SkyWest (SKYW) 26 Oct 232023 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the SkyWest Inc.

Third Quarter 2023 Results Call. [Operator Instructions] It is now my pleasure to turn today's call over to Rob Simmons, Chief Financial Officer. ahead. go please Sir,

joining the for today. us everyone, call on Thanks,

SkyWest's is Officer. As this Simmons, Chief Brent indicated, Rob Financial

On the Commercial over the call to the President comments. Woodward, and safe with some Accounting to start me today Executive Chief I Eric Wade Chip are today Officer; harbor, by for Steel, to I'd then time Chief Officer. Officer; asking Eric Chief and like Chip read Childs, turn will

will discuss Chip, results, Wade Following will and arrangements. flying through take fleet financial the the I us related and then

Following Wade, with we will customary Q&A have our session the Eric? sell-side analysts.

contains of our vary We as or and events for of those new assumptions subject and statements likely any no discussion or Today's and anticipated, from estimated risks a result otherwise. to forward-looking update that whether assume current reasons. beliefs, are statement, future events will future represent number may information, obligation expectations results uncertainties. projected materially Actual and vary to regarding forward-looking a

factors the and other of Chip. XX-K differences and the over filings with the I'll in and Exchange call Form that Securities included turn such Some to And XXXX reports now our may cause Commission. are

of in thank Thank Middle saying are call Good you, Eric. everyone, for lives the has horrific attacks start risk. innocent afternoon, the millions the at the by Rob us conflict joining East how and on today. and escalating to and want we I you by devastated Israel put on that

the innocent or to where we mourn Today, the to thousands the aid cultures, humanitarian of announced an previously forward under total our United we of together, countries, and next SkyWest that $XX $X.XX aircraft net with plan income people the loss million million backgrounds, and strong team SkyWest While region. the have per of can XX% repurchase from fleet, and on XX X years. work not share we is made diluted million playbook and these new X.X for during over in our playbook focused to third quarter, communicated team, violence The do results EXXX Also share $XX of response purchased balance flying demonstrate to lives. new and contracts for provide acquired up the sheet. we look quarter's of partnerships as reported in our outstanding intended. continues opportunities in is SkyWest operate working areas, a and We're our the the shares different This to year-to-date. end shares

fleet fleet. to class teams deliver continues multiyear with efficient on and and performance, our We to needs. achieve and several now people, the deliver healthy to months for a partners' dual ensure and out help partnerships airline we strong X top an continue opportunities our helping our one, create shareholders. focus continue on that the sheet continue partners to our maintain maintain benefiting transition balance flexible SkyWest execute year. on-time Two, our our Three, DOT exceptional enhance and status of carrier

completion doesn't XXX% has for exceptional that XXX this report through year more record teamwork. This and performance when nationwide. in challenges allocation single airports when but extensive we manage days realize of weather, so more as at outstanding to feat planning as This even an a history. XXX far you than without our more resource happen year, SkyWest most a than the is So achievement, delivered adjusted in well

want Both pilots crew are our benefit career industry, unique and SkyWest. us appreciate their and choose captain a a for our outstanding than attrition We're recognizing to fortunate tremendous on the major deliver and people and through of to behalf proposition of move one relationship Pilot continue across quickly people stabilize availability that This great and continued an balance. efforts and relationship challenge our planned. to to here teams. continues have helps been to partners. We consistently them than specifically options this availability Our enables that here service. value thank reliability have want has slightly labor our to who we again to commitment they I do and at an recognize has with transition Captain and and us the quarter more that ever was attrition our those job, to and those product. representatives lower stabilize make who for positive to working before ongoing

new crew balance filling of upgrades will and to while restore full production it take And still our some are time We fleet. and higher pilot classes. our prioritizing regain utilization

accommodate it future shift fleet gears with stabilize, years. large these SWC's Demand for on-demand extremely strong, continued charters another spend. we encouraged to to I this SkyWest without to are situation earlier captain good However, flying our which about over charter since began the complete feel growth And adding XXXs by operation we or CapEx additional can want and Charter SWC, existing the to X XX has year. next beginning business. is successfully

strong air are of authority languished status and regulatory of its for SWC's service. application, about commuter Regardless reason, optimistic Department we're Transportation While very future. no the for SWC possible product for believe we has demand pleased answer the small that of best is with still at community the

flying In small primary SWC demand under plan our flying will remaining commuter remain partner original certainly exceeding very on aircraft. with focus is our authority. relationships. That of not we and this commuter our anticipate SWC originally fleet did expectations even the our authority. than is contract We major with is without now of fact, operating overall within business level XX charter it stronger at anticipated said, portion and a

ensure assets profitably. As Overall of always, remains efficiently products we our exceptionally remain and for disciplined to are demand our each deployed strong.

through best on data. reliably to positioned fundamentals, are us will game business we deliver the opportunities. long our respond we financial to on ensuring remain executing Rob we the As laser-focused now take for and

third $XX a per net $XX QX profit of $X.XX earnings reported share. we million. quarter pretax or GAAP was income million Today,

our million, tax lapse X%, million an for and Our reflected was weighted of the was average position. $X effective share from uncertain an benefit tax count $XX.X rate QX which

talk X% let's revenue and revenue. from Total QX $XXX QX million from XXXX XX% X% from XXXX. $XXX QX and up from QX, contract X% down is sequentially deferred Leasing revenue XX% revenue about million breaks X% is with in Prorate of million deferred $XX by in and $XX from up million QX quarter compared to in down up the XXXX. up include First, revenue was QX QX million from These results QX was revenue and than QX of million QX that XXXX. GAAP $X other down and year-over-year. less sequentially effect and revenue $XX QX XXXX. released this down of

end periods. of in As QX, we the deferred that have million $XXX future of of cumulative be recognized will revenue

last million defer beyond. roughly XXXX will $XX of to recognize revenue QX. to in begin indicated we expect anticipate QX revenue We As in we and quarter, previously deferred

to SkyWest during We Let one, from million, $XXX ended quarter of balance number stock buying cash me at $XX price two, million repaying of of included of X.X actions the per quarter. Number shares an reduction million quarter million $XXX cash with back accretive down $XX market in in $XX average million for the The share. in debt. the open $XXX million the sheet. move the last $XX million

aircraft today X.X shares shares three, toward X approximately million the of our have deposits months of ended for we the average September our in $XXX to invest at the During million or as share. $XX fleet XX% million an announced new repurchased $XX EXXX paying number transition. we in of continue XXXX, for XX per company outstanding aircraft order we price And

generate $X.X from These QX billion numbers the of $X.X during was quarter third despite down year-end cash-related million. Our production of debt from an billion, We operations tell CapEx quarter story that positive free the XXXX. flow continue constraints. ended we cash important as about $XX to with

strong Our also in years. cash lower in benefits free than from prior CapEx investment a flow

to ended to in repurchase solid in Our us million Tools over give liquidity during shareholder repay but continue this that specific over have Consistent and and XXXX. not color value. XXXX. QX be for on practice, our September are guidance policy me debt little outlook time, and months XX, and stock a X at powerful preliminary million $XXX we with tools create sheet the you $XXX the balance let giving helped EPS

modestly be to down from QX basis, including million of normal. on expect pretax $XX approximately but revenue, profitable per We GAAP QX seasonally deferred as

flat a As our Wade to down QX hours will we seasonal due QX, be factors. to from to slightly primarily in discuss block minute, anticipate

production availability planning are can we to XXXX the XXXX block many our outlook, our factor. our Although block variables for impact hours hours with pilot XXXX approximate gating currently

our were share GAAP share activity return high from noise in goes to XXXX, including year, and the from again GAAP pre-COVID. our the earnings away deferred As handle benefit $X this revenue per where we could the XXXX repurchase

from sheet, balance provide for reliable and our product invested demand solid the a for capital, on our improving Our including return catalyst flow cash strong following. operations

X.X purchase million shares of result September XX.X activity shares, repurchase of we a million our As XXXX of had year-to-date as XX, activity, outstanding.

XX, million shares to in we share anticipate and opportunistic repurchase As be had under continuing authorization, of $XXX going repurchasing we September forward. remaining current our

executed debt. also the by of balanced over first of Over on X $XXX we our million XXXX, quarters deployment repaying capital

ERJ fleet capital color levels of today us a hour block minute. future incremental more in the be our growth block of XX% net future announced today. will continues in XX% pre-pandemic cash debt in underutilization Wade Our CRJ to of growth investment lower this the accommodate before than our hours The around in XXXs place give and can XXXX.

being XX shortage XXXX. now XXXX will approximately and United. the strong years partners actions we expect deliver take today, And time than be us Wade? to expect announced our drive expenditures We of well preserve EXXXs new with million we the through our fleet, of solutions the XX EXXX and to strong to prepare position are believe over to opportunities XXXX. now to for for over the our delivery way the taking to utilization affecting new work to industry, fleet position optionality demand for aircraft continue the next couple through shareholder our as quarter We lower total returns. of capital pilot starting We monetizing to continue that incremental added next of cash $XXX

total EXXXs and delivered new we will to will XXXX, EXXXs long-term EXXXs continue will the this the replace be of XX X At XX contract in our addition XXXX, in to in announced CRJXXXs. XXXX. XXX. the quarter contract the come on and a Thank XXXX, EXXXs be United. year, Embraer These to with you, fleet order solidify be world. largest of XXXX, X on time in fourth as X debt These anticipate quarter out place Today, Rob. have the the fourth order. in We agreement operator the in repaid the X X with in CRJXXXs flying by new remaining XXXX. We taking of of anticipate United. will The a new XX EXXX under and This EXXX of end SkyWest XX them they will remaining the acquire last X in are the we

expect working in partners place next-gen our to the move some flying these believe single-class CRJXXXs will agreements replace under We they newest XXXs are and product the aircraft. These to valuable as with to aircraft dual-class they XX-seat world. extremely of be

our me review production. Let

major hours with as anticipate in our an Based to quarter. the partners on fourth block to we have quarter increased consistent regard hours be third staffing, the quarter block have trend our current our schedules we improving third will to of XX% second we hours With XXXX. compared that approximately This attrition accretive block is seen would QX, CRJ over fleet before for will X% the be block quarter from you compared XX% our The flat hour anticipate the we more captain any as block to and for also our aircraft. XXXX. makes add adding our approximately that to fleet and hours remind that model. additional can XXXX each ERJ number I by

supporting our in to restore production. engaged very remain partners efforts Our

business. charter have give been a status training the revenue and employees new we that and SWC, me investing update on-demand Let began time. since April, of charters operating SWC in beginning hiring in of about brief our

for a could anticipate bookings beginning contribution higher are winter in We charter been have anticipated. create November. earnings we fall originally significantly SWC's pleased sport We and with progress the to positive SWC and our than this

industry. As the demand just the far extremely the rest strong, remains business, as prorate of our like

very seen community have support. We strong great and yields

communities continue will on We the continue with to our the way best work service. to

for will to last flexibility we're of This committed us, have and our demand flexibility partners the continued a and several to exceptional our We spent provide and years to enhancing our the reducing major be fleet creative to we positioned. solutions for continuing differentiator with to continue well ensure financing products. each work are

Q&A Okay, Operator, for ready we're now.

Michael [Operator Deutsche Linenberg first Instructions] Your Bank. comes with from question

here. couple a Just

You this gave us, Rob, year. you gave us CapEx for

You said year lower than million than was -- or $XXX it this lower XXXX.

EXXXs XX in, coming CapEx -- the was how 'XX? your say should is number your new for the what before we With think and about 'XX, what

of a Yes, the hi, Mike. EXXXs. to expect I Yes, we CapEx year, new to about those slightly from for Including total CapEx from up bring 'XX, X be in 'XX to in 'XX. flat X would expect next

That's helpful.

Mike, of X. number And is the again, deliveries 'XX, in

future XX-seaters class those when like them? of then Wade, you be CRJXXXs, will And CRJXXXs as we think they Is role And CRJs. to that converted replace the the the guess But you going get Okay. airplanes? that to would from are fuel about flying said CRJXXX? XX-seaters those I XX-seat

Mike, Wade. yes, this is

in As we near opportunities you airplanes, those just those would well, demand the those lots of scope what my lot out script, has well. they a it CRJXXX us, for are American's for Both -- of both There's there and anticipate a there's also and you of XX-seat I that for as flying opportunities very in know said future. articulated. have in

you make release Okay. for EPS last, number? And per is my the pacing each said then revenue roughly want is next to GAAP right. think of reverse? on the quarter? I Rob, $XX right, year, different That's just a heard Is if Or gets million released great. sure your I I $X. it you is for just Is it What that quarter? it

between -- What year first share we And reversals Xs, revenue XXXX. just next deferred for sure. something let year. would million said that What was entire in the Yes, $XX and of $X me EPS I million earnings all, high include about clarify. something for the high GAAP $XX of per

like next Not huge a quarter. million Something reversal for $XX per to $XX number million year.

'XX, And it through does -- that run the $XXX released beyond does rate get it at Or you actually? plus? up pick does entire until it million

our say a XX% on like Yes. that number in years couple likelihood. going to all overall would depends rate the What It look but a I it's next bit 'XX. approximately of of 'XX production, is for quite be should including factors,

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

Or aircraft for does flying Just any the of work? order that how EXXX United, that does on curious replace you're with the that United today?

Savi, Yes, Wade. this is

airplanes. single-class that that CRJXXXs We XXXs are United in we have as new for in, replace partners major And elsewhere would potentially with we they as anticipate other the all placing today. XX-seat our come flying XX still XXXs will And we of our work replace said, to the those -- airplanes.

year. It the growth next provide you. and it. it asking everywhere wonder much comment, sense on slower color. Mike makes Got missed Thank I what before. that was is more you And just hearing can little bit if what pilot seems we're I side, like a

low-cost how next any extra updated will Are of just kind doing captain the of the kind might carriers up Some building hiring. thoughts that year? seeing today? supply you be on And those over progress not the of even

That's Yes. Savi, this is great a question. Chip.

I think of from XX sort or of your past over take we've so. that industry month sort days sensed the your -- last something the is

relative models. pilots we there's on some seeing you that events lot pilots going I what you the of take the number I have that the relative And try that in look further stabilization the going environment, we of produce. and There's think factors of carriers when and when of when to think most look that continue more to the major we're are pilots what captains did a to are say pandemic. at into think to that at they models than I all a before to play our come them predict capacity, of have, relative already to our

still going build you continue very those of XXXX to are have make and model to XXXX as we the our back be. paid think production get where to this. what years, of of we attention the are into you us know, But a and good and think do more half causing dynamic with couple keen be time. All momentum as in all relatively can that positive some it the to we up stabilize we that back pay are very last to and attention we to it's should sure We

I'll sense. get the Makes back Thanks. queue. in

line next Your question comes the Helane TD with Cowen. Becker from of

approving SWC I -- I'm wondering Team. understand whole this this Southwest seems Operator, of American why And time. much, the speedy like about you maybe mentioned you FAA Hi, a complaining it But the Thanks business? is for think, fashion. don't just kind the good you in very developing aren't this isn't Thanks a of and mentioned about avenue that Chip, because growth. more sector for

Chip. Helane, I some commentary of add question I'm but if a looking Yes, for to this on is it in there, will. you all will try

I my was -- question, guess just I

of aware is I'll what address to of have that One this markets within the of earlier things circles. of had in perspective, different is SkyWest pandemic, since I is trying optimistic good strong operating you're used that being some that a service mentioned to happening about demand of think with in I our this us with and college some of these the are a we markets what and strong to I very optimistic a have not ask, welcome providers and there's as opportunity into be kind that models, of mat as these very SWC have we're markets top what we start are created very to From We're we're that do to that that operating world, Charter. of lot things these the within lot industry, happened fact they think into have entity. in. entering about SkyWest some aviation -- certain of performer types what a makes like most is the very people thing other interested try overall in the finding penetrate some to

relative the this DOT, And for continue away. not of unnatural I the authority. communities why perspective lot what monitor the perspective, think from of going want continue how There's deserve. Now what doing. to commuter to we we kind We're we behavior approving we're works, to fight a we of for from they're our know not believe as process they're going what to

We're what look, sure our That's product the hopeful perspective, that overall models to from And I we about think industry to want with impeccable understand XX were we different I our have probably so, with part procedures SWC service authority. a to are different a you to Charter. very good fleet small with SkyWest that still and more in record, also make do. That's with deploying in in Inc. at deploy commuter best a our see we lot XX -- seeing to deploy forward that the there's actual SWC. small would that proven we're our with are It's community motivated I picture, where we be in and small within to absolutely to the look Airlines. aircraft up to of actually. fleet that with XX places. safety opportunities Lok, But or kind and service this. this the on-demand when is of we're carry big still relative SkyWest extremely of expertise, we SkyWest picture Airlines plan where that that XX trying can EXXXs we're to our mean actually and with we

That's Thank much. you very really helpful.

O'Brien Sachs. comes from with Your next Goldman question Catherine

that to your last XXXX. that a going it's How With your between and to CRJ aircraft, called increase would total and fleet First, now congratulations those fleet should Understanding if bit like growth aircraft year. any XX any. in and about deal, exciting. United are seen the I those you XX beyond XXX we smaller expect there that get EXXX any on of else. We've land CRJXXX you changes additional to growth the seats XXX is out United over guess think the side? out the net changes between above that anticipate CRJs of somewhere coming you

Yes. Kate, question. this Great Wade. is

ERJ top we We of is is XX%, As said, XX have focus, opportunity our have already coming. X 'XX. that of They're 'XX utilization. were right? order. we them we fleet XX on still On have and to by 'XX, coming still well, our in underutilized this that, XXXs the grow and -- back current

underutilized, CRJ of so utilization. more closer plenty Our opportunities there's that to there is fleet to like XX% still back grow something

grow at Between our use needs our fleet we enough major existing We a on discussions, with future discussions always definitely moment. and and the what we're side opportunities have fleet, we anticipate partners need. dual-class And what fleet shells in have CRJ the our future about and have in our continue to. we in they of order, how on our the lot to to potential

Got it.

like and of like probably, but on to utilization the couple next expect business, expect that understanding Is to of CRJ fairly side you'd increase You'd stable the that over shell right? be years. there's tremendous capacity count

our Yes. that -- deploy in being count got lot CRJXXXs of we We've anticipate CRJXXXs have a very and we Yes. the of No, stable. lot future. can we a shell

be better-than-expected things so piece the to positive And sounds expectation in news to have authority, of demand. changed Got that a going delays one with would you being like another I a a much. guys. charter, on SWC, line? but earnings size when bottom on of in for the your think positive that's happy obviously of forward? the November maybe the And Thanks of we how I initial SWC should about there new the it. guess contribution was What contribution know commuter that then on-demand it some

Chip. Yes, Katy, this is

I to knew would I were our That's up would a positive have and that originally, measured, don't absolutely we we predictable time now that communities other on-demand anticipated XXXX that to process SWC. be want we that picked a up. now. it initially Just looking from takes. why the entities were the and I we massive we contribution clearly, pick And as it, probably we we measured would mean into want on plans small authority, a right process be through but more slow, commuter from as well has that real line quick certainly have demand starting think before colleges a say service at

more expectation color since from and the think build in know trying contributions some the off it's going to more but perspective, how far still when and more get optimistic, a and you of our bit hold some it are infancy our maybe of up we're we're still we'll I Now the meet fourth we're specifics X probably we But what a little to in evaluate to so results, demand, back we'll and you quarter more on be on give then. there. the next information early, give months some lot

line Or on them would those are forward. dynamics like that scarce the love and We on update that Totally fair. attractive so hear one lot looking demand there of one changed engines to of of going if own and in, that the think to been trend a flattish. market. could revenue just is fly you and new seeing want that has at pretty Maybe hold what just Thanks driving on kind objective and -- about But lease different that the sneak tech rates last were Are the that you business? in I I has think you it much. area just your leasing just is aircraft the supply narrow-bodies availability on business? business, the you an in

demand both has selling we've strong. in item. is types had our It Yes, Kate, actually, really leasing that been Wade. on demand all some our assets, very this line flat of and strong engines. between is The in We've both --

in have decrease upside business see market of we Some lots out definitely still pipeline forward. as really is we -- to kind up the there's help. chain engines there definitely that. definitely The There's people to is point see of the that of ground in in the leasing challenges, actually at out lined the kind some that. of and reaching and increase this the going handling are supply for some future for more related We our what

working over of We yes, demand see are through couple years next for But right sure. the with that good now. we them

question with comes Evercore the line Duane next Your ISI. from of Pfennigwerth

confidence, a maybe implemented first of to so this and on the retention competitive that capacity the are function Or the from do side? Is into you increased you kind bidding to of suspect carriers? less staffing that revisit what there's plans function early just on of have Is XXXX? mainline adjustments moment a out things maybe Just some of this seeing? your you themes, maybe the at

we that XX that's -- impact, Yes. for months, -- to months. carriers relative to with I the and have of start And the capacity. documents conversations publicly hired to can over about of stay one to attrition have and future, sort past the we're the premier interesting an still so And one. because a even seen over not think is event captains last most third and produce to your for we talking that you be X take pilot I the problem probably to done of we when than to the positive with One, still think we've evaluate of build make big we in I going pilots -- the not career. things. out think the regional been is filed major that question. now we mean X and they Duane, there more positive produce probably And some carrier is the overcapacity, to looking cycles see XX have mean, a most what stronger long-term pilots And the I'd done the That's the I I look impact right, be X This today. now a major overcapacity months, the have the Chip. coming sure thanks expect seen separate at have very industry captains. to are over you're today would we lot I they it we're because lot that to I carriers have you we've months. having That's supply did next is guess candid, that things seen a we what of past it's things trend internally try have just say to to a time which sheer about pre-pandemic. numbers back

program it work the schools of never stronger is cadet than has that All been we today. our with,

But point and We things first is produce are is from now to key captains, what next we to when to think be do. for to captains, getting produce to for just that very, going us productivity at we're months very now all the have align which positive produce I XX to officers. responses more these continue on

Great. demand a of function business on talk your you in the going about the then If appeared bit maybe the Okay. agreement, go incremental business? the and aircraft, the coming legacy? could appeared? right execute a that demand what's United ability on rate is or to that the little about that? Is to new to think of Or pipeline it And just service out is like we acquiring it you'd your where it limiter the ability confidence of your be market sort with into terms

this XXX them. right? fleet good Yes. very And of This to to us Wade. with United dual-class United continue scope while, working get extremely supportive their We've on in been has complete large been is a with a for deal

contracts. improving, They been we've is on a to fulfill so, was we're legacy demand coming They see that that wanted with we while these The able this this. them that working for there. could product in very back, supportive. our were And

to was 'XX, get between confidence the needs I will agreement came us as utilization where add And to we on the X do and did. It X-way end 'XX would back fleet of that our overall be time just we a It into to give that and Embraer as had it years, with even well. that GE 'XX. we and them well. great over an what deliveries And in United United. we worked have our and so abilities, think these next agreement the right, with this I had we

of and transaction very this major good us. it was that All one partners was good, for had our a we in

it's we I one-off? question? one-off? kind this see do could to of these this be coming quarters? there it. the Is you over expect Or is think of these more guess over of just a mean time should a more I great Is the

Chip. Man, a you've lot this Duane, coming we're is environment. the more I current realistic think these hope that I But quarters. got for us, there's I think -- over of about the

things we're of in you the this the I world. will us talk a is headwinds there's and though. think a given XX more fantastic to when that you facing the about getting lot of tell I deal timing XXXs, having these

are more we most and that more got extent We get beauty we have, it interest these relative and financing. creative the development question, right helps sure we ordering as financed the are We your able making talked aircraft retention. them you've aircraft of recruiting. high think the far captains. foremost, SkyWest have that But still else. the being in get way, We competitive you to we other challenges by is, We think aircraft to of of it the more think First to of anybody the still the industry earlier helps do rates than of it is with extremely just in in right at that. be some helps to think pricing

we and better that than strategy in time. While we're of I that is hope these our with of lot same headwinds significantly in I creativity. there's professionals given very direct to be most can't industry, can at there's future. can this the the positioned I a more these a the what our lot and of anybody part our do But say there's the promise sheet, else going a amazing coming, of balance

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

mix Can there? side, doing Thanks kind for on aircraft prorate mostly or prorate I are And a ask now many of RJs on of kind the how side? larger that you just is the the follow-up. the

Wade. this Savi, is Yes,

in of prorate We have XX the in range XX somewhere airplanes side. to the

transitioned I October. the to our first fleet that fleet seen on Delta think you have a probably primarily dual-class part has publicly starting of

airplane. And a The of in it so transitioned. single-class still that is has rest XX-seat

it a so curious. on charter the Got side? quick seasonality more just gives like chartered, follow-up. the then it. counter nice the a And offset? seasonal What's it bit -- Is is just on a Or

Yes.

spring Chip. we're new And is lot I and okay, if we I there's other ones is when We're to on at business, us authority. with seasonal this can is could take to It happen the to as next we're bad of summer space. And throughout of That for that look from still the now also is? the process that like, continue baseball before, is primarily a is extremely this. summer, going with this the after I a We're that Because what this is seen and happen seasonality it and the level we this unfair, at kind it to basketball, think predictably. commuter of that it the like of lot today. that's getting get to I that honest, a things I sports to and a But is how primarily before, this start can this learning summer. And product been is basketball see ourselves. competition in do is the said, this. it. be extent, just and people having happens to seasonality an spring can busy. to to what keep shocking to new into And that before entrant we're other where side is to that do haven't said reliably what deliver extent, Savi, honestly, things kind pursue mean mean very but thing what the and know a certain through said we we're industry going bit We're of strong nicely. obviously, going #X that we're That's may offset to, be we looking candid. space hearing, a of that of other to there's you certain be

XXX type to pilot like still that grow? does that operation? Or need Is

need No, we grow. per to sitting that XX pilots here, assume are we about typically aircraft. we would need If

we element on to top amount of could of And very a model. have the we do of fair service that, to has Which, of there's today. small like said, to We candid, that need very, be some so we'll XX-plus needs grow pilot continue the business community attractive prospects.

long We have pilots to it. love have we be amazing pilots a some joining, list would that involved of with and

are will for at turn remarks. this Chip over There call time. Mr. Childs the closing further no to I now questions

for forward Thanks in world very your utmost moving and for have we turn months. on our the We paramount people and quarter. for does sensitiveness in is keeping our and priority highly our speak have candidly, our in we shareholders work stakeholders. what everybody, return that last we're what is fourth again and interest. a appreciate amazing to we your Thank holiday you opportunity the of for grateful and quarter X again, hope everyone provides all of performance season, we interest. executed report well that it back safety I good, in the we're can't this have, done living that the people Quite and enough today continue will and the safe with the

today's concludes this gentlemen, and call. conference Ladies

now You disconnect. may