Hawaiian Holdings, Inc. (Honolulu), parent company of Hawaiian Airlines, Inc. (Honolulu), today reported its financial results for the fourth quarter and full year 2014.
GAAP net income in the fourth quarter of $11.1 million or $0.17 per diluted share. For the full year, GAAP net income of $68.9 million or $1.10 per diluted share.
Adjusted net income in the fourth quarter of $26.1 million or $0.40 per diluted share, an increase of $14.1 million or $0.18 cents per diluted share year-over-year. For the full year, adjusted net income grew to $97.1 million or $1.55 per diluted share compared to $46.6 million or $0.88 per diluted share in the prior year.
Operating revenue increased to $575 million for the fourth quarter and $2.3 billion for the full year. This resulted in an operating revenue per available seat mile (RASM) increase of 6.1%, year-over-year for the fourth quarter, and for the full year an increase of 5.6% year-over-year.
“2014 finished on a high note with the company posting much better results than a year ago,” said Mark Dunkerley, Hawaiian Airlines president and chief executive officer. “We served more customers than ever before, grew revenues, improved profitability and strengthened our balance sheet. I have our employees to thank for Hawaiian’s performance on the ground, in the air and in our financial statements. Their hard work helps overcome the advantage that our competitors generate through their massive size alone. 2015 will be another year of improvement as long as demand, fuel and industry capacity in our marketplaces remain as forecast.”
Liquidity and Capital Resources
As of December 31, 2014 the Company had:
Unrestricted cash, cash equivalents and short-term investments of $524 million.
Outstanding debt and capital lease obligations of approximately $1,050 million consisting of the following:
$714 million outstanding under secured loan agreements to finance a portion of the purchase price for 11 Airbus A330-200 aircraft.
$137 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.
$102 million in capital lease obligations to finance the acquisition of an Airbus A330-200, two Boeing 717-200 aircraft and aircraft-related equipment.
$30 million outstanding under floating rate notes to finance the acquisition of two Boeing 767-300 ER aircraft.
$67 million of outstanding Convertible Senior Notes.
Fleet and financing
Retired $54 million of A330 bank debt.
Repurchased $15 million (principal amount) or 18% of convertible notes outstanding.
Executed a purchase agreement with Airbus for six A330-800neo aircraft with deliveries starting in 2019, replacing the previous order for six A350XWB-800 aircraft.
Entered into a new revolving credit facility that has availability of up to $175 million.
Added five new A330-200 aircraft and returned or retired two Boeing 767-300 aircraft.
Copyright Photo: Fred Freketic/AirlinersGallery.com. Airbus A330-243 N382HA (msn 1171) prepare to depart from New York (JFK).
Hawaiian Airlines aircraft slide show: