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COVID-19 Pandemic Update

As the COVID-19 pandemic evolves, the Company’s financial and operational outlook remains subject to change. The Company continues to monitor the impacts and to implement mitigation strategies while working to preserve cash and protect the long-term sustainability of the Company. As of February 29, 2020, the Company had unrestricted cash and short-term investments of approximately $1,018 million.

In response to government restrictions on travel and drastically reduced consumer demand, the Company expects to reduce capacity from its original plan by approximately 45% and 75% in April and May, respectively. However, the situation is very fluid and actual capacity adjustments may be different than what the Company currently expects. The Company has taken, or intends to take, additional action, including:

• Monitoring demand and continuing to adjust capacity as needed;

• Pursuing additional financing secured by the Company's unencumbered assets;

• Suspending $50 million to $75 million of planned capital spending related to certain non-aircraft capital projects;

• Reducing planned non-fuel operating costs by $20 million to $30 million, excluding savings related to reduced capacity;

• Freezing hiring across the company except to fill essential front line and management roles;

• Engaging in discussions with the Company's significant stake
holders and vendors regarding financial support or contract adjustments during this transition period;

• Engaging with the U.S. government, local authorities and industry groups regarding a support package to protect the U.S. airline industry, its employees and many other stakeholders.

Additionally, Ted Christie, the Company's Chief Executive Officer and President has reduced his base salary by 30%. All Senior and Executive Vice Presidents and members of the Board of Directors have reduced their compensation as well. The Company anticipates it may implement further discretionary changes and other cost reduction and liquidity preservation measures as needed to address the volatility and quickly-changing dynamics of passenger demand and the impact of revenue changes, regulatory and public health directives and prevailing government policy and financial market conditions.

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