I tend agree looking at the reserve reports for CAs and FOs for may

ANC seems the most overstaffed on ca and FOs behind sfo but it isn’t by a awful amount and June there’s more flying than may and then July more then June seems we are right staffed for summer

time will tell

 

Wish I can post screenshots here but from the call, Shane Tackett outright says that the airline is not materially overstaffed. Also keep in mind that the company could have canceled the march bid if they were really worried. The March bid had a bunch of upgrades and that was two months after the MAX groundings from the door plug.

 

from the earrings call
Dan McKenzie -- Seaport Global Securities -- Analyst

Hey, good morning. Thanks. A couple of questions here. I guess my first question really is a head count versus fleet count question.

So what number of deliveries are you -- I guess, are you guys hiring to? And then I guess where I'm going with that is the overhead or the cost burden that Alaska is carrying because the deliveries are coming in a little less than expected. And then I guess, is Boeing compensating you for that cost burden?

Shane Tackett -- Executive Vice President, Finance and Chief Financial Officer

Thanks, Dan. A couple of things here on this one. I think we originally had anticipated 23 deliveries. Of course, when they come is an important variable as well.

As evidenced by our revised full-year capacity guide and capex guide, we expect to get fewer than that. Boeing actually has 10 aircraft essentially built and going through the final review and ticketing process. So we expect to get all of those and probably some additional units beyond that. So we're thinking somewhere between 10 and 20.

We have a number of aircraft we are planning to retire. So many of those aircraft were going to replace older 900 classics. So our headcount situation is in really good shape relative to the delivery stream coming our way. We're not going to be materially overstaffed.

I don't believe in any part of our business. We watch that closely. We had to staff up a bit throughout the end of last year to get ready for this year and the spring, but I don't think that we're going to be in a significant drag position from a cost perspective. And to the extent that we are having conversations with Boeing in terms of compensating us for that.

towards the end of the all

https://www.fool.com/earnings/call-t...%20of%20margin.

 

That's true, but diminishing economic returns since FO pay is 67% of CA pay. More once you account for bennies and annual training overhead, much of which is the same for all pilots regardless of seat and longevity.

Although there's probably a significant morale and future recruiting benefit to NOT being the first and very possibly the only airline to furlough in 2024. That's one of those tripping over a dollar to pick up a dime things.

I seriously doubt furlough.

 

We're running roughly 15% reserve coverage for May and June. While the line values are down a bit that's a far cry from needing to downgrade or fulough anyone.

 

my tinfoil hat theory

Alaska is telling Boeing due to delivery delays unless we get compensated we will have to downgrade pilots. A move to strong arm boeing into compensating them for the lack of airplanes

 

Why would Boeing care if Alaska downgrades, or furloughs (I don’t think Alaska is going to furlough), hires or upgrades? Boeings job is to deliver the planes not staff the airline.

 

let me have my tinfoil hat don’t kill the fun

 

I don’t think there is any reasonable chance of furlough…none.

 

I spoke to a rep when the incentive lines for March and April were implimented. The rep said it was to prevent downgrades. On face value it seems like downgrades are on the table and being considered by managment. It may have been an over reaction to the Boeing troubles. However, it seems to be the go to move.