Frontier Group Holdings, Inc.

Hello and welcome to the Frontier Group Holdings second quarter 2021 conference call. My name is Brian and I'll be moderating today's call. This call is being recorded and a replay will be available on slidefrontier.com. In the investor relations section, after today's prepared remarks, there will be an opportunity to ask questions. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. And please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. It is now my pleasure to turn the conference over to Susan D'Onofrio, Head of Investor Relations. Susan, you may begin.

Thank you, Operator. and welcome everyone to Frontier's second quarter earnings call. This call is being recorded and simultaneously webcast. A replay of this call can be found on our website. On the call with me today are Barry Biffle, Frontier's president and CEO, Jimmy Dempsey, EVP and CFO, and Daniel Schurz, Senior VP Commercial, as well as other members of the management team. Following our preparer's remarks, there will be a question and answer session for the self-side analysts. We also wanted to remind everyone on the call that today's discussion contains forward-looking statements that are based on the company's current expectations and are not a guarantee of future performance. There could be significant risks and uncertainties that cause actual results to differ materially from those reflected by the forward-looking statements including the risk factors discussed in our reports on file with the SEC. We undertake no duty to update any forward-looking statements, and in comparing results today, we will be adjusting all periods to exclude special items. Please refer to our second quarter 2021 earnings release, which is available on our website for the reconciliation of our non-GAAP measures. With that, I will turn it over to Barry for his opening remarks. Barry?

Thank you, Susan. And thank you everyone for taking the time to attend our earnings call. Although this is only our second quarter as a public company, we recently celebrated our 27th year as an airline, and I couldn't be more proud of how we've evolved as a company and the strength and resiliency of our ultra low cost business model underpinned by our low fares done right strategy. In a moment, I'll be turning the call over to Daniel and Jimmy to bring you through the details of the second quarter and our expectations going forward. but I wanted to first provide you with some high level thoughts. To start, we're very pleased that our expectation of pinup demand as a result of widespread vaccinations proved to be true. Based upon this expectation, we had planned for and successfully completed the return of all our aircraft and employees into service across our stations during the quarter and consequently operated at capacity levels that were higher than the same comparable quarter in 2019. The utilization of our aircraft and load factors achieved during the quarter were significantly higher than last year, and further improvement to the pre-COVID levels is expected as we enter 2022. I want to personally thank our Team Frontier members for their hard work, dedication, and professionalism through the pandemic and during our return to full operations, along with their commitment to our mission of low fares done right, with the safety of our team members and customers continuing to be our top priority. Our success in navigating the pandemic and returning to full operations is the direct result of all our team's efforts. Looking forward, we're closely monitoring the impact of the Delta variant. We expect any impact to be short-term in nature given the availability of vaccines and the likely increase in vaccination rates in response to the Delta variant. We therefore expect a resumption of the pace of recovery as the Delta variant cases fall, similar to what was experienced elsewhere in the world. As we return the airline back to full operations, we remain financially disciplined. The resulting strength of our balance sheet and liquidity coupled with our low-cost structure positions us well to address any delays in the timing and pace of the recovery resulting from the Delta variant and to facilitate our planned growth as the recovery continues to unfold. Our growth since last quarter has continued in both domestic and international networks. Domestically, this includes new service from Atlanta, Dallas, Denver, Las Vegas, Orlando, and Salt Lake City, and the announcement of even more leisure destinations from Philadelphia and Burbank. We're pleased to have the governor of Colorado on our first flight to Grand Junction as well. Internationally, our Caribbean and Latin America presence continues to grow, including expansion into Antigua, Aruba, Belize, Costa Rica, St. Martin, and Turks and Caicos. To keep up with this growth, We've opened a new creek base in Tampa during the quarter and plan to add Atlanta in due course. We remain committed to being America's greenest airline as well. This is not only through the use of our more fuel efficient aircraft, which generated over a hundred ASMs per gallon during the quarter, but also through other initiatives, including the campaign we launched this quarter, highlighting Florida animal conservation. We partnered with Visit Orlando representing four Orlando wildlife parks and preserves. Customers were invited to choose from among resident animals from the Central Florida Zoo and Botanical Gardens, Gatorland, Sea Life Orlando Aquarium, and Wild Florida to determine which animal would be on the tail of new Frontier Airlines aircraft. Ted the Turtle was our winner from this highly successful contest and will appear on a Frontier aircraft in 2022. Our efforts are resonating with customers as well. with the number of new discount DIN members surging in June to the highest monthly level since the program was initiated. In June, we also reached the highest level of new Barclays Frontier credit card member signups in our company's history. This performance helped us achieve $60 per passenger non-ticket for the first time. Overall, I'm encouraged by the pace of recovery we experienced during the quarter and our timing of the capacity deployment to meet that recovery. There may be delays in the recovery resulting from the Delta variant, but I expect those delays to be temporary given the existing availability of vaccines and observation of the movement in case levels experienced in other impacted areas of the world. Further, as the confusion subsides and Americans understand how powerful vaccinations are in preventing severe outcomes, we expect confidence to build and the pent-up demand will surge again. I'll now turn it over to Daniel who will provide more details on our performance for the quarter.