to assess returns. On the second question, she emphasized that selling multiple items is 'core DNA' for Brand Expedia and has always been a central part of its strategy, with continuous improvements in personalization and user experience driving attach rates.

Ask Fintool Equity Research AI

Answer

CFO Joan Bottarini explained that Q3 faces challenging year-over-year comparisons from one-time events in 2024, while Q4 has easier comps and positive group pace. She noted that while Hyatt is optimistic about the credit card renewal, specifics will be shared later in the year or early next. CEO Mark Hoplamazian added that group pace heading into 2026 is extremely strong.

Ask Fintool Equity Research AI

Answer

CFO Joan Bottarini noted that while April was unusual due to Easter, preliminary results were positive, driven by strong momentum in Asia (ex-China) and the all-inclusive business. She said May and June would offer a clearer view of demand trends, particularly in the weaker upscale segment, which they are watching closely.

Ask Fintool Equity Research AI

Answer

President and CEO Mark Hoplamazian confirmed that M&A activity will 'definitely calm down' as the company focuses on optimizing its current brand portfolio. Regarding asset sales, he clarified that no hotels are 'off limits' and that Hyatt is actively pursuing dispositions to achieve its target of 90% fee-based earnings by 2027.

Ask Fintool Equity Research AI

Answer

President and CEO Mark Hoplamazian stated that while initial acquisition multiples appear high, Hyatt underwrites deals to achieve a low double-digit multiple on a run-rate basis after integration. He noted that Hyatt's last four acquisitions are tracking below a 10x multiple and that the company has significant 'white space' to add properties in underpenetrated markets, which is a key strategic advantage.

Ask Fintool Equity Research AI

Answer

President & CEO Anthony Capuano described the network as a platform for brands to connect with travelers using Marriott's deep guest insights for bespoke campaigns. While too early to quantify the economics, he noted that early interest has been strong. CFO Leeny Oberg added that it is a high-return adjacent business and that profits will be shared with hotel owners.

Ask Fintool Equity Research AI

Answer

CEO Tony Capuano revealed that group bookings for 2026 are currently tracking up 7%, with a healthy split between occupancy and rate. In response to a potential downturn, Mr. Capuano emphasized consistency, stating the company will continue to execute its existing long-term, deliberate growth strategies across all regions regardless of the economic cycle.

Ask Fintool Equity Research AI

Answer

CEO Tony Capuano explained the tech transformation will benefit associates, guests, and owners by simplifying processes and creating revenue opportunities beyond room sales. CFO Leeny Oberg added that the rollout will take several quarters. Regarding RevPAR, she expects 2025 growth to be more heavily weighted towards ADR, with group leading growth, followed by business transient and then leisure.

Ask Fintool Equity Research AI

Answer

President and CEO Tony Capuano described corporate travel recovery as a 'slow and steady' grind upwards, encouraged by the continued return of large corporate accounts. CFO and EVP, Development Leeny Oberg stated that direct bookings remain steady in the low 70% range, with the OTA mix also consistent at 12-13%. She noted a slight increase in GDS bookings, reflecting the return of larger corporations.

Ask Fintool Equity Research AI

Answer

SVP & CCO Drew Wells estimated that 35-40% of Q3 and about 85% of Q4 were left to book. President and CEO Gregory Anderson explained that there is no single public benchmark for growth, but internally they focus on restoring historical margins, strengthening the balance sheet, and their cost of capital. He emphasized a focus on the core business model rather than growth for its own sake.

Ask Fintool Equity Research AI

Answer

CCO Drew Wells explained the capacity cuts were designed to maximize margin by ensuring flights cover variable costs, which most still do. CEO Greg Anderson added that they will aggressively manage second-half capacity as needed. On strategy, Anderson emphasized that Allegiant's flexible model is built for downturns and that while consolidation is not a requirement, the company remains open to all opportunities to drive shareholder value. CFO Robert Neal noted they are avoiding deeper cuts to preserve infrastructure for the eventual recovery.

Ask Fintool Equity Research AI

Answer

CFO Robert Neal explained that Q1's strong CASM-ex improvement is due to favorable comparisons against elevated crew training costs and the absence of the new flight attendant contract in Q1 2024. CCO Drew Wells added that the schedule-building process is fundamentally unchanged but is focused more on absolute dollar contribution than margin percentage in 2025.

Ask Fintool Equity Research AI

Answer

President Marty St. George acknowledged the concern, stating JetBlue will fly to its annual ASM guide, which implies some capacity will be pulled from Q4 schedules, particularly during trough periods. CFO Ursula Hurley clarified that the CASM-ex benefit is from booking gains on various asset sales, including E190s and XLR aircraft, which have been better than anticipated. The full-year gain is expected to be a 1.25-point benefit to CASM-ex.

Ask Fintool Equity Research AI

Answer

President Marty St. George responded with an 'absolutely yes.' He cited strong customer response and growth in markets like Providence, Bradley, Manchester, and Islip as proof that JetBlue is successfully attracting new customers, even in competitive environments. He asserted that in its core Northeast regions, JetBlue is becoming the 'default carrier for leisure,' justifying further growth in markets where customers show strong demand.

Ask Fintool Equity Research AI

Answer

President & CEO Jason Liberty confirmed the company has a co-branded credit card but is working to enhance its integration with the loyalty program in a more meaningful way, with changes coming soon. He stressed the focus is on loyalty that impacts guest behavior, leading to higher repetition and lifetime value. CFO Naftali Holtz clarified the Q4 yield impact, explaining that Celebrity XL's mid-November launch creates a ramp-up period similar to Star of the Seas in Q3. He also noted that fewer dry dock days in Q4 2025 compared to Q4 2024 create a drag on year-over-year yield comparisons, quantifying the combined impact at approximately 90 basis points.

Ask Fintool Equity Research AI

Answer

CEO Jason Liberty stated that the strong value proposition of cruising serves as a significant buffer in uncertain economic times, as consumers know the quality and cost of the experience upfront. He explained that the pace of share buybacks is constrained by remaining net worth covenants from the COVID era, not by a lack of conviction, and the company is focused on recapturing dilution as soon as covenants allow.

Ask Fintool Equity Research AI

Answer

CFO Naftali Holtz explained that the cost cadence primarily follows the dry-dock schedule and ramp-up costs for new destinations. CEO Jason Liberty addressed the demographic question, stating the focus is on leveraging their own customer base, where the average Celebrity guest is in their mid-50s, rather than chasing a competitor's clientele.

Ask Fintool Equity Research AI

Answer

CFO Naftali Holtz outlined a balanced capital allocation strategy: maintaining a strong balance sheet, investing in strategic growth, growing the dividend, and considering opportunistic buybacks. He and CEO Jason Liberty confirmed that costs from new investments are managed holistically within their 'strong cost control' framework, emphasizing that these investments are expected to be margin-accretive and drive higher returns.

Ask Fintool Equity Research AI

Answer

CFO Brian Dykes responded that the number of second-half facility closures is still under evaluation, as it depends on both the Amazon volume reduction and the broader macroeconomic outlook. He reported that 64% of volume was handled by automated facilities in Q2, an increase from 60% a year prior, which enhances network efficiency and flexibility. CEO Carol Tomé firmly stated that the entire strategic pivot, including these actions, is fundamentally designed to expand U.S. margins.

Ask Fintool Equity Research AI

Answer

CEO Ben Minicucci explained the Q4 optimism is based on positive momentum starting earlier than last year, coupled with merger synergies. CFO Shane Tackett affirmed the stock is undervalued and that while H1 buybacks were aggressive, future repurchases will be balanced against earnings performance, without financing them through debt.

Ask Fintool Equity Research AI

Answer

Executive Shane Tackett affirmed the $10 EPS target, explaining that all controllable factors like commercial initiatives, synergies, and cost management were on or ahead of plan in Q1. He expressed confidence that when the macro environment rebounds, the company is best positioned to capitalize. Andrew Harrison added that for Q2, April demand was stronger while May and June were softer, reflecting more exposure to the recent downturn.

Ask Fintool Equity Research AI

Answer

CCO Andrew Harrison confirmed the increase was driven by both factors, noting that reconfiguring flights to maximize connectivity in the low-demand months of January and February was highly effective. CEO Benito Minicucci added that Seattle's scale, with 350-400 daily flights, provides significant connection opportunities. Harrison stated that while spring is just starting to book, he expects a very strong spring break season, supported by ongoing network synergies.

Ask Fintool Equity Research AI

Answer

CFO Shane Tackett stated the CapEx would be roughly $1 million per airplane, spread over a couple of years, and confirmed no issues with MRO capacity. On seasonality, CEO Benito Minicucci and CCO Andrew Harrison explained they are being more judicious with off-peak capacity and are attacking weaker periods with a portfolio of initiatives, including digital platform monetization, loyalty program enhancements, and better merchandising, not just network changes.

Ask Fintool Equity Research AI

Answer

CEO Robert Isom confirmed that while July was tough, booking trends for August and September show improvement, with Q3 about 65% booked. CFO Devon May added that they see significant potential for margin expansion going forward, citing the improving domestic market, the new Citi credit card agreement starting in 2026, and ongoing investments in the premium customer experience as key tailwinds.

Ask Fintool Equity Research AI

Answer

Vice Chair Steve Johnson stated that current inventory systems are properly set up to manage weak main cabin demand. He affirmed that Chicago and New York are key network hubs where the company is not losing share and that their presence is critical for corporate clients.

Ask Fintool Equity Research AI

Answer

CEO Robert Isom stated the forecast is based on current information, but believes American will outperform if the industry does better than expected. CFO Devon May noted the guidance midpoint of $2.20 represents a solid 10%+ year-over-year improvement. Vice Chair Steve Johnson clarified that while new Citi agreement economics start in 2026, he expects partners to overperform on new business minimums in 2025 as part of the ramp-up.

Ask Fintool Equity Research AI

Answer

CEO Robert Isom stated there is a clear preference for premium products, evidenced by an 8% rise in premium revenue, and noted American is expanding its premium seating by 20% by 2026. Vice Chair Steve Johnson addressed the corporate recovery, detailing a multi-step process of rebuilding relationships and infrastructure. He emphasized that partners see value in a competitive three-airline market, implying the goal is a sustainable, long-term profitable relationship rather than simply discounting.

Ask Fintool Equity Research AI

Answer

CEO Scott Kirby affirmed that the supply-side thesis remains intact, with the key difference this year being a weaker demand environment in the first half. He believes the industry is seeing a growing dispersion in results, favoring the two 'brand loyal' airlines. EVP & CCO Andrew Nocella explained that the softer Q2 demand environment created more open booking availability for Q3, which will likely result in a higher penetration of Basic Economy passengers in the quarter.

Ask Fintool Equity Research AI

Answer

CEO Scott Kirby explained that United's focus is on building the best airline for its own customers, which naturally creates a competitive gap, rather than explicitly targeting spill carriers. EVP and CFO Mike Leskinen detailed that reaching the full-year guide depends on stable booking trends, excellent cost management, lower second-half fuel costs, and profit-maximizing capacity cuts, noting the original contingency buffer is now gone.

Ask Fintool Equity Research AI

Answer

EVP and CCO Andrew Nocella stated that the Basic Economy strategy remains highly effective and will not change in 2025. Regarding fleet, he described 2025 as a 'pause year' for gauge growth due to delays, but reaffirmed it as a major margin tailwind for 2026 and beyond. CFO Mike Leskinen added that the CASM-ex benefit from upgauging is not factored into 2025 guidance.

Ask Fintool Equity Research AI

Answer

EVP & CCO Andrew Nocella outlined a focus on building mid-continent hub connectivity, investing in customer products, and capitalizing on accelerating corporate traffic. CEO Scott Kirby added that competitor capacity discipline and struggles create a multiyear opportunity for significant margin expansion, similar to the 2012-2014 period.

Ask Fintool Equity Research AI

Answer

President Glen Hauenstein explained that confidence comes from long-haul international travel inflecting up in the shoulder season and domestic trends moving in the right direction. CEO Ed Bastian noted the wide guidance range reflects remaining uncertainty. CFO Dan Janki detailed the H2 cash flow drivers, including pacing of investments, normalization of the booking curve, and releasing working capital built up in maintenance and operations.

Ask Fintool Equity Research AI

Answer

President Glen Hauenstein explained that long-haul international is expected to inflect positively post-summer, with domestic trends also moving in the right direction. CFO Dan Janki detailed the free cash flow drivers, including paced investments, normalization of the booking curve, and a significant release of working capital, particularly from maintenance materials. He also noted cash taxes would be deferred.

Ask Fintool Equity Research AI

Answer

President Glen Hauenstein stated that while they are monitoring the situation closely, they have not yet seen a spillover, noting strong cash sales for long-haul travel continue. CEO Ed Bastian added that historically, Delta has been advantaged during economic dislocations and expects the company to emerge stronger from the current environment.

Ask Fintool Equity Research AI

Answer

President Glen Hauenstein highlighted a very strong demand period with record sales days in early January, suggesting a robust year ahead. He also noted a favorable competitive capacity setup in the transatlantic for spring and summer, expecting another record year, aided by the absence of the Paris Olympics headwind that impacted the prior year.

Ask Fintool Equity Research AI

Answer

CFO Dan Janki and President Glen Hauenstein emphasized a consistent strategy of generating free cash flow and paying down debt to build a durable franchise. CEO Ed Bastian added that Delta has a 15-year head start on its premium platform, making it difficult for others to catch up, and will continue to accelerate investments in lounges, free WiFi, and personalization.

Ask Fintool Equity Research AI

Answer

EVP & CCO Brie Carere affirmed they are hitting pickup and delivery savings targets but explained the financial flow-through is lagged. This is due to the upfront costs of implementation and building in service contingencies to avoid revenue breakage. She reiterated confidence in the $2 billion savings target by fiscal 2027.

Ask Fintool Equity Research AI

Answer

EVP & CCO Brie Carere expressed satisfaction with the program's execution, noting they are hitting pickup and delivery savings targets. She explained the financial benefits are lagged due to the upfront costs of implementation and service contingencies required to prevent revenue breakage. She reaffirmed the company is on track for the $2 billion savings target by FY27.

Ask Fintool Equity Research AI

Answer

EVP and CFO John Dietrich explained the 777s were acquired at attractive prices and support long-term growth projections in the international freight market. He noted the MD-11 retirement was extended to FY'32 to support international economy growth, as the assets are mostly depreciated but have useful life left, providing network flexibility.

Ask Fintool Equity Research AI

Answer

EVP and CFO John Dietrich clarified that while pricing actions are helping, revenue expectations are constrained across the board due to weakness in the U.S. industrial economy. He noted that demand for high-margin U.S. premium services is expected to remain muted, pressuring overall operating income. President and CEO Raj Subramaniam added that with 60% of Express and 90% of LTL revenue tied to B2B, the prolonged industrial downturn, now 24 of the last 25 months, is the primary factor.

Ask Fintool Equity Research AI

Answer

CFO David Bernstein broke down the Q3 cost increase, attributing about one percentage point to Celebration Key, one point to the absence of prior-year one-time benefits, and just over a point combined to higher advertising and lower capacity. CEO Josh Weinstein added that while the new loyalty program will be supercharged by the credit card, specific cardholder data is not disclosed. He emphasized the card is a key part of the strategy but not required to participate in the program.

Ask Fintool Equity Research AI

Answer

CFO David Bernstein detailed the 7% Q3 cost increase, attributing approximately one percentage point to Celebration Key operating expenses, one point to the absence of prior-year one-time benefits, and just over a point to a combination of advertising and lower capacity. CEO Josh Weinstein added that the new loyalty program will have a distinct tie to the co-branded credit card, allowing members to 'supercharge' earnings, but a card is not required to participate.

Ask Fintool Equity Research AI

Answer

CEO Josh Weinstein identified the company's policy of not hedging commodities as a natural hedge in a downturn. He affirmed the marketing strategy is working, citing a 24% yield increase over the last two years as proof. He noted that while ad spend is up, it's unlocking demand effectively without requiring new ship capacity.

Ask Fintool Equity Research AI

Answer

CEO Josh Weinstein declined to comment on the future booking profile but noted the company's portfolio approach targets all generations, from millennials on Carnival Cruise Line to boomers on Holland America and Cunard. Regarding Celebration Key, he confirmed they are seeing a pricing premium and strong interest, but since all Carnival ships are scheduled to go, there is no direct control group to measure a halo effect against. He expects the real impact will come after the destination opens.

Ask Fintool Equity Research AI

Answer

CEO Brian Chesky agreed it is 'absolutely something that we're looking at.' He distinguished his vision from a simple points-based subsidy, suggesting a potential paid membership program that offers differentiated services and increases share of wallet, similar to how Amazon Prime increased usage frequency. The goal would be to get customers to use Airbnb more frequently, not just for annual travel.

Ask Fintool Equity Research AI

Answer

CEO Harry Sommer explained that while revenue management tactics are reviewed, the core philosophy of maintaining price integrity remains, especially for future periods. He volunteered that marketing spend is increasing and is factored into the cost guidance. CFO Mark Kempa elaborated that cost savings are system-wide, stemming from eliminating waste, leveraging supply chain efficiencies, and technology, not from cutting guest-facing products or services.

Ask Fintool Equity Research AI

Answer

CFO Mark Kempa described revenue management as a process of 'continuous refinement and improvement' rather than a sweeping change, calling it both an art and a science. CEO Harry Sommer stated there have been no meaningful changes in the mix of new-to-cruise guests, which remains at a level they are happy with. He added that a data science team constantly works to optimize marketing efforts, but did not provide specific ROI figures.

Ask Fintool Equity Research AI

Answer

CEO Harry Sommer confirmed that 2025 yield changes will be driven almost entirely by pricing, as occupancy is expected to be stable. He characterized improvements in revenue management as evolutionary rather than revolutionary, but noted a new focus on applying revenue management principles to onboard products, which contributed to recent strength. Sommer also stated that nearly all customers purchase some form of pre-booked onboard amenity before their cruise.

Ask Fintool Equity Research AI

Answer

CFO Tom Doxey stated that cost improvements are happening across the entire company, not from a single item, reflecting broad-based discipline. COO Andrew Watterson added that Southwest has a pipeline of future initiatives to strengthen its value proposition and is not waiting for current ones to mature before planning the next steps. He confirmed the loyalty program is self-reinforcing, with a strong new Chase agreement and new card offers coming soon.

Ask Fintool Equity Research AI

Answer

CEO Bob Jordan stated that while he couldn't give a specific percentage, the initiatives currently in place, primarily revenue management, have them on track to achieve the 2025 target. He also confirmed they are on track for headcount reductions and may consider tools like early outs as part of their broader cost plan, with COO Andrew Watterson adding context on improving workforce efficiency.

Ask Fintool Equity Research AI

Answer

CEO Barry Biffle asserted that Frontier's model is validated, claiming it has one of the best domestic-only margins when accounting for loyalty subsidies at other carriers. He believes the domestic market still has too much capacity and expects market forces to continue driving cuts until carriers reach their target margins. Biffle explained that the biggest benefit of scale for Frontier is on the revenue side, specifically in growing its loyalty program, where moving from low-single-digit to upper-single-digit revenue per passenger presents a multi-hundred-million-dollar opportunity.

Ask Fintool Equity Research AI