Savanthi Syth • Raymond James

Answer

Founder, CEO & Chairman Adam Goldstein clarified that no eVTOL OEM is fully 'out of policy' yet, as industry-wide FAA policy is still being finalized. This is why Archer introduced the 'Launch Edition' program for early revenue. Chief Technology Officer Tom Muniz added that the new four-blade propeller will be on all new aircraft, which will initially focus on conventional takeoff and landing (CTOL) tests, a necessary step for certification.

Ask Fintool Equity Research AI

Answer

CEO Adam Goldstein confirmed that a key FAA issue paper regarding total loss of propulsion has been resolved favorably, requiring no design changes to the Midnight aircraft. He stated this 'unlocks the vast majority' of remaining compliance items and provides the company with greater confidence to accelerate its manufacturing and certification testing plans.

Ask Fintool Equity Research AI

Answer

CEO Adam Goldstein stated that the production plan involves building 'tens of aircraft' in 2025 and 2026 before a larger-scale ramp in 2027. He explained that the software business is a growing focus, viewing it as a new potential revenue line that spans the entire value chain from customer booking and operational control to eventual autonomy. He believes this software will be key to scaling the industry safely.

Ask Fintool Equity Research AI

Answer

Interim CFO Priya Gupta explained that material costs are expected to be financed through traditional mechanisms like working capital and inventory financing, while the Stellantis agreement is intended to cover most manufacturing labor and CapEx. Chief Operating Officer Thomas Muniz reported the first type design aircraft is 'almost complete' and in system integration testing, with learnings informing the Georgia factory layout. CEO Adam Goldstein emphasized these are production aircraft built to the highest safety standards for carrying passengers.

Ask Fintool Equity Research AI

Answer

CEO Pedro Heilbron described the demand environment as 'healthy,' leading to an increased load factor guidance despite high single-digit industry capacity growth. He confirmed that 2025 aircraft deliveries from Boeing have been arriving early, and the full-year impact of these plus six new planes in 2026 suggests capacity growth will trend slightly higher next year.

Ask Fintool Equity Research AI

Answer

CEO Pedro Heilbron responded that the demand environment has seen no material changes recently, though visibility is limited to the next two to three months. He noted that overall industry capacity in Copa's network is projected to grow around 6% in Q2 and nearly 10% in Q3, with significant variation among competitors.

Ask Fintool Equity Research AI

Answer

CEO Pedro Heilbron stated the company is "perfectly fine" with the revised Boeing delivery schedule of 13 aircraft in 2025 (mostly in H2) and 8 in 2026, as it aligns with growth opportunities. Executive Daniel Tapia provided updated CapEx figures, projecting approximately $850 million for 2025 (with $200 million in cash CapEx) and a lower $450 million for 2026 due to fewer deliveries.

Ask Fintool Equity Research AI

Answer

CEO Pedro Heilbron and CFO Jose Montero confirmed the 2024 revenue revision was due to delays in redeploying capacity from suspended Venezuela flights and weaker currencies, particularly in Brazil. Heilbron stated the 2025 capacity growth of 7-9% is dictated by Boeing delivery delays. Montero explained that 2025 unit cost discipline is supported by aircraft densification, sales channel efficiencies, and maintenance initiatives. Heilbron also addressed the CFO transition, acknowledging Montero's retirement and detailing the active search for a successor and the strengthening of the management team.

Ask Fintool Equity Research AI

Answer

Founder and CEO JoeBen Bevirt stated they are 'substantially out of policy' and the focus is now on finalizing test plans with the FAA, with parts for all five TIA aircraft already in production. Executive Chairman Paul Sciarra added that on the defense front, the strategy involves both pursuing existing programs and shaping new ones, leveraging their dual-use approach for rapid deployment from demonstration.

Ask Fintool Equity Research AI

Answer

President of Aircraft OEM Didier Papadopoulos explained that the 2025 manufacturing plan is a mix of building complete conforming aircraft and numerous conforming test articles. He clarified the aircraft sent to Dubai will be one from the existing prototype fleet. Executive Chairman Paul Sciarra addressed the financing question, stating that while there are regulatory and business items to complete, there is an 'extremely high probability' that both tranches of the Toyota investment will be received in 2025.

Ask Fintool Equity Research AI

Answer

Didier Papadopoulos, President of Aircraft OEM, confirmed the prototypes are very representative of the intended takeoff weight and could potentially be used for initial Dubai operations, though no decision has been made. Chief Product Officer Eric Allison and CFO Matt Field highlighted key milestones, including the recent acceptance of all qualification plans, the upcoming groundbreaking for the first vertiport, and plans to bring an aircraft to Dubai for testing next year.

Ask Fintool Equity Research AI

Answer

CFO Eduardo Couto confirmed that cash consumption is tracking towards the low end of the $200-$250 million range, potentially slightly below, due to optimized spending and leveraging Embraer's resources. VP of Engineering & Technology, Luiz Valentini, clarified that the engineering prototype's testing is parallel to the development of conforming prototypes, which are still planned for flight tests towards the end of 2026, keeping the 2027 certification on track.

Ask Fintool Equity Research AI

Answer

CFO Eduardo Couto stated that R&D spending should remain at current levels of approximately $44 million per quarter and not accelerate further. CEO Johann Christian Jean Bordais confirmed that the certification aircraft build is on schedule. CTO Luiz Valentini clarified that the prototype battery uses similar technology and the same supplier as the commercial version but is a different design to accelerate learning.

Ask Fintool Equity Research AI

Answer

CFO Eduardo Couto clarified that the 2025 cash burn is projected to be between $200 million and $250 million, heavily weighted towards eVTOL development as the company increases its engineering staff. He noted this burn rate is likely to continue into 2026, and the current liquidity of nearly $450 million is sufficient for at least two years. Couto added that the production facility investment is for tooling and machines at an existing Embraer site, not for constructing a new building.

Ask Fintool Equity Research AI

Answer

CEO Johann Bordais explained the 2027 certification timeline is a normal update for an innovative program, reflecting a more realistic path to deliver a mature product. CFO Eduardo Couto added that pre-delivery payment schedules remain on track as they firm up LOIs. Regarding CapEx, Johann Bordais stated the peak facility investment will occur in 2026, with cash burn expected to rise only slightly in 2025.

Ask Fintool Equity Research AI

Answer

President James Dempsey explained that utilization has been meaningfully reduced on off-peak days. CFO Mark Mitchell added that these adjustments create some near-term transition costs. CEO Barry Biffle and Dempsey noted that while they have surplus pilots to flex up, a significant capacity increase would require a 6-8 month lead time due to the pilot training and upgrade cycle.

Ask Fintool Equity Research AI

Answer

CEO Barry Biffle attributed the second-half profitability target to stabilizing demand, significant off-peak capacity reductions, and growing traction from 'New Frontier' initiatives like the economy bundle. President James Dempsey added that the company is learning to use the bundle more effectively. CCO Robert Schroeter highlighted that the enhanced loyalty program offers superior value with benefits like a flexible companion pass, driving positive growth.

Ask Fintool Equity Research AI

Answer

CEO Barry Biffle explained that after accounting for the Easter impact, the margin bridge to summer is supported by normal seasonality, ongoing network maturity, and other revenue initiatives. He noted the company has flexibility on capacity and will adjust it based on RASM performance to meet earnings targets. President James Dempsey quantified the maturity improvement, stating that immature markets, which were well over 20% of the network last year, will be less than half that level in certain periods this year.

Ask Fintool Equity Research AI

Answer

CFO Mark Mitchell deferred providing specific 2025 cost guidance, stating the focus is on hitting the $150 million cost savings run-rate target. CEO Barry Biffle elaborated on network maturation, explaining that a significant redeployment, affecting 20% of capacity, will see a 20-30% maturity bump in 2025. He expects the mix of new versus mature markets to normalize by mid-2025, aligning new market flying more closely with the overall growth rate.

Ask Fintool Equity Research AI

Answer

CEO Stuart Simpson clarified that Aircraft 3 will be a prototype copy for hybrid testing, while the first certification-compliant aircraft is scheduled for build in December of the following year. He noted that major components like the flight controls (Honeywell) and airframe (Assatore) are secured, and confirmed that non-recurring engineering expenses paid by Vertical will increase over the next 12-18 months.

Ask Fintool Equity Research AI

Answer

SVP & CFO Robert Neal stated that while it's too early for a formal 2026 guide, factors like reduced off-peak flying and a potential pilot deal are key variables. He noted that a headwind from aircraft rent in 2025 is expected to reverse in 2026. President and CEO Gregory Anderson added that strong operational performance and structural cost reductions in corporate overhead, marketing, and IT spend are creating a culture of cost discipline.

Ask Fintool Equity Research AI

Answer

Chief Commercial Officer Drew Wells outlined that capacity growth would be approximately 14% in Q1, rise to the low 20s in Q2 and Q3, and be lowest in Q4. President and CEO Gregory Anderson characterized 2025 as a "onetime catch-up year." Chief Financial Officer Robert Neal added that unit cost improvements would be most significant in Q1 and moderate through the year as new aircraft enter the fleet.

Ask Fintool Equity Research AI

Answer

Chief Commercial Officer Drew Wells detailed that utilization will be at 'full throttle' over the holidays and remain focused on peak days in early Q1 2025. President and CEO Gregory Anderson added that this growth uses existing infrastructure, making it accretive. Wells also confirmed that 39-40 aircraft currently have Allegiant Extra, with all eligible Airbus planes to be retrofitted in H1 2025 and all new MAX aircraft arriving with the feature.

Ask Fintool Equity Research AI

Answer

CFO Ursula Hurley confirmed that the majority of the projected growth comes from improvements in the AOG situation, which will provide efficiency on the unit cost trajectory after two years of no growth. President Marty St. George described the competitive landscape as not 'unusual,' but noted they are closely watching capacity pull-downs in the ULCC sector and that there is uncertainty around the industry's overall capacity growth for the rest of the year.

Ask Fintool Equity Research AI

Answer

President Martin St. George declined to provide a specific capacity guide for the second half, stating the company will remain opportunistic and react to demand, but noted it would be measurably down from original expectations. Regarding the partnership, he expects an announcement in Q2 with a domestic airline, which will significantly expand the network for earning and redeeming TrueBlue points, improving the loyalty program's utility. Financial benefits will be updated in the next quarterly call if a deal is finalized.

Ask Fintool Equity Research AI

Answer

President Marty St. George identified Boston as the market with the most significant competitive capacity pressure but declined to provide further route-level detail. CFO Ursula Hurley explained that A220 delivery timings were adjusted to reflect the latest information from Airbus and stated that the domestic first-class investment will be approximately $400 million over several years, deeming it a positive ROI project.

Ask Fintool Equity Research AI

Answer

President Marty St. George explained that while network changes will mature over time, more immediate revenue drivers like preferred seating fees are already performing well. He noted that redeployed aircraft, such as moving from Minneapolis to Islip, are showing strong early results with high frequent flyer engagement. Regarding competitive capacity, he stated it is up in Q4 versus Q3, driven by carriers other than ULCCs, but JetBlue is maintaining its unit revenue strength despite the increase.

Ask Fintool Equity Research AI

Answer

President & CEO Chip Childs clarified that the 10% tariff was not on the full aircraft value but on a fraction (one-third to one-half) due to US-made components. Regarding the charter, he expressed optimism but noted the delay is with the Department of Transportation, not the FAA, and that the new FAA administrator, while a positive, may not directly accelerate the DOT's process.

Ask Fintool Equity Research AI

Answer

President and CEO Russell A. Childs stated that despite broader industry softening, demand for SkyWest's model remains strong as they are still in a 'catch-up mode' to restore service to small communities. Chief Commercial Officer Wade Steel explained that aircraft were temporarily moved from SkyWest Charter to SkyWest Airlines to meet strong summer demand at the mainline entity, with plans to move them back later. He attributed the prorate revenue increase to adding new markets and increasing capacity to meet strong demand for small community air service.

Ask Fintool Equity Research AI

Answer

Chief Commercial Officer Wade Steel clarified that while some pro rate markets were added, significant expansion is expected in late Q3 and Q4 2025. President and CEO Chip Childs confirmed optimistic re-engagement with regulators regarding the charter authority and expressed confidence that SkyWest's established, integrated model would not be significantly impacted by competitors.

Ask Fintool Equity Research AI

Answer

CEO Chip Childs responded that the service restoration is heavily weighted toward prorate flying. Chief Commercial Officer Wade Steel confirmed that the increased 2025 CapEx forecast of approximately $500 million includes costs for CRJ550 conversions and purchases. Mr. Childs also detailed that pilot counts are approaching 5,000, with expectations to reach pre-pandemic complement levels by early 2025 and meet full partner utilization demand by mid-to-late 2025.

Ask Fintool Equity Research AI

Answer

CFO Tom Doxey explained that aircraft sales are cash-accretive as the planes are largely paid for, and any book gains are excluded from guidance. COO Andrew Watterson detailed the demand recovery, noting corporate travel inflected positively in June after a weak May, with the trend continuing. President & CEO Bob Jordan added that the recovery feels broad-based, with a notable return in booking volume that was previously difficult to stimulate.

Ask Fintool Equity Research AI

Answer

CEO Bob Jordan and COO Andrew Watterson explained that aircraft gauge is not currently a major factor in load factor, as both large and small planes have similar load factors. The larger MAX 8s are beneficial in peak periods. Regarding government travel, Jordan estimated the exposure is small, around 2% or less of the business, so while the slowdown is notable, its overall impact is limited.

Ask Fintool Equity Research AI

Answer

CFO Tammy Romo detailed the bridge from Q1's cost growth to the low single-digit exit rate in Q4, attributing the improvement to several factors. She cited 3-4 points from turn and redeye initiatives, about 1 point from absorbing overstaffing, and another 2-3 points split between lapping prior-year labor contracts and benefits from the new cost plan. Romo confirmed the benefits will ramp up throughout the year, with the largest impact hitting in the fourth quarter.

Ask Fintool Equity Research AI

Answer

COO Andrew Watterson confirmed that managed business travel saw a temporary dip from hurricanes but has since recovered. CEO Bob Jordan highlighted that overall Q4 demand is strong, with unit revenue trends accelerating. CFO Tammy Romo affirmed that the sale-leaseback strategy can include existing aircraft, providing flexibility amid Boeing delivery uncertainty.

Ask Fintool Equity Research AI

Answer

CFO Devon May confirmed the Q3 domestic capacity pullback was a larger-than-usual reduction for the off-peak August-September period, with some capacity naturally returning in Q4. CEO Robert Isom attributed recent operational challenges to an anomalous level of weather disruptions, expressing confidence that performance will improve as conditions normalize and technology investments pay off. He also noted a unique slowdown at DCA that they expect to recover from.

Ask Fintool Equity Research AI

Answer

Vice Chair Steve Johnson highlighted expected summer strength across all international regions, including Europe, the Pacific, and Latin America. Conversely, he pointed to "significant weakness" in domestic demand, particularly from price-sensitive, discretionary travelers.

Ask Fintool Equity Research AI

Answer

CEO Robert Isom reiterated that Q4 demand is strong overall, with a solid October and December offsetting expected softness in early November due to the election and Halloween. For 2025 capacity, CFO Devon May stated that regional growth will be domestic-focused, while the remaining growth will be split relatively evenly between domestic and international, with a potential slight lean towards international. Robert Isom added that capacity will be shifted more towards northern tier hubs.

Ask Fintool Equity Research AI

Answer

President Glen Hauenstein noted that Delta has proactively reduced its own capacity by several points, in line with responsible actions seen across the industry, particularly in domestic off-peak markets. He clarified that the commentary on shifting demand to shoulder seasons is primarily a Transatlantic phenomenon, as Latin America is contra-seasonal and the Pacific is less seasonal.

Ask Fintool Equity Research AI

Answer

President Glen Hauenstein explained that Delta has responded to the environment by taking down several points of capacity, particularly in Europe for the shoulder season, where growth is now relatively flat. He clarified that the commentary on shifting seasonal patterns is primarily related to Europe, as Latin America is contra-seasonal and the Pacific is less seasonal.

Ask Fintool Equity Research AI

Answer

President Glen Hauenstein explained that the primary weakness is in domestic Main Cabin, while the Atlantic and Pacific regions look strong and Latin America is stable. He clarified that the company will eliminate unprofitable flying wherever it exists, with a disproportionate impact on off-peak times rather than a specific focus on regional versus mainline.

Ask Fintool Equity Research AI

Answer

CFO Dan Janki confirmed the capital expenditure forecast of approximately $5 billion and around 40 aircraft deliveries for 2025. For non-operating expenses, he guided to a flattish year-over-year result near $800 million, as benefits from deleveraging would be offset by the absence of one-time gains from 2024.

Ask Fintool Equity Research AI

Answer

President Glen Hauenstein noted that domestic and transatlantic routes are leading the unit revenue trends, with particular optimism for the transatlantic winter season. He added that the Pacific and Latin American regions are also showing improvement. CEO Ed Bastian stated it was too early to quantify the impact of Hurricane Milton in the current guidance.

Ask Fintool Equity Research AI

Answer

CEO Michael O'Leary expressed skepticism about an extending booking season, highlighting the current weakness in close-in pricing. He described the court win against Booking.com as "seismic," stating the jury's finding of illegal screen scraping and fraud establishes a critical precedent that he believes will prevent OTAs from overcharging Ryanair customers in the future.

Ask Fintool Equity Research AI

Answer

CFO Shane Tackett identified the lower growth rate and a higher-than-planned labor deal as the main incremental changes to the cost forecast. He affirmed the philosophy that 4-5% growth should yield flattish unit costs remains intact. Tackett also confirmed the fleet modification is a positive for both unit revenue (from premium fares) and unit cost, as costs will be spread over slightly more seats.

Ask Fintool Equity Research AI