Jacob

Jacob asked about the implications of Volaris' flat fleet count through 2030 for multi-year capacity growth and potential CapEx. He also requested details on the number of planes being returned in 2026 and the associated redelivery expenses.

Answer

Jaime Pous, CFO, explained that the 7% capacity growth (with flexibility) through 2030 would come from making unproductive fleet productive, managed through aircraft redeliveries and Airbus deliveries. He confirmed 14 aircraft returns in 2026, with the estimated $350 million CapEx for the year covering redelivery expenses and major maintenance for AOG reduction.

Jacob inquired about the implications of Volaris' flat fleet count through 2030 for multi-year capacity growth and potential capital expenditures, and also asked for details on the number of aircraft being returned in 2026 and their associated redelivery expenses.

Answer

CFO Jaime Pous stated that the 7% capacity growth (with flexibility) through 2030 would be achieved by increasing the productive fleet from currently grounded aircraft, rather than increasing the total fleet size. He confirmed 14 aircraft are being returned in 2026, with an estimated CapEx of $350 million for redelivery and major maintenance to reduce Aircraft on Ground (AOGs).

Jacob inquired about safety considerations for ARV-102 in the upcoming ADPD readout, particularly concerning lung biology, and whether dose selection from Parkinson's disease studies would directly apply to PSP.

Answer

Chief Medical Officer Noah Berkowitz noted that the Parkinson's disease patient study involved 28 days of treatment, with standard safety observations. He highlighted the importance of pulmonary function monitoring, as recommended by the LIGHT Initiative, for LRRK2 targeting agents. He also stated that dose selection is expected to be very related between Parkinson's and PSP due to shared underlying disease mechanisms.

Jacob asked about safety expectations for ARV-102 at the upcoming ADPD readout, considering the lung biology associated with LRRK2, and whether dose selection for Parkinson's disease would directly apply to PSP.

Answer

Randy Teel (President and CEO) and Noah Berkowitz (CMO) stated that the ADPD readout will include safety data for 28 days of treatment in Parkinson's patients, with standard observations and pulmonary function monitoring. Noah Berkowitz confirmed that dose selection is expected to be very related between Parkinson's and PSP due to shared toxic gain-of-function mutations and endolysosomal pathway activation.

Jacob, representing Kevin Kopelman from TD Cowen, inquired about any changes in traffic from Google due to advanced AI features in travel and the key drivers behind the 27% year-over-year increase in B2B direct sales and marketing costs.

Answer

CEO Ariane Gorin stated that Expedia is not seeing material changes in Google traffic currently but is aggressively experimenting and partnering with Google to ensure brand visibility. She views AI search as an opportunity for better targeting and conversion. CFO Scott Schenkel clarified that the B2B marketing expense increase was aligned with the 24% revenue growth, reflecting a commission-based model recognized at the time of stay.

Jacob (in for Kevin Kopelman) asked if Expedia is observing changes in traffic from Google due to advanced AI features in travel, and about the key drivers behind the 27% year-over-year increase in B2B direct sales and marketing costs.

Answer

CEO Ariane Gorin stated that Expedia is not seeing material changes in Google traffic currently but is aggressively experimenting and partnering with Google and others to ensure brand visibility. She believes AI search opens new opportunities for targeting and conversion. CFO Scott Schenkel clarified that the B2B marketing cost increase was aligned with the 24% revenue growth, as it primarily reflects a commission model recognized at the time of stay, rather than traditional marketing spend.