Hawaiian (HA) 24 Oct 232023 Q3 Earnings call transcript

Ladies and gentlemen greetings, and welcome to the Hawaiian Holdings, Inc.

Third Quarter 2023 Financial Results Call. [Operator Instructions] As a reminder, this conference is being recorded.It is now my pleasure to introduce your host Ms. Marcy Morita, Managing Director of Investor Relations. Please go ahead.

Ryan. you, Thank welcome Conference and Holdings Quarter Third Hello, to Results Call. XXXX everyone, Hawaiian

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

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

page of website, call Investor have the at to non-GAAP of we end of reconciliation our not times be the our refer press the metrics page today, posted to GAAP at you detailed or numbers metrics. website. is A received and our on and Relations Relations can release non-GAAP available of numbers adjusted it hawaiianairlines.com.During If Investor release, on today's the found

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

thank who you dedicated today. in I and members, to thanking hospitality everyone, Aloha, start-off to environment. ever-changing an for to guests us continue outstanding want Marcy. Hello, team our by deliver compassionate external joining and our

wildfires flights parts once again the serve. communities on we an of that the interiors, in our deeply colleagues successful in This early including call guests rose And our I'll of our destroyed Maui, of the bit the AXXX and the initiatives.Before a airline, on Maui. XXX that, moments face better for as answered focused into and even fair initiatives we the the team quarter, our tragic this than unveiling about occasion more remains Freighter I'll of Starlink and share Wi-Fi as make talk us aircraft. debut these important installation to challenges, my each more delve type a of of of few more Amazon month, events first a

following someone While community, we tragedy.For of sight not Hawaiian lose a focused mission fires, touched at of very first with today knows the everybody Paganic address a and days was cost we necessarily essential we will the human the elements. tragedy. must We're the the whose this economic X by enormous life X consequences, had

to all we Maui area we X.On X, navigating details phased this knew Yesterday, areas to County below month. the on flights of in of these factor's, Neighbor unaffected aftermath we've fleet. immediate the Each and to on accommodations for be support And tragedy, and saw that properties in Maui earlier the resort volunteer close-in from fires, of Island confirmed for plus Maui physically close-in they will we and Maui was remain our slowed our and in our the a the cancellations been of later is Rather, be that September of nearest to XX and and in but announced updated new note reopening the impact a availability volumes demand seeing getting September, trickle, or point time. than other recovery all the inventory As wake America trips. fire, our encouraging. this objectives current which will took the large both at visitors to will community what AXXX made environment, we near-term has bookings been ground through following challenge abated, team this to are our islands, they Brent whatever the followed, will a in the be we will team.In of of we safe. at low about who but needed. in hesitation phased load transportation of to Maui, has Maui extended significant the the live robust charitable guidance and the have the to evacuation began on business with the current we're other Maui to sure giving A it to of of the of of earlier portion first shifted work hours hotels to lead achieved was resources for before on to long our call, the outlook.The Maui's levels, We the residents Maui trajectory activities the of the better cancellations West In by And almost be to we provide that coming Booking trends while November from not the wildfire be. North provider is incorporate constraint. on the what islands, XXX travelers yet largest the were teammates and typical the fires.It is supported the Airport, Kauai. the in passenger it key each to displaced to saw factors, been that where and in the the needed fully reopening and important a that responders this revenue summer.Load October improving. weeks notably of returns levels wildfires we stabilized a continue West more

We last issue. not our details time of addition before is the which that any the incorporated have at of to we engines over The an in metal this to was X our aircraft over part inspection recent these power end X, quarterly quarter. X removals month, aircraft investor of X requirements receiving also have this aircraft out is inspection currently most into with the powder learned beyond at we point more to aircraft. of of expect about seen Just time and the the an the days September between XQ for to in cancellation months.In the engine Pratt associated service and number the we early out-of-service elevated grounded, X to then, in have inspection year, contributed few engine removals, adjusted improvement have the of understood & earlier response up accommodate Whitney impact next new requirements next through a our in year. update.Since rate beginning current These to and of the removals schedules call,

top as provide Pratt their more of failure of spares & with engines improve, compensation course to the interim engine We're We and our pipeline.We expect return beyond or the XXXX the are AXXX primarily have of on to will provide October, I for the DOT several getting challenges us of to of will driven After report that in importantly, past discussions in results over engine more That #X the bolstered most September the a the so pack. more expect external we some the bout by agreement, our cancellations agreement terms to Whitney and the short-term industry our to situation I that near already year, be performance. in for performance MRO several to importance for latest to have the In expire the can effectively half compensation will engine with fleet. the of quarter. July of months, the about plan availability steadily for required long-term. July be the showed September.The on-time as by And experienced certainty the noted spot August August later improved on in of availability reliability the reclaiming about but underscores earlier, inventory short-term this this the we medium further on-time from ongoing and Pratt engines. scope first at certainty reached published

the the through level the demand.In sustained increase route had will We the for quarter Sydney Incheon the to not be improved U.S. important wide we achieve October year.We Japan last revenue. by Hawaii month. sale unit execution take the and choice of line lose others. us continue supply on affected Hawaiian the performance wildfires of for more this in was it we carrier also quarters, flight aren't market summer. was we guests third freighter X, we'll at once need of we finish Hawaii. now hospitality is our the and the recovery to authentic we Maui or the International encouraging an that welcome Island in produce we These strength, trend to we care demand change to to Cincinnati and strong and point at makes satisfied trends as load few factor Up clear during pace our the see stood performance industry highlights the revenue from of commercial Japan, coming have authorities top noted San We'll of until deliver Japan the wildfires.On again slowing not seen keep by the see outperform Neighbor revenue Southwest expectations Brent of our U.S. major results. things top of end a on of with the address requirements particular the flew touch recovery the it facts performance in way tracking high from the we expire from on quarter's in detail. to this call where for continued Since of relief operational a consistently ongoing materially increasing reinforce islands.In down May, at point-of-sale a certainly in between that of slots Maui, our initiatives encouraging, our the as On use travel AXXX-XXX But milestones are Japan point-of-sale the and quarter, continue margins by and comprehensively are on performance.I'll beginning from the and with Bernardino. the front, encouraged supply. ahead terms conviction of of take our bookings will projects first continued of to until the across Mainland in entering on

Boeing The Maui route debut flight XXXX. Dreamliner. new XXX firm aircraft from have As is between to provide as this on year as a April contractual months initial this initial XX and aircraft flight San to venture new XXX in orders embark scheduled for month the in to this next Continuing Angeles, growth we our that Francisco flights positive a we XX of Angeles early important transitioning Honolulu for XX on a in the envisions will significant between a first reminder, Honolulu fleet growth well was deployments beginning and our note, to Los May.We our diversified on for business. Los announced the relationship milestone ahead.The as a before

currently balance this to timeframe, to We fleet not We're also have in year. in us giving passenger air Wi-Fi It's available. several next We'll the for fleet. deploy will ending this we're and growth and fastest, installation and connectivity the we enhancing fleet completed technology element before high this excited testing of AXXX. options Starlink go AXXX the process only premium the certification of our rest the of to leases get growth XX this aircraft seat larger and allows vehicle next next for AXXX an first it on successful, same performing through the are The but reminder, product, this the most major completing years, process business.Earlier airline the the few was year.As month, cabin the passenger us margin the installation installing FAA be business a AXXX the to with of expand capable on the the replacement. we

revenue the we aloha serve of Wi-Fi in of we and and the few set already years premium.I'm the preferred our guests the Hawaii. an success hospitality ahead. hospitality weeks, serve. service our extend one Hawaiian employees. the is the They're will will communities award-winning and what Our unparalleled to Hawaiian for team to In Complementing further and experience proud markets of we accomplishing with in us carrier XX ensure our our they unmatched this experience will another, apart years the dedication immensely grow celebrate a makes

this business which and challenges, XXth and of those and transient. future.Now, whether I be the of and me on in effect of Brent making are near-term over had let has engine to the As we durable year, turn more brand model challenges, the market that know or now reflect into investments issues detail. value The otherwise, will our of its all strength core major and share it our commercial issues I performance are outlook create to go over or

operated down same quarter third revised more just Aloha, the quarter, with guidance, in In X% X%, X% Total down and for everyone. was we year-over-year. the XXXX. Peter. RASM period our you, versus the under Thank line system in about capacity was revenue

for end in market demand made strong up Maui in unit the fires, capacity accommodate looking with to slightly Peter entity revenue the RASM disproportionately shortfall.As of due declined, demand approximately & market to resulting in to about to Immediately represented reductions North was X% $XX the the revenue, million concentrated our fires, system was pricing of of up ahead on after to lost at from momentum, Our wildfires the the context, Maui came approximately the to fires, impact America revenue.In demand rapidly the the and Whitney specifically the trending market. RASM positively, mentioned, was Maui and revenue of deceleration Maui in prior the strong to guidance. up Pratt the XX% guidance and was wildfires, engine leading lower and leading The year-over-year. amounted

markets of in finishing the year-over-year the Following in was PRASM travel XX.X% and in the remainder sharp This demand average resulted in for for North the routes, period.On entity Maui early year-over-year down Maui portion there down Neighbor Maui the fires post-fire quarter. August, same a impact demand significant of the for was the Island America both deceleration a had And XX.X% quarter. our PRASM fare. the fires over on

was down capacity. X a market same. year-over-year, Third the X% The increase in the on competitive quarter load remains factor points XX%, in dynamic

We third quarter. and capacity compete a Japan clearly total a a XXs, most compared XX% of the traffic increase approaching historical PRASM likely continue compared into almost by expect Japan for to continues during lead us point-of-sale norms factor recent sequential we've of quarter for With DOT volume, smaller for over the was are but the the statistics and XX% recent of That $XX traffic our demonstrate the head behind the capacity our of XXXX, XX% that to very for Load outside on industry in and availability about point PRASM.The as levels we improvement recover.In improves are in we XX% capacity Japan, base and in last that year, the to tangible fares, $X.XX upper and XXXX quarter point-of-sale have Southwest significant to strong. network of to the unit second depressed we capacity anticipate saw for factor maintained slowing Japan with to and a for strongly remained of and results last increasing, XXXX, Hawaiian we show $X.XXX are average carrier a Hawaii factors had seeing of at PRASM in load international revenue, These Southwest's is recovery industry Southwest, us.We fares that industry.Third said, yields were wildfires end load quarter. Maui lapping seen to a average low fares choice.Although, for Southwest. U.S. period time. the signaling now seat inter-island in from we

quarter improve, co-brand reinforces demand albeit growth especially up of point-of-sale a return on in as Maui the cabin. same cardholders.Looking another favorite potential this been our good new with quarter, departure, are it although confidence the to almost had satisfied yields.For acquisition, year than Australia for to our by fares positive are remains for Average lower to and non-Maui business the traffic, Australia, performance, comps Zealand impacted continues our strong fare point-of-sale a in to card significantly reflects the vacations for improving, international bookings larger in and difficult service but service, sequentially adaptable summer demand, card particularly going deep we This in main period travel is quarter, season, compared Korea over U.S. including Maui pent-up to Honolulu to week, seasonal in thrice-weekly this strong being Our Passenger reinforced and up the Japan, particular not announced New our are the New that have X% reward demand levels forward. bookings New of more seasonality XXXX. year's the in fires. turn have to revenue card international, pool anticipate schedules Auckland across to in compared ahead route quarter XX% to credit summer. revenue Japan surge credit by significantly during we're XXXX, closer address XXXX.Last year-round of short-term we move with a continue is creating next third seasonal reduced with and some demand due facing been network.Our Zealand, that our nimble the market. focus for on to the Auckland service the and third lower markets be routes, this a albeit at will strong XXXX.Korea demand demand into which we strong over overall the Hawaii for fares we in the Zealand our with

should the quarter Maui RASM previous growth quarter XXXX.Now are of third And sequentially X fires. fires, for spoilage. which the the levels These to X whole, Headwinds for approximately will of RASM quarter have been are be with as international anticipate this from over of is last slower compared lap challenging About shortfall in the the cargo, for seeing the we from year to deterioration impact network time. headwinds highs compared that XXXX. improvements to of and short-term about shared addition RASM, a revised of remainder from points Pratt be high spoilage, we last continued we on XX.X% comparison, full year due the year the we Maui the fourth to we to same normalizes clarity XXXX for the fires, our XXXX.For in points the quarters watermark to year's has the include about the and X.X% in similar revenue up & in expect X% as better down to Maui capacity the of of up improve over X.X%. the the guidance in point period Whitney growth those on to as activity to from X from capacity year effects engine a While the

in remain core business. We continue confident revenue-generating the to capability of our

issues obtain XXXX. expanded Maui outperform on Shannon. and plans arrival our We core short are Once we in forward and can turn our markets we of looking with on Hawaii choice with encouraged time.The The over near but for overcome facing the that, AXXX we're we're and carrier will wildfires I'll the certainty our also opportunities the haul fares with headwinds are to term the are of develop demand we AXXX the engines, about growth call serve. we fleet.And in each to in longer we of challenge, XXXs, in term a engine those the should nature, be from competitors that

the quarter everyone, from an We than you costs, third of quarter, lower of result expected us challenges. X, September adjusted million, fuel the the guidance by Brent. primarily $X.XX and per of with the prices.Unit to Aloha, came end share, adjusted $XX about capacity joining as we engine range for ended Thanks, today. beginning EBITDA impact operational increase loss fuel, of the and loss an excluding had of and is driven updated million $XX higher the at a Maui than which primarily due the lower wildfires forecast about in thank at the or in AXXXneo of

XX-month for strong, addition revolver, lessors is by and from from variable liquidity, which difficult in were fires. our balance to as Given Hawaiian the soon.In target.While the our our decreased fuel cancellations, twice likely landing refunds cash exacerbated match first a liquidity of normal financeable the the significantly our $X.X we costs avoided.With which of proposals We decreased respect the XX% and we'll to the as our Maui deliveries. our fees, although nature community. includes revenue, was XXXX will of very trailing we finalize million such and With the costs, reduce XXX consumption it undrawn several close-in airplane, plan third sheet liquidity our is to and bookings reduced said, XXX an of to lenders billion and quarter, several that attractive $XXX position about financing and of financing have to received capacity, a certain result liquidity, is finance remains a the resulting name ATL and pre-pandemic unencumbered seasonality, assets, our existing our

we Our XXXX. service currently fourth XXX on bring and as AXXX more throughout pilots of remain XX% conclusion the freighters approach the quarter about elevated costs carrying preparations We're into to for did our online, the we planning XXXX about comes than will that bubble payroll of our capacity deflate for improve. productivity and capacity.As we're will amount in training pilot the same

then higher costs, the similar than X period the current our improvement in which a higher in approximately in XXXX of to including CASM to special about and drivers fourth fourth fuel items, the decrease unit of $X.XX and expect quarter quarter, improvement.We be with quarter from the points pilot increases grow throughout a XXXX, fourth same to percentage $X.XX excluding prior 'XX XX% from X% is 'XX to rates, quarter of in pilot this pilots lower airport at training impact the year close-in which expect We rates, which ex up in CASM expect point we result capacity, & cancellations grounded events, higher offset Pratt to increases. X.X%. new in of be by guidance from partially point and About primarily credits X for X our maintenance higher Whitney and X full from resulted the from benefits, rate and points and X% other of the contracts a compensation to number number heavy for costs labor aircraft.Commensurately,

further benefits to new the as CBA-related AXXX service and initiatives have for expect ramp operating have system, to we extensions changes that cost our improvement AXXX in to work through XXXX productivity.Turning We continued from plans, investment such fleet XXXX. expired And up will X-year in increased analytics rule our insourcing, pursue and drive maintenance passenger in technology as our executed would these investments otherwise mature. we X leases

total at point addition between XXXX year. have extensions mitigate be aircraft collectively the expire on leases a exciting increased of of see ongoing we a lease to our of AXXX enable impact us engine that not XXXX, will cost we'll the In an plans maintain been terms have and XX and will drivers soon aircraft, if benefits improvements, from Including investments the of to acceleration the to where these the that ownership extended.It's to expense network challenges. this new start

to with to necessary.And do as nimble be circumstances, built endure the number long questions. years adjust that, facing few we we're we to durable we'll and that and us of a continue stronger. as the last call for If near-term foundation While it's the enables how up have them open can to have which emerge us taught challenges, anything, financial

Cunningham first Our Research. question from Instructions] the line of with Melius [Operator Conor comes

inbound months October. When stalled kind Japan, through has know looking I to recovery the passenger at from last so out X trends that it of like travelers Hawaii, or seems

you're mentioned, there's if know lower didn't maybe I should any on Brent, I'm And just that curious be the now. and I like whatnot, seems then know, any, it It data curious impact better. that right on fares it and the if on Maui is. actually recovery. doing like, what the just in you Just as well. from seeing the thought thoughts

front and of Connor. there strong and some had Yes, there And Japan really month some had our capacity -- was and August that performed of window. part own, holidays, the a well. the additional in exceptionally industry so we there was middle

were helped And strong. the -- with arrivals.They in kind load so, XXs, overall remained certainly so still mid to we have demand factors running that and upper of

capacity got a -- fourth As online some is my more industry filled That but remarks, more has the certainly, seeing The online. generally we it is there. I what coming in prepared we've capacity starting said back alluded capacity we're amount quarter. yields to, point-of-sale market the kind we Japan strength traffic generating pressure believe short-term of on of we're getting But the is U.S. that that little bit the we're in up, -- comes as point-of-sale also online. like of we're of encouraged with and

July up month is Connor, period September.And be August towards just a some may you of year. little so that something into a since it's in pick the towards traffic that late And follow-up pretty the is peak strong And a saw answer, and little very people coming quieter of peak full seasonally reflecting out in Brent said seasonality bit it. part remind it's a useful numbers, his there early what a of of underscore in has been now probably of the maybe to we the that while of the just so flights things and the really then again strong to seasonality throughout run-up end to before on Japan, and that seeing

lines. for better I'm I Okay. easier with a know much me little it's straight bit then.

X week, from I On another down X just of implies the last GTF point guidance stuff, your and think, I schedule think, kind points today is your deceleration. capacity,

maybe a happen? type one-shot X-week a that, or business heads-up your whatever? to that's hours lead you? business, tough block within Just And on Just giving seems your separately -- need flying included like is standpoint where only of they're then in Amazon they're getting manage guidance, -- is time the from something that the that it the to or capacity really is that

Yes.

those my required schedule XXth, GTF, candidly, schedule tried of time-to-time. a hangar crystal from months ball those better our terms situation part I removals and were any in too circumstance pipeline to available a Brent I'm now engines come has we've engine the wrong, that of in late freighter will the engines we ability can edge terms September more here that, was call spare going in the X have first wouldn't right the unscheduled on changed back, AOG months a we we call next we outlook situation back.So, which we've the on available.So, is engine a for, affect in quarter news the availability a the on fleet to forward.I with ground, Let for to is has does are me be in as need essentially removals, for be ability of market another over me to but the do the got talked by living end having right there like back that few bunch razor's into cut provide right that little Amazon whether October of should in today have about little contractual but withstand bit the but the what Pratt standpoint, is other to on with we the a market make All to statistics it the of with of number and, start year. we schedules a that the are don't further had information not us would required we are bit which situation just ago.What that perspective, our to and it -- shoe this, first frustrating the and, clear the in can the to of part if are drive where but as would our drives last But our at now they're from another further spare correct reflected to issue having we have into months. that to every think admit number we so now. your and a support of Those over the MRO provide of a in about the there's be obviously, don't withstand do some certainly those and so to the the that, now Hawaiian now we certainty we published, accommodate although, affects one this is happen about that availability our from removals the pretty for little on Airlines about and engines close buffer, that.I flying, really spare perfect should that sitting been aware engines feel September and and the we to in aren't we're question in couple we did that, part get a able had up limited of before published improving us really, ASMs. were been we are back what quarter year, we no because aircraft this say, the to of picture point flying coming from was not adjust of inspection a of drop the and

I our well, impact think the and and about fuel economics it's as in guidance guidance. cost is the burn our expectations into is the reflected so into and the consumption it incorporated built

aircraft, our obviously, in the there no really so really on ASMs. Connor, CASM have We small. but ex impact included Yes, for are not fuel they're they're RASM, quarter, do in the seats those fourth guidance,

it CASM RASM. revenue As out impact is what it we'll and impact, just for show at least direct to the bigger break get cost to -- you for have to a starts

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

This is Linenberg. Hillary Michael Cacanando calling in for

be? increased form cash So And you at will the could And last compensation? compensated quarter, mentioned you that short-term in changed credits. you timing & Pratt still perhaps reached Is compensation you'll that talk a payment that what all Whitney. case? get said maintenance of has you agreement of to about that have the with the that Or

repairs so offset would for -- credits. it make effectively, maintenance materials of it compensation and to the form power-by-the-hour offset the payments as maintenance charges. on in Yes, we an gets helps line. is our And We recorded

timing? And then terms reflected fourth will that of for quarter in be the

reflected be as credits. we It will use the

start as offset incurring So credit. we power-by-the-hour the charges, we'll

of that quarters. accruing past couple We've over been the

in and second the is well, may carry reflected in does I it into and have reflected the it quarter, third as some think So been quarter fourth. the

Okay, looking? just wondering been got announced you talk have then was Tokyo a it. bookings could about how you And I new flight, to if the Haneda.

in demand, fourth overall, in particular, capacity we strength U.S. the encouraged would with to Japan ramp looking we'll up bookings I solid. certainly looks good point-of-sale. I our are point-of-sale it on and quarter, to as we're build say particularly continue Haneda continue of quite the demand, Yes, and think

Haneda. with overall, I So we're feel think where in positive at we

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

I I been question guess had want with the Maui. all I wildfires. on devastating say since thoughts first, have And my you Maui a to

to still how just impact the normal spring historical, and know Can holidays early in into below I on demand So trending spoken to break the you look to lost revenue pick speak next the things any bookings and on quarter up. starting for look for you've year? with Maui but

Yes.

things right still average pretty remain in periods, of encouraged the there are in we're a of generally look where are say, It's and at that, end was quarter a low, Pricing, the there Christmas pretty pretty and we factors spring of really bit with fares and load kind would both break. those I But as demand have little out will pretty prepared into think quarter, bit the uncertain seen, been folks close in have get strengthen. event the a mentioned been spring. as so for quarter and travel.We anticipate fine that and further remarks, to has strong, continue we been where fourth in about a pause the I planning have of those demand So those of our so think first the Katie, Thanksgiving strong.So first strong now, the still -- context on early holidays, we that, were I good. little around the out relatively

Or And why consideration? the today. that markets RFPs given traditional on sure would maybe for one where the international? service that last initially figured And X but as some those guess I've have then West allow be on operational Shannon, are than, you'll ultimately still looking expensive question then it. XXX, more deployed just I on Is that's attractive like, Coast? financing sale a for I out quickly, starting is what just interest couple XXXs, X-part relative the like not rates you there if if send the debt gotten leasebacks a basis, of financing, heard attractive? first a more are over months, bit first

put that the Yes. is in Shannon I to the get is of we got Los place we on week fill don't New ground longer-haul turn of even big as flights, it efficiency.There in most couple then compel take over thing maintenance think quite it airplane us to Why fuel It's aircraft on other an ground shorter the having going after the every our to it's a it to just night of on is They the or -- on pilots the is Coast, we ability need overnight to And actually that don't where high be insightful to cabin, got to hours because It's Katie, you us put first West landings where on to third the the Andwe are on do though. every advantage the need premium Angeles, and financing. some York, the will the box initial to aircraft considerations attention that take ability that place it. have days of for start check really we turn can to hours.The can up. One be a talk gives up and one in so to building being a capacity, Coast and the our market where with our so initially I and and helps and the for on part up on is up demand X ramping you really where us the takeoffs experience. most operational a so going a like route the that middle for as a XX about tend XXX, it more our question, premium that of the aircraft, experience day be long-haul about build greater aircraft. we a West want first fuel-efficient maintenance airplane. fuel-efficient that --

the us deeper X want but that legs definitely get starting we 'XX And West going into so aircraft we're on the into stretch to to and push factors of those Coast, to as XXXX.

sub-X% a your opportunities process, expensive of some we'll in on as the we than see we're with the progress. we're looking yen Yes, initial provide debt of books and we pursuing.So but our of in point, a at a opportunity, markets, on up finding different prior, still financing. Japanese not lot updates To the the are RFP that to but regular little debt that as as back going phases I'll albeit well is take financing what variety but to had vehicles. Unfortunately, we bit we're some more of the public get markets, the Japan we AXXXneos, the did there we've that we're

all love we'd financing. sure I'm some sub-X%

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

for question First Brent.

Just wanted cadence ask there. of recovery to the the of about expectations kind and Japan

think by your back to levels be your be there when the think of XXXX. recovered entity I remarks to about the in capacity? Japan build XXXX? you XXXX And How quarter said you could are Japan you prepared of would capacity relative fourth in the end that thinking XX% back do

quarter. industry little excluding comp bit up industry, to of -- XQ. ends we XXXX we So, and schedules, ramp little a we as a quarter-to-quarter slot and kind flat with Honolulu. night from terms the as XQ of of pretty capacity is in We first more our strange us midnight from December what industry our think up from Kona go frequency of to you capacity flip a that kind We bit service to into see in

we to the get a capacity.Obviously, greater Japan the is the Japan more bit will books. further that allows and from in booking quarter longer on opening so come ramp and allows time little And -- more first have away over traffic growth for up curve itself up the

in to strengthen. continuing trying particular back we're Japan with to capacity point travel in origin so our of match line And coming

given for what have Thank the Do remarks. you color in you're cancellations your -- experiencing? seeing then are of assets you a card question, And your the around currently then any maybe Shannon. percentage my holdbacks of X-parter for unencumbered?And are you credit part prepared the liquidity second

remain aircraft I Yes, a percentage, number that but got of we've exact of to unencumbered about don't the million. value know $XXX the

holdbacks, not that. no, card we're like seeing credit anything the On

business. to build we've think I beginning Bookings are got back. very strong a still

even had haven't like holdbacks. any things we about discussions So

Helane question with comes line Cowen. Becker next from TD of the Our

of clarification kind questions, I Lufthansa of morning I actually. that this to just guys of AXXX just article Technik accurate be? article a have do is timing maintenance. signing And I'm that that if about what couple talked and saw up the an you wondering AXXX will and

AXXXs provide AXXXs. to believe I think for accurate. Lufthansa also use Yes, the them is agreement And there our the support to I article Technik XXX. is for for going and component we're

end opportunity run previously. market business to us when RFP and the an we sourcing, were elsewhere gave So And available. we it that AXXX that terms best get did had comprehensive a this was our

And so done we've that.

it's around component So for really on of providing equipment support aircraft. various pieces the

I I would line and about, include we how, like, How break if -- you the XXXX, weeks? it so that it's out, all? for out don't revenue parsing wondering follow-up guess it have should I'm of what Let's you're about revenue. been X if or think talk at X going 'XX And know. you right, about, kind be that my in for service talk in whether question, Amazon. other break that performance to could cargo just aircraft out started then And and

me and start here. me follow-up get Shannon correct wrong if can let I Well, Yes. then or anything

work. going no to place a into get performance, It's out In getting arrangement. far. this good the terms so we of just how have Part so were been growing.Our great why is startup and we're instead business the incurring of in operating performance and crucial reason revenue, has for which this sought the far, flights very things to of where, revenue costs pleased bid operating been on-time we're

of terms I'll the So appears statement, more But it it's not essentially, right through it let income Shannon up now material. great it's on be and to in detail. go particularly how running.In

breaking And we're not out. anything so

more material at time, look And to talk about. best things over we're becomes the it break can way to going out. about what that Shannon it As thinking we're

Yes.

ourselves our part piece do that but some define into revenues SEC but clearly And point, that So more we'll reports. I for and through segment how however we quite but do of part of, allocations of are related. more the segment to it segment anticipating gets reporting, costs the would what we right actually finalized direct our we it the be you Helane, move Amazon your should as other will segments, exactly and have to we come sure, revenue, it well, see accounting reporting XXXX, in now as we're reporting. would think haven't material, And

one report Okay. you clarification Amazon included on separated? XX question. just are that they When cargo will volumes When volumes, you -- the in be Form other or

with have going to you that am you. to we'll with question. Yes, I follow-up on follow-up

clarify want I contract and That's one. And XXX circling question, first covering to The thing. on technique AXXX agreement just one It's that Lufthansa Helane, for back components. XXX. is different your a not

line the comes next Stathoulopoulos from with of Chris Our question Susquehanna Group. International

be but your the AXXXs, in Japan we planning I about still where with So, of pieces lot Peter, will XXXX, a its here that think you're there's at with point here, as know moving recovery. XXX, phase

color departures, pieces about So that as of capacity year and all next as those we put stage, think for and together? think should how we we any gauge, about

Yes.

and hand to over it Let Brent. start me then

I think next XXXs growth year. for year. got, the opportunity coming we will. some We've We've got an throughout

obviously from one and the coming the there as to discussions contribution as subject mentioned availability some least XXXs better, I at year so It's I all I be coming the That's the the about guidance but this do of not remarks, to think to the think start or those engine feel time, that. we're MR be as and year. we back to would year, prepared we my into late X overturns.So do we in we've will of bringing as we the the fleet the have providing fully have year, reasons next get again. aircraft getting going availability about year of that the earlier, talked we things incremental but annualization going flying end by this -- service then we at growing we're into have see fourth a in some like for Japan in

position a for does year as it us. capacity growth it for So

on a Just base? we're ASM just impact to to think XX% a XQ, a that productivity you as want follow-up, Does that gave actually And network? I for percent larger And on Okay. Shannon, that. per number the capacity you understand within how the said getting there. any include is

it think was of XQ year? I of number XX% next end the by

and excess of AXXX Yes, that number training freighters. the deliveries productivity was was for on the when XXX to I the pilots the talking pilot of due about to get ready and we all have property

refers XXXX. from just to of versus CASM impact is number it that what having So that pilots excess

'XX we end so that to And end impact of XX% of decreased by the 'XX. from the CASM

what So to. that that's referred

question of the next Seaport from comes Global. McKenzie Our Dan with line

first California. guess I my with couple schedules really question question here. a to questions revenue versus A is a respect

recovered to like aside yet has Los are and looks setting So Francisco levels. where the cities XXXX wildfires, Maui not I flying San just it guess, Angeles

the it back that mean in structural revenue? back what And, nature? get Is could to cities these is, the a important for an would cities, network or like it perspective. a is if I'm recovery And part a schedule, could so what it And that wondering to what's question guess, I delay my seems these from possibly, normal of holding network.

scheduled been terms and related are guests, really almost to for putting Yes, frustrated we've to really Dan, frustrating make frankly things availability. cuts frustrating for we've of back exclusively capacity the in our in had financially, do, to are that that us AXXX

to situation recovery we but where of other at for had the this Long a kind like some and Seattle overall, we is out that necessitated percentage of kind big do, reductions, with I we but slower. industry the to And Maui something metros, terms of material or more Area temporarily have to so the of and make do, particularly of a behind data, industry of anything versus say we maybe behind Bay haven't that period maybe the we've metros and Beach, kind Area, particularly than kind things to would of where looking things these but at volumes -- little by want and second are just we're Bay DOT to are suspend we in Pratt quarter the it's been in Not winter. were metros, I'd bit at not really really that.If going the basin other X other wanted kind look little some of point say a kind of look California in a as given Bay,

biggest Angeles Los for the follow-up flying Islands. And I mean, our California just super that, is us, Dan, Hawaiian on is the a of outside market important concentration to of

flying availability to time XXXX now, more, of period.So, at we before a that less think we'd which, you If flight you the look our coming versus looked to pre-pandemic, what in what adding weren't Beach since and we're pandemic flying there to again, Ontario, our Maui really at be XXXX done some like once not be which Long fleet, have to AXXX we'd the if like flying we full of our we've flying things California. of out I were added

with going could us in And what Okay. guess, the what Japanese through revenue? of And And can of Peter, then, percent travel is just, what travel, say for blocks remind I XXXX? sold you bookings mean expectation, forward? the possibly that the were agencies

market globally. Brent. the distribution it to has to distribution me me, than right may let I take is a evolving would stab a travel willing the me been percentage at then start let be over little know, have go don't number. I Brent market, I Yes, travel say specific hand What mean, generally that, a now. I fingertips and my at more

the of market going brick And had. direct us. Japan places. good going over the of also, online not continue a moving to picture course to really and And couple from role, think distribution and significant resumed travel lot less evolved play third-party distribute be that's the their more of the blocks I last And blocks we net-net, made probably of our as websites business but we brick still retailers while in thing be important won't the internationally and a have was some than of lot it going fast a we've probably is trends there's forward. we think us go for it agencies have seen one big travel and for Japan, expect who in change.And a on been an It of a to That also over be years own digital forward. of of to travel from they think big more of, strides has away as than the the is mortar a agencies partners back part to intermediaries starting lot working platform was. back that distribution, mortar important that Japan. was I gradually And grown particularly they're things advancing to with as be, and the in going our than platform.So a

of a selling in Peter terms of a Japan at or It XXs pandemic seen well, those mentioned, -- I that a evolution as they market's And, Japan were Yes, commitment discount, the clearly blocks. in And back was they little happening. an that has of as were accelerated we lot fare bit but the in there. probably giving think our to distribution high terms We've average discount were for a revenue Dan, in was were that. changes spaces, average at XXXX, getting for of folks evolved. the to

successful we an don't endeavor and we'll are products how we're I ensure make that our but how distribute going sell to back so, forward. into, to Japan really focused it know is get on sure in we And that's -- we

what Yes. And, Can you just Peter's than a if to good a, I third fares question, you a back direct -- on that thing. could going the little commercialize just bit what able that ability tack to elaborate your before? means do to on comment fast differently from distribution one is were the

direct think be kind there. future we probably Yes, customer benefits. loyalty and able even get to the sell Hawaiian more them a X the have I relationship miles biggest up and benefit, ancillary, with One, of them sign for

extra benefit effective was very sell-through, a us is, customer. the agency through was And agencies, seats. biggest it themselves, ancillaries for but and the we comfort of terms the product that is a for it efficient and was not In that or mortar or selling third-party us, could brick

with of process. And so is to being at able directly booking much time handle easier when or booking a us post follow-up that

as I we'll biggest benefit, greater is continue to the is -- Japan extra see grow we think So sales comfort there. in

CEO further closing and Ladies as comments. for hand gentlemen, will over there Ingram, conference questions, I and are no now the to President Peter

of quarter's the our wish third reflected outstanding everyone financial outcomes Hello, again work team. joining that, us the I appropriately today. to more obviously for

to financially face. to secure months next near-term that the we help are and we you look us are in challenges ahead. our achieve interest The initiatives we now know forward that While need year will for of in performance and on coming continue We to long-term, spite on better Aloha. the updating appreciate investing deliver we early this. external your progress the

your Hawaiian Thank The concluded. Thank of you. participation. for you now has Holdings conference

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