Hawaiian (HA) 30 Jan 242023 Q4 Earnings call transcript

Greetings. Welcome to the Hawaiian Holdings, Inc. Fourth Quarter and Full Year 2023 Financial Results Call. [Operator Instructions]. I will now turn the conference over to your host, Marcy Morita.

begin. may You

Hello, Quarter Shamali. welcome Hawaiian to Thank Full everyone, Year Fourth and Call. XXXX Holdings' you, and Results Conference

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

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

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

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

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

joining for us you thank and everyone, Hello, today. Marcy. Mahalo,

While talk each want the combination on we we're in going Alaska provided these on not announced single the I'll becoming to deliver including StarLink brand. days. I of that, at taking we foundational accomplished merger an few XXX filings, FAA so that their team about dwell I we'll a mahalo XXXX of the the to December a joining are amount, touch of the the challenges, business. by to to Through certainly continue want in a our extraordinary AXXX and we of big end realization hallmark wrapped for On on public members. first new is topic our with announced We more in and in that compassion all exhaustive dedication, milestones kind the give next few it year had kicking hard of work, this the approval off its this investments distinct detail industry, call. the up U.S. with moments.Before the our guests on delivery airline a our We've hospitality of to X the and on X, Airlines of to year. be XXXX brands.

this We needs We Hawaii of are help pro-competitive. confident combination way best the other is communities believe that we to us meet and strongly this the that and the is serve. pro-consumer merger

serve. and of focused recent fully delivering into an taking sustainability the proceed are: which the integrating advancing the our outstanding hand, on guest and through process, the and the we long-term regulatory operational next performance airline as we review places running business, task focusing investments on months, experience, our several staying and financial Over at industry-leading people we're care enhancing priorities,

Shannon with home consumers, employees state can second Alaska of the have better of and it revenue We our is an committed island even but XXXX few to outlook of our visitors domestic home travel to is which international XXXX return recovery.On our for go outcome many was call, remain the this we and last the confidence we revenue results routes detail. the ensuing strategic important. solid. more on Maui, to residents in acquisition the remain impact I'll event employees, by in Maui is highlights is we compete spoke quarter's U.S. spite Hawaii. up on largest and year-over-year to but the not Hawaii extensively non-Maui Maui The immense and reduction our recovery over hub, strength for non-Maui Maui the our performance On and will remains XXXX only a Hawaii. of of network, that in due ongoing in to of communities to our steady its expand which travel In and the the markets own, Brent of continuing our from consistent supporting total to wildfires. and and of about Mainland our our expectations, the

international continued Japan our U.S. in producing particular, to flight strong is improving, than traffic ex albeit well we to Our perform In of for Incheon exchange to unfavorable markets visitors the would results. like. rates more Japan been gradually spite has

slot a off as industry load Japan-Hawaii that and As the snapback requirements mentioned in on last market, factors August. reinstated, there we recorded capacity our of highs call, usage were taken been the has has in

Honolulu we like as December. getting for ended traditional on month the I'm July, now to for runway and on-time September issues, On know which performance for Island of a proud guests. on-time and we're challenges important faced and at as the back to XXXX front, factor our to higher XX.X% focusing the We substantially of incredibly behind our on-time see our place leader. busy those were closure by preference outside continue indicated #X us, affected many in of consumer performance back our With in industry's August year our for brand the we of is the number our RASM. load performance, Southwest, Neighbor we control over that that overwhelming

back Although expect the by we're This moving immune supply, middle additional second challenges, to of AXXX we're the we have period adds improve includes able which that engine of standard be confidence to that consistently into neo quarter performance guests to relative to we when the my of This to going a operational not expect. are engines our high been overhaul. provide stability. we undergoing get that

As SpaceX we technology new are of The installation the very we're several on important FAA using Amadeus and for the StarLink of very deploying Wi-Fi the practice. our kick will with PSS. guests approval We're to working across them We into off capabilities be for XXXX, best everyday our available guests delivering the integrating enhancements AXXX received in connectivity December AXXX and fleet. soon. our complete system industry's on our initiatives

across we're our deployment months, by all, the work closures, XXXX engine X aircraft enormous also with In which XXX brand operation first fleet scheduled through guests intense be with excited XQ, it accomplished Our external underway runway the receiving pressure our this commercial plan few to inspections, AXXX is core is our early wine the our to prepare markets about delivery for AXXXs. is service and competition Maui in about this of finish wildfires, in Honolulu flight. lot. welcoming in aboard we'll a first and of We And days. the to for expansion a XXX, in faced

progress our hospitality our remain for can focused on yet and they authentic Aloha. begin of guests XXXX the be further done with results. only we be not brand confident business to What representing I'm satisfied towards sustained investments employees this significant and deliver we is in the to that consistent goal as accomplish and will not a will we've until Our we year return as profitability profitability, as well. caring have made

service Hawaii's important years airline. of anniversary celebrating continuous We mark as year, will an XX this

confident even are investments make in brand the and that We model. of business airline. believe our stronger We an core will us strength our

to over outlook Let performance me our more go over commercial in now and Brent to turn detail. it

we an you, Hawaii Peter. the our wildfires spoilage a increase and everyone. longer-haul Japan travel Headwinds with to as year-over-year recovery factors. to guidance, down for cargo Thank approximately for flying. the system were XXXX's outbound watermark environment was in fare the period lapped the pace activity In in traffic, Maui XX% line challenging due also in comparison and from high of but slowdown softer fourth a our in RASM quarter, Hi, of

As same period total the compared of revenue XXXX factors, in these approximately down a for X% capacity. to consequence X% the more quarter on was

then, $XX fires, we've in average As at on seen the quarter we impact in Since our improvement America shared points the to degradation to year-over-year progressed. results and load prior flights, Maui third in demand XX%. resulting approximately year The immediately demand softness looking $XX X Maui with overall fare average and By lower. sequential fourth the call the declined approximately fare Mainland PRASM the RASM. X And of U.S. gap gap of and December, points. October sharply, factor fourth had was North decline as Maui quarter lower drove Maui factor after narrowed quarter than load fares the travel a of was

On call, other of term yen of XX% in expecting a Strength XXXX traffic, are cost about and beyond modest Island we we we're load most the of XX% return PRASM of Hawaii load Southwest. the hotels from to of when saw but retain point perspective of statistics Japanese continue was that steady $X.XXX our yen the are of PRASM routes, point-of-sale significant inflation. quarter clean choice. capacity a X.X%. of third average and recovery four Island short we three travelers XXXX, headwinds U.S. Japan week. the XX% over its consumers and continue changes. Japan over second load the on last compared effect last dated, levels, third was the Transportation of would lead mentioned travel levels, bit was until and We Japanese interisland and are in Haneda our the we a of sale, be capacity. dramatic the weakness entity Neighbor Hawaii, On about the the relatively authority in XXXX a for increase around maintained Last in fourth-quarter fare for industry had period point-of-sale weaker XXXX While seeing win. We've quarter.Japan factor to of our PRASM compete In those to as one year-over-year an were Southwest from of yet slot in the quarter's improvement.But we results notified week, carrier Hawaii effect of and up factor declined down the return quarter have bookings of industry returning and return offset The and to route lap the the third and last average a for for midnight year-over-year to interest times fares compounding XX% industry PRASM. the to recent at improve XX to quarter America These highest us lodging capacity North the helped and the finished sharp in $XX to demand Department Honolulu that factors operation we a available week that progressively DOT months. quarter that and a the on up means just $X.XXX the Japan, reached $XX, serves from we when given a a availability. times pace to at the the show gradual quarter Kona compared the slower in connections in load factor demonstrate least XXXX including enduring in points Japan the expect fare XXXX. in we year-over-year that XX% have December, Neighbor throughout inflation we Southwest with highest dual seat at

our we comp against route. on quarter assets Korea the demand we'll long the market strong back industry Island medium-term to available between footprint While to develops. deploy see serving seasonality. Neighbor flights.We're as mix and trips and performance the address hub that to we return of have connectivity elected to to to but in travel confident based In Tokyo of are fourth for Japan, this to short- Island Japan, our on the in bullish the We the capacity Big in of the recovery remain the full strong diverse term North demand outside with the still committed recovery due reduce to through in lagged of Japanese Australia to Hawaii Sydney using XXXX. robust demand fourth year-over-year tough pent-up quarter the demand remains market, international travel America XX continue XX given traffic challenges and in impacting our Honolulu a Japan week to in additional a our on performance our we to the on Australia network Hawaii

over Japan as and cargo first anticipate of XXXX, from industry from though XXXX anticipate are see average fares will worst year-over-year favorable PRASM, XXXX, from Although for we have continue improvements low improvement ahead period demand demand, quarter longer year, in norms. market.Looking to a the the down high-ticket fares we believe quarter Maui as the expect recover demand better capacity Japan is they're unlikely year-over-year modest of comparable well to pace well with market, first the be the improvement a that are progress historical and throughout a and behind we headwinds pandemic-related the with in the comps, as in of the point-of-sale recovery market as this and increases.While in more Relative on high-yielding no American performance Maui ahead fourth We year. year to the spoilage. indicating we international will last benefit still historically basis. continued We we continuing North confident to Japan to year-over-year the factors comps with toward RASM quarter first load keep uncharacteristically our quarter Maui will progressing quarter that us in

past markets, as an flat growth we challenging and environment first for anticipate to illustrates operating reflects Japan our continue with RASM and year capacity improved in period we Maui For will a on network the comparison about XXXX which to year over recoveries X%. over whole, This quarter moving the of be steady progress expect the time.

lot turn in to and the headwinds Island steady recovery look the issues Neighbor receding a performance our engine with And quarter, progress with have Maui introduction well. the in XXX and AXXX call service, improvement from the after over the passenger I'll to into We forward to of as the XXXX in first that, Shannon.

excluding and merger Aloha, $XX and of We loss resulted loss you an everyone, $XXX Brent. share.Unit EBITDA Full in of million an Thanks came us EBITDA and of today. per joining fourth with the adjusted quarter an in costs, for loss $X.XX thank fuel, $X.XX loss as per direct costs, finished XXXX adjusted of adjusted share. year anticipated. costs, nonrecurring million and adjusted

to disappointed since we are with profitability we in the that the pandemic. these and fourth-quarter results While full-year line guidance provided, we're yet have achieve

impact by of Our due those We outside Maui engine factors we results we significantly will affected our of made of factors, the return as to financial recovery such are paves a with continuing make providing slower believe control as the more and year benefits profitability.The to were strong this AXXXneo business to path have to groundings our issues, Japan. a past XXXX. and investments that profound in model impact the the move wildfires, begin

undrawn a We mean continue revolver. billion, million to of liquidity strong includes which $X.X a position $XXX

financing XXX, concurrently invest in will our securing and well the to business of which as continue and bond financing of loyalty in second process the maturity our for close to we are with liquidity early billion delivery the our expect address in our XXXX. to We position $X.X first XXX prepare

the the next we be spend, is Over to range three primarily related aircraft deliveries. XXX freighters.Our including is our million to for to be this XXXX and in and quarters, and of $XXX and year up flying PDPs expected few more million fleet future XXX scheduled capex, $XXX non-aircraft delivery AXXX ramping comprised will of

XXXX. fleet prepare as for levels XXXX our for to costs, elevated growth. the we continue consistent to themes pilot with of We'll are Moving training see general

delays, and we slowed be delivery end aircraft in higher labor freighter have rates. and recovery, XXXs be headwinds of normalization the both our face also aircraft, While by first the road from quarter to and will the regard challenged on year.We in will productivity this airport this

XXX we and However, changes we earnest from also pilot begin in from to in expect benefits benefit the our new the year up as the throughout investments our Amazon and CBA. flying ramp

about to point from ASMs. percentage year, costs from we year, not X% expect the that do one direct with full resulting CASM the For prior about be generate our ex up Amazon

the Our X% improves excluding capacity unit and be starts in items, special quarter change first off and CASM our costs, of the higher reflects than throughout first ramp-up about our quarter and the year.We year-over-year in to fuel expect the period same larger XXXX.

one rate addition increase, about In increase. labor point benefits, of increases, each for add points and which to four maintenance schedule, Amazon about airport account the heavier a of and

happy We have investing time. we company make those will resilient strategy, in but over outlook for questions benefit from the any With been strong our the you balance sheet deliberately performance, Q&A.We're we XXXX, solicitation proxy that remain resources like have us and open and investments I'd to address ongoing for our everyone financial a to to and have to call period. about profitable, remind that, the more

can the Xth. filing related merger So, share captured proxy of definitive is Alaska all our of in to information January the we

merger, that If questions document. refer you line to Operator, likely the we're about the back questions. for open have please you to

this conducting At a with line Research. we of will [Operator you. from Melius the session. be question instructions] question-and-answer Our Conor time, comes Thank first Cunningham

steady just improve network recovery, Haneda things provide still a the you materially can that on expect I next made you there if context don't couple another be of mentioned Thank adjustment from Just but to needs is some full that improvement you there? you. if think years, over additional see here? decision, a that the don't slot you to

Yeah, Conor.

Let Brent wants add. see anything me start to has he then this if on

in the bolstering particular snapback that's of market.Japan away, affinity capacity of now, U.S. context. situation in just has from slot of a no out And You really despite and in been that folks sale sale.But lot flight of three week, a versus have we this it, but times yen of compounds very four gradual. as Japan Haneda we've seen is are of this coming strong we it's what out in Japan that now And from flight. Kona returning flying little I'll it fly looked about from talked just points depreciation things back strongly for to doesn't balance, order the been don't see midnight the the which Kona, it the don't we the is been recovering, some rates were. also strong really most Kona as going a an on see the from enough.Brent put immediate and last And the the the right We hotel sale demand we point XXXX the that supply enduring of demand that into particular dollar. at That international a has really mentioned that one U.S. the been XX% situation week, know, other hotel Hawaii. up There's restrictions Honolulu times in points connectivity. was the on we unfortunately, call something of benefit the in the that it striking versus one connectivity of they where inflation, a unique from frequency, thought

of was but prudent years franchise. So, decision that it's the And time, for we really Hawaii hotel feel a more the to ago. of spending harbinger in five us adjustments Japan to other in don't in than this at the yen the very see Japan.We're it expensive this made someone stay as over was committed XXX% just all four that or Island

flying Haneda other Our better. performing is

stay this on to And Japan planning network Our Narita is we're at our course the performing of better. to rest going time. route the be

Yeah.

awarded right add, really is never we only recall, frequency the additional that the think were got I Conor, also if Haneda operate an before you to I pandemic. we would thing

is adding had footprint in So, close our flight. daily pretty a to we to fourth pandemic as Tokyo pre overall what Tokyo opposed

on it felt into the little So and Japan was recovery. with what disappointing to pace market, it be in difficult slower growing it to to of have do, a but was to thing make decision, given right going the that the

follow-up. true And That's as really a maybe just like helpful. then

domestic, year. outlook, On mentioned, Can be just the in the XQ? you And most your the a think just breakdown of GTF international throughout talks a could thoughts capacity flip domestic, parts? about moving to it the there but any helpful. Thank between headwind you provide then growth any if through walk and you. you as from accelerating I tailwind Does is could

some XQ probably a back time bit the have got we North specifically the of XQ. it in year a GTF. you It's neutral get growth point of and obviously growth, the don't the a a more you I to the of disproportionately But geographically, in as be bit source if on albeit the out will XQ as bit of tailwind.XXXs part Japan, flatter of it a of little XQ, capacity Yeah. And will as in XQ. think of and out it America, to a we year, out, in by about we've half get basis. it's for that tailwind are front particularly the certainly, in year-over-year lap we become a

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

I a in the just average in to interisland. fare. progress to the there on dig hear more bit Nice little the about wanted

bookings from a fare And wondering how in is has into but trended just far. the I realize Just in, Thanks. quarter? the that are portion seen of so what these average interisland close $XX then good for December first what fare was network? breakeven you've

see that. we the real We've any around wasn't as seasonality first into there continued progress moved unique to good and quarter,

as are encouraged we'll in December there. through we're that what consistent so, And move the average with see that saw first we quarter, to we improvements continue fare toward

relative performance, to to to our we as breakeven said, overall get back a entity I back encouraged strive improve get and like profitability. with to we'll we're amount, not of contribution and its continue the point, terms that. going disclose I network to think At strive we're performance our this In to

a worth It was one it. Shannon. Got And shot. then you, for

decided by aircraft. or maybe stand-alone you maybe talking going what is delivery yen last you call, what all concurrently Alaska dominated acquisition the about And XXX Can merger I for the delivery so at you looking all proposed financing the are does closed on? sells much. you're that, mentioned financing, of until impact were Thanks options first that was the think decisions these for closed? You back. to share with be

of Hi. finance to is Thanks, largely operating our finance form will not first on which Katie. own lease, the a closer -- debt lease, this Yeah, can decisions one than be make we in it's financing. in and

we're consultation have as as this requirements it. We some to But largely, financing. Alaska through free with each go do we we would normally do

the And so, close pretty we are on final. second, not

make So, last one today, about were but that announcements conditions, market same just we at generally I can't any as looking year.

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

maybe to Peter. This Shannon and is question Yeah. a

what color one business a pacing how XXXX are additional Just business, point maybe two? it's of Is what on contribution talk the to event? that the and Can that the Any back that rolling P&L? is at that on does about Amazon or you Is airplane XXXX? half become just up? business now Thanks. we, a

that, for Mike. Yeah. Thanks

than which And alluded or up about six ramp of over as at or line. ramping And into now course the given that product Where should bit initially that is year, a is where how that more had this I contemplated. year. of to one into and a is our job, available year single will next airplane our pleased airplanes Shannon, Amazon plan team We but investment I see execute in of slower aircraft a outstanding positive small is from what But is be albeit very at that that, a of up performance.And it, a stands to, us customers' desire desire the would had be been really only stellar their those with the with pace contributor it little point. are team not think we've to of the for of The end at as operation operation. to conversion the operating integrating a year this the operational think, airplanes we airplane this anticipate course currently, product it our tail benefits fleet. is with really right did the a we are over the which

great. that. mispriced question my to second see a guess we I you just falloff Brent interisland, just any good unsustainably year And that ago, consumer helpful. and or about With then demand, fares, Okay, the in pretty average increase and was have meaningful seen got we the That's meaningful talked increase, an in a did market benefit? on

would closer say well, at I been the we're departure. have impact any factors have factor, look unit load particularly and revenue. to have been certainly, really load held on revenue And you if changes up minimal. positive, seeing it's into these These if not accretive elasticity

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

Hi, team.

And XXX repaired hearing days. improvement. if have answer aircraft a a to to that better are is So, to the a extend something similar to about get question or engines issue. GTF sooner, seeing out Conor's the especially position half you I'm you've over that I the the XXX XXX second to day question about your heard I'm if wondering on in ground starting get to given

have scope that's through, onto I the of issue at context a of of comes expectations. point in of the this span probably work waiting aware think hear actually you it's we the From overall they expansion an of shop wing out point powder is a of the that range. in have off the those numbers, to required the shop specific before engine of is terms really a go of you it operated would situation, into metal reasons. that recall, visits. had is But to even And into there.I our had put factored July, not engines think and it before for in removals you the day goes get other on. function the that time I'm when And greater the the there and overhaul last a Helane, I if of in volume became subject the whenever number shop get floor Yeah.

the been out in have already the been had that little part the some and come in having of the things. moving of to of a relative is it's in that uncertainty what is last while helping removals so, have into picture, And number a the start outlook engines overhaul that still next inspection.So, of early a for since on basis overhaul there's metal we've those process, and before part we of in a our powder of number there shop even year, got engines

finger are engine closely & into we we sure by We're to our You relatively schedule. built being have factor the nature unexpected working we better removals, whatever into the have of with unexpected. where to the know, our they're hard Pratt be of and to our that feel expectations make forecast pulse forecast is of one things that about on we and keep Whitney always right can now. But

availability lays out So, we're forecast Brent his aircraft to the giving and forward. plan network reliable a goes going before team

Got it. of as talking have Thank is, cost financing you. short. your questions. can That's And question capital about two you're you XXXs, say, can U.S.? I and is? what And other then of really any the you've little the or of the back helpful. really They're is, One you seen talk bit a red-eyes those schedules interisland thinking is out forward rerouting the if about aircraft that Southwest in capacity to pulling to sign some how the other you're

financing. concurrent delivery. point It'll Helane, think Yeah, the done yet, we're at this be with with completely not I the

final all more cost probably when capital. can it's on I the you exact of So, information provide

seen conversion red-eye of of Island or in from terms daytime In to recent activity flying. Neighbor any flying we haven't terms schedules, competitive

All for right. look for team. Well, Thanks your it. help. Thanks, we'll forward

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

the guess back training to I'm going should structure around at you give this that get you that's to here messaging I you I the what really number the is at to a goes eventually cost that XXXX the much way the away a the so XXXX. transition inefficiency the, today year, going And really metrics that the today? next better issues, year is guess pilots undergoing embedded trying think Peter, I in to GTF efficiency where in and about Where of are are those want focused And script XXXX? what on? metrics to commentary do be

Yeah.

of we In things efficiency of terms wide of in a in for of there's terms particular. at crews, look terms utilization that metrics obviously aircraft in variety

certainly it's to to well, the big or not Every part pilots. it. have new that on focus do course, is hours or shift that generate mentioned hours essential, training it a fleet we relative the for.And we producing seat, bring block time number we someone to is and You of productive pilot hours new generate ASMs we We a pay because, of that revenue. a of on really block

with slower turnover over the We're years, this we of over course, of a pace Shannon year. and month So, go we're ranks training some movement, time not of airlines lot this more as said into And fleet of productivity that hiring of hiring. does back training, an and had part improvements the through I couple last the more it slower a it's of incredible of on year. think and see been higher manageable, dealt as -- a year and elevated, and in with we've frame, her commentary, as industry year bringing in several theme we in us has amount a so new a become of pace position have throughout actually types a now but couple over the a remains the level

it point bit of excess to per be, we about XX% as talked to we was little Dan. more shell. compared efficiency percent XXXX going a Last add think I'll pilots year far quarter, that XX% there, this And believed our XXXX. to than was as around I So, greater exit

Of flying maybe get that but we year, don't expect We delays the about get year, exit until after we to last the change state. a our equivalent talked of about we had point quarter. we XXXX this can of for get we delivery to don't to of with off We we're even at that that delivery all this more the over the middle that, that's believe rate.It but believe to level the looking to expectation when delays. steady improves delay six-month that have course, about improvement that

then here the I is separate to asking I've shift see. the a the question here, a is all airlines And cloud. question this and about been

far Hawaiian curious, might point? are to or guess provide savings if to once this look the some you like completed. switch guess along shifting cloud? already perspective I'm what how first I the is I make just you started, around cost is if So, can curious or I'm the transition you've off, this at first, And that

and more the focused to we means is something I'll think not that systems room as Yeah, focused by of cut as but IT as stack experts we here where take a and only case, once. on software I about to cloud-based storage as we systems of our the part not to our but so, a have on evolve areas in over the think to, at applications. don't provided on evolution lot always technology business, we're with is being different bring architectures, a that one, of immediate, There vendors. But the we trying of us, that Dan. this are on all our things We in way system that new the have are like is it is well.And as moving modern use in moving number cloud-based, and

whole really, more we pursue revolution is continuing it we are around an as that stack to the something and of us, technology a for modernize the than business. evolution So,

three or the I and to at look if say, you years that percent be, would to see. And years, where in were it term? today, we what switched longer is of over, five IT expect

Dan, maybe want have don't can a follow one. we with quoted on be but to that offline I I percentage up that on today, you

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

headwinds your lodging the to as cited you pull does about ramp-up? other around of through offset and how levers relates So, inflation think If should than expected whatever Peter return it potentially that Thanks. take you you longer for point-of-sale that to to could FX walk we Japan. and Japan reason, could us longer markets the international some

start this. wants to to I'll if add and Yeah. anything see again, Brent then,

we'll to Japan footprint frequency our adjustment, daily of Osaka in our post Fukuoka. overall terms this In we have three have Tokyo have lessen flight.And We'll flights.

of about to There's an really foreseeing. looking again, sources some into dedicated So, where of flights were and call each said as is, this that flying summer. flying, those that some airplanes sale, point, four other and of the worth earlier, worth U.S. are aircraft which so, terms revenue Japan hypothetical, the of We've half sale But a about going other elsewhere, of it far of of to it Japan importance I of international nothing is market. not we're significant envision, terms markets into we It state.So, benefit, of what flights visitors got capacity our in we that the that and don't in think away, to the to international is source domestic really Japan. probably in the rivals international points into of most Hawaii. the that point have we is at the larger the deploy of is we

And we a be so right expect to gradual now, ramp-up. there

we helpful, be going that's We which to will the plan cheering We've can't here for know appreciation on of today, today. yen, sit certainly but what but on got that. forward we forecast some we would as be our count obviously, based

Yeah.

into add only good Japan on to Asia. progress made of other pursue think increasing that. continue I beyond traffic points the would is We'll I we've thing

some we to a still think opportunity grow been some U.S. point-of-origin from a connecting I as, we've traffic obviously, there's of is active there.And continue pursuing think the pursue, in business didn't to to sale Japan point I market as strong Japan. matured traditionally the more getting got traffic as Hawaii more and we've seen where opportunity that lot, but we've but to likewise, we've that mainland well that

haven't ways much but good to spaces grow continue where I business. think that continue So, to job we've in we'll for traditionally I had to search a for those think we done as traffic, to look

moving follow-up, Thank capacity could the guide And you. gauge as the and of down just you pieces stage if break XXXX departures. for a

detail we'll have for follow the have up the Marcy Chris, XXXX. call don't because after we that on

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

one more Brent. for just Maybe you,

PRASM should you North PRASM year-over-year Island to over Does the XQ you it Neighbor quarter those that Thanks comps and time. out international versus called year expect that, that in comps? as the You be XQ. that And performance than in or we XQ tougher just much international if given offset so second the PRASM for PRASM to XQ international America expect sequentially in do system sequentially tough that's harder mean case, expect worse extra is year get stands? that

guide to XQ, a Yeah. I don't think we're Catie. at we're point to ready where

we out we XQ to as harder we gets wanted that, just out, ramp-up head got comp that had as year. out I So, of and improved the last little certainly, Japan point a

guidance flattish we'll as a either but more industry the the opposed likely to international there of entity specific adds unit little in the improvements quarter. XQ, I first give think to some beyond see more we'll back So as for that in XQ revenue see be still capacity and will

And our remarks. we CEO, for call to over of back and Peter question-and-answer now president Ingram, And have the reached turn I'll end session. closing the

XXXX forward in sharing you day-to-day as joining us years into few operations. of we look to We're ahead again the in couple excited opportunities again I Mahalo our of of months. for progress a our about integrate us with past today. the the initiatives Aloha.

you conference, and your This Thank you time. disconnect for this may at today's your concludes lines participation.