Hawaiian Holdings, Inc.

Greetings and welcome to the Hawaiian Holdings, Inc. Second Quarter 2022 Financial Results Conference 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. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Jay Shafer. Vice President and Treasurer. Please go ahead, sir.

Thank you, Maria. Hello, everyone, and welcome to Hawaiian Holdings' second quarter 2022 results conference call. Here with me in Honolulu are Peter Ingram, President and Chief Executive Officer, Brent Overby, Chief Revenue Officer, and Shannon Okanaka, Chief Financial Officer. 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's 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. These include our 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, Jay. Aloha, everyone, and thank you for joining us today. Demand for travel to, from, and within Hawaii remains very strong. As you know, we updated our second quarter outlook at the end of May due to improved demand throughout our network. And today's results are better than our May expectations. We anticipate strong demand continuing into the third quarter as we increase our international schedule. And importantly, with stability returning to the demand environment, we continue to reduce our debt levels while maintaining a healthy liquidity position. In North America, yields improved throughout the quarter compared to the corresponding months in 2019. with premium demand leading the way. Every indication suggests a continuation of these trends as we enter the third quarter. Internationally, the recovery in demand has taken root in Australia, South Korea, New Zealand, Tahiti, and American Samoa. Travel restrictions in Japan have prevented us from resuming a full pre-pandemic schedule. But these restrictions are incrementally easing, and next month we are resuming service to Haneda at the same time as we increase frequency from Narita and Osaka. As we saw when restrictions loosened in North America, consumers in international markets are showing strong interest in visiting Hawaii. In the second quarter, the commercial team fully implemented variable seed pricing on all North America routes, and early results are exceeding the business case expectations. Building on our success in the premium cabin and with our extra comfort product, variable seat pricing helps us better capitalize on our award-winning service. And as we discussed on last quarter's call, work on the implementation of our passenger service system transition is underway and on track to launch in the spring of 2023. Turning to our sustainability efforts, in May, we released our Corporate Kuleana Report. Kuleana is the Hawaiian word for responsibility, and this report reflects our commitment to our environmental, social, and governance priorities. This year, we announced commitments to replace single-use plastics in our cabins by 2029. to increase local sourcing of food and beverages served on board to 40%, and an ongoing focus on sustainable tourism. As we work toward our commitment to become carbon neutral by 2050, we also announced a strategic partnership with Regent to support the development of the Monarch, a 100-seat electric sea glider for potential application in Hawaiian inter-island travel. We also announced an agreement with FAR Hawaii, Hawaii's largest supplier of energy products to explore the commercial viability of locally produced sustainable aviation fuel or SAF. SAF is by far the most important near and medium term component of our efforts to reduce our carbon footprint. And this study will be an important step toward developing SAF supply in our home state, which will be critical to our long-term sustainability goals. I know that staffing has been in the news recently as delays and cancellations create frustrations for travelers and airlines. Our team has worked diligently to stay out of these headlines with a completion percentage of 99.5% for the quarter and 99.9% from the beginning of the Memorial Day travel period through the end of the quarter. We continue to see strong demand for open pilot and flight attendant positions. Executing on our pilot training efforts will remain a focus of our management team through the end of the year, as this represents the primary constraint on our scheduling flexibility. And while aircraft technician and airport operations staffing remain tighter than we would prefer, we are working to ensure that we can successfully attract the right talent. Tight coordination between our recruiting, training, and schedule planning teams is ongoing, to ensure that we can operate schedules that we publish. The labor agreement covering our pilots became amendable this month. We've had positive and productive conversations with ALPA well ahead of this month's amendable date, and we look forward to completing a new contract that recognizes the critical contribution our pilots make to our business and the competitive environment for these highly skilled professionals. At this point, we can't put a specific timeline to completing these negotiations. High and volatile fuel prices will continue to be a challenge going forward, especially on our more fuel-intensive long-haul operations. While the gyrations of the global jet fuel market are beyond our control, we will focus on managing what we can, including cost management elsewhere in the business and revenue generation. Compared to the challenges of 2020 and most of 2021, these are high-class problems, and I'm pleased with our performance in the second quarter and the outlook for the third quarter. Our team throughout the operation and here at our headquarters has done a fantastic job navigating the twists and turns of the past several quarters, and their hard work is being recognized by the traveling public. who selected Hawaiian Airlines as the best domestic airline in Travel and Leisure Magazine's World Best Awards recent survey. The progress we continue to make on our goals for 2022 sets us up well for the remainder of the year and for years beyond. With that, let me turn the call over to Brent to discuss our commercial results and outlook in more detail.