VSE Corporation (NASDAQ:VSEC) Q2 2024 Earnings Conference Call August 1, 2024 8:30 AM ET
Company Participants
Michael Perlman - Vice President of Investor Relations & Treasury
John Cuomo - President & Chief Executive Officer
Tarang Sharma - Vice President, Controller & Head of Corporate Development
Conference Call Participants
Ken Herbert - RBC Capital Markets
Michael Ciarmoli - Truist Securities
Louie DiPalma - William Blair
Jeff Van Sinderen - B. Riley
Josh Sullivan - The Benchmark Company
Bert Subin - Stifel
Operator
Good day and welcome to the VSE Corporation Second Quarter 2024 Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s remarks, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.
I would now like to turn the conference over to Michael Perlman, Vice President, Investor Relations and Treasury. Please go ahead.
Michael Perlman
Thank you. Welcome to VSE Corporation's second quarter 2024 results conference call. We will begin with remarks from John Cuomo, President and CEO. Also on the call this morning is Tarang Sharma, Chief Accounting Officer and Interim Chief Financial Officer. The presentation we are sharing today is on our website and we encourage you to follow along accordingly.
Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including those described in our periodic reports filed with the SEC. Except as required by law, we undertake no obligation to update our forward-looking statements. We are using non-GAAP financial measures in our presentation. Where available, the appropriate GAAP financial reconciliations are incorporated into our presentation and posted on our website. All percentages in today's discussion refer to year-over-year progress, except where noted. At the conclusion of our prepared remarks, we will open the line for questions.
With that, I would like to turn the call over to John.
John Cuomo
Good morning. Thank you for joining VSE's second quarter conference call today. This morning, I would like to begin by discussing the current market environment for our Aviation segment. I will then provide an update on our 2024 strategic priorities and review both our second quarter financial performance and outlook for the remainder of the year. Let's begin with a market update on the Aviation Commercial market.
Global airline passenger traffic remains robust and has returned to and in many cases exceeded, record prepandemic levels. 2024 revenue passenger miles are forecasted to be approximately 4% above 2019 levels and are expected to continue to increase annually over the next 10 years. Over the same period, the global in-service Fleet is expected to expand by approximately 3% annually to accommodate increased passenger demand. While Boeing and Airbus are attempting to ramp-up production to meet increased demand, quality and supply chain constraints have impeded their efforts. As an interim solution, airlines are delaying aircraft retirements, driving increased demand for aftermarket parts and maintenance-related services on aging aircraft.