The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst
: Wonder if you can talk a little bit about what you're seeing so far, I guess, in the summer since you've restarted operations. I mean I appreciate it's
a relatively small number of flights. But what are you seeing as far as demand and load factors on the flights that you've operated so far through
August and into the early part of the September.
Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst
: Okay. And on the -- I guess, the sun destination bookings for the winter, if I go back to the last quarterly conference call, things were looking fairly
encouraging there. Has that trend continued? Are you still seeing pretty good, I guess, steady state pace of bookings for the sun destinations?
Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst
: Okay. And just maybe final kind of follow-up question on the winter destinations. I mean you've put out your schedule. I'm just wondering if you
can give us a sense of what level of capacity you're going to be at this winter versus, say, the prepandemic level, just any kind of guidelines there
as to what level of operations you will be at during the winter?
Question: Cameron Doerksen - National Bank Financial, Inc., Research Division - Analyst
: Okay. Just to clarify, you said down 35% capacity for destinations that are open. I mean relative to, I guess, winter 2019-'20, what percentage of
destinations are actually open?
Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst
: So maybe just a clarification first. So I heard on the call [you mentioned], I think 80% of the travel credits have been requested for refunds. But in
the presentation, I think it says about 90% of the credits that you have issued have been requested for refunds. So just confirming the numbers, is
it 90% refund request and you have fulfilled 80%? Or is it the opposite?
Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst
: No. That's clear, yes. Just saw something a little bit different in the presentation. So making sure. Thanks, Annick for that. And then on the cash
burn guidance, I think similarly I heard you guys are expecting a slight increase in cash burn for the remainder of the year as you ramp up operations.
[Like with the] kind of forward bookings you're looking at right now and maybe 80% or 90% of requests you have received for refund about almost
kind of fulfilled, like if you go further out, maybe over the winter period, would you anticipate at some point to be cash breakeven instead of burning
cash, or it's still too soon to call out?
Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. That's good color. And just if I can clarify on that cash burn guidance you provided. At any point in the near future, do you have any delayed
payments that you negotiated with the leasing companies? Would you have to start making those payments this year?
Question: Konark Gupta - Scotiabank Global Banking and Markets, Research Division - Analyst
: Okay. That's great. And last one for me before I hand over. You mentioned domestic is recovering faster than international routes, which is kind of
obvious in these environment conditions. But I just wanted to understand, in terms of your kind of short-term capacity as well as your 5-year plan,
where do you see domestic as percentage of your overall network? Where does it fit like? Is it going to be something like 20% of your business
overall? Or could that be more than 20%?
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