Hawaiian (HA) 26 Oct 222022 Q3 Earnings call transcript

Greetings, and welcome to Hawaiian Holdings Third Quarter 2022 Financial Results 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, [Marcy] [Indiscernible], Managing Director of Investor Relations. you. Thank

begin. may You

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

Here with Officer; me and Chief Chief in Officer. Honolulu are Officer; Financial Overbeek, Peter Brent Chief Revenue and Okinaka, Executive Shannon Ingram, President

for balance our and We attendance team cost Shannon provide overview will for members Brent performance, the will in of questions. Peter discuss management will our that At also up the X sheet. open prepared Q&A. access today. have will other we have an several of of went the Time about discuss release now, and revenue end the By to the remarks, at o'clock press should Eastern everyone call the out

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

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

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

strong. everyone Hello, know global joining and are to for focused led markets outlook Marcy, our an is economic from continue today. want consumers no to weakness to the Demand across had a to, Hello we to and travel leisure I the team. to we of are yet travel priority I challenges signs to us relative remains solid for demand on elsewhere industry. the thank be. welcome Operationally, but uncertain continue. the showing the network summer travel. and Leisure Hawaii has you this within expect on recovery as in some where our high place a of we But high own not standards, relative and

positive time side, the was here the the also uniquely not US robust the international peak demand seen we phenomenon. a between is Sydney, later strength. by details recently and particular, to travel US our some performance through our Neighbor did work runway but has Day more in a on hard for and Day the strength the and Hawaii our On our dollar that seen these for in more performance time, recovery of under some disappoint Outside working changes construction flights. traffic have Memorial dampened in not pressuring from been bit time arrival travel Island strong performance of was our operational is team for These notable has call. all. Demand is ops you challenges. overcome October factors pressure Labor however, a completion the will the summer and of Honolulu XX.X%. air the On overcoming protocols Mainland exacerbated American take to to rate leisure Brent recovered routes, Japan, fully at period on in desire that have demonstrating

recent in have is seen the important demand weeks. all Japan we back, way positive not While developments some and

cap the in since of on weakness nature the the you removed Japan most including scheduled recovery the of arrivals in number which anticipate a we coming has Hawaii importantly, Japanese the XXth, Brent travel artificially Japanese to for announced. capacity terms seeing we passengers. choosing demand of US Specifically the yen recovery have solid hard public in been of relative the are and dollar, travel what will mindful months. continuing international We the travel of restrictions our international and the the Japan take are gradually. removal testing But add and restrictions, of requirements plans to demand, the recovery most through of back on pandemic suppressed of October arriving details cautious

to Let our Island me across developments Neighbor network. turn now

little reminder, islands A a a importance prior our Island transportation their almost routes smaller revenue for contribution flying revenue. than understates our North provider of the flying. percentage routes our over business. The American accounted Neighbor XX primary since. of passenger to to international the been we and of But these As contribution the Hawaii, was substantial from our have between origin albeit years XX% ago, inter-island the our ever is of pandemic, company,

system of function serving essential operations we these provide capacity addition operations international Hawaii. flights, provide haul capacity the the In to and limited connection our as the at America for inter-island outside for despite to connecting our North enabling highway state, long scale

challenges than our have the in decades, travelers prevailed better any throughout on Over on absorbed of Hawaii competitive focus have needs past singular the and fronts serving we due various we competitor. part large nine to

did the defer each the most include fares is this we respond the receives this us cover fares, if the is of are irrelevant. initiative, cost operations. not of fares XXX% ultimately, capacity on to These unusually even from $XX.XX recent What sold. seats end the occupied, of which compete. because third company ticket speculating I'll is strategic aggressive initiated of our quarter, pricing, logic relevant and taxes, means the of and from last $XX that how have federal competitor promising These to $XX During availability year. added through seat

facts. fundamental some out lay me Let

is operations. XXX Neighbor operate uniquely Our to routes smaller are cost similar Island Boeing We to structure seat aircrafts XXX Southwest. short that suited well on haul

stage MAX our analysis, Southwest XXX to to On results are designed lengths. small aircraft serve advantage aircraft our longer Southwest XXX costs revenue cost on a the X due operation per basis are measurably on operates close. basis, larger seat the seat production, has a When size. Based per a larger even not lower. comparing

premium quarter, second mile available our the a revenue the basis. XXX% statistics, DOT seat over on we a During per based latest available on generated competitor of

to revenue our international competitor revenue from are our derived Island premium even access. Our but are cannot us, RASM have of from XX% operation, this higher. flights. haul aircraft provides and sources Hawaiian, from that North Part that passenger seats, to is revenue our long that per available interline XX% traffic Connecting network with not but was accretive competitor. America to revenue and fewer our other Codeshare available of airlines Neighbor revenue

cabin. premium a have We

compete have and We're We importance comfort simple. is seats. we aggressively. answer to ground Island cannot our network, operations cabin and to other close our Neighbor to with respond the to extra light of Confronted fares are of parts $XX going this compete, the we're gap. going facts, of going and stand to main in these how the

broadly the of through seat have on the double year flight, of end available. We loyal members Not Neighbor on the our every Island year. Island fares miles reward fares receive made Neighbor HawaiianMiles every but flights through $XX flights customers. remainder on are will available the our these to

Our two now free HawaiianMiles every receive on holders credit card bags flight.

situation not We demand current I speculate answer I this in evolves do do flights for to the ahead. on to response months What how be know. challenge the are to asked know The simple that meet that appropriate compete. adding to the is going travel. I'm the to is is

in. we So will lean

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page on the our site. investor call relations recording didn't you last the Friday, hear our Web is If investor of available

Our team underway first coming a years. freighter prepare new are to well second operating that growth AXXX-XXX of revenue in for add the initiative the further avenue diversify in this provide our dynamic our opportunity in is Work XXXX. ever More is new half the to excited we for by environment. and will a than

to positive As the move there a about. pressure and is markets that we outlook. feel pandemic pandemic inflationary of decade did travel proven Leisure the rearview are geographies great this We've as ago. a financial just deal put in the mirror, in recovered must global are half amidst crisis are seen lagging with positioned demand the economic the resilient. we incredibly the and and of to our is deal a Most we fully uncertain forward. now But wake an

corner to Our results the detail. with all by and commercial we hospitality of overcome few network. core that, the discuss And largest not are business me In our and and adversities competitive on has world. that continue our of above the am in position about network, sure over last have in With I that we the are. satisfied What service our that the to more the our airlines call every but let turn where best continues outstanding else, is outcompete is am in right hallmark. strong progress, I team the the in of the to our path. encouraged to years is we outlook we the Brent deliver

compared Hawaii operated Overall, not demand appear in domestic of quarter revenue quarter. quarter revenue you, recession of Mainland just than everyone. international were or on XXXX. Peter, We and and Concerns Passenger just expected. Thank in the routes our capacity came was XXX% impacted our third third performance XXXX. our inflation XX% to US about to capacity X.X% the from of Yields quarter do in X% Aloha the XXXX. have our third higher to down as consumer

carriers. markets. using team can technology in any cut management team US and clearly below stimulating product. But only fantastic for we RM our space historical months well, are big forward. that introduced the selling the confirming four our six our job have is do revenue it's by we Neighbor it served did revenue demand going yield improving and a since we favor that management Well, In clearly market our in more the the been is new system, to markets superior consumers is adapting these Our fares Island the of new of and over the levels this conviction system below

resounding in An Japan, the have Neighbor Peter XXXX, $XX of We of of Low being Island Hawaiian route’s continue PRASM that the the sense markets Obviously particular, the fare the strong this government fare base ticket that ongoing our Sydney, that are to with the of XXXX. however, excluding factor products or of XXXX, versus expectations. premium a guests traffic. exceeded up a to end for a XX% year, US state preferred to XX% products points September to market. market with dollar. the front for very XXXX cargo it levels smaller the especially above XXXX of introduced high plus we of our mentioned, strong for improvement which cabin up despite local spring, our including comfort Further XX% Total product a revenue, continues remain international demand strong ancillary compared where we're cabin seats, to that drove XX Japan. Japanese XX% perform for and over our perform Extra had preferred compared strength strictly our were well. local in revenue the level fares PRASM our this PRASM throughout but in all evidence recovery at improvement third of to average versus to yields in schedule. throughout North up theme, load with sale performance, makes outside continues the meet we As America of recovery quarter managing well. continued markets so. strong contending a some continued The past the saw do very despite to ZIP the dampen quarter. other Underscoring be policies continue fares percentage of codes markets, with quarter. in bags, seats, premium and travel, exceed In which

up remain up Our revenue co-branded Net to quarter record and achieved remain XXXX, compared sales with over XX% cargo from revenue of program. strongest both the XXXX. its program Acquisition XX% The credit were strong, third with the Pacific of quarter weakening. Asia third retail Yields delivered up and of strong, accounts XXXX. XX% team up region. XX% versus card spend showing for quarter the the to were quarter demand no ever, versus another signs the new XXXX XX% records highest third up compared

international by we expecting demand of pleased forward, are for Looking are strong continuation Hawaii. both to a travel bookings domestic and and

about and the anticipate exceed further see in For will a mid against quarter XXXX Christmas to XX% region. calendar quarter, be quarter about referenced us anticipate year to this finish our revenue are on XXXX. America the we North spoilage single this for North by continue geography, same higher a X.X% fourth last in the digit the levels. down tailwind year we works which revisions be early than from Nevertheless, strong quarter Sunday. demand positioned up the with Breaking from for fourth and anticipate Thanksgiving Shannon to We this we America, The factor load strong our XXXX, to includes quarter. an PRASM fourth overall

competing similar to Hawaii are flying we moderation We continuing our We the competitors expect X% the still on based fourth XXXX, the see elevated capacity of DOT, PRASM a through sizable third here, meaningful traffic compared aircraft. and This and than Neighbor to factor is at premium are remain we positioned traveler, our seats demonstrates we a quarter, our In continue industry capacity to relative Island, optimally to into of to strength XXXX North Hawaii about fly XX% the our leisure And at latest and schedule to in while service to local well our and as from data to our about XXXX expect maintain quarter North of fall winning we well America America. schedule. fly and outperform the the more on to winter. continue well in materially the award in load configured competitor. focus the share of the earning quarter well yield premium, our our network, the on premium excess fourth our as

fares building clear discounted taken their and more the signs pressure are but Internationally, deeply holding will the continuing Incheon PRASM. build up the very year. a to of has and of in through hold However, bit fares Auckland industry Sydney slowly nicely end those is markets, are well. recovery

measured travel, October a daily announcement, arrivals the Japan in approach capacity incentives. traffic to restoring lifted to Japan-Hawaii an XX. seen government a demand to And inflection curve, intend domestic mentioned, Peter and we've continue pre-pandemic on was retailers typically the has to to on but As booking focus levels. of advantage extended leisure cap positive following certain prominent take travel taking on

will Thus, capacity in capacity quarters plan Japan place a is with of the the current by our capacity couple to quarter schedule with next industry Our restore broader full of XXXX. Japan likely second the align throughout plans.

destinations, load we of fourth year XXXX bringing with we see the capacity To our for to our our quarter, strong close cabin our to removed from to forecasted revenue overall to and and which our levels, will comfort Japan demand anticipate X.X% travel all adjustments full X.X% XXXX accelerate levels, build. to from XXXX, we factor demand than to our We we outlook. improvements expect to is Internationally, last to the exceed lower historical in approximately down to down XXXX to premium capacity reflecting slightly to extra restrictions highs schedule. continue summarize, be levels. continue PRASM quarter expect be quarter continue Moving capacity fourth approximately

our call I'll for Shannon. with an We the turn success. formula team over brand, that, for exceptional to have the winning products And a markets, a strong right and

us joining Thanks, Brent thanks today. for and everyone

an first comprehensive filed restating This yesterday, the losses we'll and in quarters unrealized First, adjustment disclosing income to is due we second the to that other an results. million $XX.X be to GAAP approximately X-K income statement. from reclassify

these will adjusted unrealized, no results. change impact are As this losses have on

Now, let balance sheet. the update me provide on an

We Adjusted near liquidity. be cash, to in $X.X have liquidity which revolver. and we and billion, of $X was healthy remains net investments XXXX sheet balance debt our short inclusive term the continues Our quarter with ample levels. total closed billion undrawn

I fare strong quarter, As to uncertain prices coming mentioned quarters. point liquidity all and lower maintaining high internal and the fuel and economy for last

the and quarter These $XX.X results fuel challenging were million. P&L. internal and finished as higher an Turning We to of by America a expected with EBITDA that demand with adjusted offset environment, North the costs strong fare discussed. and international the Brent environment

unit with our $XXX non-fuel in totaled the costs, to with fuel quarter cost which excluding the costs, our consistent costs side, July was special gallon, quarter excluding X.X% from and our approximately million rose third to expectations. $X.XX XX% items third per items On compared Fuel guidance. up up XXXX, nonrecurring

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

As costs with primarily are wage growth, the future in previous our well rates and flying rents. of We're related for the training to XXXs. startup market other future quarters, pilot drivers including and to as costs airport this cargo prepare new incurring induction quarter’s as Amazon, also biggest driven for increases,

While they these substantial near foundation costs for present term benefits. which investments the future lay are headwinds,

Additionally, labor which in productivity. to in we benefits revenue heavily and of will be invest the technology, increased continue realized

approximately of about full special to fuel to we unit on XX% items expect compared excluding costs, continue capacity For be X%. a year, the and XXXX up to decrease

quarter We be also adjusted EBITDA approximately expect $XX million. fourth to our

all possibility XXXX. to the technology into than moving $XXX $XX related which of is is our expenditure higher to delivery is the of capital guidance About Our a previous or which our pre million approximately payments due of CapEx in an XXXs, million, remaining spend. forecast for little XXXX some has for increase

our We've fuel to price delivery rate released a our and final determine schedule. tax in full the on and updated was guidance continue year We consumption that X-K Boeing also partner today. to with

invest we're recovery, is and As service our to our the look to committed as [modern] operations become remainder our on focus the remain of more business. operations for areas such our we well diversified we a a but we security, also in grow the delivery out and daily hospitality, with outstanding success and that we term of training, into along business. and only confident our future in of not as airline XXXX, road To are safety ensure light long and

solid a a of begin we running with In we solid Amazon addition hospitality. operating core questions. call strengths, the our take And excited with to that, and business, we're new as authentic to airline passenger venture up for advantage our can delivering open Hawaiian

Thank you.

We will now session be conducting [Operator a question-and-answer Instructions].

comes Our question with from Mike Linenberg Deutsche Bank. first

call to back just of you the about to Shannon, you startup training to want expenses out capitalized or the the or they the talked just you P&L? CASM going trajectory next curious be incurred, are them those, we tied are about going I to pilot to, two? guide tied go over they special they as to about pressures, How going Are costs think and be cost as XXX? either when or some are talked Amazon, year hit to items I'm the treated?

some the costs. to for far determination the some of quite startup of As haven't as got we accounting, Amazon our final

January, you that the we'll as more So think Amazon information can as I costs. in far how treat I startup provide on

growth. piece Amazon for pilot So our XXX, is hard level own for training it's out things kind especially what I now, to of or pilot with of think training, passenger specifically like or

a have our move forward. guidance bit going hard to we me little into cost as just to we think, So we'll as build I quantify that next be year, to for that's

through some competition by then, And the comments key of each follow-up about elements sort your where comments, to Brent, commentary there, you of the inter-island the listening Peter, and list of you either you've better mean, like for that been pricing competitor loss, -- potentially. said, maybe, pricing know, you than the market serving at it cost, a years, XX I anybody, below

seem you where is better predatory Justice Department a is because fares, focused there pricing look is we start everything. we're best they here. the like at like going here like the potential you to that can and as they're be that there's the on looking that Is than think where any on all can harm they thinking right at you Is the the as maybe sort and access, a or we and you that may here, actually lot profit, numbers look to You boxes data this? get you what have sort looks access, I competitor pricing anybody. seems going of my checking off it more generate -- of is doesn't have of case that tell here? know It on And -- are when there where have

my is I'll someone remarks. to as leave the fares I prepared the But what legal I will cost $XX.XX not do of of cover Mike. said questions say else, total operations, in

Our Susquehanna. comes Chris question next from with Stathoulopoulos

traffic your So operating we to the are flights competition, these I perhaps at you with to want away don't be. game I lower to that willing some compete would said on assume, Peter, than And that that here are is competitors and summer want But expected? stand persist loss? to perhaps should from this you yielding decision walk inter-island be all speculate, longer know, this perhaps end a cash might you there

country elsewhere and anywhere see if pricing seeing some the cash. noncash, see market structure. of cost are that's in ownership it to that how of structure is say local things would case, are what lot way of of is look at the price there aircraft markets to Shannon miles, here. that that are our about the look are let the already And case, there's start the in flight and in depreciated. or right operating the our say now, you at certainly in is XXX and under Most challenging ownership. add. we're we depreciation I sometimes me There most substantially are would our to is to you has So one, the in pricing low close very I anything costs obviously, But a And the costs Brent won't of aircraft the though, a what attribute cost fleet. the if the some notable specific on

unusual it's long for I highly the and So term. don't sustainable think

fares we whether some because add and time, I any may traffic terms all In a to that see that's and people think I fares -- something environment have low some structure. on the of be intention we when that different. corporate from those $XX is to in traffic, you've some just walk environment, different I that pervasive have yields access walking do, they of might our away don't away entire current of yielding would difficult have are the customers this. the of think But But to from are got Brent important those low to regular such in accounts permeate sorts best revenue to think fares, of the going

Yes, windows sell for managing on traffic. mentioned, we protecting the base. to of right I competing there think Peter do aggressively are that as But to We long up customer think is opportunities up. those are we where our terms in answer are term

And they've But shown so whether there overall choice customers need holidays, pockets some clearly market and we manage that. defend be that aggressively are whether they our times, we and give they key business prefer we compete feel where us. to can it’d be

ex travel next for competition, this removal are or How the seeing given year? And any with of what Peter, Amazon. then to and inter-island and from startup CASM costs Shannon you respect thinking about restrictions capacity you're

what it costs give some up in our as But not three that's year. about generally to and think across to to just usual investing business the the the And Amazon have full we're continue going still we're ASMs year, where first yet it's if for those point, we will is the CASM But in XXXX about we're up have below fuel ASM, know buckets, guidance costs. But those of half prepared new going in talking investing two to in our do ex going and of of also see industry. gone We're outside we business we costs So going us ASMs our that we or we still we've ramp as do this we point is of pressures making, like and really unit for a for market do, the includes levels bunch which to investment increases to fuel are been think the labor, costs. a we're things the continue PSS, to because growth, XXXX. of important that's in back. come XXXs, at future

add part on just capacity as [and] Shannon’s ASMs the next is below XX, that, the we're to early to outlook And ramping the up. referring for in year. it year being of When to really

capacity schedule the it can which the Our fly recovery see to in full you out up different the of reflected expect in somewhere we for for low get ramp year, that that that's and now expectation the than schedule single it's at have as was it XXXX, above the point, mid some in update we we schedule things a add there is Japan have two expect where is this beyond over last been years very level. dynamic. digits would do as that And to we probably

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

inter-island the through very thoroughly. went dynamics you all Peter,

You’ve sequential Japan, seeing XQ. in you're the also ramp improvement revenue but slow pretty decent spoke to about XQ

much you strength. of where offsetting that coming good where this holiday? seeing it wondering strength Just Just from, are you're is curious seeing

Really nice a North improvement. sequential America has

the While of us really, the against a part quarter, looks really latter quarter little part North the bit the America. the in strong calendar front working in is of

improvement what And really fare cabins. seeing average in in we're both with encouraged so terms of we're

out that seen is, into accelerate summer that that of and into we've to really October, so continues And the December. coming November and

a like pretty against, good the month. it'll it be still While looks is calendar working

of but where North little on from and So factor is a fare and depths off it more of in on amount some again, the average load improvement a the really disproportionate clearly America was say powering side I the Japan comes side. as that would at bit it

And the this does margins to the or And and such Amazon will the deal, think call we revenue lot versus a just of certain items this on low on that Peter, pass you of fuel really apologize, just cost revenues brought kind look able I this about curious, plus maintenance as this terms of when actual about include relatively we through items, book, a I am be in process? wasn't that contract, thought in. as should think that on I on so the the Friday. wrong But

on through -- going how will of for you we're pass which to most which the account the those is know significant fuel. We items,

a that we block operated have talk we that's think out to we up and form that crew per of the allowed a revenue that from bulk make we're maintenance to to we aircraft, sorting incur, are be revenue of as primarily per the and biggest of the departure going And of cost to think we're book. that The one to book the the us be the of to it's through. things items risk I that those a about revenue those that that this. that of we But sure is now broader at the structure. pass going revenue sort costs revenue of people clearly population of in elements our exceeds

negotiated departure mechanism consistent block we a reliably of it's satisfy element those, that an our is in contract hour And based costs but that it manage generate our to -- time on over the going success Amazon. on on the hinging is how our plus function and but frankly, not only of really our costs to ability operating drivers. per a sense, to basis. absolutely is customer by we've below our rate margin the established a But ability There there's it very particular that. the be in that -- So per adjustment is is is for with

Our comes next Dan McKenzie Global. from with question Seaport

to to Peter, way a over always backfill have seem you years, the found revenue. lost

can given rabbit hat, you anyone if past So wins of out pull over a a it's network the decade. the

about immunity. the other to there next Does And later tricks about this revisit the backfilling sense to dynamic, the should so I make new a how lost that win international be JV side, to as back your to sleeve going are But be some running Amazon think out the could of start antitrust failed up loss guess and year. JAL opportunities it or other we up that seems backfill we once revenue? that on competitive partner revenue, given think to

I while approach are think And methodically of that the historical is in biggest should coming we opportunity. going to do importance other think planning over a We're would recovery On get international our is service opportunity side, the to places of the largest to international really Japan. months, Hawaii Japan be travel look understated, for the to the we be full that demand. continue not to to that and

growth the free start and regard. variety planning team where some in things that to in we Brent the we have think as have arriving, available, mind for a XXXs as and get point the I future particularly flexibility we of network aircraft up

grow to still forward. primarily for looking runway think We're doesn't absolutely passenger We but from move a opportunities running for the we our it there's So remain execute very detract operation well as growth. going and to focus Amazon it passenger the business. contract we on

company, the the ownership And amount to And was But then second process -- potentially XX% the close the question wondering point? thought opportunity. just warrants. had just can possible to the for follow-up that them, think level XX%. more you grant if going One upsized of XX simply I is I'm that to Amazon I that right some it warrants of on you sort not and the that was elaborate here, on question is why than back right at be could or of for

this Amazon. else, company, and back we're package a moving with forth for on a a our came was endeavor everything we Like several to and worthwhile that and is And contract it excited the about of total forward. we months think a negotiation over ultimately, subject

to Just one number. correct

not it's shares, it's there, said diluted shares. You XX%, XX% fully of million X.X

question next from Wasko Our with Cowen. comes Quinn

This Quinn for Helane.

loosening it when since way pulled in about recently the at week, thinking seems Japan. restrictions see came just My we to So, a the time But getting getting the then this those restrictions all capacity thought most even pulled the schedule off, capacity start bit, back and allocated Japan. would has travel was back to into of more February.

capacity just the that we're one being where back confidence seeing come full you recovery. maybe that that into online? thinking What's so about each of this going in seeing point the giving start to recovery market ‘XX And

ability a through our approvals and our to waiting We schedule had some some worked governmental slots. way operate smaller and on protect we of around were our

extra through, schedule had right and publish back holiday more we'll of us And the the caused can bring really end as the in got quarter. some quarter, then that a so we which little to while, a published than first frankly taken kind of yes, kind back now through down flying we've But a bit see, of gradually later ramp a of little have this service now would liked. up you

back, will we're -- plan we booking residents, we'll second our little think but going there take bit is a and and about to other start in concurrent travel think, A in talked going the that's little abroad, golden the to at quarter geographies. it's of about, focus capacity I longer travel spot longer we curve week end the into on take a with we has As matching Japanese it on comfort is and than here. the a folks sweet and coming we stronger while really traveling quarter first think that. where see

of no as forward of And quarter daily more just We we close of Japan pace full actually a from course Quinn, and What reductions in we in again from we service schedule schedule Osaka from in the level come over where reduction of a And -- we Honolulu anticipate reducing to through to growth more as Narita, that. our back the the reflected and are There first between is our schedules through August that fourth as of quarter. more some full the capacity having period capacity the slower a opposed a do the reduction today. is move then Kamata. flying. of each a increased in aren't to point get our and we're to is clarification,

your And to Amazon fill some on yet with moving the to Japan, especially hiring, pilots and you're international fully how going your to on capacity. and pilot thinking was so that about doing sourcing business? them, to Amazon think about the business to you're that would If if from for going constraints as that you how when are be you're guys capacity, recovered moving there you market some reason constraints whatever isn't

we're a I think Hawaiian compelling pilots aspiring be proposition source Airlines. that got procure, that we've all need. high we confidence at got of extremely level We've to able to very going the to pilots an

our the the carriers. today, network of career widebody got aircraft gotten more positions got of already our XX are XX form On pretty The our of that, side proportion fleet being any on Amazon top we've passenger pilots. If you at fleet, XX higher three paying from look entering higher for US of carriers, order and widebody composition big with commitment which the really aircraft, including we've we've widebodies aircraft XX the than the a is for XXX for potential more firm order. earnings attractive of in widebodies

make work to to customer are confident training available. ready serve flying to back the ability continuing in that we're pilots -- so in confident sure find our hire the of month ability There need and half And through start we to when we to that we're our we're in we're year. next our every

comes Chris Our from with Susquehanna. Stathoulopoulos question next

business. just the Peter, back going to Amazon

you just want starts hours. around And to basis so respect therefore a start per B, flight per your or lease year? the move schedule to then rates block with if of there the do Amazon commitments margins? these on seasonality and the to no clarify, do CMI in So volume are peak flight How at manage and on segment set the

volume of flying. think the across and on a who So Landers, of here you on them to with specific when They of hand are Friday, keeping fixed the you And us start to highest just and network. cover contract. variety air then regularly predictable need newest Jim will that over going significant again incentives be levels There a who's the parts about that in them aircraft it, maybe that them biggest demand is, efficiently keeping and and maintained fleet on the I'll the are and scheduling to in today. manage to on be level going longer incentivized I'll it in call the Amazon these their probably guys But higher the no met aircraft by utilization flying there of haul and and costs on generally those of provide are carriers. the therefore

customers, them in flexibility value are do that work the a well. with to to they a They that on that want to need to be as over successful but for managing that operating to adjustments their position puts make do way them carriers the closely serve in they really going schedule we're So time. the

we And so them to make add? that. can anything we'll work with Jim, on you over execute sure time would

to make largest aircraft aircraft. expect high optimize new cyclicality the utilization point flagship the just we're working year, being through days the look through aircraft, their would I the a the that best maybe But of of of in of that maintenance Yes. events whitespace to utilization. sure relationship. valleys, in -- and the But where peaks can ways our there we year degree optimizing to of other the getting Peter's the out say and early and we're of shopping and clearly details the on we

floor to There are the questions further over would turn no to time. Ingram comments. this for back at I Mr. like now closing

All thank us joining right. again, all and Mahalo for you today.

for again in sets again updating progress I apart thank the me few meeting on competitive a deliver months. also Let our continuing and others. warm to the our from of hospitality Hawaiian marketplace forward you to Aloha. challenges the team look that

today's This concludes teleconference.

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