So, I think that’s where we are thinking about the growth of the airline and all the components with it. So, I hope that helps.
Dan McKenzie: Yes. Thanks for the time. Appreciate it.
Operator: And we will take our next question from Helane Becker with Cowen. Your line is open.
Helane Becker: Thanks very much operator. Hi everybody. Thank you. So, my first question is with respect to your ancillaries. How are you thinking about I guess increasing them, I mean where do you €“ maybe that’s not the right question. Maybe it’s more like where do you think they can go? They seem pretty high now, but how high do you think they can go?
Matt Klein: Hey Helane, it’s Matt.
Helane Becker: Hello.
Matt Klein: Good morning. We €“ in terms of ancillaries, we are not going to plan to flag today and give a target as to where we think it can go specifically. I can tell you, as Ted mentioned, we expect to have another record this year. We continue to expect it to march upwards. We do continue to improve in terms of the way that we merchandise products, and making sure that everything continues to improve from a guest experience perspective in terms of getting through the purchase process. That’s not just on our website, but on our app as well. We also have what we believe to be, if not the largest, one of the largest reaches to third-parties in terms of selling our ancillary products now as well. So, that’s been beneficial from a distribution perspective.
And even if guests aren’t purchasing ancillaries on their first contact with us, we do know that the more often that they see the products, if they are not frequent Spirit travelers, it leads to better take rates down the line for them as well before they get to the airport or before they board the aircraft. So, it’s about merchandising, distribution and also just continuing our ongoing improvements in revenue management strategy and the technologies that we are building to put in place to help us manage the products. Similar to the traditional revenue management of just the ticket in general, we continue to make strides with revenue management of the ancillaries as well.
Helane Becker: Okay. That’s hugely helpful. And then just for my follow-up question, it’s really just a clarification. On ASMs, I think you said €“ I am not sure who you or Scott said that they were mostly second half, right, weighted. You are seeing capacity increases in the second half of the year. So, are you assuming that the engine relief will be there by the summer months, or how should we think about that?
Ted Christie: Helane, this is Ted. Yes, we do have a back-end SKU delivery schedule with Airbus, which I think is what you are referring to, which affects ASM production, but doesn’t affect utilization because the airplanes aren’t there. What’s more impactful utilization is that the aircraft that have already been delivered and are not being operated because they are sitting on ground. Those are the engine issues. We do expect that by the fourth quarter, that will have a resolution to it. And we are working with Pratt on ways to mitigate the impacts throughout the course of the year. Obviously, if we are right, then we should land exactly where we expect. If we are wrong, then there will be potential utilization penalty in the fourth quarter. But right now, that’s our base case.
Helane Becker: Okay. Alright. That’s hugely helpful. Thanks everybody.
Operator: And we will take our next question from Savi Syth with Raymond James. Your line is open.
