Operator: The next question comes from Stephen Trent with Citi.
Stephen Trent: Two quick one’s for you. One, as you look at these new products that you mentioned with the UpFront Plus, I think you said it was called, and you look at this new route network, what sort of competitive response are you seeing from the network airlines or others as you launch on these new [ramps]?
Barry Biffle: Yes. Thanks, Stephen. So, look, I think we’re seeing what you normally see. I mean one person’s great opportunity for high revenue opportunities with underserved or high-priced markets is another airline’s definition of incursion. So, we see normal reactions out there. But I think the truth is that the industry is focused on margins. And so, I think any irrational things that you see, I think generally, over time, I think most rational carriers will respond with different pricing and capacity as a result. But yes, we’re not seeing anything out of the normal.
Stephen Trent: Great. Appreciate that, Barry. Just one other question from a regulatory standpoint. And I haven’t even 100% seen all the details around this myself, but I guess the DOT made some rule changes about airlines having to compensate customers for delayed flights and lost bags and this kind of thing. Do you sort of have any color on what’s the latest on that? And to what extent the industry might push back on that?
Barry Biffle: Yes. Look, I know there’s some pushback on it and a lot of it has to do with — I think there’s concern about the technology that’s available, especially with third-party to be compliant with the transparency. On the refund side, I would say that, look, we refunded over $300 million last year, all in these same categories. We believe largely in compliant with what they’re looking for. We don’t see any financial impact from this. And I’ll just dovetail on the transparency, we’ve got some big changes this year. We’ve got a new website coming out. We’ve got a new app coming out, and we’ve also got some kind of improved merchandising that we think will not only be good for us from a revenue perspective, but I think it will really address much of these transparency issues and make it very clean and upfront.
So, I think we can hit the spirit of what they’re looking for. But I think the way they’ve written in, I think, the reason why some of the industry is having a challenge is because I think there’s not the technology in place today to do exactly what they’re looking for. But hopefully, we can all get there. But again, we see no financial impact from this.
Operator: For our next question. The next question comes from Christopher Stathoulopoulos with Sequoia Financial Group.
Christopher Stathoulopoulos: Barry, I want to go back to your comments or your prepared comments around supply dynamic. If you could put a finer point on that as it relates to key pieces of your network. A lot has changed here. You’ve been very clear about how you’re thinking about optimizing the network going forward. But also looking at the last, I don’t know, a few weeks of sales promos here, coincidentally or not, they seem to be overlapping with a larger network peer and should kind of reinterpret that you’re having confidence here with your product, particularly as it relates to these revenue initiatives, business, rework, loyalty and things like that.
Barry Biffle: So, look, I said a while ago, low cost have always mattered, and the cost divergence is real. And at the end of the day, this enables us to sell to customers that can’t afford possibly a network carrier. We’re in a different business in that regard. And we think that we peacefully coexist in many places with the big airlines because they offer a different product, and they cater to a different clientele. Yes, we have some new products that I think probably appeal to your more affluent travelers and those that want a little more comfort with the UpFront Plus or the premium product. But the truth is that we don’t have a frequent flyer program that gets you to Dubai. We don’t have eight frequencies a day in routes. So, we’re not really for the corporates that they chase. But yes, I think we serve a different market. And I think most of the more sophisticated legacy carriers have actually figured that out.
Christopher Stathoulopoulos: Okay. And then your comments before, I think there was an earlier question on this yield and load factor dynamic. And if you could speak to how that’s progressing, if it’s sort of consistent system-wide? Or is it perhaps more market-specific? And is that a dynamic that we should expect to slowly shift as we get through the balance of the year?
Barry Biffle: Well, look, we always look to optimize revenue. I mean we have teams that this is their big thing, right? I mean, this is what they do. They optimize revenue every day. And we found that in Q1 that a greater focus on yield and less on load was a better outcome for us. And we’ve seen that we had a pretty good beat. And so obviously, it worked. However, it’s not good long term to have that kind of deficit to the load factors. And I think you’re seeing that as a symptom of we still had too much capacity that was impacted by the oversupply in Florida as an example. And so, as we move through the year, we would expect to regain all that load factor. And I think by the time you get to Q1 next year, I think we will largely close that gap back because of the changes we’re making to the network and getting out of the oversupplied areas.
Operator: Our next question comes from Savi Syth with Raymond James.
Savi Syth: Thanks for the follow-up. You brought up a good point earlier that your 1Q cost performance was quite commendable and kind of better than expected. Just curious why your full year outlook hasn’t changed? And any thoughts on like what drove the 1Q performance that can maybe continue.
Jimmy Dempsey: Yes. I mean, yes, as we look — from a cost outperformance standpoint in the first quarter versus our expectations, as we continue to target and work towards that $200 million cost savings plan, which we’re on target for, and we started to see some of the early benefits in the first quarter come through across the business, and so that’s what you saw in the first quarter. As you look on a full year basis, I mean, we still — we’re holding to that 1% to 3% given that the strategy that we put forward. I mean, that is what we’re still holding to. And so, at this point, that guide still holds.
Operator: I’m showing no further questions. I’d like to turn it back over to Barry Biffle for closing remarks.
Barry Biffle: Hey, I’d like to thank everybody for joining us today. We’re really excited about our trajectory on costs as well as revenue and how we’re improving in operations. I want to thank all the Team Frontier, and we look forward to hosting you on our next call. Talk to you soon.
Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.
