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    James Baker • JPMorgan Chase & Co.

    James Baker's questions to Frontier Group Holdings Inc (ULCC) leadership

    James Baker's questions to Frontier Group Holdings Inc (ULCC) leadership • Q2 2025

    Question

    James Baker asked for Frontier's perspective on the competitive sale-leaseback market and inquired why the company does not provide monthly RASM disclosures.

    Answer

    CEO Barry Biffle and President Jimmy Dempsey expressed confidence in the financing market, noting that Frontier's favorable aircraft acquisition costs drive strong sale-leaseback economics and that they have financing committed 12-24 months out. Biffle explained they avoid monthly reporting to prevent market overreactions to short-term volatility, but emphasized that the industry is moving away from unsustainably low fares.

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    James Baker's questions to AerCap Holdings NV (AER) leadership

    James Baker's questions to AerCap Holdings NV (AER) leadership • Q2 2025

    Question

    Jamie Baker of JPMorgan Chase & Co. asked if the industry is at peak returns given the gap between lease rates and debt costs, and whether AerCap would increase leverage back to its target or aim for a higher credit rating.

    Answer

    CEO Aengus Kelly affirmed the company's discipline in targeting an 8-10% return over treasury rates and avoiding unprofitable deals. CFO Pete Juhas stated the intention is to run leverage closer to the 2.7x target rather than lowering it for a potential ratings upgrade, prioritizing shareholder returns over credit metrics at this stage.

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    James Baker's questions to AerCap Holdings NV (AER) leadership • Q2 2025

    Question

    James Baker from JPMorgan Chase & Co. asked if the industry is at "peak returns," citing concerns about competing capital, and questioned whether AerCap would increase its leverage back to its target or lower the target to achieve a higher credit rating.

    Answer

    CEO Aengus Kelly asserted that AerCap consistently passes on interest costs and targets an 8-10% return over treasury rates, exercising discipline by walking away from deals that don't meet its criteria. CFO Pete Juhas stated the company intends to run leverage closer to its 2.7x target, likely in the 2.4x-2.5x range, rather than lowering the target. He emphasized that the focus is on maximizing shareholder returns, and while an A- rating would be positive, it's not the primary goal at the expense of returns.

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    James Baker's questions to Alaska Air Group Inc (ALK) leadership

    James Baker's questions to Alaska Air Group Inc (ALK) leadership • Q2 2025

    Question

    James Baker requested clarification on when premium and other non-main cabin revenues are expected to surpass 50% of total revenue. He also asked about the company's industry supply forecast for Q4, questioning if capacity would tighten as much as in Q3.

    Answer

    CCO Andrew Harrison clarified that premium revenue currently constitutes about 35% of total revenue. CFO Shane Tackett added that the goal for revenue outside the main cabin (including loyalty, cargo, etc.) is to reach the mid-50% range. Regarding capacity, Tackett stated the Q4 setup in Alaska's key markets looks constructive and is likely to improve further.

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    James Baker's questions to American Airlines Group Inc (AAL) leadership

    James Baker's questions to American Airlines Group Inc (AAL) leadership • Q2 2025

    Question

    James Baker of JPMorgan Chase & Co. asked for an approximation of the percentage of American's flights that operate at a loss and inquired about the strategy to improve the profitability of its network.

    Answer

    CEO Robert Isom did not provide a specific percentage, instead emphasizing that American operates a hub-and-spoke network where system-wide results are key. He attributed the current margin gap to peers to paying full market wages and a higher exposure to the temporarily weak domestic market, which he views as a future tailwind. He expressed confidence in the airline's long-term strategy to improve margins and deliver on its revenue potential.

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