Question-and-Answer Session
Operator
Thank you. Ladies and gentlemen at this time we will now be conducting a question and answer session. (Operator Instructions) Our first question comes from the line of Mike Linenberg with Merrill Lynch.
Michael Linenberg – Merrill Lynch
Hi, yes, good morning all. I guess just to clarify on the CASM guidance. You did indicate that it should be down like what we saw in the December quarter, however, I think Paul in your commentary you did indicate that anything related to Lynx would no longer be treated as a special item. So is the guidance inclusive any impact of Lynx in your March quarter?
Paul Tate
Michael, it doesn’t matter because the guidance that we are giving you is mainline guidance.
Michael Linenberg – Merrill Lynch
Okay.
Paul Tate
So it’s out under either scenario if you follow what I am saying.
Michael Linenberg – Merrill Lynch
Okay, that’s helpful. I want to get back to some of the international stuff that you were doing down to Mexico and some of it was non-Denver. When we look at those markets now are you out of all of the markets or you still flying, as I recall, I think, you were flying from markets like Salt Lake, or St. Louis, Indianapolis, Nashville, down to Cancun. Are you still in some of those markets, number one?
And sort of a part two, there seems to be so much promise with those markets, and a lot of these new markets, a lot of these new point-to-point markets were doing very well early on. What changed? Is it consumer demand; is it competition from the likes of Delta and others, what has turned these markets from what looked to be very promising in the first year to the big laggards in year two?
Sean Menke
On your first question about flying point-to-point in some of the markets that we have been in, so Salt Lake to Cancun, Indianapolis to Cancun, Milwaukee to Cancun, there is a lot of that is still out there so it’s not like the whole thing has been disbanded. There are things that are working very well. I think that the important thing to note is one thing that really just jumped out at me as I was analyzing the situation, when you are looking at 90%, 70%, 55% capacity growth on a year-over-year basis on an international standpoint. That’s just a lot of capacity to be throwing into, to be honest with you, a seasonal demand market. And that’s really how you have demand in some of these things.
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