Frontier Group Holdings, Inc.

Good day and thank you for standing by. Welcome to the Frontier Group Holdings Incorporated Q1 2024 earnings call. At this time, all participants are in 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 will need to press star 1 1 on your telephone. You will then hear an automated message advising you that your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, David Erdman, Senior Director of Investor Relations. David, you have the floor.

Thank you, and good morning. Welcome, everyone, to our first quarter 2024 earnings call. On the call with me this morning is Barry Biffle, Chief Executive Officer, Jimmy Dempsey, President, Mark Mitchell, Chief Financial Officer, and our new Chief Commercial Officer, Bobby Schroeder. Before yielding, I'll recite 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 released earlier, along with reports we filed with the Securities and Exchange Commission. We will also discuss non-GAAP financial measures which are reconciled to the nearest comparable GAAP measure in the appendix of this morning's earnings announcement. So I'll give the floor to Barry to begin his prepared remarks. Barry?

Thanks, David, and good morning, everyone. First, I'd like to welcome Bobby Schroeder to the team and introduce him as our new Chief Commercial Officer. Bobby has extensive experience in the industry with nearly 25 years combined at Spirit, US Airways, and America West. He's in the process of relocating his family to Denver, and in his new role, assumes responsibility for our commercial teams, reporting to Jimmy Dempsey. We're fortunate to have him on Team Frontier. Along with recent additions of Alex Clerk, our Senior Vice President of Customers, and Rajat Khanna, our Chief Information Officer, we now have the strongest senior leadership team we've ever had. Turning to the quarter, We reported an adjusted pre-tax loss margin of 2.8%, significantly better than our guide on cost and revenue performance. The adjusted pre-tax loss margin was within one percentage point of the prior year quarter despite continuing to encounter far greater excess capacity in some of our key markets as we previously highlighted. While we're not insulated from inflation, we continue to hammer on costs with the objective to maintain and widen our relative cost advantage to the industry. To that end, we exceeded our expectations in the first quarter, and our cost advantage to the industry widened to 42% on a trailing 12-month basis. Cost divergence between Frontier and the industry is indeed real. We're on track to achieve our target of 80% out and back flying by June and the corresponding $200 million of annual run rate cost savings by year end. With that, we're reaffirming our guide of 1% to 3% reduction in our adjusted CASMX fuel, stage adjusted to 1,000 miles. Redeployment of our capacity from oversupplied markets is on track and progressing as planned. To this end, we opened our 10th crew base in Cleveland last month, while Cincinnati and Chicago will launch later this month, and finally San Juan, Puerto Rico in June. The addition of these crew bases supports our ability to achieve our target of out and back flying by June and drives further network efficiency. Our San Juan base will not only support demand growth from the U.S. mainland to compete with significantly higher cost carriers, it will also serve as our gateway to other Caribbean destinations. In the second quarter, a significant portion of our flying will be in new markets, more than double we would expect in a normal year. As these new markets mature over the next year, we expect a meaningful improvement in our system RASM. Further, we have a range of revenue initiatives, including various distribution and merchandising enhancements, as well as launching loyalty and premium products, all of which diversify our revenue sources. Jimmy will go into more detail on these products as part of the commercial update. Despite the immaturity of new markets, we expect to generate a 3% to 6% adjusted pre-tax margin in the second quarter. We're also reaffirming our full-year guide of 3% to 6%, despite fuel prices, which are $0.10 per gallon higher than they were in early February when we gave our guide for the year. As we move to 2025, we are confident in our 10% to 14% adjusted pre-tax margin due to our cost tailwinds, expected network maturity, and overall revenue diversity initiatives. Finally, I'd like to thank every member of Team Frontier. They deserve recognition for their significant effort to achieve the milestones I highlighted today, and for the remaining cost and remaining cost discipline and staying focused on our top priority of delivering a safe and reliable experience to our customers. I'll now turn the call over to Jimmy for a commercial overview. Jimmy?