Hawaiian Holdings, Inc.

Greetings and welcome to the Hawaiian Holdings, Inc. First Quarter 2024 Financial Results Call. At this time, all participants are in a listen-only mode. A brief 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. It is now my pleasure to introduce your host, Jay Shafer, Vice President and Treasurer. Thank you. You may begin.

Thank you, Camilla. Hello, everyone, and welcome to Hawaiian Holdings' first quarter 2024 results conference call. With me in Honolulu are Peter Ingram, President and Chief Executive Officer, Brent Overbeek, 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 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-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 statements. These include the most recent annual report filed on Form 10-K. I will now turn the call over to Peter.

Mahalo, Jay. Aloha, everyone, and thank you all for joining us today. As always, I want to thank our team for an incredible job in the first quarter. In a quarter that featured some operational and commercial challenges, we made great progress on major initiatives and saw important improvement in some key operational metrics. Early this year, a number of very important investments, ones like Starlink, our work for Amazon, and the 787 that we've been talking about on these calls for some time, began to come to fruition. I'll talk more about these in a moment. While I'm sure the pending merger with Alaska Airlines is a topic of great interest, we don't have anything material to share today beyond what we have already publicly disclosed. We received shareholder approval for the combination in February and are working diligently to respond to the Department of Justice's second request, which we received in early February. Our aim is to comply with that request as soon as possible, and we are making steady progress to that goal. On March 27th, Hawaiian and Alaska disclosed a timing agreement with the DOJ in which we agreed not to consummate the merger until 90 days after the date on which both parties have certified substantial compliance with the second request. More information about this and other recent merger-related events can be found in our SDC filings. The early part of this year has featured some major milestones in the development of our fleet. As of this month, we have two 787s in service and we flew our first 787 revenue flight between Honolulu and San Francisco on April 15th. Our second A330 freighter was also delivered and has commenced revenue operation. Freighter flying is going well and we look forward to continued expansion of the fleet and network over the course of the year. We completed installing Starlink in-flight connectivity on all 18 of our Airbus A321neos and are working towards certification for the A330 so that we can complete installations on that fleet later this year. As promised, the Starlink product sets a completely new standard for in-flight connectivity, and the response from our guests has been incredibly positive. On another positive note, We expect our full A321neo fleet to be available for service within the next couple of weeks based on current engine availability, including the return of some engines from overhaul visits. Brent will talk about our commercial performance in more detail, but I'll hit a couple of highlights. Overall, the topping of our revenue guidance in the first quarter reflects generally strong demand for travel to Hawaii in the majority of our markets. While some core parts of our network, notably Maui and Japan, have room to improve, the aggregate demand we're seeing across our portfolio of routes is encouraging. With the additions to our fleet, we are launching some new service in May, and the initial customer response to our flights between Salt Lake City and Honolulu, as well as between Sacramento and both Kona and Lihue, has been very encouraging. We're also seeing good demand for additional seasonal frequencies that we've added to existing routes like Austin, Boston, Las Vegas, LAX, and American Samoa. We've talked previously about some of the challenges we faced with operations in 2023, mostly rooted in factors outside of our control. A key theme for us this year is ensuring that we get back to industry-leading on-time performance and baggage delivery, things we know we excel at when not facing external headwinds. We saw some tangible results from these efforts in Q1 as reliability improved month by month through the quarter, including hitting 87% on-time arrivals in March, which should rank us near the top of the industry for the month. We're also working on initiatives to handle disruptions better, improve our call center experience, and introduce new self-service options for guests. I'm excited about the progress we're making on this work, first, because it matters to our guests, and second, because running a smooth, reliable operation has a positive impact on costs. Shannon will speak more about our costs, but I want to underscore that we continue to focus on returning to profitability. The investments that we are making and the initiatives that we are pursuing lay a strong foundation for financial resilience. There is a lot going on in 2024 with exciting new projects in addition to the pending merger. My focus is on making sure that we don't lose sight of the fundamentals, safety, running a great operation, and sharing aloha with our guests while we execute against a lot of initiatives. I'm grateful to my leadership team and to all of the employees of Hawaiian for keeping a daily, unrelenting focus on those fundamentals, especially safety during such a busy time. With that, I'll turn the call over to Brent to go over our commercial performance and outlook in more detail. Thank you, Peter, and aloha, everyone.