For second quarter, capacity is expected to grow by 12 to 14 percent over the comparable 2023 quarter. Pursuant to the shift to high-fare, underserved markets, a significant portion of scheduled capacity in the second quarter of 2024 is allocated to new markets which the Company believes will drive higher RASM as they mature. Fuel costs are expected to be $2.80 to $2.90 per gallon based on the blended fuel curve on May 1, 2024. Adjusted (non-GAAP) total operating expenses (excluding fuel) are expected to be $705 to $720 million. Adjusted (non-GAAP) pre-tax margin (excluding special items) is expected to be 3 to 6 percent, including the impact of higher fuel prices and network transition.
Full-year guidance is unchanged from February 6, 2024 with the exception of fuel prices. To recap, capacity is expected to be 12 to 15 percent higher compared to 2023 and adjusted (non-GAAP) pre-tax margin is expected to be 3 to 6 percent (excluding special items). Fuel costs are now expected to be $2.80 to $2.90 per gallon based on the blended fuel curve on May 1, 2024, $0.10 per gallon higher than previous guidance. Adjusted (non-GAAP) CASM (excluding fuel), stage-length adjusted to 1,000 miles, is expected to be down 1 to 3 percent over the prior year. Pre-delivery deposits, net of refunds, are expected to be $20 to $50 million and other capital expenditures are expected to be $160 to $180 million.
