Third quarter and full year 2016 cost trends

• Third quarter 2016 CASM ex fuel - CASM ex fuel is expected to increase between four and six percent versus the same period last year, primarily driven by the implementation of the new pilot agreement
• Full year CASM ex fuel - CASM ex fuel is expected to remain between zero and an increase of four percent for the full year - the incremental cost of the new pilot agreement that goes into effect on August 1, 2016, is mostly offset by the effect of the capitalization of Airbus major maintenance costs
• Airbus major maintenance costs
◦ Third quarter 2016 payments for Airbus major maintenance is expected to be $1.5 million
◦ Full year 2016 payments for Airbus major maintenance is expected to be slightly above $17.0 million and amortized over an average of 4.5 years
• Maintenance and repairs expense - Maintenance and repair expense per in service aircraft per month is expected to be between $105 and $115 thousand for full year 2016
• Total ownership expense per aircraft per month - Full year 2016 ownership expense per in service aircraft per month is expected to remain between $100 and $110 thousand


I put my favorite part in bold. I thought a contract was death by a 1000 paper cuts, certain bankruptcy for the company, can't be afforded, not in the DNA......