Spirit Airlines : DEI&B Impact Report 2023

Summary

In 2023, our Diversity, Equity, Inclusion, and Belonging (DEI&B) strategy matured, building upon our successes

Our DEI&B Strategy

In 2022, we updated our DEI&B Pillars to drive continued diversification of our organization, broaden our areas of engagement, and educate and empower our Team Members. We furthered that in 2023 with a robust goal-setting process to focus

Our 2023 Highlights

Diversity Equity

to date. We aligned on goals to drive further progress, focused on making an impact.

Spirit Airlines has a history of pursuing impactful strategies to drive systemic change and promote DEI&B within our organization. Our 2022 DEI&B Impact Report summarized our DEI&B actions and initiatives to date at Spirit. In 2023, we have matured our DEI&B strategy and approach,

on making impacts aligned with these four Pillars.

Community Outreach

and Social Responsibility

Ensure Equitable and

Inclusive Total Rewards

Creating an Environment

We promoted 491 Team Members from underrepresented groups, accounting for 67% of all promotions in 2023.

Our Supplier Diversity Program saw impressive growth, surpassing our $97 million spend goal by 14% ($111 million). As of the end of 2023, we have approved 337 diverse suppliers in our vendor database, and we are actively seeking to grow that number through outreach and education.

We implemented a robust Unconscious Bias workshop, piloted the Leadership Accelerator program, and expanded the Leadership Altitude program, equipping our Team Members with the requisite skills for effective leadership and ensuring equal career development opportunities for all.

shifting focus to establishing more formal programs and driving quantifiable results in representation, policy design, and a culture of belonging.

This 2023 DEI&B Impact Report is intended to provide our stakeholders with a summary of our impacts as they relate to our DEI&B strategy, highlighting our successes and reflecting on what more we can do.

of Inclusion for All

Foster Belonging

Through Representation

Our DEI&B programs are constantly evolving to best serve our Team Members, our Guests, and our communities. In 2023, we significantly invested in our Team Member Resource Groups (TMRGs) providing more structure and support as well as actively soliciting input to guide our DEI&B programs. Our aim is to encourage lasting impact by integrating DEI&B into every facet of the organization.

Inclusion

We established an annual goal framework for our TMRGs to drive impact aligned with our DEI&B strategy. In response to TMRG goals,we established new policies and programs centered around increasing accessibility and inclusivity for underrepresented groups. We also launched a new TMRG, the Veterans Resource Group.

Belonging

We launched the Women's Leadership Roundtable to create a mechanism for female Team Members to meet and interact with our senior leaders and to participate in open discussions regarding the unique opportunities and challenges for women in the aviation industry.

Diversity

Attracting And Retaining A Diverse Workforce

At Spirit, we celebrate the diversity of our Team Members and our suppliers, recognizing that a diverse workforce leads to diverse ideas, which in turn drives innovation, enhances decision making, and strengthens our position as a socially responsible market leader.

Diversity is an integral part of our organizational culture and our business strategy. We place a high value on cultivating a workforce that encompasses a wide range of backgrounds, experiences, and perspectives. We celebrate individual differences and rely on diverse inputs to foster critical thinking and creative problem solving.

We actively promote Team Member diversity through recruitment and promotion practices designed to welcome a spectrum of talent that reflects the communities in which we live and work. In 2023, we also significantly expanded our Supplier Diversity Program, integrating diversity into our procurement processes and proactively seeking and supporting diverse suppliers in our communities.

We have transformed the way we recruit talent to build a workforce that embraces different identities, perspectives, and experiences. Our talent acquisition team is focused on building talented and diverse teams, with DEI&B serving as a core pillar of our overall talent strategy.

As a first step in attracting a diverse workforce, we optimized our recruitment marketing to ensure we are reaching a variety of talented candidates. Our recruitment marketing has been fine-tuned to emphasize not only where we post job requisitions but to also proactively seek out candidates with various backgrounds and experiences.

$42,500

contributed in scholarship funds in 2023

In 2023, we actively participated in promoting diversity within the aviation industry by partnering with associations such as the National Gay Pilot Association (NGPA), Organization of Black Aerospace Professionals (OBAP), Regional Airline Training and Recruitment Advisory Group (RTAG), Women in Aviation International (WAI), and Professional Asian Pilots Association (PAPA). As a testament to our commitment, we not only drove diversity-focused recruitment through the Spirit Wings Pilot Pathway Program with flight academies, but also contributed a total of $42,500 in scholarship funds in 2023. These scholarships play a crucial role in supporting underrepresented groups within the aviation industry, fostering inclusivity and providing valuable opportunities for aspiring individuals to pursue careers in aviation.

In 2022, we initiated a practice to enhance diversity in our executive hiring process by proactively seeking a diverse slate of candidates for consideration. Expanding on this commitment in 2023, we extended the same inclusive approach to our Director and Senior Director- positions. This hiring process aims to actively seek and interview candidates from diverse backgrounds, reinforcing our dedication to fostering an inclusive workplace culture at all organizational levels.

Additionally, we've implemented new standard recruitment practices to promote diversity and equity in hiring. In 2023, we stopped requesting current compensation information from new hires, aiming to break the cycle of perpetuating minimalized behavior. For all leadership roles, we also require that at least one interviewer is from an underrepresented group.

Once hired, we support Team Member career development through our enhanced professional development and engagement programs. These programs support Team Member retention and ultimately contribute to a culture of equity, inclusion, and belonging.

"People don't simply fit into boxes that define a team structure within the organization. There is so much more to every individual we select to be part of our future. Its all the qualities outside the box that are the real differentiators."

• Linde Grindle SVP & Chief Human Resources Officer

In 2021, we initiated our Supplier Diversity Program, witnessing substantial year-over-year impact throughout 2022 and 2023. Guided by our Supplier Diversity Policy, this program is dedicated to creating business opportunities for certified diverse suppliers owned by underrepresented groups. Integrated into Spirit's strategic sourcing and procurement process in 2022, the program has significantly influenced our approach.

In 2023, Spirit set annual goals to boost diverse supplier engagement and expenditure, underscoring our commitment to fostering diversity and inclusion in the broader business landscape. Suppliers and service providers are encouraged to register through our online procurement system, allowing them to self-identify as businesses owned by underrepresented groups. This inclusive approach enables us to analyze strategic sourcing metrics and establish targeted goals for enhancing supplier diversity.

To facilitate this process, we've introduced a 'Self-Certification' option on our vendor portal, offering potential suppliers

the chance to declare their status if they have not received certification from specified business councils. We also identify and educate existing suppliers who have not applied for certification. For example, we identified our external recruiting agency (with whom we had $7 million in spend in 2023) as a non-certified diverse supplier and supported their certification as a minority-owned business enterprise. Our procurement team also actively incorporates diverse suppliers into requests for proposals, fostering an environment where inclusivity is paramount.

Collaborating closely with business councils and industry peers, we continually expand our diverse supplier network, reinforcing our commitment to diversity in 2023. These focused efforts not only diversified our supplier network but also had a positive indirect impact on local economies, aligning with our broader commitment to inclusivity and diversity.

After outperforming our 2022 goal of $70 million by 19% - spending $83 million with diverse suppliers - we set an ambitious goal of increasing our spend to $97 million for 2023. We are proud to report that we have exceeded our 2023 goal, increasing our spend on diverse suppliers to $111 million in 2023.

We also set a goal to increase our spend with supplier categories that saw lower spend in 2022. In 2023, we increased our spend with Hispanic and Veteran-Owned businesses by 6% and 3%, respectively. We will continue to implement programs to increase spend in areas that are significantly disadvantaged. For example, while we spent $574K with Black-owned businesses in 2023, we are aiming to increase spend in the future.

Our incredible performance showcases the Company's commitment to valuing diversity within our organization and the broader Spirit Family. We will continue to set annual goals to grow our diverse spend and to further develop our Supplier Diversity Program in 2024.

Promoting

Equity Through

Leadership

Unconscious Bias:

Understanding Bias to Unleash Potential was implemented in Q1 2023. This Franklin Covey workshop engaged executives and TMRG leaders over the course of three months with the aim of reducing unconscious bias incidents. The workshop provided a practical approach to identifying and addressing unconscious bias, equipping participants with skills to recognize and counter its potential harm.

Equal opportunity at Spirit includes access to and support through professional development programs. These programs empower Team Members with the skills and knowledge necessary to excel in their roles and adapt to new responsibilities. We continue to make our Spirit U platform accessible to all Team Members, as well as promote Team Member-led Activation Forums which provide a supportive and safe space

to engage with company and community leaders. In 2023, we also launched the LinkedIn Learning platform, significantly enhancing our access to career development training.

2023 also saw significant investments in unconscious bias training as well as two leadership development programs in 2023: Leadership Accelerator and Leadership Altitude.

Leadership Accelerator is an immersive program aimed at elevating leadership skills, encouraging cross-functional teamwork, and providing insights into executive-leveldecision-making. Leadership Accelerator was piloted in April 2023 as a six-week-long program where selected Team Members participated in cross-functional teams to solve real-life business challenges. With support from an Executive Sponsor and HR advisor, teams developed solutions to address these challenges and presented their proposals to a mock Board of Directors. Benefits of the program include mentorship from senior Spirit leaders, cultural enrichment, and tailored Individual Development Plans that align individual aspirations with organizational needs. A total of 58 leaders completed the program in our inaugural year, with 77% of the participants selected from underrepresented Team Member populations.

Leadership Altitude, established in 2022, is a comprehensive program combining instructor-led workshops and self-directed activities to foster leadership development and enhance cultural and communicative for all supervisors and above in the company. Building on this foundation, 2023 marked a significant expansion of our Leadership Altitude curriculum. To support leadership development, we streamlined course flow, broadened eligibility, and increased the accessibility of course material, resulting in increased participation among senior leaders. As part of this expansion, we introduced an 'Inclusion in the Workplace' workshop in October 2023. This workshop, designed to heighten awareness and foster behaviors that promote inclusion, emerged as the most attended course in the Leadership Altitude Program in 2023. It signifies our commitment to cultivating leaders who actively engage in creating a culture where every Team Member feels valued and included. The overwhelmingly positive feedback received underscores the success of our efforts in this critical aspect of leadership development.

Empowering Our

Team Member

Resource Groups

In 2023, our commitment to inclusion and diversity soared with the launch of our seventh resource group - the Veterans TMRG. This strategic expansion, coupled with robust DEI&B awareness and outreach, fueled an impressive 142% surge in TMRG membership. In 2023, we welcomed 868 individuals into our active TMRGs, which now encompass seven distinct groups:

This growth underscores our ongoing efforts to strategically amplify diversity engagement within our organization.

In 2023, we also established and implemented an annual goal framework for our TMRGs to drive impact aligned with our DEI&B strategy. Each TMRG established two goals; goal progress was tracked and reported at quarterly Executive Ally meetings.

As mentioned earlier, some TMRG goals focused on inclusive benefits. Other TMRG goals set and accomplished in 2023 include:

Launching a Mentorship Program

to provide guidance and support, helping resource group members connect with like-minded individuals to develop skills, navigate challenges, and advance their careers at Spirit.

Offering LinkedIn Learning

Reserving 200 LinkedIn Learning licenses for our TMRGs and curating playlists relevant to minority representation and development needs.

In 2023, we amplified the impact of our Executive Allies, who play a pivotal role alongside our TMRG Leaders. These allies convene quarterly with TMRG Leaders to assess progress, review representation numbers, and evaluate the effectiveness of our programs in driving meaningful change. This collaborative forum serves as an open platform where every TMRG Leader articulates opportunities, goals, and concerns, empowering Executive Allies to comprehend systemic issues and leverage their influential roles.

Formerly known as Executive Champions, we redefined the responsibilities of our Executive Allies in 2023. Their role now involves active participation in quarterly DEI&B meetings, attendance at DEI&B events, guiding TMRG Leaders on goal setting and strategic approaches, and providing pertinent updates to senior leadership. Furthermore, Executive Allies engage in partnerships with one TMRG per year on a rotating basis, fostering collaboration and forging new connections within our commitment to DEI&B. Our Executive Allies are selected from senior leadership roles including C-Suite executives and Vice Presidents; the participation of these leaders demonstrates the commitment Spirit is making to integrating DEI&B into the business.

Inclusion

Listening To Our Team Members

In a truly inclusive workplace, all Team Members feel comfortable expressing their opinions and contributing their unique perspectives, providing a foundation for creativity and innovation and promoting a positive corporate culture.

Inclusion at Spirit goes beyond merely having diverse Team Members; it involves creating an environment where everyone is actively involved, promoting innovation and productivity through teamwork by leveraging the strengths of diverse experiences and viewpoints. We remain committed to an inclusive culture and took 2023 to improve programs and channels for Team Members

to contribute to real change.

Pulse Surveys are a tool we use to engage with our Team Members and navigate a landscape of internal and external challenges. Employing quarterly Pulse Surveys, beginning in 2023, has provided Team Members more opportunities to provide their feedback and insights. This enables us to make timely, informed decisions that directly impact Team Member satisfaction, leading to more inclusive and Team Member-focused policies and programs.

Our Q3 2023 Pulse Survey included prompts related to inclusion

• for example, 'I have the same opportunities for advancement as other Team Members in my organization.' Team Members signify their alignment with each statement by assigning a score between 1 (disagree) and 5 (agree). The insights gained from responses to the inclusion prompts serve as a useful baseline, informing our ongoing efforts to foster an inclusive culture. Team Member responses to the inclusion prompts were positive, with average ratings of approximately 4 out of 5. The prompt 'At work, I feel comfortable being myself' received the second highest average score across all survey responses (including core, wellness, inclusion, and resilience index prompts). These responses confirm that inclusion is Spirit's strength.

When looking at TMRG member responses to questions related to inclusion, those that are a part of a resource group rated 0.08 to 0.23 higher versus the average Spirit Team Member response, with the exception of 'opportunities for advancement'. We are working to address this difference though professional development programs tailored toward and at the request of our TMRGs. This demonstrates the positive impact of TMRG participation, while also highlighting our need to focus and invest on equitable advancement for all Team Members at Spirit regardless of gender, race, or ethnicity.

Additionally, all survey responses were analyzed with respect to gender and race/ethnicity. This additional analysis allowed us to identify potential challenges related to specific groups. For example, within the inclusion index, analysis by race/ethnicity revealed statistically equal scores when compared to Spirit overall for 'being self' and 'opportunities for advancement'. However, there were some statistical variations for 'treated fairly' which are being actioned by our TMRGs.

In February of 2023, our Black TMRG hosted a special Activation Forum in Atlanta, Gerogia, called Black Brilliance

• Beyond. This event was hosted by Black Resource Group members from across our network, allowing Team Members to come together for a day filled with learning and honoring Black culture and its influential leaders. The event included a tour of Atlanta's Black history and involvement in the Civil Rights movement through visits to Sweet Auburn, West End historic homes, the King Center, and other landmarks and murals significant to African American culture. Team Members also had the opportunity to participate in a fireside chat and panel discussion with Black leaders to discuss their own leadership development journey and provide insights.

Black Brilliance and Beyond was a meaningful and impactful Activation Forum, fostering community through shared experiences and open dialogue. Participants left with a strong sense of belonging, feeling even more empowered to be their authentic selves at work. Discussions at the event also influenced how the Black TMRG Leaders support the community throughout the year, creating more space for conversation and connection. The success of the event has led the Black TMRG to plan a similar Activation Forum in Houston in 2024, to include a guest speaker, team building exercises, and other community-building activities. Spirit is proud to invest in events like Black Brilliance and Beyond as part of our commitment to creating a culture of equity, inclusion, and belonging.

Trudy-Ann Armand (Sr. Mgr. Learning Solutions) and Jervishia Walker (Mrg. II Digital Guest Care) lead the Black TMRG at Spirit by emphasizing engagement, community, and culture. Their year-long tenure has dynamically developed to fit

the needs of the growing Black TMRG, though they remain centered around fostering Team Member connections, development, and retention.

Black TMRG events and programs help to create opportunities for Team Members to establish those connections and cultivate what Jervishia calls a 'Brave Space'. This space allows individuals to have candid conversations and feel supported by their fellow TMRG members.

Trudy-Ann has also been rewarded by the connections and community made possible by the Black TMRG, reflecting

upon the trust TMRG members are building with each other as they continue to share and engage in the community they have built. Trudy-Ann participated as a mentor in the Black TMRG pilot mentorship program and witnessed the enthusiasm for the program. She stresses the value of routine meetings with her mentees to solidify trust and open communication.

Jervishia and Trudy-Ann aim to continue creating a Brave Space for Black Team Members through increased participation in TMRG events and activities in 2024 and beyond. They strongly believe in growing connections face- to-face and intend to offer opportunities outside of Spirit headquarters to reach regional Black TMRG members. These leaders have established true, impactful change at Spirit.