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.”

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.

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.

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.

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

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.

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.

Hawaiian Airlines aircraft photo gallery:

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.

Hawaiian Airlines will relocate its ground services and check-in from Terminal 5 to Terminal 4 at John F. Kennedy International Airport (JFK), effective May 10. Hawaiian’s guests traveling to and from Honolulu (HNL) will enjoy JFK’s largest terminal with 21 food and beverage options, 36 retail shops and ample electronic charging stations.

Hawaiian, which will celebrate 10 years of service between Hawai‘i and New York next month, offers daily nonstop service between HNL and JFK with Airbus A330 aircraft featuring 18 First Class lie-flat leather seats arranged in a 2-2-2 configuration tailored for couples, families and honeymooners, as well as business travelers. Hawaiian’s A330s are also equipped with 68 of its popular Extra Comfort premium economy seats providing more legroom and enhanced amenities, in addition to 192 Main Cabin seats.

Hawaiian Airlines aircraft photo gallery:

Hawaiian Airlines today issued its 2022 Corporate Kuleana (Responsibility) Report, providing updates on Environmental, Social and Governance (ESG) performance and priorities, including new commitments to replace single-use plastics in cabin service by 2029 and locally source 40% of food and beverage for its Hawai‘i-based catering operations by 2025.

Hawai‘i’s largest and longest-serving carrier continues to advance an array of initiatives to reduce its environmental impact as it develops a roadmap to achieve net-zero carbon emissions by 2050. Hawaiian is exploring sustainable aviation fuel opportunities, preparing to induct a fuel-efficient fleet of Boeing 787-9 aircraft as soon as next year, and partnering with Conservation Internationalto offer a carbon offset program for travelers while committing to offset emissions from all of its employee business travel on the airline’s flights. Fleet modernization and fuel efficiency practices have driven progressive reductions in the carbon intensity of Hawaiian’s flight operations each year for the last four years.

Hawai‘i’s hometown airline also reaffirmed its focus on sustainable tourism last fall by producing a Travel Pono (Responsibly) in-flight video as the state of Hawai‘i began welcoming more visitors and COVID-19-related travel restrictions have eased. The pre-arrival educational spot features airline employees who provide tips on how Hawaiian’s guests can safely enjoy the islands while respecting communities, the culture and the environment. Additionally, Hawaiian last year offered significant funding to travel2change, a Hawai‘i nonprofit helping to train and scale organizations hosting regenerative tourism experiences.

“We remain engaged with grassroots, industry and political leaders on how we can shape a greener, more beneficial and equitable tourism economy,” Hawaiian Airlines President and CEO Peter Ingram said in the Corporate Kuleana Report.

To address plastic pollution, Hawaiian is committing to replacing 50% of single-use plastics from in-flight service items with sustainable alternatives by 2025 and 100% by 2029. Hawaiian expects to replace about 142,000 plastic bottles served onboard annually in a pilot project using aluminum bottles from water company Mananalu.

“Food sustainability is another important issue for us and our home state, and we support local food production,” the report adds. “Local sourcing of food both supports Hawai‘i’s economy and reduces greenhouse gas emissions associated with the shipping of products. Over the past few years we have reached 29% of our spending on locally sourced in-flight food and beverage products at our Hawai‘i hubs. By 2025, we are committed to increasing this metric to 40%.” Hawaiian also announced it would only use cage-free eggs for catering on all flights departing from Hawai‘i by 2025, and on all domestic flights by 2027.

While COVID-19 variants and surges made 2021 another trying year for the 93-year-old airline, widespread vaccinations, relaxation of travel restrictions and the appeal of a Hawai‘i vacation helped with Hawaiian’s recovery.

Last summer, Hawaiian operated its busiest transpacific domestic schedule in history, with new flights connecting Hawai‘i with Orlando, Austin and Ontario, California, as well as nonstop Long Beach-Kahului, Maui service. Hawaiian also resumed flights between Honolulu and American Samoa, Tahiti and Sydney. By year’s end, strong pent-up demand for travel to, from and within the islands had allowed Hawaiian to recall almost all employees accounted for in workforce reductions in late 2020.

As Hawaiian rebuilds its employee ‘ohana, it is doing so “with a renewed focus on strengthening our diversity, inclusion and belonging initiatives,” the report said.

“The heart of Hawaiian will always be our people,” said Ingram, noting that nearly 1,000 employees donated 3,100 hours to community causes in 2021. “We continue to strengthen our diversity, inclusion and belonging initiatives. We are working to ensure that recruitment, retention and promotions are free of bias, and we are listening to our employees and acting on their feedback. While we have much work to do, I am encouraged by our progress in fostering a more inclusive and diverse company.”

This year’s report for the first time also includes disclosures aligned with the Task Force on Climate-Related Financial Disclosures (TCFD), in addition to Sustainability Accounting Standards Board (SASB) metrics.