Frontier (ULCC) 3 May 232023 Q1 Earnings call transcript

Company Profile

Participants

David Erdman	Senior Director, Investor Relations
Barry Biffle	Chief Executive Officer
Daniel Shurz	Senior Vice President, Commercial
Jimmy Dempsey	Executive Vice President and Chief Financial Officer
Duane Pfennigwerth	Evercore ISI
Jamie Baker	JP Morgan Securities
Conor Cunningham	Melius Research
Helane Becker	Cowen
Andrew DiDora	Bank of America
Brandon Oglenski	Barclays
Shannon Doherty	Deutsche Bank
Christopher Stathoulopoulos	Susquehanna Investment Group

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to the Frontier Group Holdings' First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there are question-and-answer session. [Operator Instructions] Please be advised that today's conference is recorded.

to Erdman, conference Relations. Senior like speaker to now David today, Director would hand over the your I of Investor go ahead. Please

David Erdman

earnings President, Jimmy then your Dempsey, Good first and remarks, CFO; be welcome and and Shurz, EVP will Biffle, call. Senior questions. deliver Daniel XXXX prepared Vice Barry CEO; afternoon, to will Each Today's we'll and to President get and speakers Commercial. everyone quarter our brief

the But first provisions. let safe though, review customary quickly harbor me

making be risks will statements, which results we differ to call, this those statements. forward-looking are subject these and may During forward-looking Actual uncertainties. predicted materially from in

risk concerning earlier, information outlined with in cause announcement factors Additional such along differences with are which could filed reports published we we the SEC. the

non-GAAP nearest measures, to appendix financial reconciled the in discuss comparable measure the are the earnings of announcement. which will We GAAP also

floor begin will Barry I remarks. So to the Barry? give to his

Barry Biffle

Thanks good everyone. David, afternoon, and

quarter X.X%, period. on pretax for adjusted loss the results of strong first a margin Our expectations reflecting spring outperforming slightly break

demand we While off strengthened period. the demand February of Day days, peak particularly half as seasonally first weak, from the was spring in President's through break January progress during and

demand we drive record March. of day utilization In The first an quarter quarter any revenue for history. the XX.X per progression company's hours operated fact, of average $XXX a in throughout helped in million, the in

travel to into extend summer continue season. for to We expect strengthen leisure demand the the busy travel

that a strategy offerings. basis earnest leisure travel share largely right began capture of year. we We through do to notably, today showing have positioned so to and supported work-from-home for total It's disproportionate fair which innovative in compared low and by has is to pre-pandemic to The work and done the consumer, flexibility flexible with often surge the and travel far resiliency, to in they greater demand More schedules. arrangements it our a travel believe leisure is more ourselves ability last more this periods. and demand propensity product

product Our suited prominent fall, offer. launched focused is best were GoWild leisure a which to a Pass, last example. It's

the as awareness driving the preference to and brand we World to Discount $XX unlimited ancillary with of passenger Den kind peace mind quarter contribution Frontier the as of serve. thus, of with to limited spontaneous frequent the consumer them with With the travel had The of and not this the over to also have Of for increase $XXX fourth have the customer incremental inexpensive along customers unlock and untapped our subscription engage destinations with Pass Today, and this by our pandemic, prior products, expand revenue and sales Before been from history related half Pass freedom of supporting gives achieving goal key loyalty however, would've a passenger platforms strong we across building many part our travel the travel. all It's strategy segments, have and opportunity revenues do product per these far loyalty sales per Mastercard. customers previously XXXX. the Frontier. base, creating by appeal. such

reshaping peak trend a travel as contribution outsized the emerged last XXXX. to we're that strength has second analyzed exploit experiencing changes contribution. the and over outsized days dynamic and demand quarter the peak half until and year behavior this customer leisure off fully the our deployed in second demand an in periods capacity new This favors from to beginning of The peak see we is in this relationship Having be normalizes, peak pandemic. we're developed where and the expect we

revenue lower execution our and ship while risk and this We are excited profits. to maximizing about ability

to unit to capacity cost. the our $XX With performance the ongoing from gauge from from increase our we operational mix the of fuel enhance XXXX our and increasing which benefits $XX our advantage, we We over the resulting enhanced utilization passenger lower expect pretax in pre-pandemic the further widened our per debt While to the margins, and expand the passenger said, aircraft, update total over strategy benefit to to that to still adjustments expect we will to cost network advantage strategy from in of AXXXneo efficiency and industry cost compared anticipate significantly and operational the XXXX. our benefits have network exposure to rest

Overall.

our aligned changes XX% return network and I've of year the expected a of entire to to margins. organization result XX%. on As double-digit adjusting pretax focused is guidance capacity full highlighted, the growth planned we're to reflect The

pretax guidance margins Our adjusted year getting in the of a adjusted represent the post-pandemic of half the highest significant by will is XX% to second and X% to achieved the quarter double-digit second margins pretax range of company. margins the in step

commercial With a for that, call I'll hand to the update. Daniel over

Daniel Shurz

in $XXX quarter Thank XX% first Barry, history, was The an record RASM nine for capacity, in revenue of million, to increase of on everyone. totaled XX% compared XXXX you, XX%, to RASM both by XX% and any operating the the to percentage good driven factor point $XXX, and quarter an a compared for both afternoon, to in growth XXXX increase Total the by XXXX quarter. increase quarter. in driven per company low passenger a increase first revenue

GoWild Last passenger to seasonally even holders Ancillary weeks revenue quarter. travel with begin be social XXXX pass month performance our of demand, the benefits. with three opened yesterday Pass higher customers quarter, booking XXXX passenger access the than in we the to we $XX to just the announced per weaker thus to during the quarter month per generated we earlier of summer far promotion announced. $XXX for first GoWild than strong had continued Feedback consumer $XX overwhelmingly another for originally claimants during In response May. been has media's positive taking

to have in on is an our elite seats customers Frontier addition opportunity travel our program the Pass unlimited on customers ecosystem. the Mastercard, loyalty for supplemented the product. with amount via spending World GoWild to World When The important levels Further, fees the GoWild Frontier value now complimentary the ancillary becomes an Mastercard, then the incurring discount without and of invest as bags. obvious

Explaining briefly on our and consumer profitability quarters full to a several review conducted change a utilization demand changes observed patterns. past shape the in of network. the clear of our We

flying expanded demand underperforming benefit XX%. peak travel derisking thus overall with periods, XX% better days is generate maximizing on landing peak peak less and we on in believe pandemic, increasing, flying, reducing periods, today. is profitability low to leisure flying can the has peak Wednesday to and in over was By our operations. versus we This Prior While the the disproportionately to on Tuesday periods. days travel RASM and premium premium peak days

flying longer modular our which complex reliability stage operationally the be to is it more a Given specifically cause has route on perspective approach, over years, network would significant inefficiencies. proven from more few as reducing midweek crew past resilient

a haul to this reason, routes of as select will we optimization, eliminated XXXX length number part this miles. stage have of reduce which miles network average XXXX closer our longer For from

That hand concludes the to and remarks call Jimmy. now I'll my

Jimmy Dempsey

Thank Daniel. you,

an strong during of XX% on of a expense lower the by first pretax cost are basis. seasoning the quarter a spring slightly $X.XX. reflected The week capacity. Fuel an in increased half margin driven average increase break quarter X.X% of business, offset per than was GAAP but an the substantially results quarter gallon of minus period. by Our loss results basis seasonality the the RASM XX% on anticipated, of reflective on or first adjusted X%

million Adjusted our in $XXX with in six cash leases. of $XXX of XXX lower equivalents of after financial at AXXXneo total delivery or XX the X% or million $XXX at We aircraft the of taking strong fleet during position quarter, unrestricted net We non-fuel ended million in three had quarter March aircraft were expenses direct debt. and were XXXX which of operating line a $X.XX, cash expectations quarter. than the

As XXXX XXXX earlier remaining This of AXXXneo Airbus noted from XXXX, XXXX our in cost shift its in the sorry, two shift by month. from incremental one shift addition expected to to notified previous year. aircraft will to intent release, approximately this delays in aircraft from into deliveries earnings its us

to expected in are in expected similar of XXXX. no XXXX net delays to change in a delays Additionally, XXXX as cascading number the of number deliveries into are result the expected XXXX

Based we leases; four quarter. second of in in schedule from the direct which which seven quarter, quarter, three and are direct of fourth on take are in to AXXXneos four of third expect the the delivery four Airbus, the revised leases

end Additionally, executed which on estimate. years, to current recently unchanged leases otherwise were with the our to in fleet, from aircraft year the we agreement prior XXX return the by an aircraft Accordingly, extend our expect two we four to fourth quarter. in scheduled AXXXceo

Turning to guidance.

XX% growth XX% be over capacity the quarter in to is the of Second range to XXXX quarter. anticipated

delays. with align of growth XX% the capacity earlier the year impact expected to While our the presented to prior reflect full XXXX over is utilization of year Airbus between and the XX% changes to

Fuel quarter, for and blended million and expected $XXX billion expenses between $X.XX on year $X.XX and second per $X.XX $X.XX gallon be based operating full $X.XX $X.X the Adjusted expected curve to for to the to costs year. non-fuel XXXX, per be on full the in second are gallon between million the XXth. the $XXX April quarter gallon to in to billion per

deliver of network a Full cost the changes the the detailed into level the similar of of crew Airbus than excess Our deliveries a year aircraft average includes departures and as which earlier reflect into this by incremental Barry shorter two XXXX, aircraft resulting stage deferral cost quarter third noted Daniel, staffing planned. year. previously as an quarter guide delays length delivery on from second deferral and well the previously

over sub and higher are would've our relative beaten passenger with we proud [ph] objective. are CASM $X.XX and of advantage We industry stage of $XX our confident the utilization, over per that cost maintaining longer

the a our outcome better However, business. profitability changes we network for believe deliver

Second of XX%, quarter X% highest the to in range will margin expected post-pandemic is our pretax be to which adjusted margin. be

XX%. of expected adjusted is average half of the XX% the be second margin year pretax range to While the in in to

With the to Barry call that, for turn back closing remarks. I'll

Barry Biffle

performance extremely proud utilization I'm quarter, thank for period. of achievement the peak all Jimmy. the high to Frontier employees our personally of and during including March the our Thanks team of during want

expect achieving and of cost product margins achieve the to us that widening ancillary We're well strength position double-digit this offerings focused and advantage our on target.

a and to believe the that maximize and to have a profits, in created for unique addition, that us changes to us manner over capacity lower high enable track network next post-pandemic margins return optimize utilization our on updates pre-pandemic putting capitalize making our opportunity demand to us In the capabilities risk execution on to we year. the our we're

Thanks the everyone now to over operator the call. questions. for I'll for joining it turn

Operator

[Operator you. Instructions] Thank

from comes with Evercore Pfennigwerth Duane question ISI. first Our

Your line is open.

Duane Pfennigwerth

time. to us? peak month change? a would compare sort a a of could month so relative increased put kind as before maybe you to in you well that thinking thanks. Maybe Hey, July trough or maybe for just as within new emphasis be just With I Appreciate month, a week, to you on the a seasonality, for the assume, your a September, quarter? a relative this context now made How -- example. within of pick versus about September it's

Daniel Shurz

issue issue. seeing It's strong thank month-to-month going day very Duane, Daniel. it going much utilization look the peak peak in to you. of more a think we're day to through of period. than is It's month-to-month year, even similar. peaks off It's our be is We rest week the --

difference overall we're see Wednesday What to Tuesday to I significant XX% XX% would've is think, month we going on a period off the about and the be like it's is The to I'll about periods, most past, in our prior going to most in you XX%, to about than in been where peak half see, significant difference the but this. and is we about peak the And so seen what you're going would've XX% days. small relative in smaller a you're been in call probably it second between would've September. days

Duane Pfennigwerth

is do longer to nature, on Okay. shift that maybe from factor driving you that you're load load to something goal? follow this factor for would the a time? target And be And expect up, just then my What term how goal aid perspective? over in

Jimmy Dempsey

that revenue total business is, of factor it in at have helpful high actually of ancillary been a the a load targeting we the it. factor. load only is Well, for RASM. high run a as when It and leader you're world in to And look reason, we function

continue expect see get nine. And to a to in actually this we've and starts area, improving improve. factor we that with like load would flown to that You'll to a we been

Duane Pfennigwerth

there. anticipate nine, The extent up a Maybe just the one little last follow how to you the GoWild, GoWild, that contribute. points many would to would get you

Jimmy Dempsey

mature. In to the range point once one three it's

Duane Pfennigwerth

Thank you.

Operator

our Thank you. One question. next for moment

Baker Jamie Morgan from question with a have Securities. We JP

open. is line Your

Jamie Baker

Hey, afternoon, good everybody.

work raised your into elapsed heavy pilot Several pretty shortage months leaned helping you is anything of Spirit things. have if that several since wondering since I'm then, isn't you navigate it's reached. attributes been Day, just life competitors. Investor unfazed Day? confidence pilot admits that new seen at Barry, by So, have than contracts Investor staffing helping the your better were particularly some you've

Barry Biffle

a industry. just have we you reviewing years anybody with attrition what as position. And work We off surplus compensation in on we're got offer just competitive remember area. the is that a changed it also right in more we of if the than the days We've better and proud over XX-plus life look in And nothing's today their have to and careers. remain target. you in unfazed. you It's were balance first else mentioned of we earlier really I think fact, And practically

averaging per in the holders. bid average we're for line in starts range -- the month XX days I think

recruiting So that seeing have carriers. of don't you're a attrition the we at no, these we robust some and other have

Jamie Baker

follow last so. just year not higher or XXXX most airlines you that as contract, things? your have make accrue doesn't appeared convention It it's caught you new you way surprise, Obviously, wages, contracts. And school whether which any as amendable guide in Perfect. as a for doing to ratified, a U.S. before reach sense the but historically, until old of up, given me by will change reflective to wait just new did thought date, of might the was or you CASM

Jimmy Dempsey

Dempsey it's Jamie, here. Jimmy

Jamie Baker

Hi, Jimmy.

Jimmy Dempsey

the guidance and get we it what's closer We how's -- end at need pilots haven't the year early The the -- world. of is I open next to contract. we'll mean, to the -- going? year's the expires year. in we next opener when we're contract aware July. the mean, in for happening of Clearly, we I address pilot we've

airline and staffing are with effectively, relationship the in pilots our contract a our effective very We very managing the manner.

open time had showed contracts were that Some for quite the of deals of some pay. in period table in increases those other on and also substantial

so We but… that, -- are some ways away doing from

Jamie Baker

the it. Got Take Thanks care. it, feedback. for gentlemen. I appreciate

Operator

Thank you.

question have Research. from Melius a from We Conor Cunningham

is Your line open.

Conor Cunningham

you everyone. the for time. Hey, Thank

changes Just to now. already I'm the understand seeing you thought just Just than overall. better? this trying off being demand seeing your weaker you've reshaping a then the you're in terms that peak really of of are and margin the peaks about you're changes on you're would've a lot changing of been would've just why just that network. that's standpoint from I But much these anticipated, anything that thinking curious if to how some doing network implemented. your

Barry Biffle

Well, look, versus pre-pandemic. it has changed

laid to pandemic. a versus XX% we're off seeing over difference peak levels XX% peak Daniel it the out, was And prior As now.

extreme in in off more off months the So, cases days. peak peak even for some

quite we why reason changed candidly. the is, yes, is So haven't

point We us quarters. from And staring face. at we and the the in business higher are balance just run now past. seen we've actually lot And a high we -- on the utilization people a data's than a we've perspective in the most midweek are utilization several

you particular, the have And interesting at when look we in I at these money a what I first from changes. made had when we is most I we we quarter think's perspective, quarter made profitability first could think, looked believe think

things one ways best losing of so, money to is doing the money. lose stop that And stop

at this. to again, basis, the dynamics are is go think get reacting margins. to it we we to going so, And on right pre-pandemic forward And we'll we're change, path back a the this forward, if look but

Conor Cunningham

delays. your start Okay. bit XXXX constraints, mean, about of a to been about lot plans I Airbus overall, talked capacity as think growth talk you a That's helpful. fair you've And and about there's then

expect growth shouldn't our should going whatever terms capacity talking why we're plan now XXXX, had It we lower be issues for we of going forward. in about these necessarily won't dissipate lot just it a of forward. just right that like that Just seems

Just curious that about XXXX. Thanks. on how you're we onto go thinking as

Barry Biffle

XXXX. in delays be will there Well,

you majority have that the already pain the has understand that biggest is think felt. though I thing been of to the

the you're XXXX that but going whole What's came we'll happen first moved airplanes a out in into at of deliver. delay, XXXX right. to is bunch this to So, big moved of got XXXX when some they into will XXXX point, move with laughing you actually aircraft yes, the

you think enough that have have we continue on to have to we remember to I sizable delivery growth. So, aircraft expect

So, from book, to order delayed that's maybe I the today, think versus few a about it's we what's an the months business. take Frontier overall ask airplane more that real a important have delayed is you industry if when think asset you they'll a you versus airline very take the airplane good the and not and would have one, manufacturer an

think, perspective, see not going impact XXXX, will I I the in past. changes to think the that year-over-year it yes, seen a but So, from you've you're

Conor Cunningham

you. Thank Okay.

Operator

moment And you. one our Thank next for question.

comes from Cowen. Becker Helane Our question with

is Your line open.

Helane Becker

Thanks you afternoon. this very much, for operator. Thank Hi, everybody. the time

maybe, you that? you're Jimmy, you're but about are that up, can seeing, cost in the I that salaries included experiencing? non-fuel which other like know is pressures airport maybe So, the talk cost costs

Jimmy Dempsey

There's a inflation to entire couple not of economy. immune like things. the We're

the seeing some considerably. and in being departure by per in are business We the offset the average are inflation growth seats capacity increasing

inflation. so And effectively is managed that

around the from financing from cost that the you and the airline get you're the in a world. What some flight that benefits crew And the that another delivery delays these attendant sale at overstaffing to quarter the pilot happening perspective, base moment from packs both is have one seeing move of are in some then, we in noise [ph]. of

months previously. have typical that's to where five as that delay the months to four now three five around on you so going noise Airbus is delivery And opposed to some

cost effectively. operating that, of from the Outside very, -- business very is a perspective is

passenger. Pre-COVID, is a over $XX still passenger. a was $XX differential cost the it Our competition to

against and to the widened, so has expect rest the cost industry we advantage And continue. of our that

Helane Becker

That's And not just the very word. bad were in, or wondering you. you're customers, noticed do And I I'm wrong? really last up I you a helpful. churning if that had And as random I thinking know, you're as retaining you customers survey, to Thank last that's how luck? just some a -- follow then guys opposed about in have churning, satisfaction, don't I consumer question. guess,

Jimmy Dempsey

of Well, data, the businesses have when in one look industry. repeat highest we the think, we I at the

We have I of these over XX% surveys. repeat Look, one business. saw recent

some very careful of be think off of and that would I how base about of. the sources I they these

look thing studies the the I they of they number waitings analysis, these, is, look what is you wait some they buy is one thing travel, is air price. when don't customers, The should. at see like leisure of really consumers And other you especially when that, that guess, or for, they price for

continue if so, And should consumers. repeat clear that's why winner it price to you we be a overall I you the weighted, value have think we're as such look for when wait at business. high And

Helane Becker

Thank you. guys. Very helpful. Thanks

Operator

from And next DiDora you. Bank comes question our Thank with America. Andrew of

is line open. Your

Andrew DiDora

Hey, good afternoon, everybody.

times? terms in kind maybe you that know, operational it potentially about it more some you lowering think right this changes, speak of a are Barry, might way? risk flying risk peak of doing I risk, Just operational your of I peak mitigate to I about would but execution the And think maybe right? network here. increase that And am bit at to what

Daniel Shurz

what up. utilization pushing bit we're was peak actually speaking peak we're days. was maybe high higher in saying which our peak in it We're utilization a off just the we So, peak utilization -- the but before. Well, than months, peak Andrew, slightly same days keep because peak the and utilization not is those apply We're peak keep month going I off on it's better, flying found to Daniel. broadly

you've time time got with execution Saturday, lower you've this the days peak helps of a And simply than both and helps the got recovery which flying, we've peak on risk more the recovery the lower seen the of -- So, during better days got seen off run those of week. We've middle more on you. that. is evidence up. We've operation on follow us more

Barry Biffle

especially is that airline April, would or just The we've out in the we're peak highest look pack And total. I days, yet total, if other at higher. point the too you March thing been utilization in and mid not

place example. fourth April completion I in think an as we're in

if So, utilization anyone run you it's high trust and reliably, Frontier. effectively can to

Andrew DiDora

providing a chunk, your regarding came of went guidance provide Can even to cost OpEx sort driving some come of your higher. then, a your maybe a OpEx higher earlier driving while coming question bridge follow what capacity bigger And -- on decent guess it. the is the costs. Got did -- is up capacity buckets, down? down an that's but you midpoint maybe I that, XXXX of Jimmy,

Jimmy Dempsey

higher out The I of it the question. the of mentioned end Yeah. mean, I movement higher of drivers period the one is of the of to range, Helene's aircraft earlier big range. increasing the

is in The production business you lower other number a the thing have that's departures, of similar because happening but ASM shortening. length the is stage

you departures. And capacity, a on of very similar level have so, produced similar a base, overall slower albeit cost but ASM

And so, cost you effectively. with cash end up similar a

airport charges, seeing You similar, ground all handling money on do the so but stay you're fuel, your station typically save costs moment. costs that's general, in at and your the and some

Andrew DiDora

in I speak it. And Got could more there. one if maybe

the you're from your bit, cadence started came higher. the way a change Just the Anything in in margins fuel of throughout your thinking moving terms perspective pretax the obviously revenue costs year, for down year? about

Jimmy Dempsey

for be summer, expecting with the like more your of usual We're therefore We're the revenue QX peaks -- expecting much be We're to rest the QX. QX be we're the good. domestic normal expecting in look expecting strong We're really. years. holiday to to -- to Not the strength usual. expecting

year So through the cadence like the we're year. domestic be to much a expecting more normal

Andrew DiDora

Thank Okay. you.

Operator

you. Thank

Barclays. question Oglenski from next coming Our Brandon is from

open. is line Your

Brandon Oglenski

taking one's Barry thanks or this I and guess, Daniel. afternoon for for the good question. Hey,

trough in the peak back into this any way, strategy, year more change of the like you half With especially as new market in summer? the changes, the does off your after period get the

Barry Biffle

market strategy new in wouldn't No. our This particular. change

inefficient a want as to would causes Vegas. look Las just it deadheads I hauls if longer an pairings, where we causes because example. Although, do seen at you it's flying, crew complicated midweek you reduce specific have that midweek has nowhere hotels it strip in little, everything, it see in Vegas, but can it pricing to mean Tuesday can on you Las reservation prior can was just the you packed I -- you the the is most say, on the mean, more just get a see been you see is and Friday this it's city And it pronounced, near what pandemic. if you of are can want. I night, a anywhere a

that as is our reflecting well so as And in loads well, fairs. as

from that and Las Vegas example. so hauls And as it especially impacts long impacts Vegas an

So we but Las else overall, -- anywhere seen that in Vegas. we've haven't like seen be challenge

Brandon Oglenski

market guess, I the some seeing but Barry, you definitely is that is the do in the stimulation have resulting not the cost were in mean, advantage, of guys just maybe you absolute pre-pandemic? that I concern

Jimmy Dempsey

No. seeing Brandon, in one. demand demand I'll new seeing this We're take markets. strength. the to stimulate We're ability

still aggressively We the airline. expanding are

where in peak find come markets. not to that's We new new more strength we're thing. the seeing we're to off going pre-pandemic. see simulation. we say to -- want last through. -- saying demand. -- saw a lots relative And to days have peak off simply strong aggressively what we're week to peak the we And is saw saw we're that are we we been not point in markets don't compared expansion, markets which where not future performance. further pre-pandemic, underperforming we the same where absolutely What think to are great going periods, very adding here that We say I see on But were exactly that's September a again, to days we're to going to continue can week

Brandon Oglenski

one Okay. And utilization. last Appreciate just maybe one on that.

off taking down you take do you you peak, how do to slight Or penalty utilization? there match If are plan too? a

Barry Biffle

I slight too, will penalty we expect advantage, to wouldn't be not but lower, widen. to overall in utilization addition -- we're slightly our cost there look, mean, what I

clear be with changes. our let's widening is cost advantage these So, even that

is change. of XX% not a This than is So, dramatic this move. less that a

We that a is margin points expect couple from accretive profitability this in perspective.

we're So, Sunday a a our pay Thursday, isn't are a business. major travel just And travel more than of just lot did this that that It's they change in people patterns, seeing there's them. more to willing to even before. tweak

more two coincidence, it's work-from-home, are week the days in work-from-home common and I black days would just It's argue the office. office this and no two But are on three the not The -- box in less mysterious work information. but working Tuesdays the the is and for where why hardest and it's Wednesdays. actually Tuesdays leisure of the people flexibility most That's some a is Wednesdays. travel

the just as to to that, week. it we're the kill be so of the got And blunt, but before, we've was utilize days airline it pronounced and But Wednesday's it's … other not anybody better on at than as Tuesday, not to going business our

Brandon Oglenski

you, Barry. Thank

Barry Biffle

Thanks. Yeah.

Operator

comes from Bank. Deutsche Linenberg question next from our And you. Michael Thank

Your open. line is

Shannon Doherty

I sale, is that in I script like gave This the Barry, on demand sell I the more? just number that GoWild of about for Mike. growth you on credit do Shannon saw card, in that And thinking actually or afternoon. Pass appreciate Summer whether that if details capacity. and Hi, can think put the XXX. you Doherty passes was maybe the and a limit you're recently just you you wonder good a unlike even trying about to just fleet hit driven sell, for Pass

Barry Biffle

because seats at We there a there like they're prices, highest there. it And out many you mean, sell. a sell product to to but the -- -- on there's can We NPS how to limit. want limit, actually I Well, just ultimately is -- that's be we GoWild want favorable want ultimately much limit there's they a really if we've limit think I you about -- And received people a eventually that interested the even recall, been cards product I launched. think in credit It's to capacity. probably think excited have we're personally it. I But ever yourself. would have were actually best no, so I only it

taken hopefully, ultimately there yes, it. to excited really But be we're a going great the you've So, deals of is limit. and advantage about

I were to third is just We've million why said, in those, right? factor. it that's go in that couple empty. But million if we we've and seats. a a said this could before That's fill several X had of factor potentially X seats that's points points we could going load publicly, math, tough look, isn't load be This said

you yes, into how many actually many on be is there back how they there how usage so kind a based And is, times of sell. and the -- limit can we much fly, could will

that but hit And so -- believe we yet. we've don't

Shannon Doherty

about spring about I but question. Great. noticed Thanks. summer? unsure making? does you second was that peak help. the beyond cut about? it you just And Or have off to a beyond the schedule my day this you peak week Anything that a and are November. -- ago, XXXX, month that guys with Was there more through have do What would changes fully guys just that it filed demand

Daniel Shurz

on we've beyond through furthest November XXth. Daniel. It's that No, to full winter. November but year. extended we out error extension sale the schedule -- have industry -- schedules this our put that's through had by We the that actually took a time. -- schedule -- was provider. never forward We a error, an customers into that have date an just mistakenly sale on to And customers They the for we was and it

Shannon Doherty

sense. Makes Thank guys. it. Got you All right.

Barry Biffle

No, thank you.

Operator

Our from next question Christopher Stathoulopoulos from Investment Group. comes Susquehanna

Christopher Stathoulopoulos

for Good Thanks taking my afternoon, questions. everyone.

light think you smaller additional like network was outlined cut XXXX sounds it So, think delays, changes, and the in this November. guide if Thank billion with Barry, second risk around ASMs And additional least delays some the looks with it's the through is deliveries, to of utilization size. that guide, capacity are do what Today's point, elevated in how get on to in current like -- comfortable else? you At this $XX just be I the with OEMs something we of Airbus. can at there I but offset February or you. year-end?

Barry Biffle

delivery yes, to But think, as we growing them, get firming watching I that disappointed and we're hawk been in in we and think like Well, up. look, I have confidence be honest, it's we're their think closer closer stream. I a

tough. pretty challenge, pretty I not have again, to But I think, but looks -- speak they've another I Airbus, could think they out. their bad good. news it I'm it's it's And gotten going think for

capacity. I a On that we to demand point, think four they've I here of from out. changes aircraft, the big pushed that kind material of and at on not think have shows is months utilization mean, they're if in a if another magnitude prices I two which change, fuel given more change, look, ability piece the basis, add But the this somewhat,

have more money cost elective. And flying these We the honestly, widening And and can think we'll in this we now, continue even business we're quite them. back money in. We that change making again, we'll make more could like without have the right an make ASMs and the is cost capacity put just we advantage. lowest to

So, it's really an unnecessary utilization.

Christopher Stathoulopoulos

Just there's the just you at so it you different unchanged, of the network, Or point you longer? look which more plans put dynamic, how And about is Is follow on up, path to modular Thanks. we the and this going new outlined at now your included we building to network does a as get take focus Day change should have. a think there? you outlined Okay. versus this Investor in it plans as sort little November, finer capacity this that a in plans plans? could yeah, a if on impact

Daniel Shurz

a increasingly that high implemented were This perspective, talking modularity we high that modularity in Absolutely. we is -- November, November. in Daniel. network From

that peak to off continued in design -- network. have continue That with this We work to approach capacity. will the even that with

the And we've Monday have on week crew trips, work you you of in week. Tuesday, two don't will that a we variance, and schedule and the obviously fine. trip are crew because perfectly that's markets crew seven one days one on in fly of trips if two increasingly they're primarily, want one around day have mix crew extent the the day to trips, to We made day network actually we'll make with sure -- it trips day day designed a

either. that a So with there's not problem

any the expect efficiency direction. change the I modularity. expect crew this to don't any to don't from I moving So in change

Christopher Stathoulopoulos

you. Thank Okay.

Operator

you. Thank Instructions] [Operator

Nielsen Felipe [ph] from comes Citi. question next Our from

Your is open. line

Unidentified Analyst

have follow from co-chairing from It's do that. its Thanks regains see we extent category from at with about, case I team guys. in then the upside carrier you you Mexico speaking to taking question to a Felipe about question. are Hi, rating. curious up Trent status And what all safety one after Stephen Mexico Well, Citi. Volaris, for hear on

Barry Biffle

can Daniel, Okay. answer it?

Daniel Shurz

co-chair we a under Mexico. of the downgrade suspend share have obviously yeah, We're Volaris. So, with

on one, We are not will allowed operate Volaris Mexico reupgraded a Mexico assuming co-chair code we to to co-chair is when -- our is on Volaris. flights. flights. Volaris resume putting operated continues to on Frontier upgraded category And

Unidentified Analyst

Do see color feel just up do pipeline my How second side. guys. follow Great And your Curious hear there? current about mechanics? of risks you about? Okay. any you on to a

Barry Biffle

shortage question, about I younger to real. great seen mechanic get the path That's has a not we've and attracting the numbers But is pilots, also that but think, that into choose It's difficulty, talk of a is pilots. vocational and And a some challenge. Felipe. go the the had industry it for actually the People the generations kind lot training. overall

of actually think We I have pockets seen, issues.

the there's little different if will. more market pilots seems because much than in the system, the But strength where you where in -- we're seen some can So, them issue, some kind network. a It seeing be sunbelt, you're we've have the pockets pilots, places. the also it's you the growing where we around But to then local cities, shortages. in challenges move of

vary lot like of And of just a producing -- hire lot together about and going haven't in of And program, them. cadet and we've been and talking just doing it. the putting that mechanics. incentives are out they city. the we a have done, it we've have been like you to things been we're order So, it he head to to a HRs, changes our our actually, by has schools, we've working recruiting doing a team, with But been

the And put so, that together. good pipeline we've we feel about

it it as for been well place an of we're-- we've issue. as for lot want or is pilots Frontier talk to an remains is is it well our truth to managing recognized don't now the issue. it yes, people haven't A But And it. is, that But work attractive about But mechanics. over year. a

good pretty coming so, a pipeline in. we folks of have And

Unidentified Analyst

Thanks Clear. Super for calling clear. guys.

Barry Biffle

Hey, thanks Felipe.

Operator

showing I'd Biffle turn to like over to further queue. questions Thank Barry in I'm no the remarks. call you. for back closing

Barry Biffle

of thoughtful to everybody Thanks that thank everyone. you quarter. especially again you ask questions, talking in joining those next today, and questions, want appreciate we those Hey, for and the to I look to forward

Operator

This concludes call. for participating. today's you conference Thank

You may disconnect. now

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.