Spirit Airlines, Inc. (NASDAQ:SAVE) Q3 2018 Earnings Conference Call Transcript
Oct 25, 2018 • 09:30 am ET
Welcome to the Third Quarter 2018 Earnings Conference Call. My name is Paulette, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. (Operator Instructions).
I will now turn the call over to DeAnne Gabel, Senior Director of IR. You may begin.
Thank you, Paulette, and welcome, everyone, to Spirit Airlines third quarter earnings call. Bob Fornaro, our CEO, will give us a few brief opening comments; followed by Matt Klein, our SVP and CCO, who will review our revenue performance and outlook; followed by Ted Christie, our President, who will discuss our cost performance. We will have a Q&A session for sell-side analysts following our prepared remarks.
Also joining us in the room today are Scott Haralson, our CFO; Thomas Canfield, our General Counsel; John Bendoraitis, our COO; and other members of our senior leadership team. This call is being recorded and simultaneously webcast. A replay of this call will be archived on our website for 60 days.
(Forward-Looking Cautionary Statements)
In comparing results today, we will be adjusting all periods to exclude special items. Please refer to our third quarter 2018 earnings release, which is available on our website for the reconciliation of our non-GAAP measures.
With that, I'll turn the call over to Bob.
Thanks, DeAnne, and thanks to everyone for joining us today. Before we begin with comments, I wanted to take a moment to congratulate Scott Haralson. We announced last week that Scott had been promoted to CFO. Scott has over 18 years of industry experience. This experience, together with the knowledge gained from serving as our VP of Financial Planning and Analysis for the past six years made him an ideal choice to succeed Ted Christie as CFO.
Thanks, Bob. This is Scott, by the way. I'm excited about the new role. We have a great management team and I'm glad to be a part of it. For all of the analysts and shareholders on the call, I look forward to meeting you in the coming months. Thanks again, Bob.
So turning to our results. Yesterday, we reported third quarter 2018 net income of $100.5 million or $1.47 per diluted share. We are very pleased with our third quarter TRASM result of up 5.5% year-over-year, which significantly exceeded our expectations. We are also pleased with our continued strong financial performance. For the third quarter, we achieved a completion factor of 99% and a DOT on-time performance of 76.6%. Year-to-date through last Sunday, we have a completion factor of 99% and a DOT on-time performance of over 80%, which ranks us number four of 17 reporting carriers for on-time performance. Excellent teamwork all around.
Our revenue trajectory is improving and so is our operational reliability. Together with our continued focus on delivering excellent cost performance, we have a solid platform that positions us to deliver earnings growth in 2019.
With that, I'll turn it over to Matt and Ted to