Hawaiian Airlines has entered into a supplemental agreement with Boeing, pursuant to which Hawaiian has agreed to purchase a total of two (2) additional Boeing 787-9 aircraft bringing its firm order of Boeing 787-9 aircraft under the Purchase Agreement and Supplemental Agreement to a total of twelve (12) Boeing 787-9 aircraft.
Additionally, as part of the Supplemental Agreement, Hawaiian and Boeing agreed to defer the delivery of ten (10) Boeing 787-9 aircraft previously scheduled for delivery beginning in the fourth quarter of 2022.
Deliveries of these Boeing 787-9 aircraft will commence in the fourth quarter of 2023 and will continue into 2027, with one Boeing 787-9 aircraft now scheduled for delivery in 2023 and three Boeing 787-9 aircraft now scheduled for delivery in 2024.
The delivery schedule disclosed above represents Hawaiian’s best estimate of timing of aircraft delivery under the Purchase Agreement and Supplemental Agreement, as of the date of this report. Actual delivery dates are subject to change based on various potential factors, including production delays by the manufacturer.
Hawaiian Airlines Airbus A330-200 (N393HA) operating flight HA35 from Phoenix to Honolulu on December 18 with 278 passengers and 10 crew, was descending as it approached Honolulu when the aircraft encountered turbulence
The airport reported 36 injuries and damage to the aircraft cabin.
33 passengers and 3 flight attendants sustained injuries. 20 were taken to hospitals, 11 were diagnosed with serious injuries.
Hawaiian Airlines issued this statement:
Hawaiian Airlines flight HA35 from Phoenix (PHX) to Honolulu (HNL) encountered severe turbulence and landed safely in HNL at 10:50 a.m. on Sunday, December 18.
We apologize to our guests for this incident and thank our crewmembers, first responders, hospital personnel, and airport teams for their coordinated response.
We are continuing to support our guests and employees who sustained injuries after Flight HA35 from PHX to HNL encountered severe turbulence. We are also conducting a thorough inspection of the aircraft before returning it to service.
Top Copyright Photo: Hawaiian Airlines Airbus A330-243 N393HA (msn 1422) JFK (Jay Selman). Image: 402453.
Hawaiian Airlines aircraft photo gallery:
BREAKING NEWS UPDATE | Dozens of people were injured after a Hawaiian Airlines flight bound from Phoenix to Honolulu encountered severe turbulence before landing at Daniel K. Inouye International Airport on Sunday. https://t.co/om9XFgzWjZ
Hawaiian Airlines will connect the Hawaiian Islands with the Cook Islands starting in May 2023 with a weekly flight between Honolulu (HNL) and Rarotonga (RAR).
The service, which launches on May 20, 2023 in time for the U.S. summer travel season, will provide travelers from Hawaiian’s 15 U.S. Mainland gateway cities convenient one-stop connections to the Cook Islands.
Flight HA495 will depart Honolulu at 4 p.m. on Saturdays and arrive in Rarotonga at 10:25 p.m. the same day. The return flight, HA496, will depart Rarotonga at 11:35 p.m. on Sundays with a 5:50 a.m. Monday arrival in Honolulu.
The flights will be operated with Airbus A321neo aircraft.
Top Copyright Photo: Hawaiian Airlines Airbus A321-271N WL N202HA (msn 7917) LAS (Michael B. Ing). Image: 959493.
Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., reported its financial results for the third quarter of 2022.
“We enjoyed strong demand for travel to Hawaiʻi this summer led by our North America routes and are encouraged to see these trends continue into the fall, while the relaxation of travel restrictions in Japan sets the stage for the full restoration of our network in the months ahead,” said Peter Ingram, president and CEO at Hawaiian Airlines. “Our competitive position is strong. And above all else we continue to have the best team in the business that has taken on every challenge over the last few years and continues to deliver outstanding service and hospitality.”
Financial Results
Third Quarter 2022
The Company reported:
GAAP net loss of $(9.3) million, and an adjusted net loss of $(7.7) million .
GAAP EPS of $(0.18) , and adjusted EPS of $(0.15) .
EBITDA of $46.8 million , and adjusted EBITDA of $47.9 million .
Third Quarter 2022 Highlights
Revenue Environment
The Company continued to enjoy strong demand throughout its domestic network and is seeing a solid recovery in its international network. The Company’s overall operating revenue was down 1.9% from third quarter 2019 as its international network is still rebuilding.
Other revenue was up 28.2% compared to the third quarter of 2019 driven by a strong quarter of cargo revenue and sales of HawaiianMiles.
Amazon Agreement
On October 21, 2022 , the Company announced an eight-year agreement with Amazon to provide flight operations and maintenance services for Amazon’s air cargo operation. Amazon will provide a minimum of 10 A330-300 freight aircraft, and the Company will provide crew and line maintenance for this fleet. The initial aircraft are scheduled to enter service in the second half of 2023. In support of this business, the Company will open mainland base(s) for crew and maintenance. Under the agreement, Amazon can grow its fleet with Hawaiian above the initial 10 aircraft and extend the contract beyond the initial eight-year term. This agreement will provide the Company with a new long-term diversified stream of revenue with no aircraft acquisition costs. As part of the agreement, Amazon will receive warrants to acquire up to 9.4 million of the Company’s common shares vesting over nine years.
Routes and Network
During the third quarter of 2022, the Company operated at 93% of its 2019 third quarter system capacity, comprised of 116%, 82% and 52% capacity on its North America , Neighbor Island and International routes, respectively.
Liquidity and Capital Resources
As of September 30, 2022, the Company had:
Unrestricted cash, cash equivalents and short-term investments of $1.4 billion
$1.7 billion in liquidity, including its undrawn $235 million revolving credit facility
Outstanding debt and finance lease obligations of $1.7 billion
Air traffic liability and current frequent flyer deferred revenue of $700 million
Operational Excellence
In August 2022 , the Company announced a partnership with Honolulu Community College to increase access to Aviation Maintenance Technician careers. The partnership will enable the college to double the number of students enrolled in the Aeronautics Maintenance Technology program by fall of 2023. One component of this program is the opportunity for students to take classes during the day while also participating in a paid part-time apprenticeship at Hawaiian Airlines.
Fourth Quarter 2022 Outlook
The Company expects its capacity for the quarter ending December 31, 2022 to be down approximately 4% to down 7% compared to the fourth quarter of 2019, mostly driven by the delay of the full restoration of its Japan network.
The Company expects its total revenue for the quarter ending December 31, 2022 to be up 1.5% to up 5.5% compared to the fourth quarter of 2019.
The Company expects its CASM excluding fuel and non-recurring items for the quarter ending December 31, 2022 to be up approximately 13% to 16% compared to the fourth quarter of 2019.
The Company’s outlook for adjusted EBITDA for the quarter ending December 31, 2022 is – $5 million to $35 million .
The table below summarizes the Company’s expectations for the quarter ending December 31, 2022 expressed as an expected percentage change compared to the results for the quarter ended December 31, 2019 .
Item
Fourth Quarter 2022 Guidance
GAAP Equivalent
GAAP Fourth Quarter 2022 Guidance
ASMs
Down 4% to 7%
Total Revenue
Up 1.5% to up 5.5%
Costs per ASM excluding fuel and non-recurring items (a)
Up 13% to 16%
Costs per ASM (a)
up 24% to 27%
Gallons of Jet Fuel Consumed
Down 5.5% to 8.5%
Fuel Price per Gallon (b)
$3.49
Adjusted EBITDA (c)
$-5 million to $35 million
Net Income (c)
(a) See Table 3 for a reconciliation of GAAP operating expenses to operating expenses excluding fuel and non-recurring items.
(b) Fuel Price per Gallon estimates are based on the October 13, 2022 fuel forward curve.
(c) The Company is not providing a reconciliation of adjusted EBITDA to GAAP net income, the most directly comparable GAAP measure, as it is unable, without unreasonable efforts, to calculate special and non-recurring charges, which could have a significant impact on the GAAP measure.
Statistical information, as well as a reconciliation of certain non-GAAP financial measures, can be found in the accompanying tables.
Full Year 2022 Outlook
The table below summarizes the Company’s updated expectations for the full year ending December 31, 2022 expressed as an expected percentage change compared to the results for the year ended December 31, 2019 .
Item
Full Year 2022 Guidance
Gallons of Jet Fuel Consumed
Down 10% to 13%
Fuel Price per Gallon (a)
$3.47
Effective Tax Rate
~18% to ~19%
Capital Expenditures
$120 million to $135 million
(a) Fuel Price per Gallon estimates are based on the October 13, 2022 fuel forward curve
Top Copyright Photo: Hawaiian Airlines Airbus A321-271N WL N216HA (msn 8471) LAX (Brian Worthington). Image: 957456.
Hawaiian Holdings, Inc., the parent company of Hawaiian Airlines, Inc., today announced an agreement with Amazon.com, Inc. and its subsidiaries to operate and maintain an initial fleet of 10 Airbus A330-300 freighters starting in the fall of 2023.
Hawaiian will maintain and fly Amazon’s A330s under Hawaiian’s FAA air carrier certificate to move cargo between airports near the online retailer’s operations facilities. The initial 10 aircraft will enter into service in 2023 and 2024. The agreement also contemplates the ability to expand the fleet depending on Amazon’s future business needs.
In preparation for service for Amazon, Hawaiian intends to establish a pilot base on the continental U.S., grow existing maintenance bases, and expand the hiring of pilots, mechanics, dispatchers, supply chain employees and others who will help support this new cargo operation.
In connection with the commercial agreement, the Company issued Amazon warrants to acquire up to 15 percent (post-issuance) of its common shares. The warrants are exercisable over the next 9 years.
Hawaiian – which in 1942 became the first commercial airline to transport scheduled U.S. air cargo with the nation’s first cargo certificate – today carries freight on passenger aircraft across its network of flights within Hawai’i and between the islands and North America, Asia and Oceania.
Southern Airways/Mokulele Airlines, the largest commuter airline in the country, and Hawaiian Airlines, Hawai’i’s largest and longest serving airline, have announced a new bilateral interline agreement to facilitate travel bookings and connections for passengers.
Hawaiian offers 130 flights within the islands and nonstop service connecting Hawai’i with 24 destinations in North America, Asia, Australia, New Zealand, Tahiti, and American Samoa. Southern/Mokulele operate over 150 daily departures throughout the Hawaiian Islands.
This new agreement means that passengers can purchase connections from Mokulele-served airports like Moloka’i, Lāna’i, and Kapalua to any Hawaiian Airlines destination worldwide in a single transaction, and upon check-in at the originating airport, receive boarding passes for their connecting flights.
Interline passengers traveling from the Continental U.S. or abroad who are flying on Hawaiian Airlines will also benefit from having checked luggage transferred automatically to their Mokulele destination.
Interline passengers also enjoy flight protections such as hotel accommodations and rebooked flights in the event of certain flight delays or cancellations by either airline.
The partnership between Hawaiian and Mokulele is bilateral, making connecting tickets available for purchase through Mokulele.com, online travel sites, travel agencies, or by calling Hawaiian Airlines.
Mokulele Airlines, which was founded in Kona 28 years ago, was purchased by Southern Airways in 2019. Since that time, Mokulele has grown to serve 10 Hawai’i destinations.
Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., reported its financial results for the second quarter of 2022.
“Strong demand in our domestic markets has been joined by an encouraging recovery from our international gateways in the second quarter” said Peter Ingram, Hawaiian Airlines President and CEO. “As we move into the summer travel peak every indication suggests a continuation of these positive trends. I am extremely proud of our team who continue to deliver the industry’s best reliability and service as we pursue our mission to connect people with aloha.”
Financial Results
Second Quarter 2022
The Company reported a GAAP net loss of $(36.8) million, and an adjusted net loss of $(46.1) million.
The Company reported GAAP EPS of $(0.72), and adjusted EPS of $(0.90).
The Company reported EBITDA of $12.9 million, and adjusted EBITDA of $1.1 million.
Second Quarter 2022 Highlights
Revenue Environment
The Company continued to enjoy strong demand throughout its domestic network and is seeing a solid recovery in its international network. The Company’s premium products performed exceptionally well during the quarter, with both business/first class revenue and Extra Comfort revenue exceeding 2019 levels. The Company’s overall operating revenue was down 2.9% from second quarter 2019 as its international network is still rebuilding.
Other revenue was up 26.6% compared to the second quarter of 2019 driven by a record quarter of cargo revenue and sales of HawaiianMiles.
Routes and Network
In April 2022 the Company announced it was resuming three-times-weekly nonstop service between Auckland, New Zealand and Honolulu, Hawai’i starting July 2, 2022 and a seasonal increase in frequency between Seoul, South Korea and Honolulu for the summer of 2022.
In May 2022 the Company announced its plan to resume service between Honolulu’s Daniel K. Inouye International Airport (HNL) and Tokyo Haneda Airport (HND) beginning August 1. The Company also announced an increase in weekly flights between HNL and Narita Airport (NRT) and Osaka’s Kansai Airport (KIX) beginning in August.
During the second quarter of 2022, the Company operated at 87% of its 2019 second quarter system capacity, comprised of 115%, 80% and 31% capacity on its North America, Neighbor Island and International routes, respectively.
Liquidity and Capital Resources
As of June 30, 2022, the Company had:
Unrestricted cash, cash equivalents and short-term investments of $1.5 billion
$1.8 billion in liquidity, including its undrawn $235 million revolving credit facility
Outstanding debt and finance lease obligations of $1.8 billion
Air traffic liability of $784 million
Operational Excellence
The Company maintained its #1 national ranking for On-Time Performance for the 18th consecutive year in 2021, as reported in the U.S. Department of Transportation (DOT) Air Travel Consumer Report.
In July 2022, Travel + Leisure named Hawaiian Airlines Best Domestic Airline.
Environmental, Social and Corporate Governance
In May 2022, the Company issued its 2022 Corporate Kuleana (Responsibility) Report, providing updates on Environmental, Social and Governance performance and priorities, including new commitments to replace single-use plastics in cabin service by 2029 and to locally source 40% of food and beverage for its Hawai’i-based catering operations by 2025.
In May 2022, the Company announced a strategic partnership with REGENT to support the initial design of its next-generation 100-person capacity all-electric seaglider known as the Monarch.
In June 2022, the Company announced a plan to jointly study the commercial viability of locally produced sustainable aviation fuels to replace all or a percentage of traditional fossil fuel-based jet fuel with fuel that is made with sustainable feedstocks.
In July 2022, the Company appointed Wendy Beck and Craig Vosburg to its Board of Directors.
Third Quarter 2022 Outlook
The Company expects its capacity for the quarter ending September 30, 2022 to be down approximately 5% to down 8% compared to the third quarter of 2019, mostly driven by the delay of the full restoration of its Japan network.
The Company expects its total revenue for the quarter ending September 30, 2022 to sequentially improve from the second quarter and be between down 3.5% to up 0.5% compared to the third quarter of 2019.
The Company expects its CASM excluding fuel and non-recurring items for the quarter ending September 30, 2022 to be consistent with the second quarter at up approximately 8% to 12% compared to the third quarter of 2019.
The Company’s outlook for adjusted EBITDA for the quarter ending September 30, 2022 is $15 million to $75 million.
The table below summarizes the Company’s expectations for the quarter ending September 30, 2022 expressed as an expected percentage change compared to the results for the quarter ended September 30, 2019.
Item
Third Quarter 2022 Guidance
GAAP Equivalent
GAAP Third Quarter 2022 Guidance
ASMs
Down 5% to 8%
Total Revenue
Down 3.5% to up 0.5%
Costs per ASM excluding fuel and non- recurring items (a)
Up 8% to 12%
Costs per ASM (a)
up 22% to 25%
Gallons of Jet Fuel Consumed
Down 7% to 10%
Fuel Price per Gallon (b)
$3.50
Adjusted EBITDA (c)
$15 million to $75 million
Net Income (c)
(a)
See Table 3 for a reconciliation of GAAP operating expenses to operating expenses excluding fuel and non-recurring items.
(b)
Fuel Price per Gallon estimates are based on the July 14, 2022 fuel forward curve.
(c)
The Company is not providing a reconciliation of adjusted EBITDA to GAAP net income, the most directly comparable GAAP measure, as it is unable, without unreasonable efforts, to calculate certain special and non-recurring charges, which could have a significant impact on the GAAP measure.
Statistical information, as well as a reconciliation of certain non-GAAP financial measures, can be found in the accompanying tables.
Full Year 2022 Outlook
The table below summarizes the Company’s expectations for the full year ending December 31, 2022 expressed as an expected percentage change compared to the results for the year ended December 31, 2019. Costs per ASM excludes any adjustments for labor agreements that are currently amendable or become amendable in 2022.
Item
Full Year 2022 Guidance
GAAP Equivalent
GAAP Full Year 2022 Guidance
ASMs
Down 11% to 8%
Costs per ASM excluding fuel and non- recurring items (a)
Up 12% to 15%
Costs per ASM (a)
Up 23% to 25.5%
Gallons of Jet Fuel Consumed
Down 14% to 11%
Fuel Price per Gallon (b)
$3.36
Effective Tax Rate
~19.5%
Capital Expenditures
$105 million to $125 million
(a)
See Table under “Non-GAAP Reconciliation” for a reconciliation of GAAP costs per ASM to costs per ASM excluding fuel and non-recurring items.
(b)
Fuel Price per Gallon estimates are based on the July 14, 2022 fuel forward curve.
Hawaiian Airlines will resume daily service between Honolulu’s Daniel K. Inouye International Airport (HNL) and Tokyo Haneda Airport (HND) on Aug. 1. Hawaiian, which today offers three weekly flights between HNL and Narita Airport (NRT) and one weekly flight between HNL and Osaka’s Kansai Airport (KIX), will also bring daily service to each route in August.
Hawaiian Airlines flight HA863 will depart HNL at 1:55 p.m., with an estimated arrival at HND at 5:10 p.m. the following day. The return flight, HA864, will depart HND at 8:15 p.m. and arrive at HNL at 9:05 a.m. the same day.
Earlier this month, Hawaiian launched its Boarding Pass campaign to encourage guests arriving from Japan to support local businesses during their visit to the islands. Guests can show their Hawaiian Airlines boarding pass at partner stores, including Foodland, Honolulu Cookie Company, Local Motion, Jana Lam and more, to receive special discounts and offers.
Hawaiian has not yet announced dates for service resumption to Fukuoka, Sapporo and Kona-Haneda. U.S. travelers should be aware of restrictions affecting entry into Japan.
REGENT has announced that Hawaiian Airlines has agreed to strategically invest in the company to support the initial design of its next generation 100-person capacity all-electric seaglider known as the Monarch. With this investment, Hawaiian Airlines becomes REGENT’s first U.S.-based design partner for the Monarch, which is slated for entry into commercial service by 2028.
“Innovative interisland transportation has been core to our business since 1929 when we replaced steam ships with airplanes. We are excited to be an early investor in REGENT and to be involved in developing their largest seaglider – a vehicle with great potential for Hawaiʻi’,” said Avi Mannis, Chief Marketing and Communications Officer at Hawaiian Airlines. “We look forward to working with REGENT to explore the technology and infrastructure needed to fulfill our vision for convenient, comfortable and environmentally sustainable interisland transportation.”
“Seagliders will be a game-changer for sustainable regional transportation in communities such as Hawai‘i. Through close partnerships with design partners and strategic investors such as Hawaiian Airlines, we can fully understand our operators and unlock their ability to provide zero-emission transportation solutions to their customers,” said Billy Thalheimer, REGENT CEO.
REGENT is a venture-backed aerospace and maritime company building all-electric seagliders, zero emission vehicles that provide harbor-to-harbor, overwater transportation at a fraction of the cost, noise, and emissions of existing regional transportation modes like aircraft and ferries. REGENT seagliders will offer a sustainable and resilient mode of regional coastal transportation, especially for residents of coastlines and archipelagos such as the Hawaiian Islands.
Power up! Are you ready to see #seaglider in action?
We're excited to finally share the birth of our seaglider technical demonstrator, from its christening in Rhode Island to its FLOAT and FOIL testing regime on the waters of Tampa Bay. 🌊#REGENT#seagliders#floatfoilflypic.twitter.com/plELVBbC2t
