Spirit Airlines, Inc.

Thank you for standing by. At this time, I'd like to welcome everyone to the Spear Airlines second quarter earnings conference call. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star one on your telephone keypad. Please ask only one question, followed by one follow-up question. Thank you. I'd now like to turn the call over to Deanne Gable, Senior Director of Investor Relations. Please go ahead.

Thank you, Adam. And good morning and welcome everyone to SPIRIT's second quarter 2024 earnings conference call. Presenting on today's call will be Ted Christie, our CEO, Matt Klein, our Chief Commercial Officer, and Fred Cromer, our CFO. Also joining us for the call are other members of our senior leadership team, including our Chief Transformation Officer, Rana Ghosh. Ted will open the call with an overview of SPIRIT's quarterly performance and strategic direction. Matt will then provide details about the drivers of our revenue performance and current demand environment, and Fred will discuss our cost performance, liquidity profile, and forward outlook. Ted will provide a few closing comments before we begin a question and answer session. Today's discussion contains forward-looking statements that are not based on the company's current expectations and are 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 second quarter 2024 earnings release, a copy of which is available on our website under the investor relations section at ir.spirit.com. And with that, I'll turn the call over to Ted Christie.

Thanks, Deanne, and thanks to everyone for joining us on the call today. During the quarter, we announced that Fred Cromer joined the team as our chief financial officer. Many of you who follow the industry know Fred has a wealth of airline industry experience and will be a great asset to Spirit. I am delighted to welcome him to the Spirit team. Thanks, too, to Brian McBenemy for agreeing to serve as our interim CFO prior to Fred joining. I also want to acknowledge and say thank you to all our Spirit team members. In addition to the challenging revenue environment, it has been challenging operationally as well, and our team has done a great job managing through the difficulties. Like most other airlines worldwide, Spirit was impacted by the IT outage on July 19th, But despite the disruption, by midday Sunday, our team had most of the network stabilized. It was a Herculean effort by all members of the team in operations and technology to return to normal operations so quickly. And I extend my sincerest thanks to all of them for their dedication. We are going to focus this call on our Q2 results, our liquidity, our forward outlook, and the new travel options and guest experience enhancements we announced recently that we expect will help drive improved performance. Before we get into the results, I want to note that we are engaged in productive conversations with the advisors of our bondholders to address the upcoming debt maturities. Because those conversations are ongoing, we are not going to go into detail or take any questions on this topic or speculate on potential outcomes. Needless to say, it is a priority and we are focused on securing the best outcome for the business as quickly as possible while staying focused on driving performance and implementing our new travel options and elevated guest experience. Moving on to our second quarter 2024 financial results, we reported an adjusted net loss of $158 million. This is a disappointing result that was largely driven by weak revenue results. The elevated level of industry capacity continues to make it very difficult to drive yield improvement for the most price-sensitive leisure travel segments. While frustrating, these conditions validate that we are on the right path with our transformation strategy to redefine low fare travel with new high value travel options that allow guests to choose an elevated experience at an affordable price. We believe this plan will place us on the path to profitability. As the industry has recovered from COVID, the imbalance in the recovery between the full service large network carriers and smaller low cost carriers has become the narrative. I would like to dispel some of the untruths about why that is. First, the low fare model is not, quote, broken or, quote, obsolete. Quite the opposite. Our larger, higher cost brethren have introduced products and services that mirror what we currently offer and in doing so have figured out ways over the last few years to more effectively compete for low fare traffic. In fact, they are boasting about selling more of that product. What has not happened until now is our introduction of new products and services that can provide us the ability to more effectively compete for some of their higher yielding traffic while maintaining a low cost structure. This doesn't mean we are going to be the travel choice for the corporate traveler. However, our combination of diversified product options coupled with our cost structure will make us the high value travel option for our guests. As we shared last quarter, We've done extensive research, reviewed the competitive set of products, and surveyed guests that have flown us and those who have not. Based on those inputs, we will soon be introducing new products and services. In doing so, we are redefining Spirit as a high-value, low-cost carrier, offering a broader array of products, including a more premium leisure travel experience at an affordable price. As part of our transformation, we will offer four travel options that all include the flexibility of no change or cancellation fees. We will still offer the quality low fare products many of our guests prefer, but we will also provide guests the opportunity to choose a premium leisure experience with more space, flexibility, and amenities at an affordable price. And we can do all that because we still have and expect to continue to have amongst the lowest costs in the industry. We are not abandoning our low-cost position, but rather, we are leveraging it. We will also debut other travel-enhancing options, such as designated priority check-in and a new boarding process designed to prioritize our Go Big guests, Free Spirit Gold and Silver members, Free Spirit World Elite MasterCard holders, and active duty U.S. service members. The actual rollout of these offerings will happen very quickly. The new travel options will go on sale on August 16th. However, the adoption and acceptance of these changes by the marketplace will take time, and that means we need patience from our constituents and adequate liquidity to navigate the puts and takes of the environment. Fred will comment more on that later. To help us reframe how travelers perceive the Spirit brand as we enter this new chapter, we have engaged Tombris as our new marketing agency of record. Tombrus has a strong track record and was named the 2024 Ad Age Independent Agency of the Year. We are confident they are the right strategic partner to bring our transformed offerings to market. With that, here's Matt and Fred to share more details about our second quarter performance and outlook. Matt, over to you.