Spirit Airlines, Inc.

Welcome to the third quarter 2020 conference call. My name is James, and I'll be your operator for today's call. All participants are in a listen-only mode. Later, we will conduct a question-and-answer session. During the Q&A session, if you have a question, please press star 1 on your phone. I'd now like to turn the call over to Deanne Gable, Senior Director of Investor Relations. Deanne, you may begin.

Thank you, James, and welcome, everyone, to Spirit Airlines' third quarter earnings call. This call is being recorded and simultaneously webcast. A replay of this call will be archived on our website for 60 days. Presenting on today's call are Ted Christie, SPIRIT's Chief Executive Officer, Scott Harrelson, our Chief Financial Officer, and Matt Klein, our Chief Commercial Officer. Also joining us today are other members of our Senior Leadership Team. Following our prepared remarks, there will be a question and answer session for sell-side analysts. Today's discussion contains forward-looking statements that are not based on the that are based on the company's current expectations, are not a guarantee of future performance, and are subject to risks and uncertainty. Factors that could cause actual results to differ materially from those reflected by the forward-looking statements are included in our reports on file with the SEC. We undertake no duty to update any forward-looking statements. In comparing results today, we will be adjusting all periods to exclude special items. Please refer to our third quarter 2020 earnings release, which is available on our website for the reconciliation of our non-GAAP measures. With that, here's Ted.

Thanks, Deanne, and thanks to everyone for joining us today. As we sit here today, nearly seven months removed from the beginning of the COVID crisis, I'm ever more impressed and humbled by how our team has navigated this incredibly dynamic time. I thank all our SPIRIT team members for their commitment and professionalism in dealing with the challenges and consequences of that the COVID pandemic has imposed on our company and the industry. Together, once again, we have shown the flexibility and resiliency of our business model. We still have a ways to go before we resume business as usual. But thanks to the efforts of our team, our strong guest satisfaction metrics, excellent operational performance, improving brand image, and industry-leading low-cost structure, I remain confident Spirit will be one of the first to reach sustained profitability. Additionally, I would like to take this opportunity to provide a special acknowledgement to our union leadership groups and all our team members who worked with us to find a solution to mitigate planned furloughs. Various voluntary time off programs in place through May 2021 enabled us to capture the necessary savings while preserving jobs and our options should demand trends worsen or recover faster than expected. The strong participation in these innovative programs demonstrates the esprit de corps of Spirit Airlines. We also offered early out programs to eligible team members and implemented a modest reduction in force of our management staff and business partners. Those were painful but necessary actions to help us manage through this crisis. During the third quarter 2020, our operational performance continued to excel. Completion factor was 99.8%, which earned Spirit a first place ranking among reporting carriers. and we delivered on-time performance of 90% or better for each of the three months during the third quarter 2020. Year-to-date through September 30th, we ranked second in completion factor and third in on-time performance among reporting carriers. This is remarkable performance, especially in light of the numerous network changes since March, which can further complicate a complex business such as ours. Getting guests back on the plane is one of the first and most important steps to recovery, and we're doing that quite well. For October, we estimate our load factor will average in the mid-70s. While these load factors are still on reduced year-over-year capacity, what is clear is that history is indeed repeating itself. Leisure travelers are much more resilient, and they clearly prefer products that provide the lowest total price of travel. As we have been saying since the beginning of the crisis, our model shines in tougher times as we are best positioned with our cost structure and our network to respond to building leisure demand. This hypothesis has proven correct once again over the past few months. It is likely the recovery will not be linear, and we anticipate demand will ebb and flow. However, all the work we have done prepares us to add capacity back where it makes good financial sense to do so and react quickly to demand indications and changes. With that, I'll turn it over to Matt to discuss more details of our revenue performance.