ITEM 7.01. REGULATION FD DISCLOSURE.
Recent Developments
Operations
The Company has experienced continued strength in net bookings and load factors.
As of
In line with prior guidance, the Company continues to expect second quarter system capacity (total available seat miles) to be down 20% to 25% and total revenue to be down approximately 40% versus the second quarter of 2019.
Given the strength of summer bookings outlined above and based on preliminary
internal results, for the first time since the pandemic began, the Company
generated cash1 for the month of May and expects to end the second quarter with
more than
Balance Sheet
The Company remains highly focused on the reduction of debt levels and
transactions to facilitate deleveraging and balance sheet optimization,
including through the use of cash on hand, the potential issuance of the
approximately
Forward Looking Statements
Certain of the statements contained in this report should be considered
forward-looking statements within the meaning of the Securities Act, the
Exchange Act and the Private Securities Litigation Reform Act of 1995. These
forward-looking statements may be identified by words such as "may," "will,"
"expect," "intend," "anticipate," "believe," "estimate," "plan," "project,"
"could," "should," "would," "continue," "seek," "target," "guidance," "outlook,"
"if current trends continue," "optimistic," "forecast" and other similar words.
Such statements include, but are not limited to, statements about the Company's
plans, objectives, expectations, intentions, estimates and strategies for the
future, bookings, demand, yield, load factor, cash generation and liquidity, and
other statements that are not historical facts. These forward-looking statements
are based on the Company's current objectives, beliefs and expectations, and
they are subject to significant risks and uncertainties that may cause actual
results and financial position and timing of certain events to differ materially
from the information in the forward-looking statements. These risks and
uncertainties include, but are not limited to, those set forth herein as well as
in the Company's Quarterly Report on Form 10-Q for the quarter ended
1 The Company defines cash burn/generation as net cash provided by (used in) operating activities, net cash provided by (used in) investing activities and net cash provided by (used in) financing activities, adjusted for (1) Payroll Support Program financial assistance, (2) net purchases (proceeds from sale) of short-term investments and restricted short-term investments, (3) proceeds from issuance of long-term debt, net of deferred financing costs, but excluding aircraft financing, (4) proceeds from issuance of equity, (5) prepayments of long-term debt and (6) other cash flows that are not representative of the Company's core operating performance. This calculation is a non-GAAP financial measure for which it is not practicable to provide a reconciliation to a GAAP measure on an interim basis. 2 The Company defines total liquidity as unrestricted cash and investments, undrawn revolver capacity and other undrawn facilities. --------------------------------------------------------------------------------
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