Hawaiian Holdings, Inc.

Greetings and welcome to Hawaiian Holdings, Inc. Second Quarter 2021 Earnings 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. Thank you. You may begin.

Thank you, Doug. Hello, everyone, and welcome to Hawaiian Holdings' second 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 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 Forms 10-Q and 8-K. I will now turn the call over to Peter.

Hello, Alana. Aloha, everyone, and thank you, as always, for joining us today. During the second quarter, we continued to make strides towards recovery. Our financial results were better than we expected at the beginning of the period and well ahead of what we would have predicted at the beginning of 2021, propelled particularly by strong demand on our U.S. mainland routes. International recovery in the Pacific is clearly lagging, but we have every belief that when the rebound occurs, it will be robust. My appreciation goes out as always to our team who continue to do an outstanding job of rebuilding our network and caring for our guests in an ever-changing environment. They embrace our purpose to connect people with Aloha and reflect our values every day in spite of the challenges facing them. As passenger volume has returned, we have moved from downsizing to hiring in many parts of our business. In fact, by the end of the year, it is likely that we will have swung to hiring mode for virtually all major work groups in the company. It is encouraging to us all to see a path towards growth, even as the recovery still has some ways to go in parts of the business. The pace of recovery remains different in each of our three geographies. When we last spoke, our North America routes were leading the recovery, and that remains the case today. Notably, in June, our North America traffic exceeded 2019 levels. This, in turn, provided conditions for material recovery in non-fair revenue categories like extra comfort, baggage, and Hawaiian miles. neighbor island demand continues to grind back closer to pre-pandemic levels albeit at a slower pace than we have seen from the U.S. mainland aided by the relaxation of travel restrictions we remain the carrier of choice for residents and visitors to the islands international passenger volumes meanwhile remain in the low to mid single digits relative to pre-pandemic levels as lower vaccination rates in Japan South Korea, Australia, and New Zealand have thus far stunted any meaningful prospects for border reopening. While we don't expect any significant improvement in these trends to be reflected in our third quarter results, there are encouraging signs to note as the pace of vaccinations has accelerated more recently in both Japan and South Korea in particular. And while we can't precisely forecast when these trends will be reflected in an inflection in demand, the robustness of the U.S. leisure demand response to reopening continues to inspire our confidence in a vibrant international leisure recovery. And we are focused on being prepared from an asset and staffing perspective to seize this opportunity when demand rebounds. Since we last spoke, we have seen a meaningful easing of travel restrictions in Hawaii through several positive changes to the state's safe travels program. Travel restrictions have been completely eliminated for neighbor island travel as of June 15th. As of July 8th, anyone fully vaccinated in the U.S. traveling on a domestic flight can bypass testing and quarantine with proof of vaccination. And once 70% of Hawaii residents have been vaccinated, the governor has indicated that the Safe Travels program will end. Like all of you, we are keeping an eye on the spread of the Delta variant and its impact on the geographies we serve. To date, we have seen no discernible impact on demand that we can attribute to this, but as we have been throughout the crisis, we are prepared to be nimble. On July 1st, We reinforced our commitment to sustainability with the publication of our second annual Corporate Kuleana Report. Along with many other carriers, we are committed to achieving net zero carbon emissions by 2050. Unlike the rest of our peers, we are based on an island archipelago in the middle of the Pacific, which reminds us every day of the importance of really delivering against carbon reduction goals. Our carbon emissions have benefited substantially from our fleet renewal, particularly the introduction of the A321neo, and we expect to see continued benefit with the introduction of the 787 next year. But there is much more for us to do, and the Kuleana report will help to keep us accountable to achieving intermediate milestones along the way. As part of an island community, we also have a profound responsibility to ensure the environmental, economic, and social well-being of this place. I'm incredibly proud of the contributions we have made through employee volunteerism and corporate giving to supporting our community through this difficult year. We are engaging in dialogue around some of the challenges facing our community. including managing the impact of tourism and addressing issues of social justice and inequality. We're also looking inward to ensure our own very diverse workforce feels valued and heard and that Hawaiian remains a great place to work and build a career. As we look out to the second half of 2021, we are prioritizing initiatives that will accelerate our recovery from the pandemic and position us to be even more competitive in our market niche. We will continue to rebuild our network with a focus on our international network as conditions improve. We are investing in technology and facilities to seize market opportunities. And we are doubling down on our commitment to award-winning hospitality and service to differentiate ourselves from the competition. Underscoring all of this is our dedication to our purpose, to connect people with Aloha, and our commitment to our values of Malama, Hoʻokipa, Lōkahi, and Poʻokela. This is a winning formula that positions us for success in 2022 and beyond. Let me now turn the call over to Brent to provide more details on our commercial performance and outlook.