The first half of 2022 experienced unique challenges with the Omicron spikes. This resulted in labor constraints and unplanned absences during peak leisure travel periods, which led to elevated cancellations. The operating environment had a significant financial impact. This operating environment had a significant financial impact of over 100 million in IROP costs, including fuel and crew costs, lost revenue, and going above and beyond by providing cash compensation to those customers impacted by canceled flights.

Feb 1, 2023 / President / receipt, needs a key / Greg Anderson, President | earnings call 2023-02-01 | transcript 0cf4729d-fc15-448d-808b-8d77c4f67984 | chars 10463-10982 | segment 10

As we look towards 2023, there remains significant uncertainty around fuel, the broader travel ecosystem, and labor challenges. And while the U.S. consumer is strong and the demand environment remains incredibly robust, we know the future macroeconomic environment is uncertain. Allegiant has a strong track record of industry-leading financial performance regardless of the macro fuel environment. Our differentiated model is built to outperform. And as John said, our focus is on margins. In the coming months, we will closely monitor the landscape and set factors as we continue to refine our capacity plans for 2023 with an eye towards improving margins. So please stay tuned.

Aug 3, 2022 / receipt, needs a key / Greg Anderson, President and Chief Financial Officer | earnings call 2022-08-03 | transcript e4768d5c-7314-44bb-be14-34d778436df1 | chars 20199-20879 | segment 20