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].

Hawaiian Holdings, Inc. (NASDAQ:HA) Q2 2021 Results Conference Call July 27, 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 Avi Mannis - Senior Vice President, Marketing Conference Call Participants Hunter Keay - Wolfe Research Catherine O'Brien - Goldman Sachs Conor Cunningham - MKM Partn ...

Hawaiian Holdings, Inc. (NASDAQ:HA) Q1 2021 Earnings Conference Call April 27, 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 Hunter Keay - Wolfe Research Catherine O'Brien - Goldman Sachs Helane Becker - Cowen Joseph Denardi - Stifel Mike Linenberg - Deutsche ...

Financial Data and Key Metrics Changes - The adjusted net loss for Q4 2020 was $173 million, or $3.71 loss per share, while the full year 2020 adjusted net loss was $551 million, or $11.96 per share, reflecting the severe impact of the pandemic [33] - Total revenue in Q4 2020 was down 79% year-over-year, with passenger revenue down 86% and other revenue down about 3% [21][22] - Daily cash burn for Q4 was $1.7 million, better than the forecast of $2.2 million, while the first quarter cash burn is expected to be between $2.3 million and $2.7 million per day [37][38] Business Line Data and Key Metrics Changes - The cargo and charter businesses showed strong performance, contributing to the relatively stable other revenue despite the significant drop in passenger revenue [21] - The company operated 37% of its North America schedule compared to the prior year in Q4, with expectations to operate about 70% of the North America schedule in the first quarter [26][27] Market Data and Key Metrics Changes - In North America, service was restored to several cities, and the company plans to launch four new routes in the coming months, indicating a strategy to broaden its network [25][26] - International operations were severely impacted, with only about 5% of the 2019 schedule operated in Q4, and expectations to operate approximately 12% of the international network in the first quarter [28][29] Company Strategy and Development Direction - The company is focused on three key priorities: rebuilding and optimizing the network, reducing cash burn, and strengthening the balance sheet [16] - The reopening of Hawaii to tourism via the Safe Travels program is seen as a critical step in rebuilding the business and the local economy [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the pre-travel testing program and its potential to safely rebuild tourism, although they acknowledged that demand recovery will not be immediate [16][18] - The company is encouraged by the distribution of vaccines, viewing it as a catalyst for recovery, while also noting that the first quarter is expected to remain challenging [18][32] Other Important Information - The company raised $41 million through an equity offering and plans to refinance its CARES Act loan with an $800 million financing backed by its loyalty program and brand assets [9][33] - The liquidity position is expected to reach approximately $1.8 billion, significantly above the previously stated target of $500 million [34] Q&A Session Summary Question: Does COVID extend the useful lives of aircraft? - Management indicated that while less wear and tear may extend the life of aircraft, they are comfortable with their current operational plans and service contracts [41] Question: What is the mix of one-way versus round-trip tickets sold in Q4? - There has been a modest uptick in one-way ticket sales, reflecting changes in customer buying behavior rather than a structural migration to or from the islands [42][43] Question: How is the sentiment towards tourism among residents? - There is a mixed sentiment; while some residents appreciate less crowding, the overall economy is heavily reliant on a vibrant visitor industry [47][48] Question: How are bookings looking for the summer peak? - Bookings have shown a modest uptick, but the company does not expect a significant trend until demand aligns more closely with capacity [52][56] Question: What is the plan for capital expenditures in the coming years? - The company plans to maintain a moderate level of capital expenditures, focusing on technology and facilities projects while being flexible based on cash flow [59]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | --- | --- | |---------------------------------------------------------------------|-----------------------------------------------------------------| | | | | Co ...