New airbuses only contributed slightly in the form of increased depreciation and maintenance. The combined increase only represents 3% of total operating expenses.

Total Revenue is up 7.8% Q1 year over year. Total Operating expense are up 33.2%. The biggest players are fuel, up 57.8% and salary/benefits up 39% Q1 YOY. Total cost per available seat mile increased by 18.3% and the pilot contract represented 8% of that increase. The airline is overstaffed to support a training bubble.

When the dust settles after the transition my guess is that operating margin will be somewhere around 23% give or take, which would still be the highest among airlines.

As far as fuel, last year 2016 Q1 oil ranged from $29-$37 a barrel. This Q1 it has been around $50/barrel.