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Aircraft Fuel
−Removed: Prior to COVID-19, we did not experience significant difficulties with fuel availability.
−Removed: Recently, some of our fuel service providers have experienced logistical challenges transporting fuel to certain airports, that resulted in isolated levels of disruption to our operations.
−Removed: Although there is no assurance such challenges will not get worse in the future, we currently anticipate we will be able to obtain fuel at prevailing prices in quantities sufficient to meet our needs.
−Removed: Pursuant to our contract flying arrangements, United, Delta, American and Alaska agreed to bear the economic risk of fuel price fluctuations on our contracted flights.
+Added: In the past, we have not experienced sustained material difficulties with fuel availability, and we currently expect to be able to obtain fuel at prevailing prices in quantities sufficient to meet our future needs.
+Added: Pursuant to our contract flying arrangements, United, Delta, American and Alaska have agreed to bear the economic risk of fuel price fluctuations on our contracted flights.
We bear the economic risk of fuel price fluctuations on our prorate operations.
−Removed: For the nine months ended September 30, 2021, approximately 16.1% of our total flying agreements revenue was derived from prorate agreements.
−Removed: For the nine months ended September 30, 2021, the average price per gallon of aircraft fuel was $2.37.
+Added: For the three months ended March 31, 2022, approximately 11.2% of our total flying agreements revenue was derived from prorate agreements.
+Added: For the three months ended March 31, 2022, the average price per gallon of aircraft fuel was $3.40.
For illustrative purposes only, we have estimated the impact of the market risk of fuel price fluctuations on our prorate operations using a hypothetical increase of 25% in the price per gallon we purchase.
−Removed: Based on this hypothetical assumption, we would have incurred an additional $19.4 million in fuel expense for the nine months ended September 30, 2021.
+Added: Based on this hypothetical assumption, we would have incurred an additional $6.3 million in fuel expense for the three months ended March 31, 2022.
Interest Rates
−Removed: As of September 30, 2021, our long-term debt had fixed interest rates.
+Added: As of March 31, 2022, our long-term debt had fixed interest rates.
We currently intend to finance the acquisition of new aircraft through manufacturer financing or long-term borrowings.
1 unchanged sentence
To the extent we place new aircraft in service under our capacity purchase agreements with United, Delta, American, Alaska or other carriers, our capacity purchase agreements currently provide that reimbursement rates will be adjusted to reflect the interest rates effective at the closing of the respective aircraft financing.
+Added: A hypothetical 50 basis point change in market interest rates would not have a material effect on our financial results.
+Added: Inflation Risk
+Added: If our costs become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases under our capacity purchase agreements.
+Added: Salaries, wages and benefits expense represented 43.9% of our total operating expense for the three months ended March 31, 2022.
+Added: For illustrative purposes, a hypothetical increase of 25% in our salaries, wages and benefits during the three months ended March 31, 2022, would have increased our operating expenses by approximately $75.0 million.
+Added: Our inability or failure to offset a material increase in costs due to inflation could harm our business, financial condition, and operating results.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.