Financial Data and Key Metrics Changes - Total operating revenue for the first quarter increased by 5% year-over-year to $912 million, driven by a 5% increase in capacity [9][18] - RASM was approximately $0.09, remaining in line with the prior year quarter, while total revenue per passenger decreased by 6% to $116 [9][18] - The first quarter pretax loss was $40 million, resulting in a 4.4% loss margin, with a net loss of $43 million or $0.19 per share [20][21] Business Line Data and Key Metrics Changes - The company significantly reduced capacity through its mid-November selling schedule, expecting capacity to be down low single digits in the second quarter and a similar reduction in the second half of the year [7][21] - The economy bundle introduced last year has enhanced product offerings, providing customers with a direct comparison to other airlines' economy fares [11][12] Market Data and Key Metrics Changes - The domestic leisure concentration of the business experienced an outsized impact due to macroeconomic uncertainty, leading to aggressive pricing and promotions across the industry [5][9] - Current booking trends suggest that demand for May and early summer travel has stabilized, supported by recent revenue and network enhancements [5][21] Company Strategy and Development Direction - The company is focused on capacity management and cost control while providing customers with the best overall value in air travel [6][8] - The introduction of the new frontier and enhanced product offerings aims to elevate loyalty and customer engagement, ensuring competitiveness in the market [13][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the results for the quarter were lower than expectations due to a disruption in travel demand in March, but they are optimistic about stabilizing demand moving forward [5][21] - The company is targeting profitability in the second half of the year based on a stabilized demand outlook and self-help measures in moderating industry capacity [8][24] Other Important Information - The company expects capacity reductions to support over $300 million in combined cost reductions and capital spending deferrals over the balance of the year [21] - The company took delivery of four A321neo aircraft and two spare aircraft engines during the quarter, raising the total fleet to 163 [20] Q&A Session Summary Question: Average fare decline and impact of premium products - Management noted that premium products are performing well, but the average fare decline was primarily due to concentrated capacity in March and lower load factors [26][28] Question: Capacity adjustments and focus on core markets - Management confirmed that they are focusing on core profitable markets and adjusting capacity to align with demand [30][32] Question: Factors driving return to profitability - Management indicated that several factors, including reduced capacity and stabilizing demand, will contribute to a return to profitability in the second half of the year [38][39] Question: Competitive landscape and market dynamics - Management acknowledged that both low-cost and high-cost carriers have flooded certain markets, but they are seeing moderation in capacity and improvement in demand [84][86] Question: Loyalty program performance - Management reported a 30% year-over-year increase in spend related to the loyalty program, indicating strong engagement and growth [81] Question: Fleet delivery updates - Management confirmed a shift in aircraft deliveries, with one less aircraft expected for the full year, but no significant issues with engine availability [115][117]