HA - Earnings call transcript Q4 2020

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Operator

Greetings, and welcome to the Hawaiian Holdings Incorporated Fourth Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Alanna James. Alanna. you, Thank

begin. You may

Alanna James

operator. fourth Hello, to you, and everyone, and full Holdings quarter call. Hawaiian year Thank welcome XXXX results

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

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

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

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

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

Peter Ingram

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

turned on a challenging to We’re better have are XXXX in pleased looking the and to unusual page days and XXXX. forward

a optimistic year We’re realistic the about but recovery straight be not that will line. ahead,

to to towards extraordinary, enhanced you be. the continued to rebuilding team that we the our in our pandemic. over But, cash press fourth where We today, quarter took steps evolve results quarters. burn in our collaborative have prior featured seen As The release liquidity. we expect response another our know quarter executed were to we we return on an go two to long way still have a further as network, plans effort reduced to and our our and improvement

on the to was to deliver continued and solutions service inspiring it the back guests Aloha. history is us outstanding with the and team. part this year It a I’m Airlines we time through be most although challenging the uncharted faced, connect the innovative XXXX, again created and of proud navigate of waters, airline Looking industry, Hawaiian to our that rose extremely challenges team in of to

balance near-term Liquidity us intend the our these sufficient emerge sheet conclusion an this facility. which will loan coronavirus at-the-market through the offering, an million assets. initial to of efforts far, to the continued the Successful financial to has to team that back our compete. weather of launching the today’s Treasury of so to our prepared ensuring have completing financing raising of added loyalty crisis, draw strong pandemic. that Our be weather $XX include and and so efforts and we uncertainties have $XXX we may of After active, Act liquidity give and brand CARES million program that exit liquidity we financing, to we equity pay

to and strong had balance we Our operationally pre-pandemic. focus healthy now executing and fully turns commercially sheet to the to return

efforts return to us operations for and cash ultimately cash ahead ongoing unsettled the beyond. position burn reduce generation to and our opportunities Our days the well from extremely

avoid pre-travel economy end without Hawaii’s partners testing rates And We’re will Korea important begin we were to with our the is also most point cases. the Perhaps four-month Japan reopening soon. added during expected been been Treasury the mainland in to inflection a the been Congress surge of during to and our quiet of Hawaii grateful quarters. to the to disease in a program gives support members guests to the COVID-XX of down Since is team the had Program the launch objectives. to in of South is travelers in welcoming to difficult Hawaii on after its the escalating. The case through Support expanded of testing of program quarantine start flat on It rebuilding devastated U.S. our time. tourism time State October this the last Notably, driving evidence travel the the a fourth reached airplanes very its which terrific has be quarter, prevalence news COVID XXth extension able as Canada. the more test. slightly, good year, an onto XXth and negative pre-travel to from for executing Hawaii that include importantly, Safe pre-travel business call, substantially ability two program, October significant with Payroll our Travels that even via achieving was has testing

industry be the in for markets became test As sure the time the the make past we’ve travel testing months, testing we providers. developed steps key took the of to to course have our over to serve several clear to best for being, the of guests And was going reopening that in the the would travelers. it access Hawaii we array options

do has Travels testing. Importantly, the necessary medically that not the Hawaiian key providers brought offer program Safe into

capacity by strained has surge their on cases the the not mainland. COVID-XX U.S. in been So,

the different the encouraged out inconvenience expectations continued. as amongst in the for have isn’t Compounding of for adds Hawaii the the is different As inconsistencies do back. are confusion cases demand escalation demand and travel as to the us. cumbersome, constrain travelers is travelers rules adds in the coupled conclusion islands so in this, these long airports testing, process rules season, friction bring the holiday for the and on continue in for way the all to Acquiring avoid to to the are our which changes quarter. pre-travel expense, mainland These venturing test we with current validation some creates travel, by it additional going at going as virus

to from substantial seen program for a arrivals of a not requirement. when created of introduction Neighbor As for Island, the to events, island. was When for XX-day is a cases a however, beginning and making deter journeys test from That populous with the our was us will Oahu, has until testing total the uptick travel. remind The long-haul result that from of in high inter-island similar travel quarantine costs travel we the August when was subject inter-island the continued in unsurprising islands travel of until these of people deterred testing problem, April program chronology was program. it the fundamental to trips. mid-June, the have were cost an any most quarantine the within requirement you XXth, a restrictions re-imposed increase of in to continue for that as the launched quarantine on of without is inter-island the testing relative lifted short COVID To October,

back Overall, prevalence which a and pre-travel between we program that XXXX, for economic and or cost we’re way safely islands Company resume. community. will state outweighs optimistic permit health to to travel between disease the believe only provides is hope without parity of about our approaches benefits the quarantine our of the to build long-haul in program the not requirements most the this As travel essential, testing its vastly islands, of but testing will to tourism, it that see

Hawaii’s not challenges the reduce move to in operate prevalence our Hawaiian incredibly see testing for industry in to expect track in choice, rebuilding key for to post historical reality vaccination the XXXX of this we with testing to restoring maintaining place into the key to with long-haul routes XX% lack that to take of the I’m step a and network out our our in the challenging remainder network. true of three these remain forward to you, cities this Like Near But, means optimizing where and our but in our on the beyond routes restoring of revenue; markets, one, it to to excited for three for have coming as beyond. chapter. look of sheet. drive we key demand traditional cash does mainland leisure priorities, previously been gateways new XXXX The demand our ahead, capacity to our served the new broader are burn; some being term, some trough the summer addition we we catalyst future COVID Airlines is to our disease and to we our a and expecting for vaccines quarter focus difficult our not we’re In of remain. broaden of travel, in service are levels. proven distribution pre-travel a and In to in demand will add our vein, XXXX. radar four quarter. As are balance carrier In provide economy with opportunity and first nonstop confidence view, this our time return strengthening closer encouraged an pre-travel improvement time, burn fully of cash months, all our of the our leading with reducing optimistic our and program combination look markets, including we XX% visitor seasonal that recovery. network an for demand XXXX on the the environment about holds service markets today. in Coupled on expectation Despite the

As the for serve. ability coming competitive our in has through the cost our Hawaiian out generate superior on remain of in this, to a industry top record reasons the again, going product, focus of and The structure progresses track and unparalleled Airlines hospitality, generation recovery, phases is we markets intact. our revenue the to matter revenue

structural vacation moves place recovery. resilient for have a pandemic. in Hawaii will be pieces world We successful a destination the this as the long-term beyond

revenue vaccinations the to value over generating but capability near-term, people some the fundamental business our from not travel specifically the want to of designed better a meander Hawaii capacity cost allow in we may the a long-term, market. markets reasons Hawaii the in for Excess and structure to onto have As changed. routes virus subside, terms our proposition of have

advantages, Our well structural years position turn combined in to call give the with With to outlook. for liquidity success details ample our over you on more Brent that, us commercial our I’ll ahead. the

Brent Overbeek

their Peter. many uncertainties continually been Aloha, ability I’ve quarter. respond challenges. and the everyone. in thank amazed you, adapt, the year over Thank also team towards outstanding the to by face efforts team’s this like solutions and past I’d so to collaborate for the of

quarter, the card down revenue strong only total some XX% charter capacity. by credit in down a driven in year-end trips year-over-year year-over-year, was fourth was on other Passenger and our continued our cargo, while down about was XX% X%, XX% HawaiianMiles performance partner. with businesses, During revenue revenue decline

were quarter $X.X Our to forecast. per is -- pre-travel than which rising in demand. track net the higher changes the day, our the initial program but after beat faded were the the for better percentage, were in guidance a in December, on by We COVID sales and up to testing mainland dampening of the slightly million approximately resulted positive trend cases the a our on requirements

testing performance by during partners. new of the now we’ve locations. a locations an geography, and with partners update seven testing on the in total our partners Before share implemented our made opened pre-travel four new We testing testing I five dedicated have I’ll quarter, get four into progress and

over of partners our any in-plane the anticipate time. has Airlines Hawaiian We this testing testing program, continue to approximately are passengers percentage into we now through pre-travel and increase given day to XX% on brought

locations. difficult providers, requirement, test tighter satisfaction been providing drive-through more that We considerably of Labs the performed of than our physical test state’s setting difficulties who validated higher expensive, the had our guests still work, Worksite state, for testing many We’ve the closer our outsource market. appreciate other testing most consumer We is restrictions are partner commercial results unsubsidized with the XX-hour delays. testing Test doing shipment get turnaround risk step exclusive of to with options. hard Because our tested by testing labs, are our to tests it meeting tests. who necessary state-approved the capacity mail approved but least any testing by remained potential their find employees Our unable to larger meet customers dedicated know no who of options partners Hawaii. partners limit has introduced the work testing on for one travelers and not all testing. a with to proprietary higher state making because medically to to strategy This the and state’s requirements have of the time by of our

adapt, and and experience to about leaves our continuing testing We’re us optimistic the program. learn

of consumers network. network testing going continue for options who our expand further to We are have our options the across to best

our December geography. New as America, up to Phoenix, testing schedule San the Maui In quarter, XX% pre-travel that to North America several Vegas, to opt we of our In ended had initially the North quarter. Kauai program on rolling brought December to by well of but and back prior to service Boston, during elected planned Moving America Jose, Xnd. year, North bring Kauai Oakland, the routes in the some America fourth We at on back back XX% to peaking North to quarter, Las performance after the operated in as fourth December. York routes we compared out in

of America this North routes four Peter as we new launch mentioned, spring. announced the ahead, Looking

presence without are We us from Hawaii. will markets to to from routes nonstop options Orlando and to and three Ontario, Austin, while service and will as nonstop Maui. gateways, Southern Orlando well allow to nonstop begin Honolulu growing mainland Long The California those convenient airports, and Beach communities in guests service provide for as our near and increase new Long more Ontario Austin both service our Beach

to expand market, over expect to markets, fully it first curtailed In we’re new schedule the quarantine. while network We’re the continued the we by with to booking that time may inter-island announcement. operate to And North excited compared breadth XXXX. activity we’ve of since America new these routes. seen our take some to Island the performance these encouraged of the develop by XX% our quarter, our be In just the Neighbor

see the the to did of due pre-travel the test. As a testing not we of from high expected, the program we positive cost impact implementation

the We we to of increases and expect quarter, plane schedule also rolled about in out. Kauai back some fourth compared of our first our to our XX% operate opt we the capacity the XXXX about XX% for Lihue quarter. operated schedule due to In of XXXX,

And both, operations in back Japan, October the the include service our government international, to one Japan well. testing in in and brought the frequency schedule as Regarding travel we place as service in in quarter. increased December, since our then, in about have We’ve XXXX the operated Japan partners once-a-week back of some fourth dampened cases pre-travel Haneda We to Narita by for well X% service converting with of in as carry to Narita. cargo-only guests trimmed of and first demand. spike our Japan tighter quarter expanded restrictions we Osaka, recent as to

expect all-cargo our in in proceeded While still maintain the secured to yet and converting with not December, some pre-travel service. flights have partners Korea, testing passengers include of South we been that to currently

to at Zealand, travel XXXX. Australia the for quarter least New do until As have not and we third plans of resume

were sense Overall, for late rise than we This to capacity about the the cargo the doesn’t schedule planning last last the to where of cases we’ll operating our we XXXX anticipate we approximately executive network continue have us less the XXXX down we week, quarter, to assess quarter, revenue XX% in demand be compared and our system service. XXXX. passenger sustain order impact points year. to compared our markets first make if We’ll combination about before is first from that level both XX and to international to in of the adjustments of XX% expect COVID and make on For levels.

as We system about our assumption North ahead, XX% further compared maintaining summer with XX% to XXXX America XXXX at planning a system are rate capacity greater anticipate levels. growing currently America at of average mentioned, Looking operating Peter North than our back about level. of we XXX% XXXX capacity to reaching our to capacity the XX%

XXth, Now, trend increasing the the launch about positive the state Bookings XX% COVID but a testing down as switching of XXth governments most increased gears and started mainland demand. in the December of quarter, announcement fourth October to cases in quarter in slow a were to on West on first the to weeks prior of not XX% XXXX pre-travel encouraged from residents after regarding the almost for travel. to September levels bit for October to Coast

are a about about cash new those travel XX% levels, at bookings in from of We versus currently seeing bookings credits. XXXX third with coming come of

the standards, still third roughly a intakes in norms. second While curve about COVID quarter between XXXX early by booking and of historical a quarter are

and made booking is grows, confidence the that progress quarter and anticipate As intakes accelerate. public the caseloads in vaccine second lowering will we rollout

to In approximately to per forecasting the $X.X net the day net terms fourth day we in in increasing the for from million quarter. are sequential improvement $X.X sales quarter, first first sales, million approximately of in $X.X per million quarter

pace we later confidence and in for has the the pace their moderately, quarter anticipate -- more vaccine travel year. gain While in the guests as pick distribution later will improves this booking improved while up planning in

quarter. revenue the challenges Regarding few lot expectation revenue at a optimistic despite an months. we about can point, fourth while a material first we are this compared expect for of to change, the next in quarter, Overall, in recovery, the the improvement don’t

North And of the We’ve a ideal leisure-focused I’ll to and the us turn network. over model, from that, about recover business great call brand product, our America positions excited crisis. got to upcoming We’re strong with expansion this Shannon. which

Shannon Okinaka

us Thanks, Brent, for and everyone today. joining thanks

adjusted million share per the for net the business. quarter Our loss loss net adjusted full of XXXX fourth share, the $XXX the on and our pandemic impact or or $X.XX $XXX of for reflect devastating loss of per year million $XX.XX

at-the-market we been which issued we’ve has transaction, average ATM million with investments, short-term an December. equity We over Treasury Our share. beginning receipt work the liquidity. of offering million at the the million boosting that our a per $XX $XXX team shares little quarter hard of in the and from cash of the $XX.XX closed Through includes announced X.X at at price

liquidity As financing loans Peter program loan backed announced with our of position of us and $XXX million better significantly more PSP us in new allocation deleveraging when financing of well $X.X $XXX have more obviously a sense put our estimated by This back payment we’ll will We’ll repairing mentioned, clearer significantly an plans as and with financing to lower have the a we of term liquidity, million later is to total us sheet. reassess the but year will CARES in and loyalty Including better business terms, return. also targets a previously as which when to estimated term flexible the loyalty us and returns. comfortable short we this today, brand capacity our the our transaction grow demand this very capital from stated will generate refinance program target, a puts intention terms Act million, after in higher long than well borrowing allow focus our This CARES than the our in With begin markets assets. the how process cost position. financing necessary and our to we proceeds balance overall. a funds position transaction, to as the extension, of billion $XXX on demand new is capital, our Act

and to some engine spare We million, range XXXX an XX technology CapEx which includes $XX facilities in $XX continue lower to well million with PDPs of estimated as projects. as expect

and to lower those expect While compete full force. make investments the continue when that travel to foundation generate in that we’ll positive provide years, we us resumes need returns than to previous we

expenses, about expectations. about For compared decline XX% is operating quarter, the to up special our in in our fourth which were total excluding down XX% line capacity, with quarter, a year-over-year XX% the items, third on

we the will We represents our which XX% quarter that items, our a special expect is mix, cost as widebody continue fleet lower quarter of first efficiency decline compared increase almost add function haul, excluding on primarily first costs, planes. to and of to to and about operations we ASMs XX% increased a of XXXX. average longer Compared quarter operating of about length total increase as fourth an back the while XXXX, occur to This XX% stage about XX% capacity. restore in

$X.X was million, and Our net which fourth higher cash operations of lower quarter forecast primarily thus daily to favorable million, level to costs a $X.X burn our sales. was and due original of lower

As payments, CARES a believe outflows, includes cash cash more inflows depicts interest exclude reminder, but we in our service, other results. addition to and our net sales CapEx flow debt also figure and accurately this as payments, and severance burn financing and Act tax cash operating refund

currently forecasting per million $X.X cash quarter day. burn million We’re to first to $X.X the be in

flying, the service accounts of of now. Brent associated on payments Although which is increase from that as EETC unclear about for the on day. $XXX,XXX debt, second sequential highly debt estimate and with is mentioned, fourth quarter The for our ticketing semiannual is primarily which dependent as per third timing quarter

Achieving becomes goal, achieving as traveling is we remains do acceleration prior the there get to are to the an comfortable fourth by the about cash not quarter key net of quarter cash amount pace of than are net same the associated first this These the in milestone operating be the expected during each quarter public in larger higher two schedule. both to to sales a this the outflows, factors other expect but important half operating the an resulting again. year, as flows cash to with first in as expect out, quarter. similar that We breakeven first increase bookings

more and we’ll on await of to distribution carefully and vaccine been control As focus a our year cash of Company in our pandemic, we’re ready monitor position, lies This but the to capacity and we what cost widespread resilient up will the can continue path positive and strong rebuild difficult the call has ahead. years to encouraged for on by cost our the succeed ahead. the And generation. better discipline liquidity and our focus, for with industry, With discipline questions. we I’m ensure the leisure that, we’re open

Operator

Instructions] [Operator first question Wolf Research. you. Our Thank comes from Hunter Keay with

Hunter Keay

Hey about realized. extend everybody. it aircraft you X of them it COVID the or of because operators I’m are useful much. talking or does be Thank cycles -- again, shorten other very is the fewer the does of accelerating on that the again, aircraft? to of going them, retirement ones kind curious about But, those because I the lives

Peter Ingram

other. it’s that don’t or we Hunter, how the it’s I view have Hey one know Peter. it going a difference in way to big

the operating we’re know, of through you planning fleet that on the As middle decade.

from announced when Our XXXX, changed I view we that on has at of locked that that decision. in we not end the think

XXXX. were less and And the butting airplanes we that that cycles. in on extend regular now cycle to on think I life. think at the hard be we’d right -- a don’t limit them we’re very putting tear up obviously, against operating full does, I and constraining Unfortunately, really us that like frequency. was But, fewer margin, wear

the is we’ve the decade. of mid-decade us retirement place to period the out it, to in service in in that largest key got aircraft the while with is middle of comfortable are through operator they we And work the I’m type announced this contracts world the anyway. retiring haven’t providers their that the mindful think, I that

sit we’re life know. still But think the I we think now, our we is. right the change have I If we’ll right with expected there. where to airplane, a decade you middle where thinking is of let that our So, comfortable pretty of

Hunter Keay

So, good.

Peter. Thanks, then, of quick a Okay. here. two-parter And sort

in more getting you round-trip was? you’re or you’re of versus to more people next phenomenon the curious year indications tickets then, first sold if one kind that is one-way The a mix Brent, permanently broadly, Thanks. quick. the that be relocate quarter or that for curious, that two? the just of might fourth Hawaii Kind over of expecting seeing And what

Brent Overbeek

a of In through have customer demographics, moved a as terms of bit the pandemic. seen we we’ve of kind change

surprising, across mixing We are I little true frequency seeing that and variety I most think suspect levels that frankly don’t of as a different one-way and and traffic. geographies are with across amongst carriers frankly quite itineraries markets. of a all matching probably it’s is customers bit service more different

don’t I as I modest that had we then volume full high-single-digits competitors. front us number But, uptick round-trip and me, But, because frankly, indicative waiting that’s so, of of for in Hunter. have flights, customers say, terms the just and of a And think exact tickets who uptick more and our seen the of or would in kind we’re I aren’t selling. mid-single-digits to of are really outbound mixing matching itineraries they’re just an booking

returns. they’ve And book more as so, when they their got to options

to think it’s anything I don’t the migration So, or structural -- islands. any from

their with just When couple customer staying longer than patterns. fact modest the uptick customers that people a think, relative it’s change week a as are on I their We’ve in general, in in vacations a seen you buying or previous staying behavior. more to that two really weeks well.

Peter Ingram

And to add that. Hunter, I’d just

stories opportunities to trend is choose their to that where common the some people think, for work been that that as heard number change employer they has through I and working irrespective remotely a the about pandemic anecdotal way creating of a where more live, people of have based. we they is

the structural will how be of minor it’s sustained, think, but going long influence term. change it big a service and sort long is don’t I I our unclear be for is demand to that a in think what

for going eight be think, for serving been for around of are to days number leisure great people have five a we are to years. we I who as built primarily traveling

Operator

Our with Becker next question comes from Helane Cowen.

Helane Becker

your now So, And more on livelihood I the it being lack have miss how -- wondering Is you some of so various same? COVID the question. among Back, pre-pandemic, a there or how residents was of more fast, related started I’m the tourism. of before islands come being of different it balanced pushback that’s with kind people more our for -- we we or is hope there support tourism? back just

Peter Ingram

Hi, Helane.

a it’s of bag, think, candidly. mixed bit I a

certainly and moment needs But, by a as operators and financial to entrepreneurs is visitor to of history tourism natural sentiment crowding. I a that X who on industry. think, foreseeable businesses the being vibrant that whose population from year over at the if industry. in there Hawaii doubt, healthy is and be of fact restaurants I think, economic concern adding months, volume see visitor are and what last number well-being enjoyed certainly, affected years there and the community resources, fairly absolutely, future, And increased absolutely this there reliant and a several is a our that in Hawaii consequences. and I retailers, that mindful is X and things we and dramatically to that or there not was it has in dependent visitors putting a segment the And the common employment pressure our troubled million about hotel And as this million during in couple the for population are million have particularly less small here segment of is a on for well. that been think, have -- some proved of XX year ever we the on is too any overall the pandemic that economy has the past the that to crowded and that parks of much

desire maintaining sustainability ways balance that So, us good is our the in gives to a the industry we out need to cherish lands our balance term, and visitor to have we the think, for but taking guests figure find look community, of a long the make resources natural we and sure how is healthy our term. that answer and to welcoming have and opportunities economic healthy, providing the vibrant a in that care I oceans that at that we’re provides long all and basis

Helane Becker

follow with just one up Shannon I That’s question. Peter. on Thanks, helpful. very Could

just is On the you you’re the say loyalty you deal them. listening was what I talk. that? to on I read loan-to-value today, doing didn’t Sorry, can

Shannon Okinaka

Yes.

when we’ll Actually, -- probably done. Helane. information we’re of give Sorry, more that so you we’ll

So, some and price on the launching marketing we’re terms couple towards and of end the the final transaction of days spend have probably just We’ll next Friday, we’ll the today. week.

And so, those details that. of more we’ll provide with

Peter Ingram

But Helane, to regards the information with the there be should valuation. some memorandum in

So, available information I there. people think, to the is

Operator

comes Catherine Sachs. with question next Our Goldman from O’Brien

Catherine O’Brien

there And be out end-of-quarter with changed more that us the get -- question here, it’s is So, all much baking sales early last And bookings of I that normally around one the shorter after. then, forecast I you how looking vaccine those a to some in daily a kind related how your And hopefully can quick pickup summer is XX? even a as are booking curves than of little on a bit early related peak? have Shannon are know But, you quite we every the would leisure maybe follow-up COVID. pickup give how really, volatility to an for bit bit for a are they since summer more? indication net bookings October XQ in

Brent Overbeek

Sure.

as in had to continue for the and back of they what around of booking quarter part announcement. we we been following the about XQ, and announcement of third a to progress we seen a That were throughout similar okay. quarter a between were moving little a -- down down slowed levels, more of quite trends testing the bit in we XQ. latter were a second little the back sparse had to less prior talked a and pickup, were probably travel pickup than of moved our bit bit, with year. of kind to and track So bit a of to in September that what kind to -- We what XXXX. anticipated But we that along we things if that booking historical Got

this question? more certainly I say, terms Katie, seen a was a trend of other And our in uptick as seen a And to would weeks, of But moving few we’ve modest call it that. your of Over lot what don’t point little there’s things. but historical in moving are progress a the bit at last comps. there I amount fair in want that, parts we’ve

Catherine O’Brien

Oh, those envision bookings yes. And ramping then, from sales those ramping net just on how -- forecasts here? your XQ

Brent Overbeek

Yes.

continue we quarter. So, progress throughout we’ll as to move see the

the that bookings our in think, in out move as quarter. we’ve is anticipation we’ll bottomed terms of quarter, and I progress the that kind of throughout the front part to continue see we

Peter Ingram

been it, you And of a curve. of I that there’s compression lot think the obviously mentioned Katie, Brent and just add, booking mentioned might I

that to more will demand stretch going is we starting the to their around be now. concerned on capacity to books, is about, curve that people And you capacity where but think, and also really I always come have with if vacation out being get booking really their environment booking one, line see wanting get today’s again to pricing, plans urgency two, to to in as think that you’ve want not got there. it start that

will some that at happen think, I year. point this

projecting net not the first that catalyst happens as We’re think an at through a our point I be end quarter. that acceleration year. of will we by really this move for guidance But, some that quarter in this sales

Catherine O’Brien

couple very over it, we quarter agreement should the of And last one then, clear. to about CapEx following an reach How think those years? Shannon. managed guys know for you defer next XXXs. I to Got

these frame? went minimal you’ve time end of But, towards think XXXX, I of from how that only today kind one very CapEx XXXX, XXXX. got the through up coming levels did

Shannon Okinaka

‘XX, in delivered Yes. early in the XXXs very late XXXX, year, we’ll Thanks, We put the in early actually them will ‘XX. Katie. two but service have in

in years, is the We’ve bit would year the no of it we’ll to early what And We ‘XX over environment moderate So a couple I next that year. non-aircraft the decreased more to looks down XXX depreciation like decrease our have didn’t time. with at ‘XX. a the really, look think, zero. CapEx this bit. deliveries to start just see

little our about and half is than maybe a non-aircraft related more aircraft think, guide here half of is I related.

So, projects. we’re still continuing to invest in technology and related facilities

invest good it maybe that’s we’ll few just can think, If areas. those flow the If depending I So, we’ll like, really not, years. vary about piece what more and on keep this next if that find the in opportunities -- looks cash level. we over

So, of -- kind have as passes. but we’ll that to one, watch time

Peter Ingram

didn’t and Boeing I bit. push deal, the little say, entire just back then shifted delivery it’s we a important bunch the the early everything ones And think, to stream back with up. really We

got and time we’ve the forward taking deliveries. sort we the So, of balance from we original as that go around start cadence

Operator

from with comes Linenberg question Bank. next Our Deutsche Mike

Michael Linenberg

it’s good you noonish, my or maybe guess, I right around Hey, right. if a have ramp-up. I Hey. have morning, Brent, on for the I time question

of are we You as sort out try want share about. you mentioned, as I what, mean, of sort that various iron all schedules you is I’m XX% by maybe headlines look moves to aggressive. and at for are the this is when to It’s gain And and you competitors an they mean, here. look XXX% of Hawaii. And things you all it to somewhat guys North hot. anticipate say, you American the kind does there the about your to you’re feel we opportunity sit summer. some where today strike what I just by the how capacity to forward trending, curious, and

get driving know, XXXX next to the how So, back much that to move three, is in, months. don’t of basically I’m just curious four I that levels

Brent Overbeek

mean, like, really comes that capacity commensurate pace focused we’ll which back, we’re at our and coming on the Yes. obviously demand I with back that. manage and

believe and us we quarter quarter. at aggressively some summer. see where some we grow case. point we wasn’t so, we through as in back. it and the see adjustments And, anticipate that will don’t of view share move market that more timing at stronger, to into back the start this this we’ll strengthening to it to market coming made We second the XQ where And that looking I But, the coming as be a

that’s our so, point. we where plans at And set this

Michael Linenberg

loan. it’s the just Okay. realize, the think how Shannon. sub debt taking about the I Shannon, you million about the And at the Fair the then, and mean, of I talked to you -- extension, government. think enough. years the basically X%. second on five government deal sort to I PSP is two curious up one question $XXX loans I’m

small all you debt? because and keep So, government relatively out include the that the you’re of get the indicating it’s that does very the of Were just it you financing under of well obviously the thumb attractive attractiveness terms, of government, maybe as or out to small. the piece. financing. It’s Do from that -- taking you

Shannon Okinaka

you loan reason just CARES No. Act the I for was just stated. referring the to

issued. PSP I warrants, loan those expensive already the the were think, part of components most and of are the those

our yen-denominated at sheet and very too, is Because which really get to all very, the it remember, debt, we’re pension. things items the have -- going those deleveraging -- creative at sense on look table, about of look to So, at a to to doesn’t But, like look and lot take make at balance our debt those. low really coupon. has prepay again

about the summer. transaction how paying to that down activity EETCs is we’re deleveraging, we on done So, But do natural maturities we’ll the the up, have revolver. at this is planning our going we’re and coming but of going to that over pretty probably to look this are we have of focus some creative to once be do some going we’re it. do But

Operator

from Subin question with next comes Our Stifel. Bert

Bert Subin

about sort stages see testing planning of follow-up And Island? currently as are COVID knock-on a as you what Can effects Mike’s recovery question America? Peter, for to maybe How for there. what the of talk the you are requirements? North Neighbor you around

Peter Ingram

Yes.

Let see any me to start on add. Brent that if and comments then has

Hawaii testing, the of get I to to is blocks. out pre-travel travel allows think, which stage for people the one

be work to with to along and Where really it as better. make being And venturing right people relieved And want putting XX the so, at of really disease. areas the XX, is hit by system I of we’re it’s pressure pressure to we seamless vaccination concerned inoculated. two, we better the We of pace in demand more of the of and will will well, one the track the now, airline been are project demand or for some up be have, the our to the as that Hawaii with taken the are we look testing for have a out going accelerated, And can is make and really in more communities is delivery. delivery we the even possible. who demographics think travelers age want because small think number spread the disease, vaccination less because people working because of like people One, that more. effects further health general. ours the you about on over that’s And that, care if picking vulnerable demand of

and think, get into a for from the demand those guests pool, as traveler folks move looking vaccinated, pool of again. bigger potential And we’re they I now potential so,

then, been have really the is health. we need for final about restrictions as I mindful are and fact to in that protect would going that place than they think the And be thing, to governments absolutely to at down, some the public what linger government they that and would public be we’ve to of mindful And don’t track. impediments the the of in the point, some health we travel thing is, are think be reasons important restrictions longer would So, risks I here that removed, put Hawaii got to hope add and are. elsewhere

Brent Overbeek

Yes.

to the vaccine I whether a closely think, through of is better only geographies mainland, with instance be management in general Bert, up, on tied going that, those diminish. cases the through thing pick it, to and demand or start I and rollout is of would just a base, the to well follow-on, vaccine we’re it’s the out obviously the that of just to see it restrictions start of as commensurate

in divorce of difficult slowdown it’s that as it’s well. those to while so, as terms case I important think, managing two, equally And

Bert Subin

That’s helpful. Brent. Peter, Thanks,

going think Thanks some a big is headwind do for to the one you as you get to be back temporarily? of Just international replace levels? percent And to follow-up ex ASMs think need CASM stage to Shannon. reach that for you you What time. of XXXX do

Shannon Okinaka

Yes. Thanks, Bert.

to We’re be to over and time, that some are guidance factors that providing CASM going this there’s negative time. cost know structure. going any we not just affect positive our And at

frame any you give to prepared really not about time remain and I’m disciplined costs, will just our So, now. it goal. is we But,

serve. markets the that be will cost we We competitive in

Operator

Our Global McKenzie Dan next Securities. from Seaport question with comes

Dan McKenzie

to questions and with about fly telling extent first A that the me, travel -- you couple guess, the are you potentially of countries off, is the that I pardon countries Korea And passport? something to you are Japan So, you are involved you that concept? what South to at? fly the here. this what looking

Peter Ingram

Yes. standard house lot the I’m manage better. to that Avi to of of to maybe a some is Marketing, doing think involvement Thanks, been has actually Communications, way in of a having going extent who of ask had that clearing around this a lot Mannis, is on his Dan. regard there’s to -- It is our can a something SVP give this it. thoughts I centralized think people I a rally

Avi Mannis

Thanks. Yes.

with lot with think area, quite friction restrictions. we’ve a out also obviously the there. this to we’re We’re to easiest which emerging. that both, I beginning markets, standards how been of with of Hawaii, engaging to in it’s but out some this, The And explore experience still State the something There’s governments are of technology and who are figure we in international our to possible. obviously work has that travel in reduce make eager can interested

different the that time the have to technology engaged providers what possible is what travel think We’re important so to interoperable is of over between we as between and with all it most those. as easy it standards solutions,

State our with Hawaii and continuing So, understand the for markets we guests. implications serve to both, that we’re international to any of work

Dan McKenzie

for whether into time rollout frame there or when some with you not is play, might line come respect actually for of resolution technology? what -- sense or of to know Any this or Okay. kind the of sight

Avi Mannis

they’re a involved. are that know governments And specific I actions would dependent moment, I for think, there in the obviously roll national are technologies of state that pilot don’t are things when the those but the and the have on at that line we time out.

Dan McKenzie

I see.

just you following Okay. an question demographic. Then, I and XX up older question, guess, here, referenced I on the think, second earlier

potentially from that to of just they’re a I’m get Does material Hawaiian the I the course, of versus Of revenue is. how component picture a get trying that of revenue first guess, its part up here shots. peers? get bigger to just sense demographic

Peter Ingram

it’s carrier. I may general, other hard destination, demographic believe Hawaii a we more to Dan, in I Hawaii amongst say. bit no for have that demographic. a that as age a of serving little attract I think us reason to than attract any that But, mean, different airline

Operator

O’Hara Steve question next with Sidoti. Our comes from

Steve O’Hara

Hi.

And was competitive of need you -- the on kind new routes back is anticipation driving quarter. of there the question, it the then, growth that? what that’s summer? build -- it with Is on capacity first kind the maybe Can the is factors? sequentially? of Mike’s circling in kind network -- the of kind of Just back Is to just the

Brent Overbeek

So, two Steve. there, really of it’s tranches kind

the first lot of of what a front schedule. March, of, the really is and our I’ll of The is just part extension call, of latter really January into part December an half back

quarter. then, that start the some as So, new welcome made takes we in some holidays. and flat. minor the that into there flying puts a mid-March mid initiated that We’ve to the of schedule was leading a network. relatively on month of and kind lot of bit cities had when But, grows we into moved into we is of It the that some

other a the have And bit capacity more so, months. we’ll than March,

Steve O’Hara

after or -- year-end is on of expectation? that that? billion? you kind does total the and repay think And government -- expectation of I you liquidity, about billion that was And is loan, how that was then, mentioned, compare kind prior the the the is the Okay. of $X to the to $X.X the

Shannon Okinaka

contemplate loan million. only government Steve. that does down $XX Hi, the now, it -- we Yes, repaying Yes. loan. Right drew

that to So, potential -- Act the compares million financing the so loyalty million small. pretty just $XXX with loan. CARES And comparing it’s you’re $XXX

Steve O’Hara

are to be in terms of of of I confident that about -- the talking mean, the you you’re in demand of, mean in the made is decision that? when at kind - the terms don’t of can lot do your pentup gas fairly looking I like see to -- seeing is mean looking Okay. look you’re potentially good out of that there guys how type that maybe summer. I if you’re starting a that’s early brake? on or But, it to happen And kind in you guys like there have What seems know schedule that’s or I does -- amount of business. I not mean, main to at going of a you hit corporate will or that or the accounts you terms things then, don’t I be mean,

Peter Ingram

we get managing Yes. very out Steve, bit recovery, like actually the projecting that bit our we’ve the more a to a terms to and as get further plan. over time become of little the opportunity little XX, months the into last guests sense We’d nimble schedule our to little have so a of XX more have bit the in demand schedule. cadence of a

about Steve. try providing to for to I and everyone us and least months the look get we intention to your and and inside be have to that talking people capable can making be but X today. if as plan today. need we to, just of plan a so booking want we’re at or couple our So, months a forward build everyone we that X, would efficient mahalo and that adjustments staffing you even for can out joining again. And appreciate thank window, interest within We it we of our Aloha. be that so so capacity. questions say as can I to Thanks, sufficient our

Operator

conference. today’s concludes This

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

Hawaiian (HA) 27 Jan 212020 Q4 Earnings call transcript