Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of $25.6 million for Q4 2022 and an adjusted EBITDA loss of $31.0 million for the full year 2022, equating to an adjusted loss of $0.49 per share for Q4 and $4.08 per share for the full year [30][31] - Unit costs, excluding fuel and non-recurring items, were up 14.2% compared to 2019, driven by increases in wage rates and airport rents [31] Business Line Data and Key Metrics Changes - The company experienced strong demand for travel from North America and international markets, excluding Japan, with overall PRASM surpassing 2019 levels due to robust performance in premium and ancillary products [19][20] - Neighbor Island routes faced competitive pricing pressures, but the company managed to maintain yields above $39 when possible, achieving a load factor 22 points higher than competitors [22][23] Market Data and Key Metrics Changes - The recovery in Japanese travel demand has been slower than anticipated, attributed to consumer conservatism, government promotion of domestic travel, and the weakness of the yen [21][60] - The U.S. Mainland to Hawaii total passenger revenue was up 29% on 9% more capacity compared to Q4 2019, with load factors remaining in the high 80s [20] Company Strategy and Development Direction - The company is focused on operational execution to unlock efficiencies and maximize revenue generation in each market, while also investing in technology and fleet upgrades [10][36] - Plans include the launch of freighter operations for Amazon and the introduction of the Boeing 787-900, which will enhance premium offerings and overall capacity [15][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by ongoing operational issues, including construction at the Honolulu hub and supply chain constraints affecting A321 engines [12][14] - The company remains optimistic about the long-term recovery of the Japanese market and is prepared to adjust capacity as needed [7][21] Other Important Information - The company has made significant investments in technology and facility improvements, including a new passenger service system and enhancements to airport security checkpoints [16][33] - The company expects 2023 aircraft-related capital expenditures to be in the range of $290 million to $300 million, reflecting the delivery schedule for the 787s [32] Q&A Session Summary Question: Clarification on 1Q RASM guidance - Management explained that the guidance was year-over-year and not sequential, with factors like spoilage and softness in bookings impacting the outlook [38][40] Question: Impact of Amazon costs on 2023 - Management indicated that pilot training costs are intermingled with preparations for Amazon operations, affecting first-quarter costs [42][43] Question: Hiring and productivity levels - Management noted that about 20% of employees have joined since early 2022, and productivity is expected to improve as training progresses [46][48] Question: Japan routes and alliance considerations - Management confirmed ongoing commercial relationships with Japan Airlines and the potential to revisit joint venture applications in the future [50][51] Question: Japanese leisure market outlook - Management discussed the conservative nature of Japanese consumers and the impact of domestic travel incentives, with expectations for gradual normalization [60][62] Question: Operational challenges and revenue impacts - Management identified the slower recovery in Japan and Neighbor Island competition as significant near-term revenue drags, while operational challenges at Honolulu are manageable [70][71]

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 ...