Hawaiian Holdings reports 2Q net income of $11.3 million

Hawaiian Holdings, Inc. (Honolulu), parent company of Hawaiian Airlines, Inc. (Honolulu), reported its financial results for the second quarter of 2013.

Second Quarter 2013 Financial Results

  • Adjusted net income, reflecting economic fuel expense, of $12.6 million or $0.24 per diluted share.
  • GAAP net income of $11.3 million or $0.21 cents per diluted share.
  • Available seat miles (ASMs) increase of 20.9% year-over-year.
  • Cost per available seat mile (CASM), excluding fuel, decrease of 11.2% year-over-year.
  • CASM decrease of 9.7% year-over-year.

Mark Dunkerley, the Company’s President and Chief Executive Officer, commented that “Our results for the quarter were better than expected thanks chiefly to some good cost control. Demand across all of our geographies remains strong, even overseas where the dollar has strengthened against foreign currencies.  In North America, our business is coming back as the rate of industry capacity growth moderated in the quarter while our Neighbor Island business is now performing well.  On our international routes we are seeing the strengthening of the dollar undermine some of the excellent results we have had in the last couple of years but this portion of our business remains the core focus of our expansion plans.

Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables.

Liquidity and Capital Resources

As of June 30, 2013 the Company had:

  • Unrestricted cash and cash equivalents of $478 million.
  • Available borrowing capacity of $70 million under Hawaiian’s Revolving Credit Facility.
  • Outstanding debt and capital lease obligations of approximately $767 million consisting of the following:
    • $369 million outstanding under secured loan agreements to finance a portion of the purchase price for six Airbus A330-200 aircraft.
    • $163 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.
    • $103 million in capital lease obligations to finance an Airbus A330-200 and two Boeing 717-200 aircraft.
    • $58 million outstanding under floating rate notes issued in conjunction with the acquisition of three Boeing 767-300 ER aircraft.
    • $74 million outstanding of Convertible Senior Notes.

Business Highlights

Operational

  • Ranked #1 nationally for on-time performance for the months of March, April and May 2013 by the U.S. Department of Transportation Air Travel Consumer Report.
  • Ranked the #1 domestic carrier for travel to Hawai’i by Travel + Leisure.
  • Expanded our frequent flyer partnership with American Airlines.
  • Announced codeshare and interline agreements with China Airlines for connecting travel through Taipei, Taiwan.

Fleet and Financing

  • Financed our next six Airbus A330-200 aircraft deliveries through 2014 with Enhanced Equipment Trust Certificates (EETC).
  • Added three new Airbus A330-200 aircraft for North America and International service.

New routes and increased frequencies

  • Honolulu to Sendai, Japan three-times-weekly service launched June 25, 2013.
  • Honolulu to Taipei, Taiwan three-times-weekly service launched July 9, 2013.

Third Quarter and Full Year 2013 Outlook

The table below summarizes the Company’s expectations for the quarter ending September 30, 2013 and the full year ending December 31, 2013, expressed as an expected change compared to the results for the quarter ended September 30, 2012 or the year ended December 31, 2012, as applicable (the results for which are presented for reference).

Third
Quarter
Item 2012 Guidance
Cost per ASM Excluding Fuel (cents) 7.62  Up 2.5% to up 5.5%
Passenger Revenue Per ASM (cents) 12.30  Down 0.5% to up 2.5%
Operating Revenue Per ASM (cents) 13.56  Down 0.5% to up 2.5%
Passenger Revenue Per RPM (cents) 14.77  Down 2.5% to up 0.5%
Passenger Load Factor 83.3%  Up 1 pts to Up 3 pts
ASMs (millions) 4,052.2  Up 7.5% to up 10.5%
Gallons of jet fuel consumed (millions) 54.5  Up 7% to up 10%
Full Year
Item 2012 Guidance
Cost per ASM Excluding Fuel (cents) 8.18 Down in the low single digits
ASMs (millions) 14,687.5 Up 12.5% to up 15.5%

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 767-33A N580HA (msn 28140) lines up to land at Los Angeles International Airport.

Hawaiian Airlines: AG Slide Show