Peter Ingram: Yes. Thanks Mike. I’ll start on that and see if Brent has anything additional to add. We’re incredibly proud of the product our team has put together on that aircraft. It’s our Leihoku suites are probably by far and away, a leading business class product for any airline in North America, but certainly easily the best product flying between the U.S. mainland and Hawaii on any of the aircraft that come out this direction. So, we do think as people start flying it and the word of mouth starts to travel, we’re going to get a really positive response to that. The other important thing to note is that there’s a lot more of those seats on those airplanes as well with 34 in the front cabin compared to 18 on our A330s. So, the success of premium revenue over the last few years has inspired us to allocate more of the real estate on the cabin to that.
And that’s going to be very helpful, especially in some of our premium-rich markets, especially as we sort of move away from the initial deployments on the West Coast and start flying it even longer haul in some of the real premium deep markets, we’re incredibly encouraged about what the prospects are.
Brent Overbeek: Yes, I would say that word of mouth that Peter mentioned is already out there. We’re seeing really strong demand in both Phoenix and Los Angeles, which are on initial deployments. I was reviewing just last week with the team despite nearly doubling the capacity on those trips, demand is — and load factors are in line, if not a little bit up. As we look into the summer and average fares remain really strong. So, people are clearly searching out the product in addition to the great physical product that the team has designed all the benefits of the 787 in terms of lower humidity — or more humidity and lower cap pressure, I think people really interested in flying the product. And as Peter mentioned, we’re really looking forward to being able to extend the missions beyond just some West Coast operations and when we take airplane number three, we’ll be able to do that.
So, overall, a great start, really encouraged with where we’re going and both the customer and employee reception of it of the products has been fantastic so far.
Mike Linenberg: Great. Thanks guys.
Peter Ingram: Thanks Mike.
Operator: Our next question comes from the line of Helane Baker with TD Cowen. Please proceed with your question.
Helane Becker: Thanks very much operator. Hi team. I just have a couple of questions. When you talk about strong cuisine demand, can you like define that a little better, maybe refine that?
Peter Ingram: Yes, I think, Helane, what we’ve seen post-pandemic and really kind of it’s a continuation is people’s decision-making about Hawaii vacations continues to move closer in. Traditionally, our booking curve was highly correlated with stage length. So our East Coast services and international services had a longer booking curve than our West Coast services. I think we’re seeing broadly across the board, both domestic, international that some of that is just continuing to move closer to departure. And while we would have a really good idea, 30, 45 days out on some of our leisure markets, we still do, but we’re seeing kind of more people make those decisions and more people to choose to fly Hawaiian kind of within that last month, month and a half prior to departure.
Helane Becker: Okay, that’s helpful. But has that caused you to make different pricing decisions?
Peter Ingram: No, I don’t think so. I think it’s probably more of a — how is the revenue management system accommodating that than discrete pricing decisions. And so it’s something that as we’ve implemented more willingness to pay solutions with our revenue management solution provider. It’s something the team keeps a keen eye on, but I wouldn’t say there’s a tangible one-to-one view of how that’s changed pricing behavior.
Helane Becker: Okay, that’s really helpful. Thank you. And then just for my follow-up question, maybe for Shannon, do you have any goals on what you want your liquidity to be and where you feel it’s not enough or where it would — I don’t think it would ever be too much. But you mentioned that the loyalty program has to be refinanced in 1Q 2026, I think. But how should we think about your goals for liquidity, however you want to measure that?
Shannon Okinaka: Yes. Thanks Helane. And Jay and I would agree with you, there’s probably never too much liquidity. Well, a couple of things. So, our — yes, our loyalty program bond becomes due in January of 2026. And so we’re starting to take a look at our — at that as well as just our full balance sheet with all of the 787 deliveries coming up. So, pre-pandemic, I think we’ve talked a lot about our cash target of $500 million. And while we haven’t done– redone the full analysis of that, we know that our cash target at this point is higher than $500 million just based on what happened during the pandemic. We throw around a number like 750, but there’s not a full analysis behind that. And so right now, we’re focused on probably the next two years looking at CapEx and our debt maturities.
We don’t have anything to announce today, but this is partially why you hear us talking about financing of the 787s, and it’s all kind of in preparation for what we’re going to do with the loyalty program line, which really is probably something we’re looking at doing near term, not necessarily waiting until 2025 or 2026. So, I think maybe by this summer, we’d have more to talk about. We’re right in the middle of looking at our balance sheet plans and really strategizing on what we do there.
Helane Becker: Okay. Thanks Shannon. That’s huge helpful.
Operator: Our next question comes from the line of Dan McKenzie with Seaport Global. Please proceed with your question.
Dan McKenzie: Hi, thanks guys. Going back to the script, the full A321 fleet in the next couple of weeks, including engines from overhaul visits. That’s kind of a surprise. Does that mean the GTF issues are in the rearview mirror for you guys? And I think it was just a couple of aircraft. But can you help us size the earnings impact from those being out?
