Hawaiian Holdings, Inc.

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 Shaffer, Vice President and Treasurer. Thank you, sir. You may begin.

Thank you, Maria. Hello, everyone, and welcome to Hawaiian Holdings' second quarter 2024 results conference call. Here 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 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-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 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 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. I will now turn the call over to Peter.

Mahalo, Jay. Aloha, everyone, and thank you all for joining us today. I want to start with a sincere mahalo to our team. for making enormous progress on our key areas of focus for 2024, delivering for our guests, realizing returns from our recent investments, and caring for the people and places we serve. Even as we look, even as we work toward regulatory clearance of our combination with Alaska Airlines, we're securing a bright, sustainable future for Hawaiian Airlines. We also took important steps in recent weeks to raise working capital and provide ample liquidity should the regulatory process be extended. First, we raised around $400 million by financing 10 A321neo aircraft. Second, we exchanged our $1.2 billion loyalty bonds due 2026 for $985 million of new bonds due in 2029 and a partial cash repayment. While we are optimistic that the merger will achieve regulatory clearance in due course, these steps provide a meaningful liquidity runway into 2029. Shannon will discuss this in more detail. I want to make a brief statement on where we are with the merger. On May 7, 2024, along with Alaska Airlines, we certified substantial compliance with the DOJ's second request. The certification of substantial compliance triggered the start of a 90-day review period, which was set to expire less than a week from now on August 5, 2024. Yesterday, the two airlines agreed with the DOJ to extend the review period until 12.01 a.m. Eastern Time on August 15. We and Alaska have been working cooperatively with the DOJ and expect to continue to do so. Once we have more to share, we will do so in a timely manner. Brent will talk about our commercial performance in more detail, but I'll highlight a few things across our network. Our performance for the second quarter reflects steady demand for travel to Hawaii on the majority of our routes. On the domestic side, there were some challenging comps to start the quarter due to Easter shifting into March of this year. but we had a strong close over the last two months with good demand late in the booking window. Across our international routes, most notably in Japan, where the yen remains historically weak against the U.S. dollar, international point of sale remains below traditional levels. We've backfilled some of this missing Japan point of sale demand by proactively intensifying our focus on U.S. and other international points of sale. With respect to our neighbor island business, we continue to move in a positive direction with improvement in average fares and load factors that demonstrate unambiguously that we are the carrier of choice in the state of Hawaii. While Japan has considerable room for improvement and Maui demand has not yet fully recovered following last year's tragic wildfires, the overall demand we are seeing across our portfolio of routes is encouraging. In particular, I'd note that the three recently added routes, Salt Lake City to Honolulu, and between Sacramento and both Kona and Lihue, have performed very well. The availability of our fleet is critical, and we've been challenged over much of the past year and a half with well-chronicled shortages of A321 NEO engines. I am very pleased to share that our A321 fleet has been at full strength since the Memorial Day weekend with a full complement of engines. We expect this to remain the case through the rest of the year and into 2025. As mentioned on the last call, we now have two 787s in service. Guest response to our new flagship product has been tremendous, including accolades for our new Lehoku suite. Our third A330 freighter has also commenced revenue flying. We've had incredibly strong operational performance on the freighter fleet, which we know is important to our customer. We will continue to ramp up operations in the months ahead. The plan is to receive four freighters during the remainder of this year and three in the first quarter of 2025 to arrive at the initial fleet of 10. Getting the freighter fleet up to critical mass is an essential step to allow us to move beyond the investment phase of this line of business and into steady state. We have now installed Starlink in-flight connectivity on all 18 of our Airbus A321neos and received FAA certification for the A330. With this approval in hand, we are now underway with the process of deploying Starlink across our entire A330 fleet with 25% equipped as of the end of last week. Our target is to complete A330 installations by the end of the third quarter. We're continuing to see incredible guest response to having fast, free Wi-Fi that just works, and expect this to be a driver of customer choice as awareness grows. Beyond all these major investments, we never lose sight of the fact that what our guests expect most for us is to deliver safe, reliable, and efficient operations. With this in mind, returning to our long-standing position as the industry leader in on-time performance is a key goal, now that some of the external headwinds that plagued us in 2023 are in the rearview mirror. Year-to-date through June, we are over 80% for on-time performance, including ranking atop the DOT listing for March. We ended 2Q with a solid 84% for June. which should similarly rank us near the top of the industry when the DOT stats are released. In addition, our baggage performance has shown some nice gains this year thanks to the focus of our team. And understanding that we live in a world where perfection is elusive, we've also been continuing to work on initiatives to manage operational disruptions better, improve our call center experience, and introducing new self-service options for guests. All of these initiatives are intended to advance our return to profitability and financial sustainability. And beyond the accomplishments I've discussed are other important steps we are taking to improve bottom line performance. These include driving additional revenue premium through the optimization of ancillary products, especially with respect to extra comfort and preferred seating, enhancing our premium offerings in the air and on the ground, improving employee efficiency, which goes hand in hand with running an industry-leading operation, getting the freighter fleet up to critical mass to both grow and diversify our revenue, and where necessary, adjusting our network and competitive profile. Again, I want to express how proud I am of the Hawaiian Airlines team. As we navigate through one of the most unique chapters in our 95-year history, This group remains unrelentingly focused on delivering outstanding guest experience, achieving industry-leading operational performance, and continuing to adapt our business to a changing economic and competitive environment. With that, I will turn the call over to Brent to go over our commercial performance and outlook in more detail.