Spirit Airlines, Inc.

Thank you for standing by. My name is Pam and I will be your conference operator today. At this time, I would like to welcome everyone to the Spirit Airlines first quarter 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you. I would now like to turn the conference over to Deanne Gable, Senior Director for Investor Relations. You may begin.

Thank you, Pam. Presenting on today's call are Ted Christie, Spirit's Chief Executive Officer, Matt Klein, our Chief Commercial Officer, and Scott Harrelson, our Chief Financial Officer. Also joining us are other members of our Senior Leadership Team. Following our prepared remarks, we will take questions from the analysts. Today's discussion contains forward-looking statements that are based on the company's current expectations and not a guarantee of future performance. There could be significant risks and uncertainties that cause actual results to differ materially from those contained in our forward-looking statements, including but not limited to various risks and uncertainties discussed in our reports on file with the SEC. We undertake no duty to update any forward-looking statements, and investors should not place undue reliance on these forward-looking statements. In comparing results today, we will be adjusting all periods to exclude special items unless otherwise noted. For an explanation and reconciliation of these non-GAAP measures to GAAP, please refer to the reconciliation tables provided in our first quarter 2024 earnings release, a copy of which is available on our website under the Industrial Relations section at ir.spirit.com. I will now turn the call over to Ted Christie-Spirit, President and Chief Executive Officer.

Thanks, Deanne, and thanks to everyone for joining us on the call today. We are coming to you this morning from our new Spirit Central Campus in Dania Beach. We celebrated our grand opening a couple of weeks ago, marking a major milestone and a new chapter in our more than 30 year history. In addition to allowing us to consolidate our corporate offices and all of our Fort Lauderdale based training facilities, the new campus is convenient to Fort Lauderdale Airport. It also provides access to the fabulous amenities at Dania Point for our support center team and our pilots and flight attendants when they are in town for training. Until recently, we thought the branding of the new facility might be blue, but now we are proud to boldly display our signature spirit yellow. Looking back a couple of months, we still feel strongly it was a serious misreading of both the evidence and the law for the federal court to enjoin our merger with JetBlue. And aside from the waste of taxpayer funds and the damage done to two proud companies through this process, the fact that DOJ even brought a case To block a merger between two carriers with less than 8% combined market share just shows how uninformed the government is about our dynamic airline business, particularly in the post-COVID era. Our industry has changed dramatically. Today, nearly all the profits of the entire U.S. airline industry are concentrated in just two companies, while the smaller non-legacy carriers scramble to restore profitability in what seems ever more like a rigged game. The big four are the beneficiaries in this new normal. American consumers are the long-term losers. In the beginning of our consolidation process in 2022, we advocated strongly for a merger between the two largest ULCCs and tried to outline the challenges with the proposed JetBlue transaction, but our shareholders did not listen. While not our first choice, we believe the merger with JetBlue would, as an alternative, still be very positive for consumers and our other constituents. We were well aware of the regulatory risks that might prevent the merger from successfully closing. As such, over the last year, we have been simultaneously developing a standalone plan to de-risk the business and improve our financial performance. The JetBlue merger agreement had several operating restrictions that limited what we could do to right-size the business, address overstaffing levels caused by the issues with GTF engines on our NEO aircraft, and make the necessary changes to our product and strategy to adjust to the evolving industry environment. We no longer have those restrictions and are swiftly taking numerous actions that we believe will lead to cash flow generation and profitability. I thank all our SPIRIT team members for their contributions to our first quarter results and their unwavering dedication and patience as we deploy our plan to return to sustained profitability. Moving on to our first quarter 2024 results, we reported an adjusted net loss of $160 million. During the quarter, we started to see benefits from the tactical and strategic network changes we have made over the last few months. We have a long way to go to margin health, but we are making steady progress. Operationally, we were negatively impacted by adverse weather and air traffic control related delays, particularly along the eastern seaboard and in Florida. We were also affected by the civil unrest in Haiti. However, our system-wide controllable completion factor for the quarter, that is excluding events outside our control, was 99.9%. Kudos to the entire operational team for a job well done. With that, here's Matt and Scott to share more details about our first quarter performance and the actions we have taken that set us up well to execute to our go-forward plan.