Frontier Group Holdings, Inc. (NASDAQ:ULCC) Q2 2023 Earnings Conference Call August 1, 2023 4:30 PM ET

Company 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

Conference Call Participants

Brandon Oglenski - Barclays

Duane Pfennigwerth - Evercore ISI

Michael Linenberg - Deutsche Bank

Jamie Baker - JP Morgan Securities

Savanthi Syth - Raymond James

Katherine Kallergis - Morgan Stanley

Stephen Trent - Citi

Conor Cunningham - Melius Research

Operator

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

I would now like to turn the call over to your host Mr. David Erdman, Senior Director of Investor Relations. Please go ahead.

David Erdman

Good afternoon, everyone and welcome to our second quarter 2023 earnings call. Today's speakers will be Barry Biffle, President and CEO; Jimmy Dempsey, EVP and CFO; Daniel Shurz, Senior Vice President, Commercial. Each will deliver brief prepared remarks, and then we'll get to your questions.

But first, let me quickly review the customary Safe Harbor provisions. During this call, we will be making forward-looking statements, which are subject to risks and uncertainties. Actual results may differ materially from those predicted in these forward-looking statements. Additional information concerning risk factors which could cause such differences are outlined in the announcement we published earlier, along with reports we filed with the SEC. We will also discuss non-GAAP financial measures, which are reconciled to the nearest comparable GAAP measure in the appendix of the earnings announcement.

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

Barry Biffle

Thank you, David, and good afternoon, everyone. Despite challenging operational conditions, we generated strong second quarter results with a pre-tax margin of 9.1%. Our highest post-pandemic margin on an industry-leading capacity growth of 23%, compared to the prior year quarter. Our continued focus on cost management help drive a beat on our non-fuel operating expense. Our total cost structure is significantly lower than the industry average generating an advantage of more than $70 per passenger today.

Our cost structure is a key element in underpinning our growth strategy and I'm proud the organization has continued to ensure we remain the leader among our peers.