Category Archives: Hawaiian Holdings

Hawaiian reports a GAAP net loss of $122.8 million

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., reported its financial results for the first quarter of 2022.

“Strong demand for leisure travel to Hawai‘i is poised to propel our domestic revenue to record levels as the effects of the pandemic are more muted now than at any point in the past two years. Based on these trends, we anticipate a resurgence of international demand as restrictive travel policies continue to loosen,” said Hawaiian Airlines President and CEO Peter Ingram. “I am extremely proud of our wonderful team who are committed to connecting people with aloha.”

Financial Results

First Quarter 2022

  • The Company reported a GAAP net loss of $(122.8) million, and an adjusted net loss of $(130.3) million.
  • The Company reported a GAAP EPS of $(2.39), and an adjusted EPS of $(2.54).
  • The Company reported EBITDA of $(96.0) million, and adjusted EBITDA of $(105.5) million.

 

First Quarter 2022 Highlights

Revenue Environment

The Company experienced strengthening demand throughout its domestic network as the impacts of Omicron eased through the quarter and COVID-19 restrictions for travel to the State of Hawai‘i were lifted at the end of March.  The Company’s domestic 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 is down 27% from first quarter 2019 as its international network is still rebuilding.

Other revenue was up 32% compared to the first quarter of 2019 driven by a record quarter of cargo revenue and the highest first quarter revenue from HawaiianMiles sales.

Routes and Network

In March 2022, the Company announced the return of daily nonstop service between Oakland, California and Kona, Hawai‘i from June 15, 2022 to September 6, 2022. The Company will also be adding a second daily flight between San Francisco, California and Honolulu, Hawai‘i from May 15, 2022 to August 1, 2022.

In April 2022, the Company announced the resumption of 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.

During the first quarter of 2022, the Company operated at 88% of its 2019 first quarter system capacity, comprised of 118%, 75% and 25% capacity on its North America, Neighbor Island and International routes, respectively.

The State of Hawai‘i ended its Safe Travels Hawai‘i restrictions on March 25, 2022, removing the requirement that domestic travelers complete a Safe Travels application, which included providing either proof of COVID-19 vaccination or a pre-travel negative COVID-19 test result, in order to avoid a required quarantine period upon entering Hawai‘i.

Countries in the Company’s international network made several positive changes to their respective travel restrictions including the following:

  • Australia lifted its remaining travel restrictions for visitors in February 2022 (restrictions were previously lifted for Australian citizens in December 2021);
  • South Korea lifted quarantine restrictions with proof of vaccination, requiring only a negative COVID-19 test within 48 hours of travel beginning April 1, 2022;
  • Japan ceased government required quarantine and increased allowable daily visitor arrivals to 10,000 beginning April 10, 2022; and
  • Starting May 1, 2022, New Zealand’s borders will reopen to vaccinated visitors from visa waiver countries, including the United States.

 

Liquidity and Capital Resources

As of March 31, 2022, the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $1.6 billion
  • $1.9 billion in liquidity, including its undrawn $235 million revolving credit facility
  • Outstanding debt and finance lease obligations of $1.9 billion
  • Air traffic liability of $761 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 March 2022, the Company opened a 3,000 square-foot line maintenance facility at Long Beach Airport in California to expand space for its aircraft mechanics to perform maintenance on its A321neo fleet which will enable greater operational flexibility.

In April 2022, the Company announced an agreement with SpaceX to deploy its Starlink satellite internet service on its long haul aircraft. The Company expects to launch complimentary inflight connectivity in 2023.

 

People

In February 2022, the Company’s employees represented by the International Association of Machinists and Aerospace Workers ratified five-year contracts that provide for wage increases and important work rule changes for nearly 2,500 employees.

In April 2022, the Company’s employees represented by the Transport Workers Union of America ratified a five-year contract that provides wage increases and important work rule changes for 55 employees.

In March 2022, the Company launched a statewide hiring campaign to recruit for hundreds of airport and operational positions, as well as administrative roles, to support the Company as it rebuilds its network back to 2019 levels.

 

Environmental, Social and Corporate Governance

The Company continues to focus on creating long-term value and positively impacting the people, the environment and the communities it serves. The Company will publish its third annual Corporate Kuleana report in May 2022, highlighting its Environmental, Social, and Governance commitments.

In April 2022, the Company announced a new partnership with Conservation International, which provides guests with the opportunity to purchase certified carbon offsets to offset their Hawaiian Airlines flight’s carbon emissions. The Company has also committed to offsetting all future business travel by its employees on Hawaiian’s flights.

 

Second Quarter 2022 Outlook

The Company expects its capacity for the quarter ending June 30, 2022 to be down approximately 11.5% to 14.5% compared to the second 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 June 30, 2022 to sequentially improve from the first quarter and be down approximately 8% to 12% compared to the second quarter of 2019 due to strong demand throughout its network.

The Company expects its CASM excluding fuel and non-recurring items for the quarter ending June 30, 2022 to be consistent with the first quarter at up approximately 16.5% to 19.5% compared to the second quarter of 2019.

The Company’s outlook of adjusted EBITDA for the quarter ending June 30, 2022 is $(50) million to $10 million, which reflects the resilient demand for Hawai‘i travel as the Company continues to rebuild its network.

The table below summarizes the Company’s expectations for the quarter ending June 30, 2022 expressed as an expected percentage change compared to the results for the quarter ended June 30, 2019.

 

Item

 

Second Quarter 2022 Guidance

 

GAAP Equivalent

 

GAAP Second Quarter 2022 Guidance

ASMs  

Down 11.5% to 14.5%

       
Total Revenue  

Down 8% to 12%

       
Costs per ASM excluding fuel and non-recurring items (a)  

Up 16.5% to 19.5%

 

Costs per ASM (a)

 

Up 27.8% to 30.2%

Gallons of Jet Fuel Consumed  

Down 14.5% to 17.5%

       
Fuel Price per Gallon (b)  

$3.59

       
Adjusted EBITDA (c)  

$(50) million to $10 million

 

Net Income (c)

   
Effective Tax Rate  

~21%

       

 

(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 April 21, 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 Company is suspending guidance for the year ending December 31, 2022 due to the continuing uncertainty surrounding the timing of the full resumption of its international network due to foreign government travel restrictions. The Company intends to resume providing full-year guidance when there is greater clarity related to its international markets.

 

Hawaiian Holdings reports its 2021 fourth quarter and full-year financial results

Hawaiian Airlines Airbus A321-271N WL N213HA (msn 8237) LAS (Keith Sommer). Image: 956582.

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc. reported its financial results for the fourth quarter and full year 2021.

Fourth Quarter 2021 – Key Financial Metrics
    GAAP   YoY Change   Adjusted   YoY Change
Net Income (Loss)   ($92.6M)   +$70.0M   ($70.3M)   +$102.5M
Diluted EPS   ($1.81)   +$1.69   ($1.37)   +$2.34
Pre-tax Margin   (24.1)%   +128.7 pts.   (18.4)%   +126.8 pts.

 

Full Year 2021 – Key Financial Metrics
    GAAP   YoY Change   Adjusted   YoY Change
Net Income (Loss)   ($144.8M)   +$366.2M   ($383.4M)   +$167.5M
Diluted EPS   ($2.85)   +$8.23   ($7.55)   +$4.41
Pre-tax Margin   (11.6)%   +71.3 pts.   (30.5)%   +56.7 pts.

“Throughout 2021 the Hawaiian Airlines team has executed a remarkable recovery from the depths of the pandemic.  Demand for leisure travel remains resilient as evidenced by strong domestic travel volumes to Hawaiʻi, and the building blocks continue to fall into place for a recovery of international demand in 2022,” said Peter Ingram, Hawaiian Airlines president and CEO. “I am energized every day by the outstanding contributions of my colleagues throughout Hawaiian who have positioned us for a bright future.”

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

Financial Results

Fourth Quarter 2021

The Company reported total revenue of $494.7 million, down 30% compared to the fourth quarter of 2019, on 19% lower capacity.

The Company reported total operating expenses of $566.1 million, and adjusted operating expenses of $443.4 million.

The Company reported EBITDA of ($58.9) million and adjusted EBITDA of ($30.7) million.

 

Full Year 2021

For the full year of 2021, the Company reported total revenue of $1.6 billion, down 44% compared to the full year of 2019, on 29% lower capacity.

The Company reported total operating expenses of $1.7 billion, and adjusted operating expenses of $1.6 billion.

The Company reported EBITDA of $63.4 million and adjusted EBITDA of ($238.7) million.

 

Liquidity and Capital Resources

As of December 31, 2021 the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $1.7 billion
  • Outstanding debt and finance lease obligations of $1.9 billion
  • Air traffic liability of $631.2 million

As of December 31, 2021, the Company had $2.0 billion in liquidity, including its undrawn $235 million revolving credit facility.

2021 Highlights

Routes and scheduled services

  • Launched four new routes with nonstop flights from Honolulu to Austin, Orlando, and Ontario and from Maui to Long Beach
  • Resumed certain international flights, between Hawaiʻi and French Polynesia, American Samoa, and Sydney, Australia
  • Participated in the Civil Reserve Air Fleet and deployed two wide-body aircraft to transport over 3,000 Afghan refugees between U.S. military bases

 

Guest experience

  • Eliminated change fees and announced no expiration of HawaiianMiles rewards
  • Opened new airside concourse in Honolulu (HNL) and moved to a new terminal in Los Angeles (LAX) offering improved experiences for our guests and employees
  • Announced intent to implement the Amadeus Altea software suite
  • Participated in the State of Hawaiʻi’s preclearance program to expedite guests through the State’s COVID-19 arrival protocols

Fleet and financing

  • Extended leases for two A330-200 aircraft and amended leases for two other A330-200 aircraft, reducing monthly rent payments
  • Raised a total of $1.6 billion in capital through a loyalty program financing, an at-the-market equity offering of common stock and participation in federal Payroll Support Programs
  • Repaid approximately $440.9 million in future debt obligations

 

Environmental, Social and Corporate Governance

  • Participated in the International Air Transport Association Annual General Meeting, and furthered the Company’s commitment to achieve net-zero carbon emissions by 2050
  • Published second annual Corporate Kuleana Report outlining progress in advancing various environmental, social and governance (ESG) initiatives
  • Pledged to offset emissions from international flights above 2019 levels in accordance with the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)

 

First Quarter 2022 Outlook

The table below summarizes the Company’s expectations for the quarter ending March 31, 2022 expressed as an expected percentage change compared to the results for the quarter ended March 31, 2019.

 

Item   First Quarter 2022 Guidance   GAAP Equivalent   GAAP First Quarter 2022 Guidance
ASMs   Down 10% to 13%        
Total Revenue   Down 31% to 35%        
Costs per ASM, excluding fuel and non-recurring items (a)   Up 10% to 13%   Costs per ASM (a)   Up 11.7% to 14.2%
Gallons of Jet Fuel Consumed   Down 18% to 21%        
Fuel Price per Gallon (b)   $2.53        
Adjusted EBITDA (c)   $(150) million to $(90) million   Net Income (c)    
Effective Tax Rate   ~21%        

 

Full Year 2022 Outlook

The Company is providing an update to its outlook for the full year 2022 based on changes since its prior outlook filed on Form 8-K with the Securities and Exchange Commission on December 13, 2021. 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   Updated Guidance   Prior Guidance   GAAP Equivalent, Updated Guidance   GAAP Equivalent, Prior Guidance
ASMs   Down 3% to up 1%   Flat to up 4%        
Costs per ASM excluding fuel and non-recurring items (a)   Up 3.5% to 7.5%   Up 2% to 6%   Cost per ASM (a) Up 5.8% to 9.0%   Cost per ASM (a) Up 1.5% to 5.5%
Gallons of Jet Fuel Consumed   Down 4.5% to 8.5%   Up 0.5% to down 3.5%        
Fuel Price per Gallon (b)   $2.42   $2.09        
Capital Expenditures   $105M To $125M   $365M to $385M        

 

The Company’s estimates for its costs per ASM excluding fuel and non-recurring items for the quarter ending March 31, 2022 and full year ending December 31, 2022, exclude any cost assumptions for the tentative agreements reached with the International Association of Machinists and Aerospace Workers (IAM).  When the agreement with the IAM is ratified, the Company expects a 1 to 1.5 point increase in its costs per ASM excluding fuel and non-recurring for the full year ending December 31, 2022 as compared to the year ended December 31, 2019.

 

(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 January 20, 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.

Top Copyright Photo: Hawaiian Airlines Airbus A321-271N WL N213HA (msn 8237) LAS (Keith Sommer). Image: 956582.

Hawaiian Airlines aircraft slide show:

Hawaiian Airlines aircraft photo gallery:

 

Hawaiian reports a $14.7 million net profit in the third quarter

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc. reported its financial results for the third quarter of 2021.

Third Quarter 2021 – Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Income (Loss)

$14.7M

$111.8M

$(48.7)M

$124.0M

Diluted EPS

$0.28

$2.39

$(0.95)

$2.81

Pre-tax Margin

3.8%

+192.8 pts.

(12.0)%

+309.4 pts.

“While our third quarter results were affected by the resurgence of COVID-19 cases associated with the Delta variant, momentum had moved in a positive direction by the end of the quarter, and we remain absolutely confident in our long-term prospects as leisure travel recovers globally,” said Peter Ingram, Hawaiian Airlines President and CEO. “Throughout this year of recovery the outstanding contributions of my colleagues have remained constant, and I am honored to be a part of this resilient team.”

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

Third Quarter 2021

Financial Results

For the third quarter of 2021, the Company reported GAAP net income of $14.7 million, and an adjusted net loss of $48.7 million.

The Company reported total revenue of $508.8 million, down 33% compared to the third quarter of 2019, on 21% lower capacity.

The Company reported total operating expenses of $465.4 million, and operating expenses excluding non-recurring items of $543.6 million, down 15% compared to the third quarter of 2019.

The Company achieved positive adjusted EBITDA for the first time since the beginning of the COVID-19 pandemic, with EBITDA of $83.0 million, and adjusted EBITDA of $2.8 million.

Routes and Network

In September 2021, the Company resumed scheduled service between Hawaiʻi and American Samoa. Travelers from Hawaiʻi to American Samoa must follow a series of health and safety protocols imposed by the government of American Samoa, including providing proof of vaccination and negative pre-travel test results.

In December 2021, the Company will resume service between Hawaiʻi and Sydney, Australia. Effective November 1, 2021, all fully vaccinated Australian citizens will be allowed to travel to and from Sydney, Australia with no quarantine requirements.

In the third quarter of 2021, the Company was one of six commercial airlines called to duty as part of the Civil Reserve Air Fleet. The Company deployed two widebody aircraft to transport over 3,000 Afghan refugees from Europe to U.S. military bases on the mainland on 13 flights over six days.

The State of Hawai’i continued its Safe Travels program in the third quarter of 2021, which permits:

  • All domestic travelers who are fully vaccinated in the U.S. to bypass COVID-19 testing and quarantine restrictions with proof of vaccination when traveling to the state.
  • International travelers to bypass quarantine restrictions with a negative COVID-19 test from an approved provider.

During the third quarter of 2021, the Company operated 79% of its 2019 third quarter system capacity, comprised of 114%, 76% and 13% capacity on its North America, Neighbor Island and International routes, respectively.

Liquidity and Capital Resources

As of September 30, 2021, the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $2.0 billion, down $187 million from June 30, 2021
  • Outstanding debt and finance lease obligations of $2.1 billion, down $63 million from June 30, 2021
  • Air traffic liability of $721 million, down $102 million from June 30, 2021

As of September 30, 2021, the Company had $2.2 billion in liquidity, including its undrawn $235 million revolving credit facility.

Fleet and Financing

In August 2021, the Company extended leases for two A330-200 aircraft.

In September 2021, the Company commenced a cash tender offer for all of its 7.375% Series 2020-1A pass through certificates due 2027 and 11.250% Series 2020-1B pass through certificates due 2025. The tender offer currently expires on November 1, 2021 and settlement is expected to occur on November 4, 2021.

Guest Experience

In August 2021, the Company launched operations in the new Mauka Concourse at Daniel K. Inouye International Airport (HNL). The new concourse offers an improved experience for travelers and visitors, the Company’s employees and all other airport users. In addition to helping relieve peak-hour gate congestion at HNL, the concourse’s modern and versatile gates can accommodate both narrow-body and wide-body aircraft, which brings more flexibility and efficiency across the Company’s operations.

In October 2021, the Company moved to a new terminal at Los Angeles International Airport. Also known as Tom Bradley International Terminal, Terminal B offers a modern and comfortable facility, featuring more amenities, expanded dining and shopping options and a spacious gate area.

In September 2021, the Company introduced its new ‘Travel Pono’ in-flight video, furthering its commitment to educate guests arriving in Hawaiʻi on how to safely and responsibly enjoy the islands.

The Company continues its enhanced cleaning procedures and guest-facing protocols to minimize the risk of transmission of COVID-19. Understanding that health and safety are still critical concerns for our guests, the Company will continue to focus on protective measures such as:

  • Frequent cleaning and disinfecting of counters and self-service check-in kiosks in airports.
  • Ensuring hand sanitizers are readily available for its guests at airports it serves.
  • Requiring guests and guest-facing employees to wear face masks, with guests required to wear masks from check-in to deplaning (except when eating or drinking on board).
  • Performing enhanced aircraft cleaning between flights and during overnight parking.

Environmental, Social and Corporate Governance

In October 2021, the Company participated in the International Air Transport Association Annual General Meeting, where the global air transport industry furthered its commitment to achieve net-zero carbon emissions by 2050. The Company has already pledged to be carbon neutral by 2050 and is committed to reducing its emissions and making the changes needed for a sustainable future.

Fourth Quarter 2021 Outlook

The Company expects its network to remain largely consistent with the third quarter of 2021, with some incremental recovery of its International network in the latter half of December. The Company expects a decline in total revenue compared to the third quarter of 2021, driven by seasonal factors and the impact the Delta variant has had on advance bookings. The Company expects an increase in operating expenses, excluding fuel and non-recurring items, compared to the third quarter of 2021, primarily driven by expenses related to capacity readiness.

The table below summarizes the Company’s expectations for the quarter ending December 31, 2021, expressed as an expected percentage change compared to the results for the quarter ended December 31, 2019, as applicable.

Item

Fourth Quarter 2021
Guidance

GAAP Equivalent

GAAP Fourth
Quarter 2021
Guidance

ASMs

Down 18 to 21%

Total Revenue

Down 32 to 37%

Operating Expenses, excluding fuel and non-
recurring items (a)

Down 7 to 11%

Operating Expenses (a)

Down 7 to 11%

Gallons of Jet Fuel Consumed

Down 21.5% to 24.5%

Fuel Price per Gallon (b)

$2.41

Adjusted EBITDA (c)

$(110) million to $(50) 
million

Effective Tax Rate

~21%

(a)

See Table 4 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, 2021 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 2021 Outlook

The Company expects its capital expenditures for the full year of 2021 to be between $40 and $45 million.

Hawaiian Airlines 2021 Corporate Kuleana Report: Persevering through the COVID-19 pandemic, emerging stronger

Hawaiian Airlines today released its 2021 Corporate Kuleana Report, which outlines the carrier’s progress on Environmental, Social and Governance (ESG) initiatives during the most challenging period in its 92-year history as a result of the COVID-19 pandemic.

“We are rising from this crisis not only with renewed optimism but as a better, more sustainable airline for our guests, our employees and the planet,” Hawaiian Airlines President and CEO Peter Ingram wrote in the report’s welcome message. “As we progress through 2021, I am incredibly proud of our team’s accomplishments in the face of extreme adversity and encouraged for our future.”

Addressing climate change remains one of Hawaiian’s key ESG priorities. The airline has committed to achieving net-zero carbon emissions by 2050 through ongoing fleet investments, more efficient flying, carbon offsets, and industry advocacy for air traffic control reform and sustainable aviation fuel development and proliferation. Starting this year, Hawaiian has pledged to offset emissions from international flights above 2019 levels, in accordance with the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

Hawai‘i’s hometown airline also defined steps it is taking to foster diversity and inclusion, calling it a “key driver of our success.” Evidence-based processes to minimize bias in hiring and promotional practices across Hawaiian have contributed to team diversity, with approximately 78% of its active workforce identifying as diverse based on ethnicity and 44% based on gender.

“We can always do better, and we are re-examining our practices to ensure Hawaiian Airlines remains a diverse, inclusive, equitable and desirable place to work, and where every team member is respected, valued and supported,” Ingram said.

Hawaiian Airlines Airbus A330

 

The report chronicles how Hawaiian – Hawai‘i’s only locally based major carrier and one of its largest employers – endured the devastating impacts of the pandemic by preserving financial resources, supporting employees and communities statewide, and safely providing essential transportation.

In the fourth quarter of 2020, Hawaiian became the first U.S. airline to establish a network of dedicated drive-through testing sites near its key gateway airports once the state of Hawai‘i began exempting travelers from quarantine with proof of a negative COVID-19 test.

“We enhanced disinfection throughout our operations and adopted an in-flight face covering policy as an added layer of protection in our cabins, which were already extremely safe by virtue of their built-in airflow and filtration systems,” the report noted.

In addition to maintaining vital transportation for passengers and cargo to, from and within the islands throughout the pandemic, Hawaiian employees participated in numerous philanthropic efforts, which took on renewed importance in 2020. Among the highlights:

  • More than 1,500 Hawaiian Airlines volunteers donated approximately 6,500 hours to cultural and environmental conservation initiatives, and to care for Hawai‘i’s most vulnerable community members. The airline also partnered with the Hawai‘i State Department of Education in a summerlong Kōkua our Schools project to refresh seven public campuses before educators welcomed students back in the fall semester.
  • The airline supported Hawai‘i’s medical workers, including doctors, nurses, assistants and volunteers who took over 600 complimentary neighbor island flights in April and May 2020 to conduct COVID-19 testing and deliver care.
  • Hawaiian donated $472,000 worth of catering goods – ranging from new hand towels and condiments to soft drinks and packaged foods – to nonprofits in Hawai‘i and throughout the carrier’s U.S. mainland network, as well as hundreds of thousands of soft goods and inflight items to local humanitarian organizations and schools, such as Main Cabin blankets, pillowcases and amenity kits, and First Class slippers, mattress pads and pillowcases.

 

Hawaiian’s 2021 Corporate Kuleana Report includes metrics established by the Sustainability Accounting Standards Board (SASB).

Hawaiian loses $60.7 million in the first quarter

Hawaiian Airlines Airbus A330-243 N386HA (msn 1302) LAX (Michael B. Ing). Image: 952315.

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., today reported its financial results for the first quarter of 2021.

First Quarter 2021 – Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Loss

($60.7M)

$83.7M

($190.6M)

($156.6M)

Diluted EPS

($1.23)

$1.91

($3.85)

($3.11)

Pre-tax Margin

(42.2)%

(10.9) pts.

(132.4)%

(124.4) pts.

“We reached an important inflection point during the first quarter on our path to recovery with an encouraging rebound in demand, despite the challenges that the COVID-19 pandemic continues to impose on our business. Bookings in North America improved materially as we began to realize the pent up demand for leisure travel after a year of lockdown,” said Peter Ingram , Hawaiian Airlines President and CEO. “I am grateful to my colleagues who continue to connect people with aloha in the face of historic uncertainty. I am more optimistic each day about our progress as we rebuild our network and capitalize on the resilience of Hawai’i as a post-pandemic vacation destination.”

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

First Quarter 2021

Financial Results

For the first quarter of 2021, the Company reported a net loss of $60.7 million , and adjusted net loss of $190.6 million .

The Company reported total revenue of $182 million , down 72% compared to the first quarter of 2019, on 49% lower capacity.  After a slow start to the year, the Company experienced a rebound in close-in demand in North America in March 2021.

The Company reported total operating expenses of $255.4 million , and operating expenses excluding non-recurring items of $402.7 million , down 33% compared to the first quarter of 2019.

Routes and Network

Throughout the first quarter of 2021, the State of Hawai’i continued its Safe Travels program, which allows guests to avoid quarantine with evidence of a negative COVID-19 test, subject to certain additional county-specific requirements.

The Company continued to rebuild as well as expand its network primarily in North America . During the first quarter, the Company operated an average of 51% of its first quarter system 2019 capacity, comprised of 73%, 38% and 12% of North America , Neighbor Island and International 2019 capacity levels, respectively.

In March and April of 2021, the Company launched four new North America routes. Starting in the summer of 2021, the Company will expand frequencies on the less than daily routes.

  • Daily service between Kahului Maui (OGG) and Long Beach (LGB), which started March 9, 2021 .
  • Twice weekly service between Honolulu’s Daniel K. Inouye International Airport (HNL) and Orlando International Airport (MCO), which started March 11, 2021 .
  • Five-times-weekly service between Honolulu’s Daniel K. Inouye International Airport (HNL) and Ontario International Airport (ONT), which started March 16, 2021 .
  • Twice weekly service between Honolulu’s Daniel K. Inouye International Airport (HNL) and Austin-Bergstrom International Airport (AUS), which started April 21, 2021 .

In April 2021 , the Company announced it will initiate four-times-weekly service between Kahului Maui (OGG) and Phoenix Sky Harbor International Airport (PHX) starting in May 2021 .

Liquidity and Capital Resources

As of March 31, 2021, the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $1.9 billion , up $1.0 billion from December 31, 2020
  • Outstanding debt and finance lease obligations of $2.1 billion , up $852 million from December 31, 2020
  • Air traffic liability of $687 million , up $154 million from December 31, 2020

The Company further enhanced its liquidity position during the first quarter of 2021, including:

  • In February 2021 , Hawaiian completed a private placement by Hawaiian Brand Intellectual Property, Ltd., an indirect wholly owned subsidiary of Hawaiian, and HawaiianMiles Loyalty, Ltd., an indirect wholly owned subsidiary of Hawaiian, of an aggregate of $1.2 billion principal amount of 5.75% senior secured notes due 2026.
  • In March 2021 , the Company completed an at-the-market equity offering (“ATM program”) of shares of its common stock. The Company issued an aggregate of 5.0 million shares through the ATM program, raising net proceeds of $109 million , of which $68 million was raised in the first quarter of 2021.
  • As of March 31, 2021 , the Company has received $147.3 million in grants and $20.2 million in loans pursuant to the Payroll Support Program Extension Agreement (the “PSP Extension Agreement”) with the U.S. Department of the Treasury.

In February 2021 , the Company repaid in full the $45 million loan from the U.S. Department of Treasury under the Economic Relief Program pursuant to the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). This debt extinguishment resulted in the recognition of a non-operating loss of $4 million.

In February 2021 , the Company repaid $235 million of borrowings under its revolving credit facility, of which the full amount is available to the Company.

In the second quarter of 2021, the Company expects to receive approximately $25.1 million pursuant to the PSP Extension Agreement and approximately $179.7 million in Payroll Support Program funds pursuant to a Payroll Support Program 3 Agreement (“PSP3”) with the U.S. Department of Treasury under the American Rescue Plan Act of 2021.

As of March 31, 2021 , the Company had $2.1 billion in liquidity, including the undrawn portion of its revolver. This figure does not include the $205 million of additional PSP Extension Agreement and PSP3 funding that the Company expects to receive in the second quarter. The Company is confident it has the liquidity to weather the remaining near-term effects of the pandemic and is not currently looking to raise additional capital.

Guest Experience

The Company continues to adapt its policies and services to better meet the needs of its guests. In April 2021 , the Company announced that HawaiianMiles – the currency of its award-winning loyalty program – will no longer expire. This policy comes in addition to the elimination of change fees and the extension of status for Hawaiian’s elite members.

In the first quarter, the Company joined the State of Hawai’i Pre-Clear Program, allowing its guests in both domestic and participating international markets ( Japan and Korea) who are entering the state of Hawai’i to validate their pre-travel testing status at their departure airport and avoid lines upon arrival in Hawai’i.

Starting June 1, 2021 , the Company will bring back more of its signature onboard services, including drink service, complimentary Koloa Breeze cocktails, and a curated assortment of alcoholic beverages and snacks for purchase, in addition to the complimentary meals it has served throughout the pandemic, while maintaining the highest standards of safety for its guests and guest-facing team members.

The Company continues its enhanced cleaning procedures and guest-facing protocols to minimize the risk of transmission of COVID-19. Understanding that health and safety are still critical concerns for our guests, the Company will continue to focus on effective measures such as:

  • Frequent cleaning and disinfecting of counters and self-service check-in kiosks in airports.
  • Ensuring hand sanitizers are readily available for guests at airports it serves.
  • Requiring guests and guest facing employees to wear a face mask or covering, with guests required to wear masks from check-in to deplaning (except when eating or drinking on board).
  • Performing enhanced aircraft cleaning between flights and during overnight parking.

Awards and Recognition

The Company maintained its #1 national ranking for On-Time Performance for the 17th consecutive year in 2020 as well as in January and February of 2021, as reported in the U.S. Department of Transportation (DOT) Air Travel Consumer Report.

Second Quarter 2021 Outlook

The Company expects to continue to rebuild its network in the second quarter, and expects significant sequential improvement in revenue compared to the first quarter, primarily driven by strength in North America.  The Company expects a sequential increase in operating expenses, excluding non-recurring items, driven by the increase in capacity as compared to the first quarter.

The table below summarizes the Company’s expectations for the second quarter ending June 30, 2021 , expressed as an expected percentage change compared to the results for the quarter ended June 30, 2019 , as applicable.

Item

Second Quarter 2021
Guidance

GAAP Equivalent

GAAP Second
Quarter 2021
Guidance

ASMs

Down 30 to 33%

Total Revenue

Down 45 to 50%

Operating Expenses, excluding non-recurring items (a)

Down 20 to 24%

Operating Expenses (a)

Down 35 to 39%

Interest Expense

$30 million

Adjusted EBITDAR (b)

($70) million to ($20)  million

Effective Tax Rate

~21%

Fuel Price per Gallon

$1.75

(a) See Table 4 for a reconciliation of GAAP operating expenses to operating expenses excluding non-recurring items.

(b) The Company is not providing a reconciliation of adjusted EBITDAR 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 2021 Outlook

The Company expects its capital expenditures for the full year of 2021 to be between $50 and $60 million.

Top Copyright Photo: Hawaiian Airlines Airbus A330-243 N386HA (msn 1302) LAX (Michael B. Ing). Image: 952315.

Hawaiian aircraft slide show:

Hawaiian Holdings loses $97.1 million in the third quarter, delays 787 Dreamliner deliveries

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., today reported its financial results for the third quarter of 2020.

Third Quarter 2020 – Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Income

($97.1M)

($177.2M)

($172.7M)

($254.1M)

Diluted EPS

($2.11)

($3.81)

($3.76)

($5.48)

Pre-tax Margin

(189.0)%

(203.4) pts.

(321.4)%

(336) pts.

“The COVID-19 pandemic and State of Hawai’i quarantines continued to have a dramatic effect on our business in the third quarter,” said Peter Ingram, Hawaiian Airlines President and CEO.  “Despite these monumental challenges, my colleagues throughout the business have done an incredible job adapting to the evolving environment.  We have taken action to reduce expenses, preserve cash, bolster our liquidity and care for our guests, positioning us to begin the recovery process in earnest with the introduction of the State of Hawai’i’s pre-travel testing regime in the fourth quarter.”

Liquidity and Capital Resources

As of September 30, 2020, the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $979 million
  • Outstanding debt and finance lease obligations of $1,299 million
  • Air traffic liability of $515 million

Third Quarter 2020

The State of Hawai’i was under mandatory 14-day self-quarantine for all incoming travelers throughout the third quarter of 2020, and for neighbor island travel starting from August 11, 2020 and as a consequence, the Company operated an extremely limited schedule during the third quarter.

During the quarter, the Company implemented both permanent and extended voluntary leave programs with each of its workgroups, and prepared for involuntary reductions effective October 1, 2020.  In total, the Company reduced its workforce by approximately 2,400 employees, or more than 32 percent of all employees, of which almost 2,100 were through voluntary means.

To increase liquidity, the Company closed on approximately $421 million of new financing during the quarter, including:

  • Raising approximately $114 million through the sale and leaseback of two Airbus A321neo aircraft
  • Raising approximately $262 million through the issuance of Enhanced Equipment Trust Certificates backed by two Airbus A330 aircraft and six Airbus A321neo aircraft
  • Drawing approximately $45 million of the $420 million available through the Economic Relief Program (“ERP”) loans offered under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”)

As of September 30, 2020, the Company has received $240.6 million in grants and $60.3 million in loans pursuant to the CARES Act Payroll Support Program (“PSP”), of which $38 million was received in the third quarter.

In October 2020, the Company executed an amendment with the U.S.Treasuryincreasing the total amount of the ERP loan from $420 million to $622 million, of which $577 million is undrawn; the Company has until March 2021 to determine how much of the remaining ERP funds to borrow.

Guest Experience

During the third quarter, the Company announced the following guest experience improvements:

  • Eliminated change fees on all domestic and international flights in order to provide guests with travel flexibility across its network
  • Launched a program to offer guests pre-travel COVID-19 testing through mail-in test kits and proprietary drive-through testing labs in select U.S. mainland gateways

In addition, the Company continued its enhanced cleaning procedures and revised guest-facing procedures as part of its health and safety program, which is aligned with current recommendations from leading public health authorities.

The Company currently has limited capacity to 70 percent on its flights through December 15, 2020.

Fourth Quarter 2020

The State of Hawai’i launched a pre-travel testing program for travelers entering the State on or after October 15, 2020.  Travelers who choose to participate in the program can bypass the State’s mandatory 14-day quarantine with proof of a negative COVID-19 test from one of the State’s approved testing partners.

The Company expects its fourth quarter 2020 capacity to be approximately 70 percent below the capacity flown during the same period last year.  As a significant portion of the Company’s costs are fixed, operating expenses are not expected to decline in proportion to the capacity decline.

In October 2020, the Company reached an agreement with Boeing to push back the timing of 787-9 deliveries under its purchase agreement for 10 aircraft.  The Company now expects to take delivery of 787-9 aircraft from 2022 to 2026 with its first aircraft to be delivered in September 2022.

 

Hawaiian loses $106.9 million in the second quarter

Hawaiian Airlines reported its financial results for the second quarter of 2020.

Second Quarter 2020 – Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Income

($106.9M)

($164.7M)

($174.7M)

($233.6M)

Diluted EPS

($2.33)

($3.54)

($3.81)

($5.04)

Pre-tax Margin

(254.2)%

(265.4) pts.

(383.9)%

(395.3) pts.

“Our second quarter results reflect the continued impact of COVID-19 and State of Hawai’i quarantines on our business,” said Peter Ingram, Hawaiian Airlines President and CEO.  “In the face of these unprecedented challenges, we have taken action to preserve and raise cash and are crafting plans to position us for the future even as we address the immediate adversity.  With our leisure business model and relentless focus on the needs of the Hawai’i traveler, we are positioned to emerge from this crisis poised for success.  I am grateful, as always, for the efforts of my extraordinary colleagues, as they take care of our guests and adapt to this ever-changing environment with passion and dedication.”

Liquidity and Capital Resources

As of June 30, 2020, the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $761 million
  • Outstanding debt and finance lease obligations of $1,006 million
  • Air traffic liability of $554 million

Second Quarter 2020

The State of Hawai’i was under the mandatory 14-day self-quarantine for both neighbor island and all incoming travelers for most of the second quarter of 2020, and as a consequence, the Company operated an extremely limited schedule. The mandatory 14-day self-quarantine restriction was lifted on June 16, 2020 for neighbor island travel only. Following this announcement, the Company increased neighbor island flight activity, but continued with its reduced schedule for longer haul flights.

In addition to service suspension and schedule reduction, the Company has taken, and will continue to take, actions to minimize cash outflow in an effort to mitigate the effects of reduced demand, including, but not limited to:

  • Suspended dividend payments on, and the repurchase of, its common stock
  • Instituted a hiring freeze across the Company, except for operationally critical and essential positions
  • Deferred non-critical capital expenditures
  • Instituted voluntary unpaid leave programs and exploring involuntary headcount reduction
  • Reduced executive pay by 10% – 50%
  • Reduced other discretionary spending, including contractor and vendor spend
  • Negotiated payment deferrals with key vendors

As of June 30, 2020, the Company has received $214.2 million in grants and $49.0 millionin loans pursuant to the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) Payroll Support Program (“PSP”). The Company expects to receive an additional $29.2 million in July 2020.

Third Quarter 2020

Due to the uncertain timing of the relaxation of travel and quarantine restrictions, the Company is unable to provide detailed guidance related to capacity expectations for the quarter ending September 30, 2020.  July 2020 capacity, in terms of available seat miles (ASMs), is expected to be approximately 86% below the capacity flown in July 2019, and the Company expects August 2020 capacity to decrease 85% compared to August 2019.  As a significant portion of the Company’s costs are fixed, operating expenses are not expected to decline in proportion to the capacity decline.

To further increase liquidity, the Company has entered into additional financing transactions in July 2020. This includes the following:

  • Raised $114 million through the sale and leaseback of two Airbus A321neo aircraft
  • Signed a non-binding letter of intent with the U.S. Department of Treasury pursuant to which the Company is eligible to receive up to $364 million in Economic Relief Program (“ERP”) loans offered under the CARES Act; the Company has until March 2021 to determine how much of the available ERP funds to borrow.

COVID-19 Response – Guest Experience and Community Relations

In response to the COVID-19 pandemic, the Company has enhanced cleaning procedures and revised guest-facing procedures in an effort to minimize the risk of transmission of COVID-19. These procedures are in line with current recommendations from leading public health authorities and include:

  • Performing enhanced aircraft cleaning between flights and overnight, including recurring electrostatic spraying of all aircraft
  • Frequent cleaning and disinfecting of counters and self-service check-in kiosks in our airports
  • Ensuring hand sanitizers are readily available for guests statewide and at our mainland airports
  • Requiring guests and guest-facing employees to wear face masks or coverings, with guests required to keep them on from check-in to deplaning
  • Modifying boarding and deplaning processes and limiting the capacity of available seats on all aircraft to no higher than 70% to provide physical distancing
  • Changing in-flight service to reduce close interactions between crew members and guests

The Company, along with its employees, has also taken measures to support the community through the COVID-19 pandemic, which include:

  • Donating Main Cabin and Business Class pillowcases, blankets, mattress pads, amenity kits, and Business Class slippers to 12 local organizations serving the community during the pandemic
  • Offering complimentary neighbor island transportation for medical professionals in April and May
  • Providing complimentary transportation of food and household items from O’ahu to both Moloka’i and Lana’i in April and May
  • Volunteering to support local non-profit organizations addressing the COVID-19 pandemic, from company-wide efforts to individual employee initiatives

Hawaiian Airlines aircraft photo gallery:

Hawaiian Airlines aircraft slide show:

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Hawaiian Holdings reports 2019 fourth quarter and full year financial results

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., reported its financial results for the fourth quarter and full year 2019.

Fourth Quarter 2019 – Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Income

$49.7M

+$18.1M

$45.9M

$(3.3)M

Diluted EPS

$1.07

+$0.43

$0.99

$(0.01)

Pre-tax Margin

9.6%

+3.6 pts.

8.9%

(0.4) pts.

Full Year 2019 – Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Income

$224.0M

$(9.2)M

$218.9M

$(55.9)M

Diluted EPS

$4.71

+$0.09

$4.60

$(0.84)

Pre-tax Margin

10.8%

+0.2 pts.

10.5%

(2.1) pts.

“Hawaiian delivered another year of strong financial results in 2019, despite the heightened competitive capacity environment we faced throughout the year,” said Peter Ingram, Hawaiian Airlines president and CEO.  “These results are a testament to the competitive advantages we have built and give me great confidence in our ability to continue to execute well in the years ahead.  My thanks, as always, go out to the 7,400 outstanding professionals both in the day-to-day operation and in the back office, for keeping us competition-fit, running the best operation in the business, and delivering aloha to our guests day-in and day-out.”

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

The Company returned $91.6 million to shareholders in 2019 through $68.8 million in share repurchases and $22.8 million in dividends.

On January 24, 2020 the Company’s Board of Directors declared a quarterly cash dividend of 12 cents per share to be paid on February 28, 2020 to all shareholders of record as of February 14, 2020.

As of December 31, 2019 the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $619 million.
  • Outstanding debt and finance lease obligations of $764 million.

2019 Highlights

Operational

  • Carried 11.8 million passengers in 2019.
  • Ranked #1 nationally for on-time performance year-to-date through November 2019, as reported in the U.S. Department of Transportation Air Travel Consumer Report, adding to its record of 15 consecutive years as the most punctual airline.
  • Opened a new 15,000 square-foot Information Technology Center in Tempe, Arizona.
  • Announced the expansion of its in-house pilot training capabilities with its planned purchase of a Boeing 787-9 flight simulator.

Customer Experience

  • Debuted newly designed lobbies at Daniel K. Inouye International Airport (HNL), Kahului Airport (OGG), Kona International Airport (KOA), Hilo International Airport (ITO), and Lihue Airport (LIH), as part of its ongoing initiative to improve the day-of travel experience for its guests.

New routes and increased frequencies

  • North America
    • Began service on its second East Coast route with new five-times-weekly non-stop flights between Boston Logan International Airport (BOS) and Honolulu (HNL).
    • Expanded its routes to Northern California with the launch of new daily non-stop flights between Sacramento International Airport (SMF) and Maui (OGG) and expanded service between San Francisco International Airport (SFO) and Honolulu(HNL).
    • Expanded its routes to Las Vegas with the launch of new four-times-weekly non-stop flights between McCarran International Airport (LAS) and Maui (OGG).
    • Announced expanded service to the Pacific Northwest with additional thrice-weekly non-stop flights between Seattle-Tacoma International Airport (SEA) and Honolulu(HNL) beginning January 2020.
  • International
    • Began service on its sixth Japan route with new four-times-weekly non-stop flights between Fukuoka Airport (FUK) and Honolulu (HNL).
    • Received final U.S. Department of Transportation approval to operate one additional daily non-stop flight between Tokyo Haneda Airport (HND) and Honolulu (HNL) beginning March 2020.

Product and loyalty

  • Launched sales of Main Cabin Basic fares in all North American markets, enhancing Hawaiian’s product portfolio with a fare option that appeals to the most price-conscious travelers.
  • Launched a new Hawaiian Airlines mobile app with features designed to improve guests’ day-of-travel experience.

Partnerships

  • Expanded its codeshare agreement with Virgin Australia that offers travelers in more than a dozen Australian and New Zealand cities a broader and more convenient network of flights to Hawai’i.

Fleet and financing

  • Took delivery of six Airbus A321neo aircraft, increasing the size of its Airbus A321neo fleet to seventeen aircraft.
  • Retired the last of its Boeing 767 aircraft.
  • Completed two Japanese Yen-denominated debt financings, collateralized by four Airbus A330 aircraft and two Airbus A321neo aircraft.
  • Extended the leases on three Airbus A330 and five Boeing 717 aircraft, enabling cost savings while maintaining fleet flexibility for future growth.

People

  • Celebrated its 90th year of service in the Hawaiian Islands with festivities in the air and on the ground to thank the customers and local communities who supported its evolution from pioneer interisland carrier to global airline.

Hawaiian Airlines aircraft photo gallery:

Hawaiian Holdings reports 2019 first quarter financial results

"Humu"

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., today reported its financial results for the first quarter of 2019.

First Quarter 2019 – Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Income

$36.4M

+$7.8M

$32.6M

$(23.3)M

Diluted EPS

$0.75

+$0.19

$0.67

$(0.42)

Pre-tax Margin

7.5%

+1.9 pts.

6.7%

(4.3) pts.

 

“Hawaiian is off to a solid start in 2019,” said Peter Ingram, Hawaiian Airlines president and CEO. “We made important progress against our 2019 priorities in the first quarter, advancing a host of initiatives that will bring lasting value to our guests, our team, and our shareholders. Executing the winning formula we have crafted in the course of 90 years of serving Hawai’i with the best mix of service, products, and aircraft positions us well to continue to succeed in the face of an evolving competitive environment. We look forward to the rest of 2019 and demonstrating, yet again, that Hawaiian is 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.

Shareholder Returns, Liquidity and Capital Resources

The Company returned $16.9 million to shareholders in the first quarter through share repurchases of $11.1 million and a dividend payment of $5.8 million.

On April 19, 2019 the Company’s Board of Directors declared a quarterly cash dividend of 12 cents per share to be paid on May 31, 2019 to all shareholders of record as of May 17, 2019.

As of March 31, 2019, the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $532 million
  • Outstanding debt and capital lease obligations of $613 million

First Quarter 2019 Highlights

Awards and Recognition

  • Ranked #1 nationally for on-time performance for the 15th consecutive year in 2018 as reported in the U.S. Department of Transportation (DOT) Air Travel Consumer Report.

Partnerships

  • Received notification from the U.S. Department of Transportation (DOT) that its antitrust immunity application with Japan Airlines was deemed substantially completed.
  • Announced a partnership with Carbon Lighthouse to launch a two-month pilot program focused on reducing energy waste at its Airport Center building.
  • In April, announced an expanded codeshare agreement with Virgin Australia that offers travelers in more than a dozen Australian and New Zealand cities a broader and more convenient network of flights to Hawai’i.

Products and Services

  • In April, selected partners for development of its Boeing 787-9 Dreamliner seats. Adient Aerospace and Collins Aerospace will design and supply seats for the Company’s new flagship aircraft scheduled to enter its transpacific route network in 2021.
  • Launched a brand new Hawaiian Airlines mobile app with features designed to improve guests’ day-of-travel experience.

Routes and Network

  • In April, began service on its second East Coast route with five-times-a-week non-stop service between Boston’s Logan International Airport (BOS) and Honolulu’s Daniel K. Inouye International Airport (HNL).
  • Expanded its service to Northern California with:
    • the launch of new daily non-stop service between Maui’s Kahului Airport (OGG) and Sacramento International Airport (SMF); and
    • the announcement of new daily non-stop service between San FranciscoInternational Airport (SFO) and Honolulu (HNL) using new Airbus A321neo aircraft beginning October 2019, augmenting daily flights between San Francisco(SFO) and both Honolulu (HNL) and Maui (OGG).
  • Submitted its application to the U.S. Department of Transportation (DOT) for three additional daily flights between Honolulu (HNL) and Tokyo Haneda Airport (HND).

Fleet

  • Took delivery of one Airbus A321neo aircraft in March, increasing the size of its A321neo fleet to twelve aircraft.
  • Retired the last of its Boeing 767-300 aircraft in January.

Top Copyright Photo (all others by the airline): Hawaiian Airlines Airbus A330-243 N375HA (msn 1606) SEA (Michael B. Ing). Image: 946279.

Hawaiian aircraft slide show:

Hawaiian Holdings reports 2018 fourth quarter and full year financial results

Named "Nahiku"

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., reported its financial results for the fourth quarter and full year 2018.

Fourth Quarter 2018 – Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Income

$31.6M

$(116.8)M

$49.2M

$(5.7)M

Diluted EPS

$0.64

(2.20)

$1.00

$(0.05)

Pre-tax Margin

6.0%

(9.5) pts.

9.3%

(3.8) pts.

Full Year 2018 – Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Income

$233.2M

$(97.4)M

$274.8M

$(14.1)M

Diluted EPS

$4.62

$(1.57)

$5.44

+$0.03

Pre-tax Margin

10.6%

(4.0) pts.

12.6%

(4.4) pts.

 

“Hawaiian delivered another year of strong financial results in 2018, with an adjusted pre-tax margin in the top tier of industry performance,” said Peter Ingram, Hawaiian Airlines president and CEO.  “Undaunted by higher fuel prices, elevated competitive capacity, aircraft delivery delays and severe weather events, our employees once again demonstrated why Hawaiian is the carrier of choice to Hawai’i.

“2019 will be an important year for Hawaiian.  Successfully dealing with all of 2018’s twists and turns gives me tremendous confidence in our ability to sustain and build upon our achievements in the years ahead.”

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

The Company returned $126.7 million to shareholders in 2018 through $102.5 million in share repurchases and $24.2 million in dividends.  In December 2018, the Company also announced a new $100 million share repurchase program in effect through December 31, 2020.

On January 25, 2019 the Company’s Board of Directors declared a quarterly cash dividend of 12 cents per share to be paid on February 22, 2019 to all shareholders of record as of February 8, 2019.

As of December 31, 2018 the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $501 million.
  • Outstanding debt and capital lease obligations of $710 million.

2018 Highlights

Operational

  • Carried a record 11.8 million passengers in 2018, a 2.9 percent increase over the previous year.
  • Announced it will open a technology center in Phoenix, Arizona, in the first quarter of 2019 to strengthen its IT capabilities.

New routes and increased frequencies

  • North America
    • Expanded its routes to the Pacific Northwest with the launch of new daily nonstop service between Portland International Airport (PDX) and Maui’s Kahului Airport (OGG).
    • Expanded its routes to Southern California with the launch of new daily nonstop flights between Long Beach Airport (LGB) and Honolulu’s Daniel K. Inouye International Airport (HNL), and new daily nonstop flights between San DiegoInternational Airport (SAN) and Maui (OGG).
    • Extended seasonal nonstop service to year-round non-stop service between Los Angeles International Airport (LAX) and Ellison Onizuka Kona International Airport (KOA).
    • Announced expanded service to Northern California with new daily nonstop flights between Sacramento International Airport (SMF) and Maui (OGG) beginning April 2019.
    • Announced its second East Coast route with new five-times-a-week nonstop service between Boston’s Logan International Airport (BOS) and Honolulu (HNL) beginning April 2019.
  • International
    • Expanded seasonal winter service to international destinations, including:
      • increasing nonstop service between Seoul’s Incheon International Airport (ICN) and Honolulu (HNL) to daily flights between mid-January and early-February 2019; and
      • increasing nonstop service between Sapporo’s New Chitose Airport (CTS) and Honolulu (HNL) with five weekly flights during the first half of February 2019.

Commercial

  • Expanded its cargo services with the launch of All-Cargo Neighbor Island service between Honolulu (HNL), Lihu’e Airport (LIH) and Hilo International Airport (ITO).  The All-Cargo Neighbor Island service, which currently consists of two ATR 72 aircraft, is expected to expand in 2019 with the addition of flights between Honolulu (HNL) and both Maui (OGG) and Kona (KOA).

Product and loyalty

  • Announced the expansion of its Business Class auction upgrade service, Bid Up by Hawaiian Airlines, to include flights operating between Hawai’i and Japan and South Korea, in addition to flights operating between Hawai’i and North America.
  • Extended its partnership with Barclaycard US, Hawaiian’s co-branded credit card partner, under a new agreement through 2024 that includes improved economics for Hawaiian and a refreshed rewards structure for the Hawaiian Airlines World Elite Mastercard and the Hawaiian Airlines Business Mastercard to enable cardmembers to earn more miles faster.

Partnerships

  • Together with Japan Airlines, filed an application with the U.S. Department of Transportation (DOT) and Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) seeking antitrust immunity to create a joint venture that promises significant consumer benefits and the opportunity for service expansion.
  • Enhanced its comprehensive partnership with Japan Airlines with the implementation of reciprocal frequent flyer benefits for HawaiianMiles and JAL Mileage Bank members effective October 2018.  The enhanced program is the second phase of the comprehensive partnership launched in March 2018 with codeshare flights.
  • Announced an expansion of the codeshare agreement with JetBlue that allows travelers from dozens of cities, most of them in the eastern U.S., to easily connect to the Hawaiian Islands via Boston’s Logan International Airport (BOS) starting in April 2019.

Fleet and financing

  • Secured its flagship widebody aircraft of the next decade with the signing of a definitive purchase agreement with Boeing for the purchase of 10 Boeing 787-9 aircraft, including purchase rights for an additional 10 aircraft, to be delivered starting in 2021.
  • Signed a definitive agreement with General Electric for the purchase of GEnx engines to power its Boeing 787-9 fleet.
  • Took delivery of nine Airbus A321neo aircraft, increasing the size of its Airbus A321neo fleet to eleven aircraft.
  • Entered into two Japanese Yen-denominated debt financings, each collateralized by an Airbus A321neo aircraft.
  • Took delivery of an ATR 42 turboprop aircraft in June, increasing the size of its ‘Ohana by Hawaiian passenger turboprop fleet to four aircraft.
  • Increased the size of its secured revolving credit facility from $225 million to $235 millionand extended the term through December 2022.

People

  • Contributed $50 million during the year to its pilots’ pension plan. The plan’s funded status improved from 69.6 percent funded at the end of 2017 to 77.4 percent at the end of 2018.
  • Celebrated the beginning of its 90th year of service in the Hawaiian Islands with a company-matched employee giving campaign that generated $187,000 in donations to non-profit agencies across the State of Hawai’i.  The 90th year fundraiser is in addition to sponsorships and grants the Company provides annually through its Team Kokua program and Hawaiian Airlines Foundation.

Top Copyright Photo (all others by the airline): Hawaiian Airlines Airbus A330-243 N388HA (msn 1310) LAX (Michael B. Ing). Image: 944822.

Hawaiian aircraft slide show:

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