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

Risks

• Load Factor

March April May June July August September October80.00%

81.00%

82.00%

83.00%

84.00%

85.00%

86.00%

87.00%

88.00%

89.00%

Load Factor

2016 2015

Risks

Recommendation

• Hold• Based operating margin guidance with

conservative estimates in DCF• DCF target price: $45.00