Hawaiian Holdings, Inc.

Greetings. Welcome to Hawaiian Holdings Incorporated First Quarter 2022 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 the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Ashley Cosmodo, Managing Director of Investor Relations. Thank you. You may begin.

Thank you, Sherry. Hello, everyone, and welcome to Hawaiian Holdings' first quarter 2022 results conference call. Here with me in Honolulu are Peter Ingram, President and Chief Executive Officer, Brent Overbeek, Chief Revenue Officer, and Shannon Okinaka, 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 performance. Brent will discuss revenue, and Shannon will discuss costs and the balance sheet. At the end of the prepared remarks, we will open the call up 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 have 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-gap 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. These include the most recent annual report files 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, Ashley. Aloha, everyone, and thank you for joining us today. We updated our first quarter outlook at the end of March, reflecting better than previously expected results due to strong demand throughout our network. With the effects of the pandemic more muted now than at any point since the beginning of 2020, we are enjoying a period of strong demand for travel to, from, and within Hawaii. COVID restrictions for travel to the state of Hawaii were lifted at the end of March, and restrictions on travel in our key international geographies are appreciably reducing. Looking ahead, we expect record domestic revenue in the second quarter and a steady recovery of international demand as the year progresses. Let me briefly touch on a few of the following themes for 2022 that we've discussed in our previous calls. Specifically, restoring international service and returning to operations at full scale, enhancing commercial flexibility and operational efficiency through foundational technology, succeeding in a disrupted competitive environment, and preparing for the 787s. Internationally, we are underway with the long awaited recovery in demand for travel to Hawaii as COVID travel restrictions eased in Australia and South Korea. New Zealand is implementing plans to ease restrictions, setting the table for us to restore service in July with flights three times weekly. In Japan, travel restrictions incrementally eased with the removal of government-mandated quarantine and an increase in visitor arrival allowances, but the current restrictions remain a significant barrier to travel. and we will need to see policies evolve further to realize the full demand potential in this geography. Based on what we've seen in Australia and South Korea, we know that there is pent-up demand for travel to Hawaii and our international geographies, just as we have seen domestically, and we are preparing for our service to return to full scale. We continue to see strong demand for our domestic business, and our premium leisure model remains successful with strong PRASMO performance relative to our US mainland competitors. Especially strong performance of our front cabin and extra comfort products shows a continued willingness of leisure travelers to pay a premium for superior products and service. And we can market and distribute these products more effectively than ever before because of our technology investments over the past few years. On the technology side, Our new revenue management system launched successfully at the end of March. Work on the implementation of our PSS is underway and on track to launch in the spring of 2023. The revised delivery date of our first 787 has not yet been determined. The delay in 787 deliveries is affecting all of Boeing's customers, and we are working closely with Boeing to bring more certainty to the timetable. There's so much to be encouraged about right now that it's almost difficult to remember that the first quarter began with the Omicron variant suppressing demand and affecting our staffing and operations. I'm very encouraged by how we've started an important year of continued recovery after a bumpy first couple of weeks. I could not be prouder of our wonderful team on the front lines and throughout the company who are committed to connecting people with Aloha. The progress we have made on our goals for 2022 sets us up well for the remainder of the year and for years beyond. As passenger volume returns, we're actively hiring and training throughout the business. Recently agreed labor contracts ensure our competitiveness as an employer. The ratification of our IAM contracts with our mechanics, airport operations, and cargo employees was an important milestone, and our dispatchers, represented by the TWU just last week, ratified a five-year contract. Combined with the agreement we reached with our flight attendants union in 2020, these contracts demonstrate a commitment to look forward and do right by our employees. Our pilot agreement with ALPA becomes amendable on July 1st, But for the moment, we are rather uniquely positioned in the industry with no amendable collective bargaining agreements. We're managing through the challenges of recruiting in a competitive labor market. The hiring challenges are most pronounced for our airports and maintenance teams. I know there is a lot of interest in pilot hiring, and for this group, we continue to see good supply. but training is a constraining factor in getting the right pilots into the right classification to support our operations. Lastly, we will continue to make investments that strengthen our brand as a premium leisure airline. Yesterday, we announced that we will be providing our guests the best in-flight connectivity product in the world after reaching an agreement with SpaceX to deploy their Starlink Wi-Fi product on our long-haul aircraft. The speeds will support fast web browsing and streaming that we've gotten used to on our devices on the ground. Also, importantly, we will be deploying it with a simple interface and free of charge to all our guests for however many devices they are accessing on board. We have deliberately trailed the industry in deploying in-flight connectivity, because current and previous generations of products perform below our standards over the Pacific, where most of our time in flight is spent. Until now, there was no offering that provided a superior product to match the rest of our in-flight experience. Starlink changes this, and we think our guests will be delighted when they have the chance to experience it. We expect to begin aircraft deployment in 2023, and will provide an update later in the year with greater detail as we build out our timeline more discreetly. Next month, we will reinforce our commitment to sustainability with the publication of our third annual Corporate Kuleana Report. As part of an island community, we have a profound responsibility to contribute to the environmental, economic, and social well-being of this place. I'm incredibly proud of the contributions our team has made through corporate action, employee volunteerism, and charitable giving to support our community through these difficult times. We're actively engaged in dialogue around some of the most difficult 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. We have much to be encouraged about as we move towards the peak summer travel season. Our unparalleled brand is getting stronger every day. Our purpose and values serve as our compass and are imbued in everything we do. I get to come to work every day with the best team in the airline industry. With external conditions in a better place than we have seen in the past two years, I am confident that we are poised for success ahead. With that, let me turn the call over to Brent to discuss our results and commercial outlook in more detail.