Financial Data and Key Metrics Changes - The third quarter revenue performance was as expected, with passenger revenue down just 4.5% from 2019, operating 113% of domestic capacity and 52% of international capacity compared to 2019 [15][21] - Adjusted EBITDA for the quarter was $47.9 million, with non-fuel costs up 10% compared to 2019 [21][22] - Fuel costs rose to $3.54 per gallon, up approximately 1.2% from previous guidance [21] Business Line Data and Key Metrics Changes - Neighbor Island routes saw a significant increase in load factors, up over 10 points compared to 2019, particularly in markets with high local traffic [16] - International markets, excluding Japan, experienced a 31% increase in average fares compared to 2019, with PRASM improvement of 25% [16] - Cargo revenue reached its highest third quarter ever, up over 62% compared to the third quarter of 2019 [16] Market Data and Key Metrics Changes - Demand for travel between Hawaii and the US Mainland has fully recovered, with strong performance noted in the peak summer period [8] - The removal of pandemic travel restrictions in Japan is expected to lead to a solid recovery in Japan-Hawaii travel in the coming months [8][18] - Sydney showed notable demand strength, with PRASM improvement of over 50% compared to 2019 [16] Company Strategy and Development Direction - The company plans to compete aggressively in the Neighbor Island market despite deeply discounted fares from competitors [11][12] - An agreement with Amazon is expected to diversify revenue and add a new growth avenue, with preparations for the first A330-300 freighter underway [12][23] - The company remains focused on long-term success, investing in operations and technology to enhance service and productivity [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of leisure travel demand despite inflationary pressures and an uncertain economic outlook [13] - The company anticipates overall revenue to be up about 3.5% from 2019 in the fourth quarter, with strong demand expected to continue [17][19] - The competitive position is strong across the network, with expectations for premium cabin PRASM improvements to accelerate [19] Other Important Information - The company will restate the first and second quarter GAAP results due to an adjustment of approximately $19.4 million in unrealized losses [20] - Total liquidity at the end of the quarter was $1.7 billion, with adjusted net debt near 2019 levels [20] Q&A Session Summary Question: Cost guidance related to Amazon startup costs - Management indicated that final determinations on the treatment of Amazon startup costs are still pending, with more information expected in January [25][26] Question: Inter-island competition and pricing strategy - Management acknowledged that current fares do not cover total operational costs, but emphasized the importance of competing aggressively [27][28] Question: Capacity and CASM outlook for next year - Management is not yet prepared to provide full year CASM guidance but noted that investment costs will impact unit costs [33][34] Question: Strength in sequential revenue improvement - Management highlighted that North America is driving a significant portion of the sequential revenue improvement, with strong average fare performance [36][37] Question: Amazon business and pilot sourcing - Management expressed confidence in sourcing pilots, citing attractive career earnings potential and ongoing hiring efforts [49][50] Question: Capacity recovery in Japan - Management plans to gradually restore capacity to Japan, aligning with expected demand recovery in the first half of 2023 [46][47]

Financial Data and Key Metrics Changes - The company closed the quarter with $1.8 billion in total liquidity, including cash, short-term investments, and undrawn revolver [24] - Adjusted net debt was $944 million, below 2019 levels, with a reduction of $223 million or 11% in outstanding debt during the quarter [25] - Adjusted EBITDA for the quarter was $1.1 million, better than expected despite rising fuel costs [26] Business Line Data and Key Metrics Changes - Passenger revenue was down 5.5% from 2019, with a load factor peaking at 92.9% in June [15][16] - Premium Cabin PRASM increased by 37% compared to 2019, while Extra Comfort revenue was up 25% on 15% more capacity [17] - Cargo revenue reached its highest second quarter ever, up 50% compared to the second quarter of 2019 [18] Market Data and Key Metrics Changes - North America saw robust demand, with expectations for load factors to approach 2019 levels [19] - Internationally, markets like South Korea and Australia showed strong recovery, while Japan's recovery is still constrained by government restrictions [21][22] - Overall capacity for the third quarter is anticipated to be down approximately 6.5% from 2019 levels [22] Company Strategy and Development Direction - The company is focused on sustainability, aiming to become carbon neutral by 2050 and exploring sustainable aviation fuel [10][11] - A strategic partnership with REGENT for developing a 100-seat electric seaglider is part of the long-term vision for inter-island travel [10] - The company plans to maintain liquidity above pre-pandemic levels and is focused on strengthening its brand and service [25][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand continuing into the third quarter, with stability returning to the demand environment [7] - High fuel prices are acknowledged as a challenge, but management is optimistic about managing costs and revenue generation [13] - The company is encouraged by the performance in domestic markets and anticipates continued strong demand for travel to Hawaii [19][23] Other Important Information - The company has implemented variable seat pricing on all North America routes, with early results exceeding expectations [9] - Staffing challenges are being addressed, with a focus on pilot training and recruitment to ensure operational flexibility [12] - The company is committed to reducing its carbon footprint and enhancing operational efficiency through technology investments [30] Q&A Session Summary Question: Decision to leave Orlando - Management indicated that the decision was based on insufficient aircraft availability and softer demand during off-peak periods [33] Question: Impact of fuel prices on 717s replacement - Management stated that fuel costs are a smaller proportion of total costs for short-haul operations, and the 717s will continue to operate through the middle of the decade [37] Question: A330 utilization and productivity - Management noted that A330 productivity is currently below pre-pandemic levels but is expected to improve as international routes ramp up [41] Question: Revenue generation amidst fuel price increases - Management remains optimistic about revenue generation, citing strong demand in North America and potential improvements as international markets recover [43] Question: Impact of foreign exchange on bookings - Management reported no material shift in point-of-sale mix, with a slight increase in U.S. point-of-sale for Australia and New Zealand [51] Question: Ranking of international markets for planning - Management indicated that Australia, New Zealand, and South Korea are at steady state, while Japan is still significantly below pre-pandemic capacity [61] Question: Competitors' capacity and fare trends - Management noted that capacity from the U.S. mainland remains above 2019 levels, with yields holding up well throughout the summer [63][64] Question: Variable pricing initiative impact - Management reported early positive results from the variable pricing initiative, with expectations for greater impact as the year progresses [67]

Hawaiian Holdings, Inc. (NASDAQ:HA) Q1 2022 Earnings Conference Call April 26, 2022 4:30 PM ET Company Participants Ashlee Kishimoto – Managing Director-Investor Relations Peter Ingram – President and Chief Executive Officer Brent Overbeek – Chief Revenue Officer Shannon Okinaka – Chief Financial Officer Conference Call Participants Conor Cunningham – MKM Partners Mike Linenberg – Deutsche Bank Helane Becker – Cowen and Company Andrew Didora – Bank of America Dan McKenzie – Seaport Global Catherine O’Brien ...

Hawaiian Holdings, Inc. (NASDAQ:HA) Q4 2021 Earnings Conference Call January 25, 2022 4:30 PM ET Company Participants Ashlee Kishimoto – Managing Director-Investor Relations Peter Ingram – President and Chief Executive Officer Brent Overbeek – Senior Vice President-Revenue Management and Network Planning Shannon Okinaka – Chief Financial Officer Conference Call Participants Mike Linenberg – Deutsche Bank Helane Becker – Cowen Conor Cunningham – MKM Partners Catherine O’Brien – Goldman Sachs Noah Chase – Wol ...

Hawaiian Holdings, Inc. (NASDAQ:HA) Q3 2021 Earnings Conference Call October 26, 2021 4:30 PM ET Company Participants Alanna James - Managing Director of Investor Relations Peter Ingram - President and Chief Executive Officer Brent Overbeek - Senior Vice President of Revenue Management and Network Planning Shannon Okinaka - Chief Financial Officer Conference Call Participants Hillary Cacanando - Deutsche Bank Hunter Keay - Wolfe Research Conor Cunningham - MKM Partners Daniel McKenzie - Seaport Global Cath ...

Financial Performance - GAAP net income for Q3 2021 was $14.7 million, or $0.28 per diluted share, on total revenue of $508.8 million, compared to a net loss of $97.1 million, or $2.11 per diluted share, on total revenue of $76.0 million in Q3 2020[136]. - The company generated a net income of $14.7 million, or $0.28 per diluted share, for the three months ended September 30, 2021, compared to a net loss of $97.1 million, or $2.11 per diluted share, for the same period in 2020[162]. - Adjusted net loss for the three months ended September 30, 2021, was $48,690, or $(0.95) per share, compared to a loss of $172,664, or $(3.76) per share for the same period in 2020[219]. - The company reported an income (loss) before income taxes of $19,169 for the three months ended September 30, 2021, compared to a loss of $143,584 for the same period in 2020[221]. - The adjusted loss before income taxes for the three months ended September 30, 2021, was $(61,032), compared to $(244,195) for the same period in 2020, showing an improvement in financial results[221]. Revenue and Capacity - Capacity (measured in Available Seat Miles) increased by 488.7% in Q3 2021 compared to Q3 2020, while Revenue Passenger Miles rose by 1,625.3% during the same period, driven by increased customer demand[136]. - Overall capacity increased by 17.9% compared to Q2 2021, but remained down 20.7% and 32.9% compared to Q3 2019[137]. - Domestic network accounted for approximately 94.9% of total passenger revenue in Q3 2021, while international travel revenue was down 88.1% compared to Q3 2019[139]. - Operating revenue for the three months ended September 30, 2021, increased by $432.9 million, or 569.7%, compared to the same period in 2020, primarily driven by the return of passenger travel demand[164]. - Passenger revenue for the three months ended September 30, 2021, increased by $414.3 million, or 1,041.5%, compared to the same period in 2020, with domestic passenger revenue increasing by 1,017.9%[165]. - The passenger load factor for the three months ended September 30, 2021, was 75.9%, significantly up from 25.6% in the same period of 2020[163]. - Domestic passenger revenue during the nine months ended September 30, 2021, increased by 108.7% on capacity growth of 109.1% compared to the same period in 2020[168]. - International passenger revenue for the three months ended September 30, 2021, increased by 1,769.0% compared to the same period in 2020, but decreased by 66.7% during the nine months ended September 30, 2021[171]. Expenses - Total operating expenses for the three months ended September 30, 2021, were $268.3 million, an increase of 136.2% compared to the same period in 2020[174]. - Aircraft fuel expense for the three months ended September 30, 2021, increased by $94.2 million, or 648.0%, compared to the same period in 2020[175]. - The average cost per gallon of aircraft fuel for the three months ended September 30, 2021, was $2.07, compared to $1.09 in the same period of 2020[163]. - Wages and benefits expense increased by $31.8 million, or 21.4%, for the three months ended September 30, 2021, compared to the same period in 2020, due to ramping up of domestic operations[175]. - Maintenance, materials, and repairs expense rose by $29.4 million, or 157.6%, for the three months ended September 30, 2021, compared to the same period in 2020[178]. - Aircraft and passenger servicing expense increased by $25.8 million, or 501.5%, for the three months ended September 30, 2021, compared to the same period in 2020[179]. - Commissions and other selling expenses increased by $15.8 million, or 303.1%, for the three months ended September 30, 2021, compared to the same period in 2020[180]. Cash and Debt - Unrestricted cash, cash equivalents, and short-term investments totaled $2.0 billion as of September 30, 2021[136]. - Total debt increased to $2.0 billion as of September 30, 2021, reflecting an increase of $821.8 million, or 71.5%, compared to $1.1 billion as of December 31, 2020[155]. - The company issued $1.2 billion in 5.75% senior secured notes on February 4, 2021, which are collateralized by its loyalty program and intellectual property, requiring quarterly interest payments and maturing in January 2026[150][155]. - The company raised approximately $1.3 billion in cash during the nine months ended September 30, 2021, primarily from loyalty and intellectual property financing, PSP funding programs, and shares issued through an at-the-market offering[197]. - The company is required to maintain minimum liquidity of at least $300.0 million at the end of any business day as per the Indenture[154]. - The company had capital commitments consisting of firm aircraft and engine orders, including 10 B787-9 aircraft and 2 B787-9 spare engines, with expected delivery dates between 2022 and 2026[200]. - As of September 30, 2021, total contractual obligations were estimated at $5.14 billion, including $2.45 billion in debt obligations and $1.65 billion in aircraft purchase commitments[207]. Government Assistance - The CARES Act provided approximately $300.9 million in financial assistance to support employee salaries and benefits, with restrictions on involuntary furloughs and executive compensation[144]. - The company received a total of $179.7 million under the PSP3 Agreement, consisting of approximately $155.8 million in grants and $23.9 million in a ten-year loan during the nine months ended September 30, 2021[149][157]. - The company recognized $320.6 million in contra-expense during the nine months ended September 30, 2021, related to grant proceeds from federal Payroll Support Programs[212]. - Government grant recognition amounted to $78,256 for the three months ended September 30, 2021, compared to $129,088 in the same period of 2020[223]. Compliance and Future Outlook - The company was in compliance with covenants in its financing agreements as of September 30, 2021[198]. - The company anticipates sufficient liquidity to satisfy obligations and remain compliant with existing debt covenants based on actions taken and revenue recovery assumptions[158]. - The company suspended all share repurchases and dividend payments until September 2022 due to federal Payroll Support Program restrictions[202]. - The company has backstop financing available from aircraft and engine manufacturers to secure financing for capital commitments[201].