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    Michael Linenberg • Deutsche Bank

    Michael Linenberg's questions to Copa Holdings SA (CPA) leadership

    Michael Linenberg's questions to Copa Holdings SA (CPA) leadership • Q2 2025

    Question

    Michael Linenberg from Deutsche Bank AG asked for more detail on regional demand, specifically Central America-to-U.S. and domestic Colombia, and inquired about the growth and strategic importance of Copa's premium and ancillary revenue streams.

    Answer

    CEO Pedro Heilbron confirmed the Central America-to-U.S. market is currently weaker due to overcapacity, but it is not a major market for Copa. He also noted that domestic Colombia is performing well, benefiting the Wingo subsidiary. On premium revenue, Heilbron agreed Copa has a competitive advantage and is improving monetization, seeing 'a lot of upside' in this area.

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    Michael Linenberg's questions to Copa Holdings SA (CPA) leadership • Q1 2025

    Question

    Michael Linenberg asked for the rationale behind the resilient RASM guidance despite lower fuel costs, questioning if slower capacity growth was a factor. He also requested details on the new codeshare agreement with Volaris and its potential impact in Mexico.

    Answer

    CEO Pedro Heilbron explained that the RASM guidance reflects current, limited visibility and that the airline is capacity-constrained, not oversupplied. He described the Volaris agreement as a positive development that will provide valuable feed from Mexico's large domestic market, which is separate from the more pressured Mexico-U.S. market.

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    Michael Linenberg's questions to Copa Holdings SA (CPA) leadership • Q4 2024

    Question

    Michael Linenberg asked for clarification on Wingo's capacity plans, which appeared to be shrinking, and questioned the strategy behind adding a second cargo freighter, including its potential impact on revenue and margins.

    Answer

    CEO Pedro Heilbron clarified that Wingo is not shrinking; it is receiving a tenth aircraft in H2 and any temporary schedule changes are for maintenance during the low season. Regarding cargo, he stated that while the first freighter was very successful with high margins, adding a second one (via an operating lease) will not have a significant overall impact, as most cargo revenue still comes from passenger aircraft bellies. The second plane provides backup and supports a niche operation.

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    Michael Linenberg's questions to Copa Holdings SA (CPA) leadership • Q3 2024

    Question

    Michael Linenberg asked about the competitive environment in Colombia, the rationale for temporarily exiting four markets, and the nature of compensation from Boeing for aircraft delivery delays.

    Answer

    CEO Pedro Heilbron stated that Copa remains pragmatic about growth in Colombia and that market stabilization would be positive. He clarified that the temporary exit from four markets (two in Mexico, one in Colombia, one in the Dominican Republic) is a strategic redeployment of capacity due to Boeing delivery delays, not market failure, with plans to return by late 2025. CFO Jose Montero added that while contractual relief for Boeing delays is confidential, it would flow through as reduced capital expenditures.

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    Michael Linenberg's questions to Frontier Group Holdings Inc (ULCC) leadership

    Michael Linenberg's questions to Frontier Group Holdings Inc (ULCC) leadership • Q2 2025

    Question

    Michael Linenberg questioned the rationale behind the unusually wide Q3 guidance range and asked for clarification on the comment that all domestic airline capacity is currently losing money.

    Answer

    CEO Barry Biffle attributed the wide guidance range to recent market volatility, including a sales dip in June, and the uncertainty of booking the remainder of the quarter, despite currently strong forward yield trends. He clarified his belief that when stripping out international routes and ancillary benefits like co-brand revenue, the core domestic flying operations for most U.S. carriers are unprofitable at present.

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    Michael Linenberg's questions to Frontier Group Holdings Inc (ULCC) leadership • Q1 2025

    Question

    Michael Linenberg of Deutsche Bank inquired about the decline in average fares despite the launch of premium products and asked if shrinking capacity in the latter half of the year would lead to a greater focus on core, profitable markets.

    Answer

    CEO Barry Biffle explained that the average fare was dragged down by a significant, unexpected drop in demand and load factors in March, which constituted a large portion of the quarter's planned capacity. He confirmed that premium products are performing well. Biffle also affirmed that shrinking the network would create a "good tailwind" by reducing developmental routes and focusing on core markets, noting that booking trends have recently begun to stabilize.

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    Michael Linenberg's questions to Frontier Group Holdings Inc (ULCC) leadership • Q4 2024

    Question

    Michael Linenberg asked about the exceptionally strong RASM in December, the potential impact of the Easter holiday shift on Q1, and for clarification on the company's Net Operating Loss (NOL) position and future cash tax obligations.

    Answer

    CEO Barry Biffle confirmed December was very strong and noted the Easter shift is a 1-2 point drag on Q1 but is generally beneficial for the first half overall. Chief Commercial Officer Bobby Schroeter added that spring break demand in March is strong. President James Dempsey highlighted that capacity is deployed to match peak travel weeks in March and April. CFO Mark Mitchell explained that the remaining $19 million valuation allowance will be released as earnings are generated, impacting the tax rate. He stated the NOL benefit is not a multi-year item and will likely be utilized this year.

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    Michael Linenberg's questions to Allegiant Travel Co (ALGT) leadership

    Michael Linenberg's questions to Allegiant Travel Co (ALGT) leadership • Q2 2025

    Question

    Michael Linenberg inquired about the discrepancy between Allegiant's full-year consolidated and airline-only EPS guidance, specifically questioning the impact of Sunseeker Resort's losses. He also sought clarification on the terms of the Sunseeker sale, asking if the $200 million proceeds were clean or had other associated impacts.

    Answer

    President and CEO Gregory Anderson clarified that the guidance assumes the Sunseeker sale closes in September, after which its results will be excluded. He confirmed the transaction is a 100% sale to Blackstone for $200 million in cash proceeds to Allegiant upon closing, with no other residual stakes or complex impacts mentioned.

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    Michael Linenberg's questions to Allegiant Travel Co (ALGT) leadership • Q1 2025

    Question

    Michael Linenberg asked for key modeling inputs, including the fuel price assumption for the year and the revised full-year 2025 capacity growth forecast. He also sought clarification on the significant year-over-year decrease in 'other operating expenses' and the size of the associated gain on asset sales.

    Answer

    CFO Robert Neal provided a fuel price assumption of $2.40 per gallon. CCO Drew Wells stated the current full-year capacity growth forecast is around 13%, though CEO Greg Anderson added a bias to cut further if demand weakens. Neal explained the drop in 'other operating expenses' was driven by a gain on asset sales (smaller than in Q4 2024) and a reduction in non-salary flight crew expenses. He noted no gains are planned for Q2, but the asset sale program will continue in the second half of the year.

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    Michael Linenberg's questions to Allegiant Travel Co (ALGT) leadership • Q4 2024

    Question

    Michael Linenberg asked about the typical seasonality of the Sunseeker resort and requested an update on the total accrued amount for the pilot retention bonus.

    Answer

    President and CEO Gregory Anderson explained that for Sunseeker, Q1 is the strongest quarter, followed by Q4, with summer being the softest period. Chief Financial Officer Robert Neal stated that the pilot bonus accrual was just under $140 million at year-end 2024 and is expected to increase by approximately $22.5 million per quarter in 2025.

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    Michael Linenberg's questions to Allegiant Travel Co (ALGT) leadership • Q3 2024

    Question

    Michael Linenberg sought to clarify if the revised Sunseeker guidance accounts for potential insurance claims for damages or just booking impacts. He also asked for the total value of Allegiant's unencumbered assets, including its fleet.

    Answer

    President and CEO Gregory Anderson confirmed the Sunseeker guidance reflects revenue loss, while any physical damage claims would be handled separately. CFO Robert Neal quantified the company's unencumbered assets, stating that 51 aircraft are unencumbered, and the total value including spare engines and under-levered assets is approximately $650 million to $700 million.

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    Michael Linenberg's questions to Sun Country Airlines Holdings Inc (SNCY) leadership

    Michael Linenberg's questions to Sun Country Airlines Holdings Inc (SNCY) leadership • Q2 2025

    Question

    Michael Linenberg of Deutsche Bank sought to quantify the expected margin drag in Q3 due to the cargo ramp-up and underutilized passenger fleet. He also asked about any observed changes in consumer booking behavior and the booking status for the December quarter.

    Answer

    CEO Jude Bricker estimated the Q3 margin drag to be around $10 million, or 4 percentage points. He stated that Sun Country is not seeing the same booking weakness as others, with strong demand and unit revenue improvements. He noted bookings are strong into the winter, and CFO Bill Trousdale confirmed the December quarter was booked in the mid-teens.

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    Michael Linenberg's questions to Sun Country Airlines Holdings Inc (SNCY) leadership • Q1 2025

    Question

    Michael Linenberg asked about demand trends through Q1 and into April, the rationale for tripling the revolver credit facility, and details on new gate capacity at the Minneapolis airport, including cost advantages.

    Answer

    CEO Jude Bricker noted a rapid acceleration in close-in fares for April and the summer, contrasting with some peers. CFO William Trousdale explained the revolver upsize was opportunistic, providing flexibility for asset buys or M&A. Bricker also confirmed they gained two new gates and are absorbing more common use gates at their dedicated, lower-cost terminal in Minneapolis, calling it a "strategic advantage."

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    Michael Linenberg's questions to Sun Country Airlines Holdings Inc (SNCY) leadership • Q4 2024

    Question

    Michael Linenberg from Deutsche Bank asked if Sun Country's planned capacity reduction in spring and summer could create opportunities for competitors to gain share. He also inquired about downside risk protection within the Amazon cargo contract, especially concerning potential tariffs.

    Answer

    CEO Jude Bricker explained that Sun Country's flexible model allows it to serve markets that are not viable for other carriers' daily, high-frequency models, so he is not concerned about competitors backfilling capacity. Regarding the Amazon contract, President and CFO David Davis and Jude Bricker clarified that the structure includes a fixed rate per aircraft plus a block hour rate, which functions as a de facto minimum and insulates them from risks related to aircraft load factor.

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    Michael Linenberg's questions to Sun Country Airlines Holdings Inc (SNCY) leadership • Q3 2024

    Question

    Shannon Doherty, on for Michael Linenberg, asked about the driver for the 48% year-over-year increase in 'other revenue' and inquired about the company's approach to balancing free cash flow between share buybacks and other uses, given the stock's limited liquidity.

    Answer

    President and CFO David Davis explained that the primary driver of higher 'other revenue' is income from aircraft leased to other carriers. On capital allocation, Davis stated the company is focused on rapidly amortizing debt and does not plan share buybacks in the near term but will revisit the possibility in 2025 as cash builds, acknowledging the trade-off with the stock's limited float. CEO Jude Bricker noted that Q3 represents the seasonal low point for cash balances.

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    Michael Linenberg's questions to JetBlue Airways Corp (JBLU) leadership

    Michael Linenberg's questions to JetBlue Airways Corp (JBLU) leadership • Q2 2025

    Question

    Michael Linenberg from Deutsche Bank asked whether the observed acceleration in close-in bookings is a temporary or structural shift. He also sought to clarify the total size of the United partnership's contribution by asking for the original partnership placeholder value in the JetForward plan.

    Answer

    President Marty St. George responded that the company is not ready to call the close-in booking trend a permanent change, attributing it more to cautious consumer sentiment. CEO Joanna Geraghty clarified that they have not broken out the total value of the United deal, but the $50 million in incremental EBIT is largely from the Paisley subsidiary benefits, with the full run-rate not expected until 2028.

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    Michael Linenberg's questions to JetBlue Airways Corp (JBLU) leadership • Q1 2025

    Question

    Michael Linenberg asked for an update on the Pratt & Whitney engine compensation, including the timing of a potential settlement and whether JetBlue is currently booking any related compensation in its P&L. He also inquired about plans for adding new destinations in 2025.

    Answer

    Financial Officer Ursula Hurley reported improvement in the Pratt & Whitney situation, with only 10 aircraft on the ground versus the mid-to-high teens expected, due to engines staying on wing longer and better supply chain performance. She confirmed JetBlue is not booking any P&W compensation and has no assumptions baked into its 2025 guidance. President Martin St. George added that multiple new destinations will be added to the route map later in the year.

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    Michael Linenberg's questions to JetBlue Airways Corp (JBLU) leadership • Q4 2024

    Question

    Michael Linenberg asked how recent network changes have impacted the mix of corporate versus leisure travel and the booking curve. He also inquired about the sales launch timing for the new domestic first-class product.

    Answer

    President Marty St. George responded that there has been no significant change to the business-leisure mix or booking curve, as the exited cities had low business penetration. He clarified that the first installation of the new first-class product is scheduled for 2026, with no revenue expected in 2025, which aligns with the JetForward plan's phasing. CEO Joanna Geraghty added that many network changes are still in their early ramp-up phase.

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    Michael Linenberg's questions to LATAM Airlines Group SA (LTM) leadership

    Michael Linenberg's questions to LATAM Airlines Group SA (LTM) leadership • Q2 2025

    Question

    Michael Linenberg from Deutsche Bank questioned the decline in 'other revenue' and asked for a structural explanation for the record-breaking Q2 margin, probing whether the company has permanently mitigated historical seasonality.

    Answer

    Head of IR Tori Creighton clarified that 'other revenue' is a minor category comprising items like the LatAm travel business and asset sales, and is not a material driver. CEO Roberto Alvo Milosawlewitsch attributed the strong Q2 performance and reduced seasonality to the network's diversification, disciplined cost control, and significant growth in less-seasonal premium traffic revenue, which he identified as a previously untapped opportunity.

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    Michael Linenberg's questions to LATAM Airlines Group SA (LTM) leadership • Q2 2025

    Question

    Michael Linenberg from Deutsche Bank asked for clarification on the decline in 'other revenue' and questioned whether the record Q2 margin indicates a permanent structural shift mitigating historical seasonality for LATAM.

    Answer

    Head of IR Tori Creighton and CEO Roberto Alvo Milosawlewitsch clarified that 'other revenue' is a minor category comprising items like the LatAm travel business and asset sales, and is not material. Regarding seasonality, Alvo acknowledged that while Q2 will remain seasonally weaker, the impact is lessening due to network diversification and significant growth in less-seasonal premium traffic revenue, which is a key factor in the improved performance.

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    Michael Linenberg's questions to LATAM Airlines Group SA (LTM) leadership • Q1 2025

    Question

    Michael Linenberg asked why LATAM is raising its guidance amid a weakening global economic outlook and inquired about the relative strength of its various regional markets.

    Answer

    CEO Roberto Alvo Milosawlewitsch explained that LATAM's markets have not yet seen the negative trends from the Northern Hemisphere and that the company has a 'relative advantage' to capitalize on volatility. He noted that domestic Colombia has stabilized, Ecuador is a minor weak point, and international travel within South America remains strong. He added that cargo sales are stable but the company is monitoring potential tariff impacts.

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    Michael Linenberg's questions to LATAM Airlines Group SA (LTM) leadership • Q4 2024

    Question

    Michael Linenberg asked about LATAM's confidence in its 2025 guidance despite recent currency depreciation and rising fuel costs, and inquired about potential restrictions or gating factors for its proposed $150 million share repurchase program.

    Answer

    CEO Roberto Alvo Milosawlewitsch expressed confidence in the 2025 guidance, noting it already accounts for volatility ($90/barrel jet fuel, BRL 5.8) and that the company's diversified portfolio provides relative strength. Regarding the buyback, he explained that under Chilean law it requires shareholder approval and the proposed size is intentionally limited to avoid impacting the share's trading liquidity.

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    Michael Linenberg's questions to United Airlines Holdings Inc (UAL) leadership

    Michael Linenberg's questions to United Airlines Holdings Inc (UAL) leadership • Q2 2025

    Question

    Michael Linenberg of Deutsche Bank inquired about the future of the flight caps at Newark and the considerations for returning it to a Level 3 slot-controlled airport. He also asked for the delivery timeline for the Airbus A321XLR aircraft.

    Answer

    CEO Scott Kirby expressed strong support for the FAA's actions, stating that he expects Newark to remain effectively capacity-controlled to ensure operational reliability, which is key to the hub's long-term success. Regarding the fleet, EVP & CCO Andrew Nocella confirmed that the first A321XLR deliveries are expected in the summer of 2026.

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    Michael Linenberg's questions to United Airlines Holdings Inc (UAL) leadership • Q1 2025

    Question

    Michael Linenberg of Deutsche Bank asked about the drivers behind the growth in Basic Economy volume and the potential operational impact of the upcoming REAL ID deadline.

    Answer

    EVP and CCO Andrew Nocella stated that while Basic Economy volume was less of a factor in Q1, he expects it to increase in Q2 as United becomes more competitive at the lower end of the fare structure to manage load factors, effectively spilling less traffic to competitors. On REAL ID, he expressed hope for another extension but noted the company is working with the government on the issue.

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    Michael Linenberg's questions to United Airlines Holdings Inc (UAL) leadership • Q3 2024

    Question

    Michael Linenberg asked about the revenue impact from the CrowdStrike outage and whether United plans to bring back service to smaller cities that were cut during the pandemic.

    Answer

    CEO Scott Kirby and EVP & CFO Mike Leskinen emphasized a 'no excuses' philosophy, explaining they build contingencies for such events into guidance rather than quantifying their impact. EVP & CCO Andrew Nocella stated there is no large-scale plan to change small community service, as the long-term strategy favors larger gauge aircraft over higher regional jet frequency.

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    Michael Linenberg's questions to Delta Air Lines Inc (DAL) leadership

    Michael Linenberg's questions to Delta Air Lines Inc (DAL) leadership • Q2 2025

    Question

    Michael Linenberg from Deutsche Bank inquired about the potential P&L and cash flow benefits from Delta's fully funded pension. He also asked for color on the recent shift to a closer-in booking curve.

    Answer

    CFO Dan Janki explained that the fully funded pension provides a modest expense benefit and noted the GAAP surplus is now close to $1 billion, reflecting significant financial strengthening. President Glen Hauenstein confirmed the booking curve had shifted closer-in but added that there are early indications it is starting to lengthen again, which would be a positive for future cash flow.

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    Michael Linenberg's questions to Delta Air Lines Inc (DAL) leadership • Q2 2025

    Question

    Michael Linenberg asked about the financial tailwinds on the P&L and cash flow from Delta's now fully funded pension plan. He also asked for more color on the recent shift to a closer-in booking curve and its effect on forward load factors.

    Answer

    CFO Dan Janki explained the pension provides a modest expense benefit in the "other income" line and that its fully funded status is a testament to Delta's financial strength. President Glen Hauenstein described the booking curve shift, noting a drop-off in the 60-120 day window but said there are recent indications it is starting to move back out, which is correlated with consumer confidence and would be favorable for cash flow.

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    Michael Linenberg's questions to Delta Air Lines Inc (DAL) leadership • Q1 2025

    Question

    Michael Linenberg asked about recent booking trends, specifically if there was a drop-off or an increase in cancellations in the past week. He also inquired about the state of the international booking curve for the summer and the effectiveness of recent pricing adjustments.

    Answer

    President Glen Hauenstein reported that after a brief single-day drop, sales have recovered to levels above the prior year, with no significant increase in cancellations. He confirmed the booking curve has moved further out, and Delta has adjusted to take more early bookings to mitigate close-in weakness. He noted international routes are well-booked for the spring and early summer.

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    Michael Linenberg's questions to Delta Air Lines Inc (DAL) leadership • Q3 2024

    Question

    Michael Linenberg from Deutsche Bank AG sought clarification on the organic domestic demand growth rate, which seems to be in sync with supply, and asked about the future cost impact of recent GDS renewals and the NDC strategy.

    Answer

    President Glen Hauenstein estimated that organic domestic demand growth is still around 4% and expressed encouragement about the improved supply-demand balance. Regarding distribution, he stated the strategy is to be present where customers shop and that while costs have historically decreased, future trends depend on consumer behavior.

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    Michael Linenberg's questions to Controladora Vuela Compania de Aviacion SAB de CV (VLRS) leadership

    Michael Linenberg's questions to Controladora Vuela Compania de Aviacion SAB de CV (VLRS) leadership • Q1 2025

    Question

    Michael Linenberg questioned the severe Q1 TRASM decline, which resembled COVID-era levels, asking if fare stimulation was underperforming and what provides confidence for a second-half 2025 rebound.

    Answer

    Airline Executive Vice President Holger Blankenstein acknowledged that external pressures muted the typical Easter demand shift, leading to weak Q2 TRASM guidance similar to Q1. He expressed confidence in a second-half recovery, citing the historical resilience of VFR traffic during high seasons and cautiously optimistic booking trends for July and August.

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    Michael Linenberg's questions to Controladora Vuela Compania de Aviacion SAB de CV (VLRS) leadership • Q4 2024

    Question

    Michael Linenberg asked for clarification on the drivers behind the guided 15% year-over-year RASM decline for the March quarter, questioning the specific impacts from U.S. vs. Mexico originating traffic, foreign exchange, stage length, and the Easter holiday shift. He also inquired about the cash flow impact of the reported $13.6 million sale-leaseback gain.

    Answer

    Holger Blankenstein, Airline Executive Vice President, attributed the RASM pressure to reduced travel willingness in the transborder VFR segment following the U.S. elections and a 20% peso devaluation, though noting high seasons remain robust. Chief Financial Officer Jaime Pous added that the sale-leaseback gain corresponds to six aircraft and that cash inflow is of a similar magnitude, around $3 million per aircraft.

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    Michael Linenberg's questions to Controladora Vuela Compania de Aviacion SAB de CV (VLRS) leadership • Q3 2024

    Question

    Michael Linenberg asked for the expected number of grounded aircraft in Q4, whether a redelivery credit was anticipated, and if new southbound leisure routes might also attract a VFR (Visiting Friends and Relatives) customer base.

    Answer

    CFO Jaime Pous estimated an average of 32 aircraft on the ground for Q4. Airline EVP Holger Blankenstein stated no redelivery credit is expected, as lease extensions were already handled. He also confirmed that new leisure routes will absolutely have a mixed customer profile, including VFR traffic, by targeting markets with an existing presence.

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    Michael Linenberg's questions to SkyWest Inc (SKYW) leadership

    Michael Linenberg's questions to SkyWest Inc (SKYW) leadership • Q1 2025

    Question

    Michael Linenberg of Deutsche Bank inquired about the delay in the final DOT approval for SkyWest Charter, the potential fleet size of the charter business, and the strategy for the company's third-party aircraft leasing portfolio.

    Answer

    President and CEO Russell A. Childs attributed the delay in final DOT approval to the 'chaotic' environment in Washington D.C. but expressed confidence it is coming soon. He noted the company is not getting ahead of itself on sizing the charter business until final approval is received. Chief Commercial Officer Wade Steel confirmed the third-party lease portfolio is stable at around 40 aircraft and that the company continuously evaluates whether to operate these planes itself or continue leasing them, also highlighting the strong demand and good business in engine leasing.

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    Michael Linenberg's questions to SkyWest Inc (SKYW) leadership • Q3 2024

    Question

    Michael Linenberg from Deutsche Bank inquired about the origin of the 40 CRJ550 aircraft for United, the remaining number of grounded CRJ700s, sought clarification on the 2025 maintenance expense forecast, and asked about the potential to restore service to cities previously cut due to pilot shortages.

    Answer

    Chief Commercial Officer Wade Steel clarified that of the 40 CRJ550s, 11 are purchased from United's storage and 29 are converted from SkyWest's existing fleet, leaving about 20 dual-class CRJs grounded. Chief Financial Officer Robert Simmons confirmed the 2025 maintenance expense forecast is approximately $800 million, or $200 million per quarter. CEO Chip Childs added that restoring service involves returning to abandoned cities, increasing frequency in current ones, and entering new markets, driven largely by prorate opportunities.

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    Michael Linenberg's questions to Alaska Air Group Inc (ALK) leadership

    Michael Linenberg's questions to Alaska Air Group Inc (ALK) leadership • Q1 2025

    Question

    Michael Linenberg observed that the network buildup in San Diego appears to be funded by reductions in San Francisco, questioning if this signals a strategic shift. He also asked about potential real estate constraints in key hubs like Seattle and Portland for co-locating with Hawaiian Airlines.

    Answer

    Executive Andrew Harrison described the network changes as "smart" reinvestments from loss-making markets into the more profitable San Diego. CEO Benito Minicucci emphasized that San Francisco and Los Angeles remain key parts of their strategy. Regarding real estate, Harrison sees no material constraints, while Minicucci highlighted Portland as a "huge opportunity" with ample capacity to serve as a relief valve for Seattle.

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    Michael Linenberg's questions to Alaska Air Group Inc (ALK) leadership • Q4 2024

    Question

    Michael Linenberg of Deutsche Bank asked for the approximate local versus connecting traffic mix in Seattle and Portland, noting the impressive growth was likely off a low base. He also requested a run-rate for freighter costs to help model CASM-ex fuel accurately.

    Answer

    CCO Andrew Harrison confirmed the local/connect mix numbers were in the right ballpark and clarified that the high connection growth occurred during the low season. He cautioned not to expect similar growth rates in peak periods when planes are already full. CFO Shane Tackett explained that freighter costs were almost at their full run-rate in Q4, with just four more of the ten Amazon freighters to be added, after which costs should be at a steady state.

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    Michael Linenberg's questions to Alaska Air Group Inc (ALK) leadership • Q2 2024

    Question

    Michael Linenberg asked whether the moderating domestic revenue environment is driven more by macro factors or a supply-demand imbalance. He also inquired about the revenue and load factor contribution from the oneworld partnership and its influence on the premium seat expansion.

    Answer

    CCO Andrew Harrison suggested the moderation is mostly a capacity story, noting that where capacity and revenue grew in tandem (like first class), performance was strong. CEO Benito Minicucci added that despite the environment, the business model is resilient. Regarding oneworld, Harrison stated that while international connections are not a huge component of the network, the real upside is loyalty member benefits. CFO Shane Tackett clarified that partner-enabled revenue is about 7% of the total and is expected to grow.

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    Michael Linenberg's questions to American Airlines Group Inc (AAL) leadership

    Michael Linenberg's questions to American Airlines Group Inc (AAL) leadership • Q1 2025

    Question

    Michael Linenberg of Deutsche Bank asked if managed business revenue growth would accelerate in Q2 from the 8% seen in Q1, and inquired about the company's net gate position in Chicago following upcoming reallocations.

    Answer

    Vice Chair Steve Johnson stated that while he expects to continue growing corporate share, the absolute revenue depends on the broader economy. Regarding Chicago, he noted the company is appealing the gate reallocation but can accommodate its planned growth with its existing footprint.

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    Michael Linenberg's questions to American Airlines Group Inc (AAL) leadership • Q4 2024

    Question

    Michael Linenberg of Deutsche Bank inquired about the number of A321neo XLR aircraft expected by 2029 and questioned the company's long-term strategy for widebody fleet replacement, including sourcing from multiple OEMs.

    Answer

    CFO Devon May confirmed that American expects to have 40 A321XLR aircraft by 2029. CEO Robert Isom emphasized the efficiency benefits of fleet simplification, highlighting the 787 as the widebody workhorse. He noted the company's young fleet and modest long-term CapEx needs provide a competitive advantage while a decision on the 777-200 replacement is pending.

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    Michael Linenberg's questions to American Airlines Group Inc (AAL) leadership • Q3 2024

    Question

    Michael Linenberg asked if the previously mentioned $1.5 billion revenue hole from the distribution strategy is still the expected impact for this year and why the recent booking improvements aren't more reflected in the Q4 RASM guide. He also inquired about the impact of wide-body aircraft reconfigurations on international capacity.

    Answer

    CEO Robert Isom clarified that while forward bookings show progress, the financial impact was minimal in Q3 and is expected to build through Q4 before accelerating in 2025 as new corporate and agency contracts take full effect. Regarding capacity, he stated that the 777-300 reconfigurations are not scheduled to begin until 2025 and that current international capacity adjustments are primarily about optimizing aircraft deployment, such as balancing supply in London Heathrow to improve yields.

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    Michael Linenberg's questions to Southwest Airlines Co (LUV) leadership

    Michael Linenberg's questions to Southwest Airlines Co (LUV) leadership • Q4 2024

    Question

    Michael Linenberg of Deutsche Bank asked about the potential scale of the sale-leaseback strategy, the 2025 target for these transactions, and the status of outright aircraft divestitures.

    Answer

    CFO Tammy Romo explained that the company has many levers, with the bulk of the fleet strategy's financial benefit expected to come from outright sales of excess aircraft, which is dependent on Boeing delivery rates. She positioned sale-leasebacks as an NPV-positive tool to manage the exit of the -800 fleet. CEO Bob Jordan added that outright sales are the strong preference and expressed optimism that Boeing will exceed its conservative 38-aircraft delivery estimate for 2025, enabling more sales.

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