Hawaiian Holdings, Inc.

Greetings and welcome to Hawaiian Holdings, Inc. First Quarter 2021 Financial Results Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during a conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Alana James, Managing Director of Investor Relations for Hawaiian Airlines. Thank you. You may begin.

Thank you, Doug. Hello, everyone, and welcome to Hawaiian Holdings' first quarter 2021 results conference call. Here with me in Honolulu are Peter Ingram, our President and Chief Executive Officer, Brent Overbeek, our Senior Vice President of Revenue Management and Network Planning, and Shannon Okinaka, our Chief Financial Officer. We also have several other members of our management team in attendance for the Q&A. Peter will provide an overview of our business, including the continued impact of COVID-19 and an update on our priorities for 2021. Brent will provide an update on our commercial performance and trends. And Shannon will provide an update on our cost performance, cash burn, and liquidity. At the end of the prepared remarks, we will open up the call for questions. By now, everyone should have access to the press release that went out at about 4 o'clock Eastern time today. If you've not received the release, It is available on the investor relations page of our website, hawaiianairlines.com. During our call today, we will refer at times to adjusted or non-GAAP numbers and metrics. A detailed reconciliation of GAAP to non-GAAP numbers and metrics can be found at the end of today's press release posted on the investor relations page of our website. As a reminder, the following prepared remarks contain forward-looking statements. Including statements about our future plans and potential future financial and operating performance management may also make additional forward looking statements in response to your questions. These statements are subject to risks and uncertainties and do not guarantee future performance and therefore undue reliance should not be placed upon them. We refer you to Hawaiian Holdings' recent filings with the SEC for a more detailed discussion of the factors that could cause actual results to differ materially from those projected in any forward-looking statement. This includes the most recent annual report filed on Form 10-K, as well as subsequent reports filed on Form 8-K. I will now turn the call over to Peter.

Hello, Alana. Aloha, everyone, and thank you for joining us today. Our first quarter performance exceeded what we were expecting when we last talked to you at the end of January. More so than any time in the past year, we experienced a quarter with more rays of sunshine and dark clouds. At the time of our fourth quarter 2020 financial release, our outlook was depressed by sluggish bookings at the end in early January, which in a typical year is the peak period for first half sales. What we didn't know then is that we were on the cusp of a positive turn. As virus case counts in the U.S. crested in mid January, even before the pace of vaccinations accelerated, we saw material improvement in bookings for our North America routes. Week by week for the rest of the quarter, the bookings pace continued to accelerate. neighbor island bookings also improved although not as much relative to pre-pandemic levels as north america if there was any doubt that there is pent-up demand for leisure travel after a year of lockdowns that doubt has now been dispelled despite the positive evolution of the quarter our financial performance remains dramatically affected by the pandemic january results remain significantly depressed especially after the end of the holiday travel period February was better, but only benefited a bit from the demand improvement that became apparent at the end of January. March was notably better, so much so that nearly half our passenger revenue for the quarter was recorded in the final month. While we aren't back to where we were pre-pandemic, it feels like we are out of the ditch and back on the highway. Through this period, we made progress on our objectives for 2021. rebuilding our network to drive revenue, reducing our cash burn, and strengthening our balance sheet. There is more work to be done, but we are proud of our progress. We continue to rebuild our network with the launch of four new North America routes over the past several weeks. We made important progress on reducing our cash burn and reached a milestone in March achieving positive operating cash flows for the month. We addressed any lingering skepticism about our near-term liquidity by bolstering our balance sheet through our at-the-market equity offering and a $1.2 billion debt financing backed by our loyalty program cash flows and brand assets. With $2.1 billion in liquidity, we are no longer actively looking to raise capital. Our Treasury team has done a remarkable job over the past year, and we are confident we have the liquidity to withstand whatever remains of this crisis. As I look out to the second quarter, I'm optimistic about our continued recovery in North America. Bookings have recovered and remain strong. Our booking curve is lengthening as travelers become more confident, and demand looks much more like pre-pandemic normal. After a year of staying cooped up at home, our guests are ready to travel. Our neighbor island business is lagging North America in its recovery trajectory. The requirement to obtain an expensive COVID-19 test to avoid a 10-day quarantine on short neighbor island flights continues to inhibit demand. With lower case counts and positivity rates than when travel restrictions were imposed, it is time for the state of Hawaii to remove pre-travel testing requirements on trips within the state. For now, we will take some comfort in the continued evolution of the Safe Travels program, which will soon allow Hawaii residents to travel between the islands without testing or quarantine if they have been fully vaccinated in Hawaii. Our international business remains substantially dormant. with strong cargo demand allowing us to maintain minimal service to Japan and Korea. Recovery of our international business remains the biggest wild card in our return to something that better resembles the old normal. North America is well on the way to recovery. Neighbor Island has improved and will recover substantially when testing requirements are lifted, although the timing of this is not in our hands. The path to recovery in our international business remains less certain. Restrictions are persisting longer than we had anticipated, especially as the pace of vaccination lags what we have seen at home. We are optimistic, however, that the rapid recovery in demand in North America is a harbinger of strong demand recovery in our international markets as cross-border travel becomes a realistic proposition again. We think this will especially be the case in Japan, where the affinity for travel to Hawaii is extraordinarily high. In the meantime, we remain focused on managing what we can control, being disciplined about bringing costs back into the business, setting the foundation for future growth and rebuilding, and serving our guests with signature Hawaiian hospitality. The first quarter has been an enormous turning point in our recovery, and we are excited to once again be charting a path to excellence for our guests, our employees, and our investors. I would be remiss if I didn't once again thank our team for their exemplary contributions through this extraordinary period. Amidst the uncertainty of the past year, they have remained steadfast in the pursuit of our purpose, to connect people with aloha, even as the pandemic keeps us more separated than any of us wants. I'm gratified that we are now at a point where we are calling back increasing numbers of our colleagues from voluntary leaves as our business comes closer to full recovery. Let me now turn the call over to Brent to give you more details on our commercial performance and outlook.