Spirit Airlines Inc (NYSE:SAVE) Q2 2020 Earnings Conference Call - Final Transcript

Jul 23, 2020 • 10:00 am ET


Spirit Airlines Inc (NYSE:SAVE) Q2 2020 Earnings Conference Call - Final Transcript


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Welcome to the 2Q 2020 Conference Call.

My name is Erin, and I'll be your operator for today's call.

[Operator Instructions]

I'll now turn the call over to Maria Cuartas [Phonetic], Senior Analyst, Investor Relations. Ma'am, you may begin.

Maria Cuartas

Thank you, Erin. And welcome everyone to Spirit Airlines's second 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 Haralson, our Chief Financial Officer, and Matt Klein, our Chief Commercial Officer. Also joining us on the call 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 based on the company's current expectations and are not a guarantee of future performance and are subject to risks and uncertainties. Factors that will 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 on periods to exclude the special items. Please refer to our second quarter 2020 earnings release, which is available on our website for the reconciliation of our non-GAAP measures.

Ted, I now turn the call over to you.

Ted Christie

Thanks, Maria, and thanks to everyone for joining us today.

I want to start by saying I'm very proud of how the entire Spirit team has responded to the changes driven by COVID-19. Many of our procedures, processes and work environments have changed, all while our personal lives have been disrupted. Our team has done an incredible job adapting as necessary, while maintaining their focus on delivering the best value in the sky.

As we begin to welcome our guests back, we are taking purposeful steps to provide a safe and healthy experience for our guests and team members. We continue to expand and enhance our cleaning procedures. During the quarter, we launched antimicrobial fogging of our facilities and aircraft, which is effective against the coronavirus. This new process further improves upon our existing high-grade disinfectant fogging. In addition to these and other enhanced cleaning procedures, we are enforcing our policy that guests and team members must wear a mask while on board. These enhancements, coupled with the most advanced air handling and filtration systems onboard any aircraft line today, we believe create a safe and healthy environment for all.

Financially, our top priority is to conserve cash and enhance our liquidity position. Given the significant decline in demand due to COVID-19, we dramatically reduced our flight schedule for the second quarter. During the month of April, we made several significant schedule cuts given the highly suppressed demand environment, operating only about 50 flights per day. In May, given the weak demand, we continued to operate this minimum schedule. We increased flying in June as a