2. Investment Thesis
• Operation margin guidance set at 17-19%
throughout 2018
– Set on returning to positive RASM
• Capacity growth at 1% (previously 2.5%) throughout
2017
• Increased fares
– Expect slow improvement as capacity cuts take
time

3. Risks
• Load Factor
80.00%
81.00%
82.00%
83.00%
84.00%
85.00%
86.00%
87.00%
88.00%
89.00%
March April May June July August September October
Load Factor
2016 2015

4. Risks

5. Recommendation
• Hold
• Based operating margin guidance with
conservative estimates in DCF
• DCF target price: $45.00