Spirit Airlines (SAVEQ) 10 Aug 222022 Q2 Earnings call transcript

Welcome to the Second Quarter 2022 Earnings Conference Call. My name is Erica, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. [Operator Instructions] I will now turn the call over to DeAnne Gabel, Senior Director, Investor Relations.

welcome, Spirit and earnings second Erica, call. you, everyone, Airlines' to quarter Thank being webcast. and call recorded This is simultaneously A replay of our website this call will XX be days. for archived on Matt Christie, Presenting Haralson, Scott Financial Chief are today's Chief Chief Ted on Executive Officer; call our Officer; Klein, Officer. and our Commercial Spirit's leadership joining Also senior are members other us our of team.

guarantee Following analysts. on forward-looking a contains no are from based future In all Today's refer the forward-looking forward-looking discussed are available update the the reports remarks, of current of With statements uncertainties will and on statements, that, website earnings actual duty by results Ted. items. I a exclude quarter be could risk to file factors to non-GAAP risks there XXXX for prepared comparing measures. to our the be which adjusting today, There discussion our in release, the with question-and-answer statements. differ for over expectations we company's periods be materially session will call to our second turn performance. and reflected Please special including cause that is those not undertake significant any to the all our results We on reconciliation SEC. that

airports morning. crowded Thanks, and summer been a full with joining to very Thanks DeAnne. in us planes. Good busy travel, leisure robust for everyone today. resulting It's demand for

our plate, on supporting guests. to to addition, I had our we things on delivering being few to our members focused and each high-quality and In offer at have sincere team Spirit want other other my service gratitude a

which maximum ticking per share a stockholders' starting XXXX share. in and Spirit's January upon of of up a per will definitive XX, cash, $X.XX July a share approval to merger prepayment acquire results, Spirit of in amount Before agreement, $XX.XX discussing per second quarter $XX.XX we entered our transaction $X.XX into of including in fee for month a per JetBlue the under on cash

As agreement JetBlue which to meaningful Board's deal. know, we with July business an with very we Frontier that cash Airlines, and shortly to you the merger our and enter able were as our following a a termination, a into robust process, provides The on it's for protection adverse merger agreement delivers terminated Thanks we deal favorable immediate diligent premium previously to against JetBlue upon signed XX. stockholders regulatory our though, with stockholders. Until value outcome significant usual. significant then, that closing

move our quarter let's that, with to second on results. So

second or net the $X.XX reported a million per For of quarter loss adjusted XXXX, of of an loss $XX.X share. we

was production guidance. margin more to the the robust pretax capacity. adjusted end and our better second Our XXXX negative was our strong was on revenue increasing revenue XX.X% exceeded total X.X%, of with which X.X% compared quarter Demand of

predictable more much excluding drove a fuel. and, therefore, Our operational more improvements costs, airline reliable

of production underutilized As we've built utilization levels. less earnings utilization we fleet still carrying of around at profitability assets, to We've X efficiency-based maximizes before, levels. airplane labor. levels rate our are of operating cost total per capital run The with and our lack discussed XXXX are return with that delaying than assets optimized suboptimal hours and franchise capacity human an productivity

to bases, we've the how fully the goal normal more to and reach glimpse our changes as Operationally, notably new industry, schedule The made our to in the factor are will, a ability and from June, deploy include completion, to we improving aircraft operational Florida. strong aviation traditional with that June. for the the most completion that on excellent to We July's days adding level, date well These to had to scheduling. we an reliability. ability by changes you. including quarter to it XX XX.X% first operating we're line to Matt, investments around quarter now our utilization achieve hand XXX% part, I'll infrastructure crew approach a completion some and time Matt in we once our XX.X%, crew quarter how result Scott confident as deliver as expected performance to on finished And rose supports factor share However, margins. outlook. from a color depend about we how flow note over some made. third the over changing our additional second with details

has for travel factors pre-COVID their most plans. demand with Ted. travel in are summer to lots airports providing team and dedication the of a for counts Thanks, seen and to team. excited want I these guests. Load levels and passenger Spirit back packed experience also busy thank our our locations, their been to for Travel strong. we've times thank I maintaining guests resume during professionalism high-value and

to our performance. now revenue XXXX quarter Turning second

This For saw is we considering quarter the second by quite Total nearly achievement quarter the second remarkable was XX% X%. billion lengthening XX.X% $X.XX XXXX. XXXX. versus a quarter, stage capacity was XX.X% while for our up to compared $X.XXXX up revenue also increase RASM the by

XX.X% revenue pandemic seat Additionally, non-ticket QX. quarterly more year-over-X-year per of level, revenue we double-digit was to metrics. This On and non-ticket in segment a recognize per prior for impressive fair the record another improve continuing passenger QX, over June XXXX. quarter. to XX.X% increased segment to before since the X we versus basis, by result and production where are note increased the the higher revenue bundled services $XX.XX to second the We quarter XXXX is record offerings. already also increases driven in June per and that from TRASM absolute XX% for X.X% including in $XX.XX. growth to this of in total per-segment we our about revenue again, talk months record achieved first guidance of every $XX compared increases new all to TRASM month a than just improvement unit a a XX.X% large Passenger we quarter XXXX XXXX, Bag segment both prior to peak per saw One in is revenue the per results QX $XXX.XX. record quarter non-ticket increased total achieved segment from an continued in about and first and

Our strategy drive see continue metrics, not we increases we pleased revenue in buckets. between are and to to X the trading is that both are to

Now moving to third quarter total XXXX revenue guidance. unit

demand the the growth The fare this already the XXXX. third seeing strong up better are flown to XX% what seen first we half quarter hope news half it the of for as than seasonality strong. we we XXXX. off-peak relative to peak sets us see good has On absolute to revenue is growth of normal as head back results, TRASM an quarter, results And average remain and unit achieve to basis, continues period which versus is see, summer versus into

quarter Given to estimate TRASM we third XX% quarter with produced versus growing more quarter expect up these than billion also and XXXX these our X.X%. XX% to revenue third will around while stage capacity inputs, $X.XX approximately third achieve results XX% in between we to range billion XXXX, we $X.XX on by

be revenue still the network made, of operate Center. from referenced, we Regarding number the exist, U.S. the on Jacksonville of did while U.S. the are for to constrained context, Florida in would network changes about the likely we are to can our flights Florida our results If the we changes closer Continental this of XX% accounts Traffic we've to network. seeing Air network. Ted Continental to this XX% Control good put not To constraint

first through help Additionally maintain the capacity approach pragmatic and to from and now to importantly, operational deployment we continue will XXXX. recoverability, half towards reliability a take of

Given now will fourth increase capacity XXXX. that, we XX% estimate versus quarter approximately

even XXXX, stated of miles. half targeting to moderated with year capacity year, we billion billion available XX the first are range of next full For our in still seat previously XX

the enough we of as infrastructure full with second pleased the improve However, higher progresses, doesn't to industry revenue lower year will rate range the a likely year. the In closing, results. our if end be support are quarter the we towards growth for

nicely company are really now we yields and as We the And to Scott. as length, a Load speak about This be grow period. themselves. into the revenue results and effort, continues total and continue to build of development. third we here's even nonticket excited do strong the and prospects the head factors and is team capacity quarter stage for continued off-peak production

partners TSA, Thanks, lower reliably a higher aircraft, pandemic the since XX% cost various desired put primarily majority To management about the challenges the X.X% not the Good details and higher-than-expected when utilization our and it share that remains business more utilization prices. about are XXXX, quarter added for and fuel across in level ATC built impact Fleet than an spring XX% is basis, the yet industry help a comfortable capable industry the capacity. this support of industry, in our but more headwind. attendance of a of quarter infrastructure full levels for was The referring that airlines. resulted pilots suppliers, the we've more additional more a can improved to business benefits is mitigating higher producing few XX% lower producing levels. to the second provide cost we XX% unit yet impacting We U.S. By Matt. flight are the only perspective, I'm results much unstable, from of from still utilization. capacity. utilization. second all back and the reliability a planning of including nonfuel issue infrastructure, of we I'll quarter, to costs better-than-expected and get support are labor of functions start about in On

rapidly not as are progress. We had as seeing just anticipated. happening It's we

to fast we also limiting addition, is our would like. ramp higher ability as attrition In up crew utilization as

back cash we continue payments, a and with to to the million purchase facility. around through in operation. get billion We from cash investments we run XX, including a our revolving utilization deposits, of $XXX capacity commitment to of unrestricted From our our and ended net liquidity capital $XXX position. reliable short-term second balance and fees Year-to-date debt quarter of interest a will expenditures, credit $X.X with equivalents, perspective, million in full which including June desire includes We liquidity, made strong our and available remain had principal, million. $XXX to

million. the net be approximately XXXX, estimate capital we including our full year For expenditures, deposits, purchase $XXX again, will

we Regarding during aircraft, the the quarter, AXXXneo delivery of took second quarter XXX with aircraft. the ending fleet, X

the of aircraft. to XXX remainder expect year, throughout additional ending an aircraft XX the with year the We take

Our XXXX Airbus. our process XXXX financed, from leaseback documents are are for in deliveries of for and the finalizing financing sale deliveries fully the we

total of anticipate XXXX, fuel ex $X.XXX price range the or expenses to we per CASM of a assumes we ahead a ex of to $X.XX run and unionized pretax new Looking to will take margin quarter we groups. and X% range. constraints This to does to billion $X.XX operating rate labor $X.XX. deals gallon When back CASM of estimate baseline low capacity levels, the the with This fuel ease assumption $X.XX any optimal and negative third X%. positive our in our our to account billion are $X.XX fuel not $X.XX work between into utilization

normalized As a achieve frame and midyear we will are we to per utilization plan, strong about our fuel backdrop, for can with levels produce margin assuming price reasonably gallon by begin a be should $X.XX. mid-single-digit we op XXXX XXXX. net demand Together this XXXX

turn back for team. couple an thank that, during to back years. the With been the to team over efforts want their I'll Ted. the Ted, I hand I to Before past to ever-changing it entire what it environment Kudos Spirit of has do incredible

the quarter, next Last for or I objectives Scott. outlined Thanks, year our X.

crew an are, and of landing Network delivered growth X available July's out profitability. results, achievements to the optimized network Florida in and to very fully one, departures on XX utilization utilized, In they wins. the which and gives record, and of new at strong area. peak grant decision with Two, when from return capped with news and buffer Newark we Spirit we fantastic Number best and to Airport, XX Metropolitan up growth. allocations big services June, . along operational one enhancements the DOT's our reliability bases, New us operational had all of Here were were takeoff York automation crew again, update.

we mix, to achieved. Three, planning was product all-time Full this of this non-ticket XXXX. seems pricing our and Current performance. crew And $XX deliver summer target we of this is continue time; as is four, once expectation target refine new gap. to year-end it quarter indicated, of the summer, margins as to profit expect record strategies, our will, climb utilization, with another ATC has the the return cost after to over non-ticket XXXX. prudent we operated For widening But experiencing number record. continue restoration by more this unit how will and coupled our

we maintained believe to the gap which a industry, widen will We time. wide over have

and network, back in XXXX. progress. throughout this full we is much do optimize to utilization get until There work to However, a our is

the to industry the I'm we what see past behind of show have the and With talented this now, excited distraction And and DeAnne. uncertainty months a professionals back become. group of with company that, motivated fantastic X us to aviation

Thank you, Ted.

are the to we begin. analysts. questions from We ready are take Instructions] ready now to Erica, [Operator

first Your Evercore with Instructions] comes [Operator question Duane Pfennigwerth from ISI.

is need? This you will your for are? Duane. caught the XXXX, on hiring end pilot and you up how Jay flight more through pilots you mark-to-market plan how Could training given of And many Gunning then on

This is Ted.

pilots to and as So adding baseline. them I think Scott actively our been we've indicated, hiring

the about pilots at time. XX% you the than If had back look have levels, we we more today at pre-pandemic

significantly then, However, higher was too. it is attrition than

going we're that bit of little now. through right a So

We over have months, the that and the necessary we're of we successful or where to place good size school for additional X up each X of to backlog and need are individual past class -- resumes house in X we've the house getting powers nearly the our pilots. still fill months been very in point school ramping a doubling

of make we to the on as staffing next the the our have hit we're partners as need attendants We're flight a sure all board So part well to all indicated on business at supporting pilots what at airports target year. and as utilization perspective. we the technicians that in to appropriate get and staffing middle That we across target includes to back full airports. from

And your take planes as much would configuration? any and how you the do cost long to then to have follow-up, just a would estimate on it JetBlue it reconfigure how

we No, don't.

I JetBlue. question think better that's probably for a

line Bank. Linenberg question with Your comes Deutsche from of next the Michael

This is actually Mike. Doherty for on Shannon

can deeper one, you efforts quarter? guys the the first made you into bit in on June a cost the side So the dig that management

Scott. Yes. Look, is this

the benefit then ASMs P&L cost the the from through before, airline, comes Running side. think production. I good has a majority efficient effects on of mentioned of as we've the production ripple unit and that

headwinds, side, are it's unit fisher so hire so sure for in on and to ASMs. to the a to make the production run to fully have build the us the pilots continuing to infrastructure real airline. be back going And to place we we're going building train estate continue airline, of to There be but utilized cost primarily

second the what profitability? my risk from summer by of you this expect the question, industry XXXX? overall And see that happen and we sustained infrastructure And to issues aside your biggest we're would facing, guys is should meaningful return say to to

Sure.

the that Obviously, inputs our nongovernment are So as profitability and airline in full assets, the as partners bigger government business business. of answered some and utilization require inputs various the there support I getting stated comments, members, well the entities questions. and our just to return to our from support as the we've infrastructure labor team

as partners as And get I entities, tell the control, from that our we are beyond to that into are the is business things but head drive we those And can get comfort and much some airline as making would we FAA good that or already various some so on support our have control have also other. the ahead. is adjustments received well business our to I inputs, are on things things XXXX. our in have we bigger us hiring, they training, ability well feel primary there. to the as necessary There that as our target What would about one view respects way track staffing, you which those

inputs, the business. to matter and lot I would say pandemic. this costs has beginning puts the input of a Obviously, takes. the since are the throughout course dramatically and Fuel moved of So pandemic the those the

Scott ever think fuel the at somewhere prices which XXX XXX in the a next of we've this highest I that gallon we're amongst mentioned business. year, in neighborhood or historically is seen looking

into appropriate is the want production long-term have still capacity profitability, will costs, to margins So of that of input will we'll level kind to those but an drive the the necessarily get. short-term to input view we and have adjust that

doing So I back. we're to there yet. need with still to we the things necessary for and do are we optimistic think, our targets We're not changes progress the making frustrated year. like about ourselves to the feel our collectively, get network And to but date I feeling next

Wolfe Your of next Research. question line Scott comes from Group with the

for your about then the uncertainty get how to also where? plans So that's and does impact in of CASM merger you that of low does terms growth? regulatory growth. What would that And capacity you guidance ex JetBlue ASM how the And end capacity next if the much? with much think capacity XX% then year,

is half. this jump in Scott, Scott that. after can first the I'll Ted. take

process, JetBlue the none. to the impact, as what So merger does with process the have an answer is

today, there which active competitors a remain road quite true are deal authorities, bit. is We the regulatory is on approval down the that the from final and until will

to we same. without is So expectation would JetBlue doing we're continuing same deploy deal. our And the is that the way a

no there. how would impact you? Scott, So

Yes.

On in to the sort of about capacity low a guide XX CASM ASMs, billion talked of ex Xs. we view the XX billion

with even range. in be guide XX%, the would low low of around we think X the still that or end I

So we think target this would I where that's at point.

all utilization then year, guess difficult you X also back both or you it you in get where the comfortable take year? the and that can confident want? same to are to Is these growth, next on get you you margins. about with unit questions. new planes the I all about mid-single-digit of operating think terms in And you are as What then assuming capacity And think talked I revenue?

to let revenue. on lot so some give there. unit thoughts. there's jump Matt in a well I'd I'll as Well,

to to right I continue. the our for back quite that doesn't ourselves numbers, training and are we're delivery that utilization, midst We're will without doing the got with crew, come and trajectory we've We full of It right of a And some bit schedule indicated that that get in indicated before. our confident as with now. we of as effort. hiring

tell there's to a I confident I ability of to thought we're do. before lot it And so I to work turn one as think over to in can our it. execute But Matt. before, I said you

flying had As different. revenue anything be today the that if we're we production, see that would continues. revenue demand unit more assuming unit it environment relates I'm But to number lot not the a we sure today,

it higher way it. where of In and be the might the fact, throttled we because throttled we've network

still there's So a network. haven't just hit of lot in our Spirit opportunities ULCC them. We

So Matt, what -- that? would further on dig you in

Yes, that's right.

about roll so network And fall changes through as year to -- we of the spring and break into into summer, network next made expecting the are this probably Scott, them think some well. when we we've the

But So is the we of to there little we bit that's not will have a way sort revenue. for opportunity of the future that view today. network coming a impact we're that capturing

your unit that, more be as lining for one though, right the we is now, places thing going are after led we future. the to network capacity we'd anyway, and all opportunities like now. revenue, into to note Ted we to a would that because as be revenues to the So we these we'd be But same flying really as grow, up about in actually continue where other move knew here right have more look mentioned, possibly to One the like network question on good to better deployment. would feel more we unit capacity even

big the were see But early. forward couple little being we thing be So our we deal anyway. where to of is that bigger perspective, pulled maybe bit a going -- continue in a where to be strong continue of about Not from a going in grow. much are to want those We're how some already we period smart to stations. thoughtful and month we grow given any and to just or there

set success. will that So operation and ourselves for Ultimately, well. we're up for the setting sure just that making production we up help making success as revenue sure

Didora Andrew from with of comes question Bank next America. Your

as that seem So more leisure you're we seeing in bit kind from early like industry a you're here. summer bit you peak maybe you seeing? fall the seeing pricing in real demand question. and be here? gone can a demand talk the airlines head speak some about into a the the what It pent-up in earlier about normalizing does maybe Ted, seems a is Matt, more to earnings bit And of to follow-up little around about I some season fares. guess Can other spoke what

like feel thing. Just the curious you you're same if seeing

Andrew. Sure,

to my seeing call from scripted as I in September remarks, So October, as which, seasonality, news. would as are we said we very we normal view and what into we move summer good

after was not the hit beyond. where us, fall for extent the be we summer And the So to now. off demand it Labor unusual to would summer we're the right that -- a question going seeing was that Day just and cliff

that through. fact, and in happy We're up, coming management that So pretty the with flow are revenue impressed be there. we to plan through volumes set we're continuing we're continuing the volume see a have to the way with

the I definitely that prior what the that we're in out say published on marketplace. of purchase coming into fall. advanced compared this bit summer fares Now pricing the are little see restrictions But saw is year continuing longer to different what's would a is to years of we movement

little So for the pretty of some fair but on the we're a in continuing yield good, fences we are term, than lower to bit summer, rules the better of levels a saw lack see over place.

then news the through that as and of well. the should QX head we moving good So part off-peak period as peaker be towards

we way So can that's seeing and Obviously, now, that about confident pretty pretty good we're of we're the change. now. right as setup. right But feel that the things

the next with Chris Your comes question of Stathoulopoulos from line Susquehanna.

average compare much to normal and levels? for your inventory seasonality. sold? currently is XQ XQ on comments pre-pandemic how that of And your Matt, this, fare into dig to want Just How does

the for question. thanks Chris,

normal tell little versus just is of Andrew's out get of much So what into already the is question we're the as details the you but come. from summer echoing we staying about moving that is be sort we're at here quarter improvements would in fall, And expect relatively expect what we we move exact unit revenue I seeing the in see the in the of it's would it's how we said fall. that normal move into booked month the growth bit a pricing summer I unit fall, to going is to lower, every acting consistent into as not the on and into numbers I still each mean how and what revenue and month. to

So Yes. than month? is Are and expecting And we but the it will The I periods, are different Yes. Hope summer month? be this us to the it for we're well. continuing the off-peak to continue to leisure would over-rotate routes by coming to of better and than a news But anyone peaker stronger outperform little continue that we the definitely to is seasonal. fall. see It's to hope want our by that bit into don't continuing see is. that expect book different the leisure it network definitely, all-period periods on to even helps. that think out it's volume good our take we

help you revenue of into or Ted non-ticket or you cyclical -- your slowdown? view can here, follow-up a you And least at the stickiness a think about just how fare Matt, us

Sure. as I'll take well. that one

the on very question likely is side to sort have we're more stickiness be year, happy we move see relatively the and on of will we to ticket an ultimately holding into that ticket done will as what as confident and I its there what through just what are cyclically think happens seasons, seen, yields. will continue yields what seeing So And of through pretty well. year confidence own we're we got saying, is we that next with the book. there impact non-ticket we've It what gives be the happens us than the

traveling about the the a develop, to offer So on well. gives more and do services continues if more that we think It we than us definitely of to to what offering destination properly COVID, especially think how we may we to us going different as that and the on in that of there's be all products the we holds, we about nonticket now with COVID. side had things opportunity gives coming invest the do to. invest non-ticket continue guests our have on depending dooring more and is And we side we've ability in in what opportunity We that we're things to to more place out are to continue in seen, lot past. offerings come. knew the that because bundled pleased offer way how was confidence And

Your from Savi the Raymond line with comes James. Syth of next question

was large to just question. return training curious, might to can capacity I going like utilization quickly the attrition current If the is getting the address kind confidence I be levels that so kind of sounds it you're of to enough you that there. get

other you buffers need -- component built, that I if that's these that reach is of and let kind of to the come And those that other of correct. utilization. to that know component think the me off you've

in buffers? all to you mid-XXXX? don't to could come through the you what Or the So off off? to see those buffers like So those it can about that get confidence kind you'd you need you talk need of training. maybe come what remove buffers gives Maybe

Just address kind of curious that could if little you a more. bit

Savi. Sure, training The are issue, correct. you

we attrition at adjusted to this the what as but like have -- adjusted want what the in attrition started stabilized point. like we last year it. we kind still to a has see, part from adjusting elevated and result of We of it It's have change of we latter

So months, at the over one or least adjustments, last some necessary we we've of here idea. made absent there sort other have like we X and have some the so feel way seen change step enough being or we the other, X history operating

So we've necessary made the I adjustments feel there. like

in second a system, North realities a put think question, operating aerospace. the system I time, because the sure of well run have the in to of to to the buffer of half adjust have As we practical point, place the American your we to also it's the lot but

pre-pandemic – and XX% heard our us So XX%, lot, of we in the and in flying the talk into you -- of Florida. of year, last were parts early about a well part Florida

of buffer the those having things the greater some remove about We've have to, is layer year. the more things and start way, bit quarters, the a a on it which made which being changes, we more prudent it point, base well able when we of running returns already schedule, so way what our refresh, mix, to analysis crew way before And how it which you base analyze underway be impact all -- under things they means are isolate by those will the which that, in we're does impact have and as that is of little best and the that the or those trying buffer to of experiments And down about result change. in either an next we early your here. block to the our aren't we start performance the back crews, build flying And coming or the or call of some into come is can, as from why the are and conclusions long being away crews pairing back isn't. can all

a because as Spirit the ever do confidence in we perfect taking for approach that bit that environment. put adapt for and, I better we to gives And it is this we're to this still But to have a can go. nothing reason, quite learning think is changing going business. so term us position in long We

Clearly, you Matt, on more what just than has experimenting in sense stronger things And curious, how the ancillary of you can ancillary different things. follow that you're even going envisioned think And push that then be and I have here? much and question. to try invested up pre-pandemic. you been mentioned, I fare you you Do know ancillary if I might you'll a the

right. we get thought you're not We to Savi, numbers definitely that would quickly out of just these COVID. coming ancillary but

has and little credit liked us. we're is hard to exactly news our only starting up, we actually loyalty started we think good COVID card think overall seen, of have the see on had all end mentioning of that to we're kind trajectory the caught One -- know push well the thing partner it's just this is that's the also it as where It of thought steeper is. but we way the have a it's is slope the moving now to worth that on our to would be. yet, had top But want -- up which big but So it to that well. line slower take we I not a than that we program not program, would where for with have be not was as well rates than where the this impact see initially

want to a So the . with be moving we're at we place better trajectory forward.

isn't So years. we're production continue something, think really that non-ticket about I don't last been few example pleased will our about for that's add that but to we talk it there it hasn't that. often, and that wanted We to be to where the

Your comes line from of JPMorgan. next Jamie the with question Baker

the there any JetBlue is just employee feedback guess there? Has an general And what feedback This topics that interaction up? bought is employees the key just James since since have wondering for announcement. I'm Jamie. town any has been? hall on I

Sure.

pretty is an be turn and looking bit which a bit to to They were and is what's years So clarity, that. lot for little really for build of the for looking X back through like to X now quite answer. continuing a last able group over we they're a us and attention resilient were every franchise. And specifically think specific X their us, critical to but going . I they've they begun put And stout deliver nice to a that always for a to been the look, past this months, over airline much has were

thought where you Yes, were continuing. I That's sorry.

X Airbus on with came ago the I delaying its weeks same the announcement, X think, out to Just question. XXX. is ramp that

Just impact And of wondering, do that is determine really Airbus revised well send that scheduling there? Or schedule? up it in your if that to to all just gets XXXX at they kind delayed? your does

and that ability at some constant around Airbus we in at delays. around dates, to been Airbus, capacity. optimized we not capacity point. primarily of manage can deploy impact we're products a monitor Pratt temporary or is point this some in so have to communication Scott. talk because this fully we're X, including our and the at delivery continue dramatic not Yes, through doesn't this delays vendors, and our of But to That our impact of all with number month deployment terms that this point James, there

we So are at real no carefully watching this point, it, but impact.

At this time, there are no further questions.

Great. soon. and today, catch Well, you us joining thanks for all we'll

today's conference. concludes This

disconnect may this at You time.