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

“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.

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 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.

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.

• Hawaiian operated a complex humanitarian mission to fly 1.6 million masks to Honolulu from Shenzhen, China.

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

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

“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:

https://airlinersgallery.smugmug.com/frame/slideshow?key=6fcqqg&speed=3&transition=fade&autoStart=1&captions=0&navigation=0&playButton=0&randomize=0&transitionSpeed=2

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

“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: