
Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., today reported its financial results for the first quarter of 2021.
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First Quarter 2021 – Key Financial Metrics
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GAAP
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YoY Change
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Adjusted
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YoY Change
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Net Loss
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($60.7M)
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$83.7M
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($190.6M)
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($156.6M)
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Diluted EPS
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($1.23)
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$1.91
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($3.85)
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($3.11)
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Pre-tax Margin
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(42.2)%
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(10.9) pts.
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(132.4)%
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(124.4) pts.
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“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 inย North Americaย improved materially as we began to realize the pent up demand for leisure travel after a year of lockdown,” saidย Peter Ingramย , 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 ofย $60.7 millionย , and adjusted net loss ofย $190.6 millionย .
The Company reported total revenue ofย $182 millionย , down 72% compared to the first quarter of 2019, on 49% lower capacity.ย After a slow start to the year, the Company experienced a rebound in close-in demand inย North Americaย in March 2021.
The Company reported total operating expenses ofย $255.4 millionย , and operating expenses excluding non-recurring items ofย $402.7 millionย , 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 inย North Americaย . During the first quarter, the Company operated an average of 51% of its first quarter system 2019 capacity, comprised of 73%, 38% and 12% ofย North Americaย , Neighbor Island and International 2019 capacity levels, respectively.
In March and April of 2021, the Company launched four newย North Americaย routes. Starting in the summer of 2021, the Company will expand frequencies on the less than daily routes.
- Daily service betweenย Kahuluiย ,ย Mauiย (OGG) andย Long Beachย (LGB), which startedย March 9, 2021ย .
- Twice weekly service betweenย Honolulu’sย Daniel K. Inouye International Airport (HNL) andย Orlandoย International Airport (MCO), which startedย March 11, 2021ย .
- Five-times-weekly service betweenย Honolulu’sย Daniel K. Inouye International Airport (HNL) andย Ontarioย International Airport (ONT), which startedย March 16, 2021ย .
- Twice weekly service betweenย Honolulu’sย Daniel K. Inouye International Airport (HNL) and Austin-Bergstrom International Airport (AUS), which startedย April 21, 2021ย .
Inย April 2021ย , the Company announced it will initiate four-times-weekly service betweenย Kahuluiย ,ย Mauiย (OGG) and Phoenix Sky Harbor International Airport (PHX) starting inย May 2021ย .
Liquidity and Capital Resources
As of Marchย 31, 2021, the Company had:
- Unrestricted cash, cash equivalents and short-term investments ofย $1.9 billionย , upย $1.0 billionย fromย December 31, 2020
- Outstanding debt and finance lease obligations ofย $2.1 billionย , upย $852 millionย fromย December 31, 2020
- Air traffic liability ofย $687 millionย , upย $154 millionย fromย December 31, 2020
The Company further enhanced its liquidity position during the first quarter of 2021, including:
- Inย February 2021ย , 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 ofย $1.2 billionย principal amount of 5.75% senior secured notes due 2026.
- Inย March 2021ย , 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 ofย $109 millionย , of whichย $68 millionย was raised in the first quarter of 2021.
- As ofย March 31, 2021ย , the Company has receivedย $147.3 millionย in grants andย $20.2 millionย in loans pursuant to the Payroll Support Program Extension Agreement (the “PSP Extension Agreement”) with the U.S. Department of the Treasury.
Inย February 2021ย , the Company repaid in full theย $45 millionย 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 $4ย million.
Inย February 2021ย , the Company repaidย $235 millionย 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 approximatelyย $25.1 millionย pursuant to the PSP Extension Agreement and approximatelyย $179.7 millionย 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 ofย March 31, 2021ย , the Company hadย $2.1 billionย in liquidity, including the undrawn portion of its revolver. This figure does not include theย $205 millionย 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. Inย April 2021ย , the Company announced that HawaiianMiles โ the currency of its award-winning loyalty program โ 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 (ย Japanย 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.
Startingย June 1, 2021ย , 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.ย 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 endingย June 30, 2021ย , expressed as an expected percentage change compared to the results for the quarter endedย June 30, 2019ย , as applicable.
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Item
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Second Quarter 2021
Guidance
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GAAP Equivalent
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GAAP Second
Quarter 2021
Guidance
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ASMs
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Down 30 to 33%
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Total Revenue
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Down 45 to 50%
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Operating Expenses, excluding non-recurring items (a)
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Down 20 to 24%
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Operating Expenses (a)
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Down 35 to 39%
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Interest Expense
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$30 million
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Adjusted EBITDAR (b)
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($70) million to ($20)ย million
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Effective Tax Rate
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~21%
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Fuel Price per Gallon
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$1.75
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(a)ย See Table 4 for a reconciliation of GAAP operating expenses to operating expenses excluding non-recurring items.
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(b)ย 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.
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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 betweenย $50ย andย $60 million.
Top Copyright Photo: Hawaiian Airlines Airbus A330-243 N386HA (msn 1302) LAX (Michael B. Ing). Image: 952315.
Hawaiian aircraft slide show:


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