Category Archives: Hawaiian Airlines

Hawaiian Holdings reports 2018 first quarter financial results

Hawaiian Airlines Airbus A330-243 N361HA (msn 1823) LAX (Michael B. Ing). Image: 940253.

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., reported its financial results for the first quarter of 2018.

First Quarter 2018 – Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Income

$28.5M

($5.1M)

$55.8M

+$3.1M

Diluted EPS

$0.56

($0.06)

$1.09

+$0.11

Pre-tax Margin

5.6%

(2) pts

11.0%

(1.6) pts

“2018 is off to a great start,” said Peter Ingram, Hawaiian Airlines president and CEO. “Despite an uptick in competitive capacity in the first quarter, we generated more revenue and carried more guests than any first quarter in our history. No one should be surprised that Hawaiian rose to the challenge. My colleagues on the ground and in the air are without peer – delivering operational excellence coupled with authentic Hawaiian hospitality.  Our outstanding first quarter results would not have been possible without the passion and excellence they bring to this airline.  It is an honor to serve with them.”

“We are excited for the year ahead, and look forward to continuing to demonstrate that Hawaiian is now, and will remain, the carrier of choice to Hawai’i.”

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

Liquidity and Capital Resources

The Company’s Board of Directors declared a quarterly cash dividend of 12 cents per share to be paid on May 25, 2018, to all shareholders of record as of May 11, 2018.

The Company repurchased approximately 549,000 shares of its common stock for approximately $20 million in the first quarter, which leaves approximately $80 million remaining under its share repurchase program.

As of March 31, 2018, the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $524 million
  • Outstanding debt and capital lease obligations of $558 million

First Quarter 2018 Highlights

Leadership and People

  • Effective March 1, 2018, welcomed Peter Ingram as its new president and chief executive officer (CEO) following the retirement of former president and CEO Mark Dunkerley.
  • Strengthened its senior leadership team with the promotions of John Jacobito Senior Vice President, Information Technology; Jim Landers to Senior Vice President, Technical Operations; and Brent Overbeek to Senior Vice President, Revenue Management and Network Planning.
  • Celebrated record-setting results in 2017 by rewarding its more than 6,700 employees with $23.8 million in profit sharing, the largest annual payment in Hawaiian’s history.

Operational

  • Carried nearly 2.9 million guests across its network, a record for the first quarter.

Partnerships

  • Deepened its reach into Japan by commencing code-share operations with Japan Airlines (JAL) under a new comprehensive partnership between the two airlines.

New Routes

  • Expanded its routes to the Pacific Northwest with the launch of new daily non-stop service between Portland International Airport (PDX) and Maui’s Kahului Airport (OGG).
  • Expanded its routes to Southern California with the announcement of new daily nonstop flights between Long Beach Airport (LGB) and Honolulu’s Daniel K. Inouye International Airport (HNL) beginning in May 2018.

Fleet and Financing

  • Selected its wide-body aircraft of the future by executing a non-binding letter of intent with Boeing for the purchase of 10 new 787-9 Dreamliner aircraft (above) for delivery starting 2021, with purchase rights for an additional 10 aircraft.

 

Top Copyright Photo: Hawaiian Airlines Airbus A330-243 N361HA (msn 1823) LAX (Michael B. Ing). Image: 940253.

Hawaiian Airlines aircraft slide show:

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Hawaiian publishes new Airbus A321neo routes

Hawaiian Airlines Airbus A321-271N WL N202HA (msn 7917) LAX (Michael B. Ing). Image: 940198.

Hawaiian Airlines is expanding Airbus A321 coverage as more aircraft are delivered.

According to Airline Route, the carrier will start the following new routes with the new type:

January 1, 2019:

Honolulu – Phoenix
Honolulu – San Jose
Kahului – San Jose
Kona – Los Angeles
Lihue – Los Angeles

March 31, 2019:

Honolulu – Sacramento

In other news, on April 12, the airline celebrated its 10-year anniversary of service between Oakland and the Hawaiian Islands. Guests boarding the airline’s flights from Oakland International Airport (OAK) to Honolulu and Maui were treated to Hawaiian music, hula, and 250 bonus HawaiianMiles offered by its World Elite Mastercard program.

Hawai‘i’s flagship carrier first introduced its authentic Hawaiian hospitality to Bay Area travelers in 1986 when it launched service at San Francisco International Airport. Hawaiian expanded operations in 2005 with flights at San Jose International Airport, followed by OAK in the spring of 2008.

In the past decade, Hawaiian has carried more than 1.5 million guests on over 6,000 flights departing OAK toward Hawai‘i, with nonstop service to Honolulu and Maui, as well as seasonal service to Līhu‘e on Kaua‘i and Kona on the Island of Hawai‘i.

In January, the airline introduced its new Airbus A321neo aircraft on its Oakland to Maui route.

Starting July 15, 2018 Hawaiian will launch nonstop service between OAK and Kaua‘i operated by the A321neo.

Copyright Photo: Hawaiian Airlines Airbus A321-271N WL N202HA (msn 7917) LAX (Michael B. Ing). Image: 940198.

Hawaiian Airlines aircraft slide show:

Hawaiian Airlines and Japan Airlines start their codeshare flights

Hawaiian Airlines Boeing 717-22A N475HA (msn 55121) HNL (Elway Kibota). Image: 931697.

Hawaiian Airlines and Japan Airlines started their codeshare flights on March 25. Guests traveling between Japan and Hawai‘i now enjoy this new partnership that brings together JAL’s network of over 30 domestic cities and 11 international destinations and Hawaiian’s convenient flight connections throughout its island chain.

Phase one of the comprehensive partnership includes:

  • Access to 36 domestic and 11 international destinations (subject to government approval) within JAL’s network, as well as all Japan-Hawaii flights.
  • Access to Hawaiian’s robust neighbor island network of approximately 170 daily flights.
  • Hawaiian Airlines inclusion into JAL’s JALPAK offers guests more options on tour packages between Japan and Hawai‘i beginning April 2.
  • Ability to earn HawaiianMiles and JAL Mileage Bank credit on codeshare flights, including non-stop flights between Honolulu and Nagoya and Sapporo.
  • Reciprocal lounge benefits.
  • Convenient connections and an improved guest experience following Hawaiian’s relocation to Terminal 2, adjacent to JAL, at Tokyo Narita Airport which began on March 25.

Hawaiian, the largest U.S. carrier for service between Japan and Hawai‘i, has carried over 3 million guests via its gateways in Haneda and Narita, Sapporo and Osaka since launching service in 2010. JAL, the number one  carrier on the route, transported over 1 million travelers between Japan and Hawai‘i in 2017.

JAL and Hawaiian plan to further enhance their partnership by creating a joint venture through an antitrust immunity agreement. The carriers anticipate filing their request with the U.S. Department of Transportation and Japanese authorities next month.

Copyright Photo: Hawaiian Airlines Boeing 717-22A N475HA (msn 55121) HNL (Elway Kibota). Image: 931697.

Hawaiian Airlines aircraft slide show:

Hawaiian to become a Boeing 787-9 Dreamliner operator

(PRNewsfoto/Boeing)

Boeing made this announcement:

Boeing and Hawaiian Airlines have announced that the carrier has selected the market-leading 787 Dreamliner as its flagship airplane for medium to long-haul flights. As part of the selection, Hawaiian intends to purchase 10 787-9 jets valued at $2.82 billion at list prices. Hawaiian also has purchase rights for 10 additional 787s.

 

The Honolulu-based airline, which has steadily grown its award-winning service connecting the Hawaiian Islands with Asia and North America, had been conducting an extensive evaluation of its airplane requirements. In selecting the 787, Hawaiian will be able to take advantage of the Dreamliner family’s superior fuel efficiency, range and passenger-pleasing features to enhance its operations and open new routes profitably. Boeing’s competitive advantage was also enhanced by Boeing Global Services. Hawaiian will use a number of new aircraft transition support services from BGS, including Training and Initial Provisioning to ensure a successful and on-time entry into service.

(PRNewsfoto/Boeing)

The 787-9 can carry about 290 passengers on flights of about 7,635 nautical miles (14,140 km), while using 20 percent less fuel and emitting 20 percent fewer emissions than the airplanes it replaces.

Boeing and Hawaiian Airlines will work toward finalizing this new airplane order and it will be reflected in the monthly update of Boeing’s Orders & Deliveries website.

The 787 is the fastest selling twin-aisle airplane in Boeing history. Since entering service in 2011, the 787 family is flying more than 1,500 routes and has made possible more than 170 new nonstop routes around the world.

Hawaiian Airlines made this announcement:

Hawaiian Airlines has executed a non-binding Letter of Intent (LOI) for the purchase of 10 Boeing 787-9 aircraft with purchase rights for an additional 10 aircraft. The first fuel-efficient, lightweight, passenger-friendly “Dreamliner” is scheduled to arrive in the first quarter of 2021. Hawaiian has selected the General Electric GEnx engine to power the additions to its fleet.

The 787-9 features a spacious wide-body cabin with extra-large windows. The innovative composite airframe will allow Hawaiian to pressurize Dreamliner cabins at a far lower altitude, creating a more comfortable in-cabin atmosphere. Additional features include a quiet cabin, dimmable LED window shades, and larger overhead luggage bins. This modern cabin will provide the perfect setting for Hawaiian’s award winning, authentic hospitality. The Dreamliner’s excellent fuel efficiency makes the 787-9 an ideal choice for Hawaiian’s long-haul Asia/Pacific and North America routes.

HA Dreamliner

Hawaiian currently operates a mainline fleet of 54 aircraft: 24 Airbus A330-200 and 8 Boeing 767 wide-body aircraft, 2 A321neo and 20 717 narrow-body aircraft. The company selected the 787-9 as part of a competitive bid process that also included the Airbus A330-900.

Hawaiian expects to finalize binding purchase agreements with Boeing and GE in the second quarter of this year. The company will also begin negotiating inclusion of the new aircraft in its contracts with the Air Line Pilots Association and the Association of Flight Attendants, which is required prior to final approval of the purchase by the company’s Board of Directors.

All images by Boeing.

 

Hawaiian Airlines adjusts seasonal summer schedule

Hawaiian Airlines Airbus A321-271N WL N202HA (msn 7917) LAX (Michael B. Ing). Image: 940198.

Hawaiian Airlines has announced it has removed two seasonal summer flights between the Bay Area and Hawai‘i from its schedule and deferred another due to unforeseen delays in the delivery of the carrier’s new Airbus A321neo fleet.

Due to the delays, Hawaiian will no longer offer two seasonal summer flights between the Bay Area and Hawai‘i.

Our previously announced extra flight between San Francisco and Honolulu, and the flight between Oakland and Kona will be removed. Service between Oakland and Lihue, originally scheduled to commence on April 11, will be deferred until July 15. Guests already booked on these flights will be re-accommodated on other Hawaiian Airlines flights from the Bay Area to their final destination.

Affected Flights

Flight Number Route Flight Dates
HA 53 SFO-HNL May 26, 2018 – July 31,2018
HA 54 HNL-SFO May 25, 2018 – July 30, 2018
HA 65 OAK-KOA May 26, 2018 – September 2, 2018
HA 66 KOA-OAK May 26, 2018 – September 2, 2018
HA 67 OAK-LIH April 12, 2018 – July 16, 2018
HA 68 LIH-OAK April 11, 2018 – July 15, 2018
HA 1066 HNL-OAK May 25, 2018

Completed re-accommodations by flight number and date*

Flight Number Route Flight Dates Completed
HA 53 SFO-HNL In Progress
HA 54 HNL-SFO In Progress
HA 65 OAK-KOA In Progress
HA 66 KOA-OAK In Progress
HA 67 OAK-LIH In Progress
HA 68 LIH-OAK In Progress
HA 1066 HNL-OAK In Progress

*Dates not shown in the above table are currently in the process of being re-accommodated.

Copyright Photo: Hawaiian Airlines Airbus A321-271N WL N202HA (msn 7917) LAX (Michael B. Ing). Image: 940198.

Hawaiian Airlines aircraft slide show:

 

Hawaiian Holdings reports fourth quarter and record earnings in 2017

Hawaiian Airlines Boeing 767-3CB ER WL N592HA (msn 33468) SEA (Michael B. Ing). Image: 921922.

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., reported its financial results for the fourth quarter and full year 2017.

Fourth Quarter 2017 – Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Income

$172.1M

+$170.2M

$57.5M

$(11.3)M

Diluted EPS

$3.29

+$3.25

$1.10

$(0.18)

Pre-tax Margin

16.0%

+15.4 pts.

13.6%

(4.0) pts.

 

Full Year 2017 – Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Income

$364.0M

+$128.6M

$301.1M

+$21.1M

Diluted EPS

$6.82

+$2.46

$5.64

+$0.45

Pre-tax Margin

15.2%

(0.3) pts.

17.6%

(0.8) pts.

“We’re delighted to report record earnings for 2017 after our fourth quarter results cap an extremely strong year for Hawaiian” said Mark Dunkerley, Hawaiian Airlines president and CEO.  “Robust demand in all of our major geographies and moderate industry capacity growth offset the rising price of fuel.  We carried more guests this year than ever before and set new records for fourth quarter and full year revenue.  These results are the product of the tireless efforts of the 6,600 employees who deliver authentic Hawaiian hospitality on the ground and in the air every single day.

Looking ahead, 2018 stands to be a year that Hawaiian enters into the last phase of a strategy mapped out over a decade ago.  With new aircraft, new markets, and product enhancements tailored to the needs of the Hawai’i traveler, we are better equipped to compete today than at any time in our past.  We look forward to the year ahead and all that it has in store.”

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

On October 12, 2017, the Company announced the initiation of a quarterly cash dividend of 12 cents per share, the first of which was paid on November 30, 2017 to all stockholders of record as of November 17, 2017.

In addition, the Company repurchased approximately 2.5 million shares of common stock for approximately $100 million in 2017.  The Company also announced a new $100 million stock repurchase program in effect through December 31, 2019.

As of December 31, 2017 the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $460 million.
  • Outstanding debt and capital lease obligations of $571 million.

2017 Highlights

Operational

  • Carried a record 11.5 million passengers in 2017, a 4.1% increase over the previous year.
  • Completed new hangar facility which will provide significant efficiencies moving forward.
  • Introduced new uniforms which complements brand refresh that was unveiled earlier in the year.

New routes and increased frequencies

  • North America
    • Started operating new daily non-stop service between Portland International Airport (PDX) and Maui’s Kahului Airport (OGG) in January 2018.
    • Announced new daily non-stop service between San Diego International Airport (SAN) and Kahului (OGG) as well as between Long Beach Airport (LGB) and Honolulu’s Daniel K. Inouye International Airport (HNL) with both expected to start in May 2018.
    • Extended seasonal non-stop service to year-round non-stop service between Los Angeles International Airport (LAX) and Kaua’i’s Līhu’e Airport (LIH).
    • Commenced summer seasonal service with daily non-stop flights between OaklandInternational Airport (OAK) and Līhu’e (LIH) and thrice weekly flights between Los Angeles (LAX) and Kona International Airport (KOA).
    • Announced extended service between Los Angeles (LAX) and both Kona (KOA) and Kahului (OGG), between Oakland (OAK) and both Līhu’e (LIH) and Kona (KOA), and between San Francisco International Airport (SFO) and Honolulu (HNL).
  • International
    • Announced expansion of non-stop service between New Zealand’s Auckland Airport (AKL) and Honolulu (HNL) starting in March 2018.
    • Announced expanded seasonal summer flights to include daily non-stop service between Narita International Airport (NRT) and Honolulu (HNL).
  • Neighbor Islands
    • Launched daily round trip service between Maui’s Kapalua Airport (JHM) and both Honolulu (HNL) and Kahului (OGG), and between Līhu’e (LIH) and Kona (KOA).

Partnerships

  • Announced a new partnership with Japan Airlines (JAL) that provides for extensive code sharing, lounge access and frequent flyer program reciprocity, taking effect on March 25, 2018 (subject to government approval). Also announced the intention to establish a joint venture with JAL designed to provide even more choices, convenience and enhancements to the traveling public to/from Japan and beyond to multiple Asian markets.

Fleet and financing

  • Completed a sale-leaseback transaction covering three Boeing 767-300 aircraft as part of the planned exit from its Boeing 767-300 fleet.
  • Took delivery of its first two Airbus 321neo aircraft, its 24th Airbus 330-200 aircraft, and its first ATR 72 turboprop aircraft in an all-cargo configuration.
  • Entered into an agreement in January 2018 to purchase three Boeing 767-300s which it previously leased and will subsequently sell later this year in line with plans to retire its Boeing 767-300 fleet by the end of 2018.

People

  • Ratified a 63-month contract with its pilots represented by the Airline Pilots Association (ALPA).
  • Contributed $150.6 million during the year to employee benefit plans, comprised of a one-time payment of $18.5 million to fully fund and terminate the Hawaiian Airlines, Inc. Salaried & IAM Merged Pension Plan, a one-time payment of $101.9 million to settle a portion of the post-65 medical plan obligation in connection with the ratification of a contract amendment with the Air Line Pilots Association, representing its pilots, and a contribution of approximately $30.2 million, $25.5 million above the minimum required, to further reduce pension obligations.

Product and loyalty

  • Unveiled brand refresh in May 2017 which included an updated logo and aircraft livery.
  • Announced the introduction of remodeled Airbus 330-200 aircraft to its non-stop service between Sapporo’s New Chitose Airport (CTS) and Honolulu (HNL) starting in February 2018.

First Quarter and Full Year 2018 Outlook

The table below summarizes the Company’s expectations for the first quarter ending March 31, 2018 and the full year ending December 31, 2018, expressed as an expected percentage change compared to the pro forma results for the quarter ended March 31, 2017 or the year ended December 31, 2017, as applicable.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, and created a new topic (ASC 606), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASC 606 will replace most existing revenue recognition guidance in GAAP when it becomes effective.  ASC 606 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017.  The Company has elected to adopt the full retrospective transition method as of January 1, 2018, resulting in the restatement of all prior periods on the date of adoption. Metrics in the guidance tables below that have been impacted by ASC 606 are shown as both originally stated and on an unaudited pro forma basis.

Copyright Photo: Hawaiian Airlines is preparing to retire its last Boeing 767-300 by the end of this year. Hawaiian Airlines Boeing 767-3CB ER WL N592HA (msn 33468) SEA (Michael B. Ing). Image: 921922.

Hawaiian Airlines aircraft slide show:

Hawaiian Airlines to fly to Long Beach

Hawaiian's first Airbus A321neo

Hawaiian Airlines (Honolulu) will add a new Airbus A321neo connecting its Honolulu hib with Long Beach, CA. The new route will commence on May 31, 2018 per Airline Route.

Top Copyright Photo (call others by Hawaiian): Hawaiian Airlines Airbus A321-271N WL N202HA (msn 7917) LAX (Michael B. Ing). Image: 940200.

Hawaiian Airlines aircraft slide show:

Route Map:

 

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