Frontier Group Holdings, Inc.

Hello everyone. Thank you for joining us and welcome to Frontier Group Holdings Q1 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, please press star 1 again. I will now hand the conference over to David Erdman, Senior Director of Investor Relations. David, please go ahead.

Thank you and good morning everyone. Welcome to our First quarter 2026 earnings call. Joining me today in speaking order are Jimmy Dempsey, President and Chief Executive Officer, Bobby Schroeder, Chief Commercial Officer, and Mark Mitchell, Chief Financial Officer. Each will deliver brief prepared remarks, and then we'll open the call for questions. Before we begin, I'll remind you that today's discussion will include forward-looking statements subject to risks and uncertainties, and we will be referring to certain non-GAAP financial measures throughout the call. Reconciliations to these non-GAAP financial measures can be found in the earnings release issued today and also posted on our investor relations website. We'll also be referencing stage adjusted unit metrics, which are based on 1,000 miles. So I'll give the call over to Jimmy to begin his prepared remarks. Jimmy?

Thanks, David. Before I review the quarter, I'd like to briefly address Spirit's shutdown. Spirit played a meaningful role in providing affordable travel to a wide range of consumers in an industry dominated by four major airlines. While Frontier remains focused on ensuring consumers have access to affordable travel, our thoughts are with our friends and colleagues during this difficult time. Over the weekend, we provided discounted fares to assist affected customers on over 100 Spirit routes. We extended travel benefits to assist Spirit team members to return home and are encouraging them to apply for open positions in Frontier. Spirit's exit meaningfully alters the supply landscape. Given our network, low-cost structure, and disciplined approach to capacity deployment, Frontier is best positioned to provide low fares and the best value in those markets, in a manner consistent with our strategic priorities around network shape and long-term value creation. We will expand service this summer with nine additional routes plus 15 daily departures across 18 former Spirit routes, including Orlando, Las Vegas, Dallas-Fort Worth, Fort Lauderdale, and Detroit. This gives customers more options to rebook their travel plans with confidence while keeping fares low. Turning to the quarterly recap, we delivered adjusted revenue of nearly $1.1 billion, a company record, with stage adjusted RASM up 17% year over year, reflecting sustained progress across our commercial initiatives and strong demand. This performance drove an EPS guidance beat despite sharply higher fuel prices. We remain centered on the four strategic priorities previously outlined to strengthen the business and return the airline to sustained profitability, including right-sizing the fleet, strengthening cost discipline, improving operational reliability, and building customer loyalty. I'll briefly update you on the progress of each. Firstly, we have made excellent progress on fleet right-sizing. We executed the previously announced 69 aircraft deferrals with Airbus and 24 lease terminations with Aircap. We expect all 24 aircraft to leave our fleet by early June. Secondly, on cost discipline, we have high confidence and remain on track to deliver $200 million of targeted annual run cost savings by 2027, including rent reductions, network optimization, and productivity benefits. Third, on operational reliability, we're focused on completion factor and on-time performance. We launched a system-wide maintenance strategy to improve maintenance planning and reliability, reduced unscheduled aircraft out of service events, which enables improved aircraft return to service performance at the beginning of the day. We're also enhancing our airport operations, simplifying our ticket counters and improving turn times. Although this is a multi-year project, we are seeing positive early results. For the April year today period, we ranked fourth among major domestic carriers in completion factor. Finally, our loyalty programs delivered over 30% growth in the first quarter. our fourth consecutive quarter of double-digit growth. This is the result of continued momentum from investments in our co-brand credit card and membership programs. As previously announced, we plan to enhance the onboard experience with the introduction of first-class seating and Wi-Fi service later this year and into next year. Turning to the current environment, in response to the fuel spike, we have taken decisive action to adjust capacity fares and ancillaries. We anticipate recapturing approximately 35% to 45% of fuel prices in quarter two, As a result, we expect RASM to increase by over 20% year-over-year in Q2 and stage-adjusted RASM to be up high teens on capacity growth of approximately 7%. We expect continued improvement in fuel recovery as the year progresses. This is enhanced by the capacity adjustments we are seeing in overlapped markets where our competitive capacity is down 4% in Q2. Our liquidity position at the end of March is strong at nearly $1 billion and anticipate our liquidity to be between $900 million and 950 million at the end of Q2. This puts Frontier in a very strong position to take advantage of the opportunities provided by the fuel crisis. Higher fuel does not change our strategic priority to return to profitability. By staying aligned with our framework and focusing on items we can control, we believe we are well positioned to navigate near-term volatility while emerging stronger as macro conditions normalize. This is an exciting time for Frontier's America's Value Airline. Before concluding, I'd like to recognize Team Frontier for driving operational performance improvement and for upholding our commitment to the highest safety standards. This sustained commitment to safety was reinforced by our recent receipt of the FAA's Diamond Award of Excellence for the second consecutive year, the agency's highest recognition for maintenance, training, and safety. The discipline and professionalism our people bring to the airline every day are fundamental to our progress, and I sincerely thank them for their focus and execution. I'll now turn it over to Bobby.