Dave Davis: First of all, I’m not sure what the math is there, we can go through it. But that number is too high. It’s not going to be sort of close to the high teens from a CASM basis for the first quarter. I would expect probably a number high single digits, very low double digits. And then as we continue growing here through the first quarter into the back half of the year, that should moderate significantly as we get to the back half of the year. So I talked a bit about CASM year-over-year. We should see any increases that we see in 2023 will be significantly lower than what we saw from 2021 to 2022.
Jude Bricker: One other bit of color is that, just recall, we did our pilot contract a year ago, the rest of the industry is rolling through pilot agreements now. And so, our cost trends will look really good relative to the industry based on that fact.
Catherine O’Brien: Yes, for sure. Maybe just as my follow-up, we continue to see really strong growth on the ancillary side for you guys. Can you just walk us through where the future opportunities lie there? Is that going to be optimizing for yields? Are there any step function changes, kind of like the offering?
Jude Bricker: First of all, I would continue to guide you to look at total revenue per passenger. Most ancillary initiatives that increase ancillary unit revenues have an effect on the airfare, but increased total revenue per passenger. So, just always keep looking at it like that, particularly bag fees and seat assignment revenue and convenience fees and things like that that most airlines are pushing really heavily on raising right now. What we’re focused on in contrast is on new products. We launched our bundle solution in the back half of last year, which is performing as expected. We’re also, like most airlines, getting a lot of uplift through our loyalty program, which is setting records in every quarter, certainly in the last quarter, was consistent with that.
And then, what’s exciting for me in particular is our third party products, which is us selling hotels and cars and travel insurance to our customers. And that is purely accretive. Every bit of revenue that’s incremental doesn’t affect the airfare for those products. And so, we’re really excited to see that. And those on a unit basis are increasing by triple digits as we roll out our car solution for the first time really, which is really, really exciting. So, we’re going to continue to have tailwinds on unit ancillary revenues. And for us, in particular, I think that’s going to drive continued tailwind on total revenue per passenger because of the kind of products that we’re seeing growth in.
Operator: Our next question will come from Helane Becker of Cowen.
Helane Becker: On CapEx, what’s maintenance CapEx?
Dave Davis: You mean like a total absolute dollar amount of maintenance CapEx?
Helane Becker: Yeah.
Dave Davis: Probably for the year, depending on exactly what we call maintenance CapEx, we include some of our engine purchases in there, probably on the order of $40 million to $50 million.
Helane Becker: And that’ll be financed through cash, I guess?
Dave Davis: That would be financed through cash, yeah.
Helane Becker: Just my other question, as you think about aircraft, are you just looking at that 800 NGs or 737-700s make any sense for you? What’s like your optimal size that you would be looking for?
Jude Bricker: We think that 900 would work as well. So, 800s and 900s.
Operator: Our next question will come from Michael Linenberg of Deutsche Bank.
