Hawaiian Holdings, Inc. (NASDAQ:HA) Q4 2022 Earnings Call Transcript

Brent Overbeek: Yes. And just to add on to that. I think we need to act with urgency to improve our financial condition, but it’s important that we don’t panic. And if you go through how we’re performing competitively in each of the geographies, we are performing well head to head against our competitors. In some cases very, very well. So we don’t want to panic, we don’t want to stop investing, but we have to be — and we’re comfortable with our liquidity position, but we have to be mindful of the fact they need to act prudently and make good decisions going forward and that’s what you can expect from us in the period ahead.

Andrew Didora: Great. Thank you.

Peter Ingram: Thanks, Andrew.

Operator: Our next question comes from the line of Chris Stathoulopoulos with Susquehanna International Group. Please proceed with your question.

Chris Stathoulopoulos: Good afternoon, everyone. So Peter, I appreciate all the direct comments here and on the revenue initiatives here, so you have some here with your IT, I think your passenger service system, your premium cabinets. We have Amazon I believe slated for the back half of this year. Could you talk a little bit about what’s going on outside of Japan, Australia, New Zealand and South Korea? And then also on the competitive landscape, there was a promo that went out today. It looks like the $39 fares for inter-island are still out there and there was a one way 255 or so. So when you mentioned on the inter-island piece and you talk about average fares being higher in few reports and that you feel confident about your position.

How long are you willing to hold the fares here? And if you could kind of just put some — as we think about some of the revenue initiatives out here and if you could perhaps frame that piece, but also some of these other sale promotions that we see here? Thank you.

Peter Ingram: Maybe just sort of start on some of the revenue initiatives and I think Brent touched on a number of these earlier, but over the last year or so, we’ve implemented a new revenue management system and there’s still upside in terms of being able to generate performance from that. We’ve enhanced our capabilities around the pricing of our preferred seats and our extra comfort seats to allow us to be much more dynamic in terms of how we price by the day of week by specific seats on the airplane that are more desirable. And we’ve saw a lot of progress over the course of the last year in terms of generating returns from that. But I don’t think anyone on our team would argue that we’ve squeezed that real last drop of opportunity out of that yet.

Some of those things have not been — they were initially rolled out primarily on our North America network and so there’s opportunity to further rollout things like preferred seats internationally, which Brent said, we’ve just begun. So there’s a variety of things that we’re continuing to work on and a long list beyond that. In terms of the PSS itself, it really doesn’t on day one turn on new revenue generating capabilities. I think where the payoff is longer term as we modernize the systems that underlie our technology. It just makes it easier for us to adapt and evolve and develop new products and get them into market on a more timely basis. So I think it is — there’s not sort of a flick the switch sort of benefit on the revenue side that comes from that.