HA - Earnings call transcript Q2 2020

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Operator

Greetings, and welcome to the Hawaiian Holdings, Inc.

Second Quarter 2020 Financial Results Call. At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. pleasure Investor your Relations. my Managing Alanna now of Director is to host, introduce James, It Thank you.

begin. may You

Alanna James

Thank you, Michelle. second Hello, everyone, and welcome results call. quarter to conference XXXX Hawaiian Holdings'

and are Here in of our Revenue Planning; our Peter Chief Chief Network President Executive and Shannon Ingram, Senior with Vice Officer; Honolulu our and me Management Financial Overbeek, Brent President Okinaka, Officer.

for Peter on the other team on vision to about future. end in will prepared and open X that business remarks, the our Q&A. press an update liquidity. call We everyone today. impact our management attendance and will of commercial release at overview COVID-XX our also will of By have members should our questions. Shannon the went have for an now, of Brent access the our o’clock the At an out several and will performance we of Time provide provide update and for the Eastern the cash trends, provide up on

it hawaiianairlines.com. not Investor our of If you page Relations the website, the on is received available have release

During and our be reconciliation end A Investor Relations today's we website. call GAAP our times metrics of metrics. and non-GAAP press to numbers detailed posted found or non-GAAP at refer on the to can at adjusted today, the release numbers of will page of

undue the This and performance. not guarantee financial in actual over subsequent operating well on contain filings and annual risks questions. performance, including with statements be We statements. uncertainties do about Forms to reports statements your more statements upon SEC in and plans may results the that XX-K additional XX-Q to statements, differ should potential therefore, to cause you prepared future turn could them. detailed as forward-looking will most subject a as These refer reminder, placed discussion the Form future Hawaiian X-K. remarks not on to to any and report following Peter. a As from our forward-looking materially filed of future includes also and projected recent reliance call response I the factors those and are Holdings' forward-looking Management for now filed recent the make

Peter Ingram

thank Aloha Alanna. us joining and everyone you today. for Mahalo,

As Pacific in-flight decades three our release was at an for his challenging the the home sense unprecedented you the second for the beginning industry ohana our even not long-time of of past to He week we and the basis. of our prepare than We're also for in dear. caring daily on the planned his spread driven In well-known to has company XXXX values Honolulu today, of human past as our for network aircraft have throughout from for his due flight West and be seen this and his given face demand long-haul we that and to was Kurtzman COVID-XX in press fleet majority of pass effect last chain. of our The continue of quarter and cultures, joined the direct Douglas. further to new made entire the incredibly been period bit hold was year. disruption much passing Aloha and in as passion is discovering of the one weekend for over the fraction Hurricane us that of away had travelers a colleagues knack of place neighbor as virus has the the to embodied unusual quarantine Malama reminded rather pandemic. terrific of of had become a operation of in parked Hawaii, of incoming easy He our regular a a most by Jeff COVID-XX a schedule had middle Kona path season and conversation to state was Coast for Hurricane with for our operate but this the that places, heart. our of fleet Douglas to nature's much will dormant, the the toll anticipation, attendants. also feature humor still that in leading island which the people forgotten. mother Ocean, rendered our home quarter, the In a one volatility we us XX-day moved living we our island we is the in throughout

and the our collaboratively are voluntary represent mitigate retirement employees stayed workforce. were establish need right-size the frontline been spared period, more has voluntary with programs and nothing to the options worked unions We've most islands leave remarkable. separation early this direct a of storm to of us, destructive associated to for North hit. for involuntary working the winds our that team reductions all short our to Fortunately recently Throughout and and unparalleled offshore Hawaii the with of this

Our the we that have a cash comfortable transaction $X presently ETC certain as the the activities. billion. subsequent two of raise Upon a assets amidst raising with expect employees quarter, local closed to delivering by $XXX quarter food million infirm short business our approximately crisis, financing been of food result and among many pride this schools sustain very estimate closed flight in of a other will albeit zero nearly stabilized supporting to in our of liquid commencing have has communities being million. double of the for to quarter am are another planned wellbeing short-term the a whose aircraft transaction to wonderful in and We delay exceed people greater. active we conclusion transactions our and limited of part our the end has overwhelmed second In our revitalizing economic never initiatives. this position been been the and we a activity. My drives and pressures through second I successful of team sale-leaseback revenue the $XXX operation elderly pleased which cash

buffer we Beyond access these these preserved a to will have million we transactions, and $XXX loan following the expect to a of transactions. CARES through unencumbered loan aircraft program have Act

much manage strong for good uncertain travelers. remains demand financial the rebuild we impactful entering the is earnest. this crisis XX-day us in had Hawaii in constraint through quarantine to business to positions begins this for are shape ahead, position we demand months the confident ongoing about left currently to While us recover The our most has as and on that uncertainty

story to effect on of governor's on quarter start on of element was I'll Xst lifted the island of our So me business. is the moment second review let XXth. This how place April up a with which to neighbor the has order quarantine June went and into today. simpler through part and the the take evolved quarantine this particular the

hours a place The a arrival. quarantine first in restore who lifting the XX-day As since us late provide magnitude for In the a on to state you moments. would March expect, Governor has the schedule into our in recovery few have recovery the opportunity obtain the which and of Hawaii's to June, place. which -- travelers prior test XX to we provided of details announced will lift plan schedule. on incoming negative demand seen of Brent COVID-XX within our remains demand XXth in more arrivals went some on more you

requirements weeks key in specific being markets date September in pushed established. increased recent are As this the county August both on remain testing visitor back Xst. as in was with for state Mainland the case Hawaii protocols to and We our and Xst count engaged officials

but a some stimulating to to On demand we and for to demand of high the surface, degree so they elegant currently required details the access Hawaii's pretesting applicable economy. quarantine magnitude tests of travelers the to Hawaii about home for. details can finalize state providers, while there guests level that of provide potential are of remains that will are can devastated that about about the ability the A vacation solution clarity priority affect that demand and is uncertainty simultaneously information approved remain will this corresponding is an for to preserve suppressed, is seeking There the recovery. tests unlock our avoid what looking the us to is incidents, the COVID expect. uncertain, ability many Certainly, potential we of however state's low open-up

have the from Before the the leave I international single greatest markets this realize for quarantine note also restrictions crisis. restrictions on Brent that, serve. the from remarks. effort of impact demand, circumstances, our in discuss with immediate dealing subject have we ability spent to his Hawaii's in while planning quarantines, affected I emergence should by the traditionally also our we significant Pivoting more will we're

demand get but allowing occur, groups base. levels. scenario demand is to With about to managing our new the XX% we Hawaii, to on working that take baseline on to this right-size Key taking in this being business the XXXX company to for us an time adjusting summer to months we levels. it front staffing this retirement it steps offered years pilots. recovery compared smaller of next Voluntary employees, uncertain our union have smaller to from to know will that are focuses over through and we planning to level, that line, build back packages have in work. this pace return don't are we pre-COVID-XX primary each With time administrative a other mind, we back already airline Plans our our engaging with been work group are representatives, also XX% by separation applicable. While to where early for not and offered and to for will know travel know the options

in to Our – will is feasible, means the goal separations acknowledge but will that is with voluntary need through as that to the we we proceed likely workforce it to reduce extent well. voluntary it

We manage and is to so to Having it furloughs preserve but shrink days. the has viability, essential strongly. the impacted our and emerge is team coming who WARN of to that, notifications Act competitiveness heartbreaking, this worked risk success issue are in at We'll long build painstakingly our employees by being expect our of term. business over to through the the company to involuntary

re-phase continued discussions to with Boeing to We XXX our order. also have have productive

While first not do XXXs into two finalized, the XXXX to we put expect until not or XXXX. service

that return. to the I demand As future, Hawaii think will know travel for I about

Hawaii in impact Zoom the can of like travel, remote emerging prominence may longer-lasting work only the fully technology have beauty person. be While experienced business of a on and

As the trend. the return its growth and travel recovers, brought and eventually economy virus to demand for is leisure will control, long-term stabilizes, under

to is environment. a you ideal airline Brent positioning our successful Our as this in leisure turn to the outlook. give more to commercial now premium over call be on details I'll

Brent Overbeek

and Peter everyone. you, aloha, Thank

revenue on capacity. year-over-year, During quarter down was a XX.X% the system second in decline XX.X%

saw March, we other as gradual improvements XX% respectively. was barebones somewhat From as passenger Hawaii cargo the in pared day, state down to Honolulu. In have place schedule and we've our quarantine returned low coming America Los quarter. and XX% more. initially Demand in with and since Francisco For year-over-year XX% for per revenue the travelers level the quarter, throughout and operated round North down to travel San end has trips a April, only revenue of and visitors a progressed a two in with XX-day begun revenue to we into point Angeles both down residents a the bit

quarantine were able most and option to During mainland June the Portland, second quarter. guests Hawaii's back the Seattle of to time, of on be state added August points. back We that X. plans third we by our Sacramento effective provided the in At to had to XX the reenter traveling Diego for and the test that origin have the out San since from network the announcement welcomed we quarter, mainland encouraged

in similar our for be adjusted the this half to increased estimate schedule XX% August were COVID bookings We've particularly quarter. North increase planned travel, of unsurprisingly initial our weeks the second and the While demand since ensuing and as an details the of we on decelerated. sparse, just schedule state's in July under in we'll mainland early about saw fly the schedule for August, cases policy to America

third last last numbers, those a year what Hawaii year, around of uncertainty months September half the beyond points. of pandemic of load our of here key recent in with quarantine the moderately about and Needless year. while the of summer, in October origin bookings the of remainder about state in the it factor subsequent Looking say, Consistent industry of is improving amount weeks. fair status throughout trends, to book velocity was a slowed the given has and there's is

the and during year's past For several halved travel levels latter a of the the has June bookings the last in were of part third year, of the been made weeks. basically over roughly month

to XXs has at back Moving the beginning in the material and for our added of we've more over closer markets. tapers ramped travel but run in-travel closely the latest quarter periods Load additional upper for were was to mid-XXs volumes Load up our factors our further declines reduced improved the plan of third mid- flying up to Neighbor Island. seen to schedule. July in throughout June off historical volume quarantine factors increased Neighbor in schedule, on the when With levels booking about half mid-June. factor We've Performance quarter the state correlates to our about lifted the saw been us seeing within mid-XXs end in have the and figure. second mid-teens. load running quarter By our for the of May, half leveled steadily they and the improvement the similar will we in in and the out of capacity then the XX% long-haul and that off Island schedule month. June's the we've in XXXX

Regarding uncertain, inhibit international our of demand as to geographies, are for addition which international, plans in the travel remain quarantine service restrictions Hawaii. effect our travel Hawaii in government-mandated to most essentially there returning in for

will As those have welcome ability left, to we Hawaii. foreign restrictions guests back to the

geographies. Hawaii confident for an destination those that are will We attractive remain

at at of of originally is Zealand. have same before, we we the schedule re-enter expectation would and Our Overall, Australia year. in we and planned the this to about that operate start quarter, in third XX% planning for assumes This we ASMs the the as estimate for September, the Japan markets we're the operate Korea planned point, New August.

currently we'll our align our network are to basis. the we environment. demand an adjustments make to And reviewing However, schedule on ongoing with

service, to the airport. we've load demand We capped type back warrants. place, This promote less, are Throughout policy physical depending remain at will separation our aircraft as bring at our through our ready XX% or at end continue we'll to more aircraft September. on factors least in gain on ensure is network make that And and safety to and our we a evaluate necessary, in are The of their their resuming feel guests to priority. continued the our safety of travel. And confidence, top policies. changes employees and

to we the Our team our hard I'll succeed that, guests call is over our and turn and to to can Shannon. constantly network and with And working this to products new adjusting adapt environment, that to policies continue the ensure our deliver services value.

Shannon Okinaka

or two of Thanks, reflecting thanks joining closed Brent. the We our of everyone million Today reported on for business. And for impact us second the today. we an adjusted per share, $XXX.X quarter with below net of continued through $XXX investments, the due $X.XX the the This of $XXX support of COVID-XX approximately loss two will quarter short-term payroll million, WTC $X AXXXneos receipt put transactions, through to as the well which a recently is closed expect which backed lease tomorrow and Peter and the a of as we financing we AXXXneos to approximately than next expect AXXXs. few $XXX a announced raising $X as by back us And raise billion. But above The that sale we transactions transaction, expected. price two little million took mentioned, morning six close of and funding estimate million was cash in amount includes which CARES our Act week. delay the longer WTC program. million to billion, $XXX

the opportunity program take the In to addition these the Act. transactions, economic to we have through CARES offered relief of advantage

combination about loan, aircraft our make liquidity, provide of the us us economic puts end a the quarter. $X.X of of billion the The financings CARES by loan draw, size to third $XXX access and position. And these to which we in million. a Act allocation with program is in expect of Our relief decision the comfortable

this is While get million. we have us valued of approximately believe crisis, liquidity four this through sufficient also AXXXneo unencumbered we to amount of aircraft, the will worst at $XXX

$XXX to which $XXX Our related third air of quarter traffic travel is in quarter. end million, was the at liability the the of million

of month non-aircraft as process PDPs, continue XXX April in refunds, In which now in of our deferrals XXXX $XXX as $X then of which CapEx and well last and AXXXneos declined $XXX $XX to back be between million delivered light to includes expect was second the our our between million quarter. We million year, for the half totaling throughout each in full in and we million that peaked CapEx quarter. subsequent the

the refunds Regarding expenditures, call. of cash on CapEx our funding, million daily last quarter to and burn, as Act was CARES million compared the second we that on cash burn $X.X excluding forecast $X.X provided

way characterize Going forward, modifying we cash burn the expectations. we're

impact will expenditures, net and flows per include second any sales include to and quarter debt burn the capital assumes third from million and and figures to not funding CARES interest approximately Act addition Under from cash will day outflows new to cash the financing. refunds $X.X cash It definition, compared quarter. burn for In we this operating expect any ticket $X.X to service payments in zero. million or cash in as

we our medium-term for planning, the conservation As size is our business. right from our attention determining shift short-term to cash on focus

future. mentioned, involuntary size workforce of to voluntary to in of be maximize demand generation, our long workforce the and the next we're between a net the which that cash position To an match clear efficiency. a are our to positive determining necessary to reaching operations spend, improvement retirement up cost will require when midst to operations we're estimated in conditions. our uncertain positive see environments teams with options aircraft, operations network it's will we level in We're better and and our collaboration ensuring will but Peter of scheduling close our where way spool we As offering further the early for options, need mitigate manage in separation the the

demand rightsizing enable While leisure delivery on we focused airlines the to competitive and hospitality can be the our line of open recovery as in the our are the grow ability focus our uncertain, in term. remains to from us we resumes. for emerge call on model business have we're that, our And demand the long questions. With time and and to authentic confident succeed to this up Hawaiian crisis Hawaii traveler, for with flexibility

Operator

you. Thank

conducting proceed We Hunter line Please Research. question-and-answer Our first question. Instructions] will from question be of now the [Operator Keay Wolfe with your comes with session.

Hunter Keay

of of even vacation what in other to or Hi, are everybody. there consequences be Are or consequence-type things that the this you. lower Hawaii spots XX? the some unique for three to might you're expecting that situation? Peter, to there any opposed long-term Thank are sort – say expecting planning benefits or quirky maybe from like based guys unintended on you now two are years

Peter Ingram

That's can interesting I really that I question, any Hunter. of think an ones. don't know significant

to some the in I physical and time I there of plant of have is industry take the the in accommodations. other properties people renovations for There's and over do decided in additional are -- but sector, some here think as provide the may to economic hotels intact improvement. to state that is of community terms are a in was the are hope people short-term that back the think, tourism as employed largely would crucial and on obviously long-term the some lot overall that realize how have so of downturn Hawaii by damage many some extended advantage the that extended focused issue tourism and going tax real an a are the to I economic surprisingly bit both tourism. as I to from health of supports government, health lot think Hawaii. of little significant recover state well And issue now an the building an period effects unemployment. we of try near-term interest economy people as in in are a base not But negative of social to the me have and begin understood really right people consequences. And the recover going

Hunter Keay

we the And now this later. know we when and it's just It is. get March, kind is. when then out PSP a We of is Okay. we'll figure money of whenever obviously, was We it know to don't time. know it it was And dark was this April, such take came of kind kind going virus now. what what what this but better know around

little payroll if things largely Is about complicated guys So that? some like there's it requirements of a cost fixed the now from might money take service taking it are that of around costs but $XXX more would a there's we say chatter I on $XXX two as you ability for potentially out. months, get impede lot PSP. exempt maintain bit like be million calculus But know something can that. hey, because attached our another you going like, and think been to million to to just it's us six to it

it But actually than this the more early know this time? complicated therefore be it's that to might as of way may decision. have little a calculus be bit it stat right about taking is now So thinking bit not conversation that it money it to might was last little be the a I fair a offered potentially. you've

Peter Ingram

wrong. the for very didn't for Yes. it to involuntary think closely our for reductions view the has need would remind prevent or the is -- cause of nothing I Hunter have to crisis at think, of comments I'd on it victims investors least of turn you've everyone probably what done made it. delay heard our pursue carriers they're something absolutely and from that us us down our other on would as difficult is some victims it that this I us this very with be that that aligned AXA who one, are They workforce

April. and think I long-term making you more continue have back said about we to know did than the as because in do changes So now we we do think to March

all seen. recovery. of I haven't If And that I recoveries. keen build we're of anyone there is, lot the take a talking pointy longer And that think a in going world lot where restrictions forward. is to part a out think think the V CARES, V-shaped a part they of involuntary was V-shaped the about this get to end about March. different a at back talk ever flattest September. of in I is early April have more this to heard are end it's I it of the moving that clear -- the I March losses the likely the But lower clear would number no lot be from to a of saw the in CARES industry X.X of were it we job of be pretty in version the on is than at what in first

Hunter Keay

Thank you.

Operator

you. Thank

from Our question. O'Brien next question Goldman the of with line Catherine comes Sachs. Please your proceed with

Catherine O'Brien

good Hey, everyone. for Thanks much afternoon very time. the

Peter Ingram

Sure.

Catherine O'Brien

Shannon, a unencumbered asset on balance. the I just question got

really I loyalty you'd heard think $XXX I was asking of said after there? you as to you're WTC of and are the looking level to thinking insight the in what other and not program that today. reason post loan just million as other the And I'm that And announced I assets included collateral are wondering some CARES just doing long in correctly what is Thanks. you get aircraft have you're do intangible transaction balance? or into if participate in the there unencumbered

Shannon Okinaka

Caty for question. the Hi thanks

U.S. the For working my Act unencumbered treasury. that be that Treasury do four at mentioned, for I little looking a the AXXXneos I than would other unencumbered think have so are in those the Other harder with wasn't included but to so finance. that the we financing that for assets, on and assets, specifically been -- collateral, loan, number loyalty program CARES while non-aircraft we with we've the

But really right the We ATR on market the now have part think well focused as most then WTC our from fleet. for XX in the I and XXXneos perspective, AXXXs. like the as we're XXXs a

Catherine O'Brien

Got to allotment on under loyalty whatever got entire I'm that you've it. And your that conversations Treasury, guess be the would sufficient program? that assuming the I the in valuation with take preliminary

Shannon Okinaka

Yes. part We question another with I assets. didn't other answer I'm believe so sorry intangible -- of your

not But stand program looked things believe that financing. or sufficient. valuation CARES we to the loyalty We our today, the specifically, where is have brand for like loans for yet we

Catherine O'Brien

ask Great. quick And one on if I could cost. one

expecting you're any not calling costs decline operating how compare this will color the with for Should quarter and capacity XQ? quarter fixed the not operating and much we nature in capacity performance of or third time. there? in third versus out be quarter you that in could the business relatively to decline gap second declines Thanks line costs will cutting puts smaller quarter. measures your on ramp the costs the cost cost as capacity see Given give operating relative to any in in takes third between But a you surprising so other

Shannon Okinaka

right. All

We comparing done second you're -- third on how our lot We've to analysis way, our we to been a our cost-efficient the haven't so the some ramp in that is costs. costs flying, pretty up the the we -- do out quarter of calculus a look analysis sub-cost. the factor been as asking look before. it flying, part calculus of of the most a what that way focused aircraft in question. than has a different quarter as aircraft pulled ownership this most for at in spooling ownership when done back we've Normally how to control big is point, And operations, when we we at at cost big our and some

have is our that that, and I bring aircraft calculus. we're played flying, a in a efficiency of how we don't factor we'll said, little prior which cost a in versus utilization, are I can on question in maintenance flying, your focused the is much capacity know the back we our which I answering like around quarter. -- we more you because tell in big when cost looking what But when difficult, So our is way at different that, third cost labor

Catherine O'Brien

Thanks for time, Shannon. Understood. the

Shannon Okinaka

Thanks.

Operator

you. Thank

Linenberg Bank. line with Deutsche with the question question. next Michael Please of Our from comes your proceed

Michael Linenberg

does that burn of here. just of how do book it actually is And quarter, would underlying how September actually. beyond or Two up guide, is a I how not on the and cash not lifted that if to change? actually September you Shannon, everyone. that the of mean, I'm -- month sense lifted, be in have sure the morning much would the Good forecast Hey. X, presumably? million $X.X quarantine that were for

Shannon Okinaka

guess number cash Yes. a for hesitant out Thanks, that that be sales what cash flows the Mike. quarantine from quarter with to the and was, because lifted, Actually, assumed try for would net little we did burn were we the when just the refund. we

exception we that, So net cash the testing inflows really does lifted, of if there's you're just depend level zero had or on is negative absolutely revenues assumed results. and there. Because from when improving some that a quarantine right with

it's at guess I So zero.

Michael Linenberg

territory? then in was was note, negative or it zero And quarter, June Okay. in that it on the

Shannon Okinaka

It was second in in negative territory quarter, quarter. the the June

Peter Ingram

may at and Mike, chime demand, just, When little schedule of we but sizable we on remarks. I had which this pretty X Brent the which August in bit. then originally a alluded some as that were we the think book ramp-up began I early on, in our to date, to faded his just a anticipating looking And great. Okay, in well

August we seven on down, quarantine Hawaii see that our what are that markets entire we the a into in be sort and long on As to September moving time progress virus of slowed expectations you bit essentially you're go what and seasonally of have the think potentially thought far the from is, the September, into with year, a given or of back the think, uptick bar, mainland the little booking for relative summer more we cases we're weaker tempered we've ago. and its trends lost opening, away now And, six one I in weeks weekend. might

Michael Linenberg

new replacements? And increasing you. members you juncture? Peter. one just this Board? your increasing size Board helpful to the at one very the Board And are now? then of they maybe two The quick are why you if Are Why That's

Peter Ingram

on one the we're -- we Jayne look did and terms personal be both of have leave new down size Board industry lot and our going think so industry bring had Board. McNamara two board up increasing they're member the Board. to is consumer-focused in the We like one, assets be in members airline reason gone with two. They adding to them Board the members both have year, in to they're of the last will The Hrdlicka of additions Mike Board of technology forward we think for terrific expertise reasons welcome a those we the a and case We Board overall. going now and having for expertise

Michael Linenberg

Thanks, Thanks. everyone. Great.

Operator

Thank you.

comes the proceed Stifel. with question. your next DeNardi Joseph question from Please Our of line with

Joseph DeNardi

that? planning Peter summer mean just being less number much evening. And below there mentioned in from it's of about below you gives next some the how a that if economically shrink line Thank which about to about, ballpark can't just generally pre-COVID. there's right in of went visibility it are than anything that a of certain rigor of your more terms a what peers kind Can is standpoint talk thinking good into too talking but capacity get size expensive Hi, talk you at year that? XX% that's I I becomes you. the why into specific you you maybe about your can maybe just of you're where think you level?

Peter Ingram

Joe. Thanks Yes.

don't I being to would is after Let now, order add that the that me demand us so has four of a information I with past place we have I insight any particularly in specifically -- quarantine and looked opine. is gives ways. it if into at thoughts months both months. parts say for couple have little we've four-plus of there take then the We Brent see may

of just and there look damaged. looking ways. expectations understanding a was economic So general macro we is that had at at couple that this been some top to of Part has it down

changed raise going not anymore for our that and were one timing not before, Another has or crisis there a to and markets may before international of case some routes be will tempers that performers marginal some able what things route performed what -- is the that with when things the when some of back. the how marginal expectations and manage and be be bit those maybe of dealing things about maybe in about how and they're them view they're little some thinking bottom-up the -- what does come questions of our to would so about perspective the and nations of more

I think So have I tried we than little -- think at art. it's bit our be this a more to science art thoughtful but point, about

far of about which things you costs about bring there second more doable think costs at environment really your are it's that to when a at normal to just a much when question, counter think have being really out. shrinking which try getting and getting and place manage is down. to bit And As changes. structure do than too structure I've you're And can out to times. bottom-up, to about the and I when In at and other you right about a the reported about the little is some cost quarter and think -- real a always in things infrastructure budgets read this instinct doing we're smaller, to that after the your ASM it's some and got per shape but pace sometimes operate to of fixed part thinking but go you your thinking that this of the down cost rolling your that forward be it's hard commentary thinking carriers means just we similar able you're it able operating

was think at I that terms to a would And would a refer point but thinking And base that, is and too something that of an point, opposed planning more to down we for choice means part revenue do supports that assumption really it about mean infrastructure refer use to it term. precision of just which for So need the us, that we can to of of is we've the forecast. we more that forecast. as on built a go we as something as that have is planning which last internally much a what our in really there a to -- we can't don't do level we words long that, specific a that of it

So assumption change it we will going measure use and it's against forward. a as we planning something

Brent Overbeek

to… just Yeah,

Joseph DeNardi

Go ahead.

Brent Overbeek

has to several don't lot the last him than whole been other what think months. add to a I Peter listening saying been over I to we've have

Joseph DeNardi

Yeah. that's Peter. No helpful, Got it.

-- context the a maybe network that over much you. capacity or be there opportunities, there's of you in Just Neighbor do period few there's of and the there American's Thank are too partnership next the that long-haul any Island or side can similar on to going with if JetBlue, leverage years, ways to your business? something your is

Peter Ingram

always Sure. carry us different network least, the Neighbor code that Island, but of -- they United for to of look we a normal as each we to airlines that of and really international advantage including to that American, network and asset at for times it's We is carry extents Delta the take but would valuable utilize of our the including you the -- airlines been also we code probably future. -- and continue know in code multiple on in part of ways

Joseph DeNardi

Thank you.

Peter Ingram

Joe. Thanks

Operator

you. Thank

from Our proceed your the question with Cowen. comes question. with Helane next Please Becker of line

Helane Becker

Thanks very time for this very much afternoon. operator. much Hi you the everybody, and thank

a Peter and with were that closed doesn't of you of to virus that the what governor, the employers. in of So deal the of addressing with do keeping than to if way the state's everybody extended understand of there's one meet the was keeping in one trying know issues you're he the you damage for the largest periods state? done the out the When meet not I time -- don't maybe big fact Hawaii, different governor, a state being with lot just you economy about and

Peter Ingram

Yeah.

than five So very you, lot with I about is tell a this. I I spent more is him the the facing. thoughtful ever have governor time fairness -- in the I governor challenges he to is did -- that in before the the last state will months, I've four,

the the things for is have from the that state agriculture understand would it you think not to going It local in demand Hawaii getting The up hotels. fresh only and agriculture of. impact on is does he but think needs in agriculture, I economic not businesses to then that compete damages restaurants If really that this is the the hotels markets. local aren't biggest beyond really market that ours, business that the demand. and like even produce hotels set the economically export goes

would is it it bit. is comprehensive a impact. I buffered So a say, really little

are had retailers business or associated restaurants been operate for hit been our think I has affected that Small obviously businesses dramatically. tourism dramatically. that

is government lot I as least expiring. think the for in reliably it unemployment from has $XXX is working of always it buffeted insurance the including the been the the that been has been little these hasn't by delivered, fact but there businesses, federal that a average available bit a although impact supplement person the at

that all it not I as owners the those sure felt much understands So, businesses, businesses of those that think have workers do I'm as governor the all the that. but

knows a of or with islands capability. governor wrong the of -- is decisions. long views based this term. I passing very -- terms is sometimes It on There some ways are certainly way a lot it's closeness. consequences that to that the people he how that that say and a health the live like I there places And I do think different not a this there have be is think is is a share living in something disease deal in also economic a I together. this is think of nature you that very to right that multigenerational with the and care isolated think my are not place just and are something families responses not difficult that these are will fragile

of that think this as forward. to their And going going some recover to state local and from decisions to the other going over next And years. about are think difficult be something Governor is to Ige craft the several have for that's they leaders I

Helane Becker

you -- XXXX. said of don't that. I'm you have I for from in maturities could very that have you I you mention the if and And the part of think think up I early coming one just aside word. lack upcoming might Shannon. better appreciate you, really wondering XXX-day for much. anything I about then Thank a just loan one Do

Shannon Okinaka

Yes. Helane. Thanks

and And our over is million. it's debt It's that's $XXX little XXXX, debt. $XX a for total about So for just everything. service our million all of XXXX,

Peter Ingram

Helane, take that some of worry one loans, refinancing so XXX-day from of we carriers. the to other the don't didn't like out seen you've we about have

Helane Becker

Right.

Okay.

Shannon Okinaka

now down expires drew revolver on and We XXXX. our revolver? that in about thinking you're Maybe contractually right

Helane Becker

going then Do number? And said out. real how just you Okay. notices don't have think that WARN I many were quickly, you

Peter Ingram

in days. -- releasing that is we're notices about -- be the the we what have coming We them WARN said we'll

yet. that comfortable I wouldn't I feel number team yet, sharing haven't call. first this a We on with given And number number shared haven't so a our

Helane Becker

makes Okay. for everybody you. Thank Thanks Well, that sense. your time.

Peter Ingram

you. Thank Helane.

Operator

Thank you.

next is a Please follow-up Our question. DeNardi Joseph Stifel. with proceed your question from with

Joseph DeNardi

on market maybe the leaseback just quantify Thanks. where pre-COVID? relative the Shannon, was the can are maybe Thank you what terms to sale lease you.

Shannon Okinaka

where Hi, me, I say with year but terms are what X% the near have Joe. last were yen now is of obviously, not below I the that can financing. we don't unfortunately in front specifics

So, good. terms I are don't just unfortunately, not not quite the have…

Peter Ingram

set financing Yes. have and terms this I two been in that But a at Shafer think Joe got characterized the ago. way say team I the is, overall as would we and -- Jay now, Jay right on something the our think I'm these Jay treasury year sale looking I that the consideration were leasebacks

source one idea a of us back good did serial went as financings basis with were working a deal we -- a of really of lessor is same bit on for and transactions of started onerous initially those and at we were those we done feared -- two the that moment. this second we be through thought it as as we So wasn't why initially started with reason an and doing the capital we that's would a

Joseph DeNardi

Got Peter. it. Thanks,

Peter Ingram

Thanks, Joe.

Operator

Thank you.

end question-and-answer back over Mr. to the turn for of have like reached remarks. Ingram We closing our session. to I'd the any call

Peter Ingram

Mahalo us continued your We again interest. to everyone appreciate Aloha. for today. joining

Operator

concludes Thank teleconference. you. today's This

this at participation and a for have You time. day. wonderful may lines your you Thank disconnect your

Hawaiian (HA) 28 Jul 202020 Q2 Earnings call transcript