HA - Earnings call transcript Q2 2022

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Operator

Greetings. Welcome to Hawaiian Holdings Inc.

Second Quarter 2022 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Jay Schaefer, Vice President and Treasurer. sir. ahead, go Please

Jay Schaefer

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

Here with Officer; me an revenue and Chief Chief and in Officer. overview Honolulu are Officer; Financial press discuss Brent Overbeek, Peter of questions. cost Brent Shannon our release Chief will Time will will Revenue access open Peter the will and prepared performance; Okinaka, Executive Shannon remarks, provide Ingram, discuss and the we at have out balance went today. should sheet. up that At By for about the to Eastern everyone the end of the o’clock now, President call X

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

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

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

Peter Ingram

strong. to remains and Jay. thank today. within Demand Aloha, travel us very you and joining for from Hello, everyone Hawaii for

recovery international As Every a our quarter. in demand of time And compared XXXX, third of with way. a Korea, reduce premium And know, We at yields In has improved Samoa. third American enter quarter we stability taken New root levels the North Australia, these to end in months the than our the you quarter Internationally, we debt leading results in continuing the strong continuation indication suggests Tahiti anticipate as our healthy network. demand the we our the demand trends expectations. returning second and Zealand, environment, into South us today’s frequency better to resuming same a Haneda, Travel improved outlook due we Japan throughout maintaining May as service quarter pre-pandemic at restrictions from are are updated the schedule. Osaka. incrementally continue throughout demand easing. from to while restrictions liquidity But And have in increase corresponding our prevented we Narita and demand these with to next to schedule. position. importantly, full resuming month, America, we increase are as the the May

the better North our Hawaii. implementation spring service are our service. in our quarter’s caught with of call, XXXX. winning our all on on launch seat international showing helps pricing us on transition America track in markets is And second case interest strong success product, of loosened on and And the Extra capitalize In Premium variable in North we underway America, passenger as last restrictions discussed we when consumers award routes. Cabin to system variable are and pricing seat Comfort visiting on in Building the commercial in saw the we As early implemented fully quarter, results expectations. business in team the are exceeding the

the is cabins single-use we and May, in Report. governance on announced an our on in sustainable Kuleana we served responsibility. ongoing And word commitment replace This Hawaiian to Turning efforts to focus plastics to XX%, and environmental, and report our priorities. sourcing to our commitments sustainability our social for released reflects tourism. this our XXXX, Kuleana by increase local to food board year, of Corporate beverages

As we by a for the commitment carbon the our work announced also inter-island to XXXX, potential neutral electric a travel. support development Hawaiian with REGENT of seaglider in become strategic partnership application toward Monarch, we to XXX-seat

products commercial an And announced fuel, or of also Par efforts this of and largest to viability our our which component produced Hawaii, supply has to most SAF toward an We important know energy the to in locally airlines. I near SAF. is the carbon Hawaii’s recently sustainable will SAF news long-term and goals. travelers for supplier sustainability be our agreement step medium-term study state, aviation critical delays and cancellations far staffing important as our reduce the developing be in with create that will home of frustrations explore by footprint. been

diligently with stay worked of these a has team period of Memorial the from and completion to the travel the Day the the quarter. through headlines, for XX.X% of of beginning Our percentage XX.X% out quarter end

management And see than demand we flight of the open this and efforts team as through represents technician constraint on for aircraft We pilot training strong staffing while airport pilot primary attendant will remain flexibility. focus and scheduling our remain a on of year, operations the our would prefer. to positions. continue Executing the our end tighter

publish. ensure that training agreement talent. that recruiting, We Tight we attract operate between month. amendable teams successfully pilots The to covering coordination can became this to is the our we labor that schedule right planning ongoing ensure our and schedules working we are can

a our amendable pilots long-haul with new continue going professionals. productive environment for to we prices fuel-intensive point, be a challenge High At ahead put the date. especially critical fuel conversations skilled specific And can’t to and to timeline on negotiations. forward ALPA contribution completing completing We we positive this of look volatile and that the operations. a had make this these highly business forward, well these and recognizes will competitive our have contract more to month’s our

the our While managing the global fuel, cost generation. and we the are performance focus the what XXXX with business of revenue challenges I in market am the control, and pleased second quarter including third these in our And will beyond we fuel high elsewhere of management the most can, for problems. are gyrations on XXXX, quarter. to class Compared the of and the jet outlook

as Best job operation at in the discuss magazine’s navigating results Our Travel who our their past survey. XXXX in beyond. headquarters several best domestic airline the traveling and team here for continue throughout sets has by twists Airlines and work goals World’s our us + to let recognized turns remainder And has of The Awards the of public that, a we With been and recent selected done me well outlook Brent the years Leisure the fantastic for commercial quarters. the the year our hard progress the turn to and more call make to up on detail. over Hawaiian for

Brent Overbeek

Thank Aloha everyone. Peter. you,

network. our than just revenue XXXX. As from mentioned, Peter revenue our second better X.X% quarter Passenger performance expected down was was throughout

peaking and later. compared quarter, to of the accounting to strengthened also We in versus revisions American Although quarter’s the June. an capacity XX% capacity XX.X% points up XXXX XXXX. North quarter, as on Shannon our our to due our domestic June of elaborate Demand will Yields operated that compared progress with international about was throughout XXX% of performance revenue a XXXX. factor markets through with load for we was robust X% the X

restrictions. recovery volume quarter and For that recovery in has both been fair second our inter-island relaxed and good those travel markets international fully saw market, rapid for the have

our we flying, XX,XXX in Japan by near-term be arrival the will day. the currently at passenger performance As increase constrained there our caps per

front in coming our that or premium perform months. Similar Premium lifted other versus Cabin seats, PRASM, the cargo saw be products, with XXXX. cabin, America up continued for North continue very altogether strong are well. we ancillary products the the Total revenue, bags, quarter, to will However, for XX% optimistic and demand XXXX And the quarter later We seats to compared and North reduced including as in state second increased continues Comfort was cap off last Peter despite America, benefits XX% well. preferred start to to approach X% on capacity. as In an up the capacity. are will Extra we revenue exceptionally Extra perform more up steady the quarter System-wide get was to our encouraging of mentioned, year. XX% revenue Comfort

XX% XX% the quarter The team cargo both Our card its XX% another up no to ever, performance, of of program. highest credit quarter with revenue versus the XXXX. strong and by Acquisition were to weakening. compared signs up co-brand with continues sales strong, for to records remain second spend recorded second XXXX. up XXXX, compared revenue program as new show increased record accounts was retail XX% and Net quarter

the quarter up our compared quarter XXXX, Second of strongest yields from strong the Asia-Pacific remain sales. to demand XX% second with

continued are travel Looking domestic expecting forward, encouraged both strong we are by demand and international for to and Hawaii. bookings

points The quarter, improve levels to the roughly down and anticipate second PRASM demand, strong For from our exceed down for from North sequential America XXXX quarter factor this to geography, approach anticipate third XXXX overall to North environment X be further we about to revenue by third see levels. continues or our revenue quarter. Breaking quarter to we X.X% third improvement America, the anticipate XXXX. continue we in load

XXXX XXX% second a expect capacity our to fly We the to schedule. similar about of amount quarter at of

America. expect Neighbor see to we our both third In to and the While last demonstrates of We XXXX in is leisure data the as moderation fly well-positioned XXXX about remain traveler, through year winning focused our elevated, competitors service to on continue premium Islands, This North the we our continue fall. on versus summer America the optimally the the of we latest move from industry aircraft. Hawaii DOT on capacity the outperform the materially configured and XX% and and PRASM Hawaii into capacity still quarter. network in based we award to strength North

on share seat and As of continue factor modest yield of a local of our some sizable with XXX as quarter, premium pilot and have excess well-positioned a traffic, we our earn maintain premium well remain implemented versus We impacting load schedule well bottlenecks the based to fleet. as adjustments last very our share in competitor.

ongoing markets However, this restrictions. I earlier, to mentioned seeing we of the as travel for are discounted entity. rapid not recovery in fares PRASM pressure are Internationally, fairly a reintroduction subject industry recent deeply that will

Korea yields is in load South there. quarantine to are Auckland, positive performance are strong our where very and Sydney the accelerate beginning the but service slowly, since built requirement removed just July, of in is XXs, more optimistic resumed was strong. a is which we is in bit and remain performance factors July April. we

increase Japan yen-dollar down vacation the cost arrivals and which on recovery restrictions of course, in current about dependent Of will full is to is XX% the compared travelers. government rate, the Hawaii easing these of a XXXX, for on exchange

international anticipate However, we as with pick ease, our consistent geographies up other restrictions materially. do demand to

be the back capacity in to we comparison overall we than to from capacity build This anticipate continue Moving levels. quarter our international third for down same is about XXXX second X.X% to X approximately points outlook, network. the the our the as for higher quarter

expect the down X.X%. For to approximately be we full year, capacity

this Japanese we a to Comfort PRASM Internationally, to robust factors we to improvements government’s Hawaii and restrictions on load demand revenue travel to anticipate for arrivals. accelerate cap vacation. Extra ease and on be XXXX to move historical demand strong and seeing the levels, Premium levels. changes to to However, XXXX close may bit we depending the expect our continue summarize, domestic To exceed continue are highs Cabin to

the winning the have Shannon. With products formula strong that, team, for I for our a over exceptional and We turn success. markets, call to brand, will the right

Shannon Okinaka

joining thanks and Brent everyone Thanks, us today. for

balance our of We be Let XXXX me levels. $XXX million, start with with liquidity, investments $X.X total undrawn inclusive continues the revolver. net quarter short-term debt to billion the which on and sheet. Adjusted closed in an update was below cash,

million our November the we payments million bonds. debt XXXX since in does reduced in the debt on $XX $XXX year we by for principal Not redeemed XXXX, quarter, or expense The $XX and this June remaining In issued interest our debt and the fully The we’ve tender per our year. this remaining XX%. or improve XX%. by bonds but During outstanding totaled offer loyalty leverage, combination $XXX reduced by million. of program total, principal WTC trim will lease million load our only XXXX our in redemption the our

we Our plan have we ample and liquidity fuel above the liquidity. economy, coming an high With balance quarters. sheet remains maintain and levels for uncertain strong prices to pre-pandemic

strong despite Turning We increases than results in costs, an to the Brent domestic expected the $X.X results with the P&L. of adjusted given fuel finished revenue million. quarter were originally EBITDA discussed. we better that These

based spoilage noted, change accelerate the evaluation recorded entering of for in $XX the unsold or of second the anticipated more passenger passenger of non-use the tickets. As we to was an trends than revenue quarter estimate recognition had in to was the Brent impact The second unused quarter, use what This additional on million of we quarter. tickets.

quarter On end second XXXX, year totaled costs expectations. the airport cost items, non-fuel increases better of to our $XXX due primarily our compared million, lower unit to non-recurring ASMs. at and This increase the XX% was up costs, side, rate excluding with over is wage by accompanied X-year which

For XX% capacity unit up compared quarter on of the and to special our costs, items, a decrease expect the be about quarter, third XXXX fuel we X.X%. excluding third of to

benefits rents. and with quarter, quarter’s last biggest As and are wages airport this drivers

gallon, we’re of up compared guidance up May second Fuel be rose on the to quarter year, XX. update. our price in $X.XX $X.XX per For to July the forward quarter of costs gallon capacity be a our unit about decrease XX% approximately forecasting X% the X.X%. approximately XXXX from the we for to And full curve based to expect as third on costs per

our to quarter compared as for down XXXX. be XX.X% about third fuel the expect We to consumption

The for XXXX for CapEx forecast expenditure and our the non-aircraft remaining capital for with Our two-thirds majority XXXs. about aircraft is million, spend. approximately is payments third pre-delivery aircraft the of $XXX for

reflect which technology Some The of investments may timing delivery XXXX shift and expenditures facilities. these in of is in the our still in flux. depending or potentially payments non-aircraft our all schedule, into on

to We expect quarter to $XX increase million. approximately adjusted EBITDA the third in our

our we’re the While the half focus year, to for and month, fuel as environment. and to mentioned, seen volatility. the first conclusion, our fuel the past in the to offset high will confident through In And has recovery, success of business improve strengthening is brand fuel yields cost And somewhat we in moderated the on differentiate our as and road the prices on Peter of service award-winning growing that, are our hospitality enhance us to agility hiring call to full long-term we’re susceptible for have that for need further and marketplace, to by operations our these service as are our our technology value competition believe priorities scale, can plan to commercial international prepare from our and cost we formula we people competitiveness. that increase We restoring the and and returning winning in future, win shareholders. to investing the the with open questions. foundational fully our training and and

Operator

first [Operator Please your questions. with Becker Instructions] Our proceed is from Helane question with Cowen.

Helane Becker

operator. Thanks everybody. very Hi, much,

have, One I just think I on questions. is So two Orlando.

a now talk went Orlando. you leaving decision? and you’re guys little to you about bit So Orlando just Can that

Peter Ingram

XXXs, some sufficient those on the with demand some Yes, we Helane, North Orlando as the our we’ve strong operating its was has bit time, were now had wouldn’t best increased. I for network. a all And aircraft as periods, anticipated. softer terms delay periods routes added the have peak during was we known than decision off-peak in we it aircraft, the a listen, market of given to the continue in but of that of And during think America where for we right with little aircraft been

Helane Becker

it. Got

those just think ASMs then we say taken Okay. the you’ve about so guidance, you And that like can as maybe out.

Orlando? So the growth ASMs would was what in – percentage of represent

Peter Ingram

in have them small. it and out taken We’ve terms the guidance, relatively been would of

something for in of X a in – operating back X weeks week We’re that September. talking about days the was part

de that So but handy, number minimis. have Helane, pretty I don’t it’s

Helane Becker

going way XXXs? prices the XXXs, about does that that then going could right, with talked the fine. kind And know That’s that, a you’re thinking about be the shorter-term, up, probably replacing Monarch, new, the does just the XXXX that’s of But thing? an the you of kind what about fuel which – be a exciting about opportunity. because to change I fill on what

Peter Ingram

the Thanks, in through we Island of at decade fuel airplane flying of still be least handling smaller is short-haul before. Yes. expect environment. Neighbor XXXs, the equation we very that goes a and total have our deals the the middle as The is other it’s communicated cost that a on airport with like costs high operating operation the things that the that. And frankly, proportion we’ve to costs, operating cycle fact than airplane ground like cycle Helane. Frankly, frequency, the costs, things costs high associated for costs power-by-the-hour on of and

ideal probably us The would XXXs replace XXXs, fuel-sensitive. not a is airplane for if really do. terrific could new we really for some it’s are the be that as with So aircraft point. what XXX – we at They choice

with equation. and it happy airplane, the we’re that change doesn’t So really

Helane Becker

Peter. Alright, that’s well, Okay. very helpful. Thanks,

Peter Ingram

Sure. Helane. Thanks,

Operator

Linenberg question. from Bank. question next proceed your with Our with comes Mike Deutsche Please

Mike Linenberg

good here. everyone. couple a Hi, guess I morning,

plane September and of talk should as I you On down you’re some Can to obviously, ramp what in you’re the is? utilization fleet of your seems up indicated that back the productivity What’s utilization? the sort think back still airplane? what you’re sort I back AXXXs, the from since utilization like what you pretty headwind? you like bringing to But beyond, When Orlando the that meaningfully. think ramping looks schedule the you of on see international up. And is backfill that full embedded about gains that what it into

Peter Ingram

XXXs. productivity aren’t peak we terms of So of the in at kind

back later a will We Japan little year as more. get bit we in the there get and build

year, it the number a I where continue same XXXX. part terms XX back back a say probably we exact Japan build want have bit productivity. was of we point, It’s latter in levels, hours around And than we little So not less day, were I the in of but I to at as bit to of don’t higher productivity. in But don’t the to I maybe a think that the handy. number will have if that back get little

Mike Linenberg

the guide like you’re not. then at you does for slightly that may when be the look it end, the maybe high Okay. EBITDA close I at profitable, And maybe look – the to you midpoint, you’re still third quarter, – at

I take is Japan Assuming we given with here? the largely quarters. dealing quarter fuel the also you’re one or are should on think you string Where we your third much limit a – where the the relatively of can think doesn’t prices elasticity of up, are base? that are back, get demand? more seasonally How fares better on how pushing and a we revenue we where you that when price-sensitive additional Asia doesn’t Are do discretionary, about come that? customer at

Peter Ingram

Yes.

couple bit. So things let or little a see of and add Brent want it if to to me a touch then on on Shannon

there think I upside. for some is opportunity still

One changes DOT is data, encouraged the trends. bit but look really a things which seen we in of has lag, a at we’re little of the we haven’t about

outperform as know of We continue all our to well. generation, and structure competitive terms serve competitors we our the in revenue geographies in cost is we

the little markets a their we I we airline bit different networks. market have serve, profitable is are most some mix the the think we So competitors of our but across in competitively have than

doing we of more we as labor to back pilots than did in payroll as on the but flying Japan, did we that we have itself XXXX. in terms as you’ll get see more improved think I manifest we XXXX, aren’t much in Today, side. on flying productivity to

the side. So cost clearly, that we improvement get we as have on up, utilization

any in the in seen which is part America, of market. We biggest our weakening North the demand haven’t

exchange going in demand. at the the rates and You we we necessarily a a willingness us end that haven’t real which have into And you year and strong headwind the places Brent I but the Japan. of changes Korea, favorable about robust into benefited has to how move Japan mentioned we do the fall, through South lot really optimistic demand exchange for But is from spend. been seen look And Australia as see of a help desire themselves, to we XXXX. and nothing are travel like rate. if indicates potential some go as seasonal think

Mike Linenberg

this. just maybe Peter, a Brent quick on follow-on and can Okay. add

you but Just done I up out. I you look you’ll feel I pretty have and I a with paying product, premium enough of don’t – the think on premium high. stands are those has seats, nice think I are you’ve and widebodies, your product me, like job – been when But disagree some the at fares maybe that where may your people

maybe – XX, that’s your the on issue maybe a there, competitors, – or number, not you’re druthers, I is leaving is If table? it, the if and is be it XX where or smaller be the seats it you you what where like know. it you Cabin, right and Correct? doesn’t had relative maybe could – seats is more you’re matter, have to of may it have like because don’t the AXXX, feel revenue do some Premium may I your on XX that

Peter Ingram

a we have zero bit, as long this modified on could the is in I Mike, and has bit observation But back think we had demand to our overnight time, a we aircraft moment cost a felt on Main been and little demand. telling Brent’s been on probably your stretch Cabin think when our you spot well. back service Front that calls even particularly the right. and look, was out for Yes, I And transition sweet possibly And not and subject we years is a – AXXXs we Premium if around that ago we I the getting history. that these that doing we fair now AXXXs discuss improving for quarter-after-quarter Cabin of there faster several right complete the if than it think fleet a here. AXXXs would

Brent Overbeek

the Peter, my think, of out you mouth. I words Yes, took

mix no that kind something the will the that we It’s short-term we a XXX of more continue option but of of have do XXX, in would strength there, if economics well. some a overall, say seen think we go the environment. a evaluate today’s had I the little to we clearly probably issue, than done life in market exceptionally cost will that’s not of on I terms have it’s airplane, that. over in the we just

Peter Ingram

And last forward. to as have this be that fleet our a that has the we thing of Mike, to cabin subject, forward a I the years, aircraft premium airplane of on more We next actually look the over couple which isn’t going but add huge the would contributor one XXX, obviously we to the of the little L.O.P.A. designed The to will XXX. and for premium larger dedicate mix. geography a going be the bit

So, market it’s suited where last going evolving well years. over to be to of the couple the has been

Mike Linenberg

Thanks the Great. for time everyone.

Operator

with from proceed Please question next comes with Our Dan Global. McKenzie Seaport your question.

Dan McKenzie

Hi. guys. Thanks Yes.

Just just talk following it the can international the that’s And at augments international point. how things to I And if to that strong, what the foreign having impacting destinations? us inbound? just U.S. point-of-sale But represents impact Mike’s movement given am sounds this, strategy up pretty percent not like distribution on then that and clarifying, the versus this wondering really foreign how that’s an you of are maybe dollar, just can point-of-sale remind bookings question, in that about just related internationally just you point-of-sale?

Peter Ingram

we So, slightly a Maybe in Zealand, New to a in Australia, haven’t up material point-of-sale of particularly are kind point-of-sale. U.S. material there. not shift but it – seen we shift

of we offset a up, those to for as countries have they guests for of dollar-denominated seen I in desire those have trip to been higher markets, all a think kind travel them. willing opened in have and

to Korea I call mix, and it different fair a – weighted it, closer Australia, Japan, heavily Australia, of, kind towards New a generally – point-of-sale. were non-U.S. terms bit third probably about are of Zealand heavy will Japan amount U.S., point-of-sale, a from than we two-thirds differs are probably about In and Korea. Zealand is foreign New XX% point-of-sale

Dan McKenzie

augmenting distribution is And that how point-of-sale? strategy that foreign

Peter Ingram

at Our internationally really is distribution changes made we a of our distribution The terms policies strategy have with all. domestic in hasn’t recent changed focus.

Dan McKenzie

Understood.

Brent Overbeek

both through a have guests little the little conducted we activity direct bit little – seen of think from getting throughout our more and behavioral website pandemic, online, OTA. and shift seen more bit a have through we I a

some So, intended can shift continue and we of we are little that coming is seeing a geographies, more offer and where transact really to direct to offer of distribution some agencies strategy traditional and from channels. across a and that bit services, our of and is away us, that more in products the

Dan McKenzie

Very good.

am you just the cost us seeing question looking for that plan from X here, help Second years wondering back reconcile some get X if I X years, pressures year sit? levels just today to the are inflation can where – here just years, erosion from calls you And to we term out internally, pre-pandemic if some to longer the potentially should can anticipate or investors just margins pressures? X

Peter Ingram

Well, forecast hard specifically inflation going to forward. Dan, it’s

to United proven will levels to profitability demand haven’t I I not but as produce a able quickly think be as what adapt, in that think particularly people opportunities. supply to in obviously, fall balance different that again us will in seen been see emerge out to period able and cost And develop play being States be industry we adjust return of the and revenue sources the into careers. inflation like maybe do over you and time, our able time, near-term, of always are quarter-to-quarter, environment and to savings strategies has that comparable different are in historically. we resilient with of an many to professional But I we able have and would over think this that

Dan McKenzie

Terrific.

Shannon Okinaka

labor for have can But cost our commercial from the when a think looking to planning, once day of time of opportunity, opportunities a we at our revenue lot team lot labor Yes. obviously, then medium-term a that work get opportunity role cost with one. we new go things. up on get benefits in we and I think the we firmed fleet we contracts do variety for have more lot add of groups, I side, that of plans rates medium-term, We side. think – to But the a have provide I the think would implement. of especially productivity I take the more some will able times, are increase. that But up, I

And – will contracts few next I those see better think will productivity years. see so the we from you over

of productivity more improvements contracts with some think I flying. also the get

see able good will we facilities, lot next better the should in that. in from Also and few So, years. we making productivity lot cost savings from to a and those of of we investment technology are be get a

Dan McKenzie

time. the Thanks Terrific. for

Peter Ingram

Dan. Thanks

Operator

Our next Please Stathoulopoulos your with question comes Group. from with Susquehanna International proceed question. Chris

Chris Stathoulopoulos

Thank Thanks. Hey. you. Good afternoon.

is respect So with going here Peter regions to international with the Shannon, on or there FX, timetables. a reopening lot different

XXXX? utilization, me, where in South So, these markets Australia ranking you how this into control. today? some lot these markets terms with here weighting, And New just and or are can’t of flights Korea, then your respect of your for into moving you you is there your a realize Japan, excuse could markets. here these rank you are Zealand, prepared to I planning that of remarks, in pieces But

kind your terms year? better these also of are planning markets you. how in of next if individual want about going utilization, for So, and thinking to are could, you you where Thank you understand but forward,

Peter Ingram

Yes.

Let the question. correctly start, and you where on hopefully, me mark are the I hit with going

vary those that for make of aircraft much pretty on level how to New Korea, are allocate not markets the Japan, we two still where a at be below Australia, a here dramatically regions. we I considerably those But would seasonally. amount state steady capacity we think may we near-term may to below. we we intend in have frequency or are the Zealand, pretty some adjustments are in and of in terms we South or by

was During this a to daily were a flight period, single Osaka, pre-pandemic just operating that we daily.

flights on until we then August. daily pandemic. that Sapporo. We third, flights start was Haneda a Haneda, to flying before Fukuoka and to than had the We were daily add are in is We daily don’t before. about two less there Narita, And and

Japan, it’s So we operating get we what don’t are you, can precise the before. still fraction. we a were doing for that number, a but of I fraction really have but

more growth as where where forward So, that’s into end this but look the coming international even is of that’s the – we to year, importantly XXXX. the on

Chris Stathoulopoulos

Okay. question And my second here.

market core from forward. your shares competitors’ moving recovery So, and their

some you here able Thank any how that are speak – color days you. with and with XX to out also or give with seeing? there? are to color to wondering respect was what capacity days that’s confidence I anything the respect So, could off you to fares, And U.S. XX if mainland, you

Peter Ingram

and will it capacity in it Brent. but then a On America XXXX, XXXX start to above where flying, where North maybe that with to pre-pandemic. was Hawaii was remains still down in I it over hand one come bit from Yes. it little has

over the few net some have months. of of add still it’s some pandemic, although a So, the over our last adjustments the been competitors made course

sidelines back, probably that’s substantially International, we the on seen we again, the capacity the capacity of So, biggest have with are. more of competitive where still as is the come one. Japan, the exception

Brent Overbeek

are for ‘XX, Yes. than clearly, we Relative travel were capacity bit above that, the that’s still, amount. as we of fair an a is industry from we abating that well amount where industry Lower that’s down where and remains peaked more XX, as little within to capacity we fair the the XXXX, albeit into capacity Obviously, off a a get have are bit coming and at a in fall.

on of looks XXXX are a we fall, average up but into of a the bit terms to strong had I yields good. summer this into referenced. fare at There June and And point. We have a the really are a say improvements pricing the even that see continuing not improvements held The specifics in had So, of versus I get pricing, little will geography, we throughout our to summer. capacity disadvantage. bit rest

Chris Stathoulopoulos

Okay. Thank you.

Operator

with question Andrew next from with your Didora America. Our proceed question. Please of comes Bank

Andrew Didora

Hey. in when was bit little on color around or I Can each it of mentioned had the impact days? regions? kind more these you think guess And a pricing mean in that do afternoon Brent Peter, early initiative. has provide you everyone. the you pricing both introduced variable it I maybe what Good of

Peter Ingram

impact the quite Well, is early small. the days,

we Cabin early seats. So, it not remain did pre-reserved some seats, of – are let in those had quarter. We for seats. in who in what those And we all our guests desirable we Main implemented is charging fairly the the more seats them doing

ability even get third in fourth to in obviously, more. gets it our rather quarter quarter, quarter, the so as second gets the some into small, we And greater, sell those of the was

through a domestic think basis. on we the bit and case We our are And seen have results annual to have by restricted to an quarter. rate. long – in been of on million are we really the are moving And early million I this this it got a little so supply with of think ways point, business we still got the Again, the have we at pretty we encouraged at encouraged $XX take far. a results has go, we kind as $XX while our have I are

rolled roll ahead. We markets have are out our as But in that it any working the not we that that’s through. a in well in will intention international and there products geographies months our of those in process out yet, is the we

Andrew Didora

the a Got XQ schedules. disconnect pretty And there your I one, it. capacity guess on guess big then versus implied is here, I just

I you most? curious I just think have reopening? XQ there do here? to a more international bit factor with isn’t guess, I capacity, a of why limiting on XQ, your like schedules step-up are guess digits. up And the mid-single Like where especially to what’s sequentially in adjust the

Peter Ingram

most have questions, – one for to part, back we going got previous the Japan. of we So, everywhere and reopened think the internationally are about I

in have not-so-distant of we will that and We quarter, that the you bit see fourth of little in the probably part particularly a cleanup to schedule need do the front future. got and

you I So, majority that probably that of is the looking at. the disjoint are think

Andrew Didora

Okay. Thank you.

Operator

reached back Ingram ahead. over have Please end the the to gentlemen, for remarks. closing turn we of go Peter session. Ladies to And call would the and question-and-answer I like

Peter Ingram

extremely few am deliver experience. outstanding in to proud your progress their updating Aloha. interest, as look for half I on our to XXXX of us again Mahalo confidence And of improvement for and we periods and operator. you, of forward first you through demand all gives our ahead. the months. the joining an appreciate a move and today we commitment you strong the us team to Thank guest

Operator

conference. today’s concludes This

You may disconnect your lines at this time. Thank you for your participation.

Hawaiian (HA) 27 Jul 222022 Q2 Earnings call transcript