Frontier Group Holdings, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Frontier Group Holdings 2022 earnings call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you need to press star 1-1. I would now like to turn the call over to your host, David Erdman. You may begin.

Thank you, and good afternoon, everyone. Welcome to our second quarter 2022 earnings call. Today's speakers will be Barry Biffle, President and CEO, Jimmy Dempsey, EVP and CFO, and and Daniel Schurz, Senior Vice President, Commercial. Each will deliver brief prepared remarks and then we'll get to your questions. But first, let me quickly cover the customary Safe Harbor provisions. During this call, we will be making forward-looking statements which are subject to risks and uncertainties. Actual results may differ materially from those predicted in these forward-looking statements. Additional information concerning risk factors which could cause such differences are outlined in the announcement we published earlier along with reports we file with the SEC. We may also discuss non-GAAP financial measures, which are reconciled to the nearest comparable GAAP measure in the appendix of the earnings announcement. And then lastly, we will be participating in several investor conferences in August and September, and we certainly hope to see you at one of those events. And so I'll give the floor to Barry to begin his comments. Barry.

Thanks, David, and good afternoon, everyone. Needless to say, it's been an interesting few months since our last earnings call. While public attention was largely centered on the merger, behind the scenes, we realized the highest quarterly revenue in history at $909 million, 43% above the comparable 2019 quarter, and a record ancillary revenue of $75 per passenger. The strong revenue performance in the second quarter enabled us to overcome elevated fuel prices and generate an adjusted pre-tax margin of 3%. We were able to lessen the impact of the weather and air traffic control limitations through proactive measures, which led to an improvement in our completion factor as the quarter progressed, with a completion factor of 99% during June and over 99% during the busy Fourth of July week. In addition, unlike many other carriers, we are not experiencing disruptions due to shortages related to pilot and flight attendant staffing levels. In fact, we have surplus staffing today and a capacity to train 80 additional pilots a month. Contrary to common paradigms and misconceptions about the ULCC segment, we're a highly attractive landing spot for the pilots, given our career growth and resulting pay opportunities as compared to the legacy carriers, along with a desirable footprint of bases, including the opening of the Phoenix crew base later this year. To further strengthen our pilot recruitment capabilities, we're working with a major flight school to develop a cadet program which will provide an opportunity to train 250 zero-time flight applicants per year who might otherwise have chosen a different career path due to employment uncertainty. Upon completion of training, we will assist in placing them into flying assignments to continue to build experience, and we'll be able to hire them once they reach requisite flying times. As we look forward to the third quarter, we expect the demand environment to remain strong, with RASM growth anticipated to be over 20% versus the comparable 2019 quarter, supported by continued strength in our ancillary revenue per passenger. We will continue to focus on generating profitable growth in the business as we increase utilization and successfully overcome the challenges with the pandemic. Accordingly, we expect to turn a second consecutive quarterly profit in the third quarter with an adjusted pre-tax margin in the range of 1% to 5%. I'd like to thank Team Frontier for their continued dedication, professionalism, and commitment to provide safe and reliable service to our customers. They are at the core of our low fares done right model. With that, I'll now hand the call over to Daniel.