FLYHT Aerospace Solutions Ltd.

Thank you for standing by. This is the conference operator. Welcome to the Flight Aerospace Solutions second quarter 2023 results conference call. As a reminder, all participants are in listen-only mode. The conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then zero. Due to the volume of questions expected on today's call, we ask that you please limit your questions to three to allow time for others in the queue. If there are any outstanding questions at the end of the call, the company will be happy to take them by email to investors at flight.com. I would now like to turn the conference over to Matt Chesler, Investor Relations. Please go ahead.

Thank you for joining our second quarter 2023 earnings call. On the call with me today is Kent Jacobs, President and Interim CEO of Perk Light, and Alana Forbes, Light's Chief Financial Officer. On our website, light.com, we posted a press release covering the information we'll review today, as well as a webcast of today's conference call. An archived version of the call will be posted on the investor relations section of SLEIC's website as soon as it is available from the conference call provider. But before we start, I'd like to remind everyone to read the forward-looking statements and non-GAAP financial and other information that we've included in our quarterly report. Certain of the statements made today may constitute forward-looking statements, and these statements are our present expectations. Relevant factors that could cause actual results to differ materially are listed in our earnings materials and in our CEEDAR filings, including our quarterly report, which is filed on CEEDAR. During the course of this morning's call, we'll discuss certain non-GAAP measures. You can find the reconciliation of these to the nearest comparable GAAP measures in the quarterly report. And with that, I'd like to turn the call over to Kent. Take it away, Kent.

Thank you, Matt. Good morning, everyone, and thank you for joining us. I'm looking forward to the opportunity to review our Q2 results, and I appreciate your time and interest in flight. Halfway through 2023, flight's future is looking brighter than ever. After persevering through the pandemic and the locks in December of our former CEO, Bill Tempany, our team remains deeply committed and focused as the demand for our solutions continues to grow. Our entire organization is energized, as we are on the cusp of delivering on two of our most promising incremental initiatives, the Acres Edge and our weather opportunities. I will begin by discussing some macro factors in the global aviation industry, then I'll discuss many of the positive developments that occurred in our second quarter. Global air passenger demand recorded solid growth in May, with industry-wide revenue passenger kilometres increasing more than 39% year-on-year, and reaching 96% of pre-pandemic levels. The second month in a row, domestic RPKs outperformed their pre-COVID levels, rising 5.3% above 2019 values. Internationally, revenue passenger kilometers continued to increase in May, growing by nearly 41% year-on-year and restoring 91% of their 2019 levels. All regions experienced a positive trend in international traffic demand, while Asia Pacific continued to stand out with more than 156% annual growth. Carriers in the Middle East and North America fully recovered their international passenger traffic with RPKs of 17% and 1.8% above 2019 levels, respectively. Moving on to flight, our flagship product, the AFERS 228, continues its proven track record with more than 4,000 aircraft utilizing the Iridium SATCOM solution, and this quarter we reached a major milestone with over 5 million cumulative flight hours being reached. This speaks volumes to the longevity our solutions have with over 20 years supporting the global aviation industry. Importantly, our long-term Acres 228 customers continue to renew with us for multi-year commitments and are increasingly doing so with expanded fleece. Our licensing business remains strong and we received an additional large order from our long-term OEM partner. This represented the fifth order from this customer over the past three years with an aggregate value of over $11 million. The commercialization of Flight's 5G-enabled wireless quick-access recorder, the AFERS Edge, is making significant progress as we recently announced our first contract for the Edge to be installed on a fleet of Boeing 737 MAX aircraft. Interest continues to grow for Flight's WVSS-2 water vapor sensor system in conjunction with either an AFERS Edge or an AFERS 228 to provide aircraft-based observations. Real-time aircraft-based observations containing relative humidity data from the WVSS2 sensor provide critical data for weather forecasting models. This presents us with a unique opportunity to support airlines and the world's major national meteorological agencies in their efforts to enhance weather forecasting, improve airline operations, and reduce aviation's impact on the environment. Our conversations with UK Met continue to advance in a positive direction as we ready ourselves to further scale the business and accelerate towards these new and exciting opportunities. Flight boasted a number of notable achievements in the quarter. In May, we signed two new commercial agreements. The first was Sichuan Airlines, the largest airline in western China, and the second was Bahamas Air, the national airline of the Bahamas. These agreements are for SATCOM hardware and for recurring software services, and we believe these two contracts signal the ongoing recover of global aviation. In June, Flight announced an agreement with Flair Airlines, Canada's leading independent ultra-low-cost airline, to purchase Acres Edge hardware and actionable intelligence services for Flair's fleet of Boeing 737 MAX aircraft. This is particularly meaningful for us. as this is the first agreement for Flight's Acres Edge product, and it includes the fast offerings of ClearPort and FuelPrint. Also in June, Flight announced we received a US$1.4 million purchase order for the Iridium modems and licensed fleet fees from a long-time OEM partner. This partner licenses Flight's technology and delivers the Acres 228 system to their European Airframe customer to have the AFERs directly installed on aircraft as they are manufactured. Additionally, I would like to publicly welcome our two outstanding new directors that joined the company at the AGM in May. Nancy Young is a globally recognized sustainability and environmental attorney and consultant with over 25 years' experience in climate change, aviation environmental matters, environmental social governance, and sustainable aviation fuels. Pete Large is a senior technology executive with years of experience spanning transportation, aviation, space, civil infrastructure, and construction, including specific expertise in transforming how work is done through data-driven digital technologies that provide better business insights, decision-making, efficiency, safety, first-time quality, and sustainability. Adding proven technology and sustainability expertise to the Flights Board helps validate the progress we have made in establishing our company as a leader in using real-time data and insights to improve aviation in the world around us. With Nancy and Pete on our team, we're extremely well-positioned to continue to address the important and complex issues of technological change in aviation, operational efficiencies, and environmental necessities. I'd now like to turn the call over to Alana for a review of our financial performance.