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Hawaiian reports GAAP 4Q net income of $11.1 million and $68.9 million net profit for 2014

Hawaiian Holdings, Inc. (Honolulu), parent company of Hawaiian Airlines, Inc. (Honolulu), today reported its financial results for the fourth quarter and full year 2014.

GAAP net income in the fourth quarter of $11.1 million or $0.17 per diluted share. For the full year, GAAP net income of $68.9 million or $1.10 per diluted share.

Adjusted net income in the fourth quarter of $26.1 million or $0.40 per diluted share, an increase of $14.1 million or $0.18 cents per diluted share year-over-year. For the full year, adjusted net income grew to $97.1 million or $1.55 per diluted share compared to $46.6 million or $0.88 per diluted share in the prior year.

Operating revenue increased to $575 million for the fourth quarter and $2.3 billion for the full year. This resulted in an operating revenue per available seat mile (RASM) increase of 6.1%, year-over-year for the fourth quarter, and for the full year an increase of 5.6% year-over-year.

“2014 finished on a high note with the company posting much better results than a year ago,” said Mark Dunkerley, Hawaiian Airlines president and chief executive officer. “We served more customers than ever before, grew revenues, improved profitability and strengthened our balance sheet. I have our employees to thank for Hawaiian’s performance on the ground, in the air and in our financial statements. Their hard work helps overcome the advantage that our competitors generate through their massive size alone. 2015 will be another year of improvement as long as demand, fuel and industry capacity in our marketplaces remain as forecast.”

Liquidity and Capital Resources

As of December 31, 2014 the Company had:

Unrestricted cash, cash equivalents and short-term investments of $524 million.

Outstanding debt and capital lease obligations of approximately $1,050 million consisting of the following:
$714 million outstanding under secured loan agreements to finance a portion of the purchase price for 11 Airbus A330-200 aircraft.

$137 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.

$102 million in capital lease obligations to finance the acquisition of an Airbus A330-200, two Boeing 717-200 aircraft and aircraft-related equipment.

$30 million outstanding under floating rate notes to finance the acquisition of two Boeing 767-300 ER aircraft.

$67 million of outstanding Convertible Senior Notes.

Fleet and financing

Retired $54 million of A330 bank debt.

Repurchased $15 million (principal amount) or 18% of convertible notes outstanding.

Executed a purchase agreement with Airbus for six A330-800neo aircraft with deliveries starting in 2019, replacing the previous order for six A350XWB-800 aircraft.

Entered into a new revolving credit facility that has availability of up to $175 million.

Added five new A330-200 aircraft and returned or retired two Boeing 767-300 aircraft.

Copyright Photo: Fred Freketic/AirlinersGallery.com. Airbus A330-243 N382HA (msn 1171) prepare to depart from New York (JFK).

Hawaiian Airlines aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-UnitedStates-2/Airlines-UnitedStates-2/Hawaiian-Airlines

Hawaiian Airlines to suspend flights to Taipei in April, will start service to Beijing

Hawaiian Airlines (Honolulu) has announced plans to suspend its thrice-weekly service to Taipei, Taiwan in April and reassign that route’s 294-seat Airbus 330-200 aircraft to its nonstop service to Seoul, South Korea, which will operate five times per week.

Up-gauging to the newer A330-200 aircraft will provide South Korean passengers with enhanced amenities including in-seat in-flight entertainment throughout the aircraft and the airline’s new Extra Comfort preferred seating product. The new aircraft will be available on all flights to Incheon International Airport from April 23, 2014.

Hawaiian Airlines flight HA 807 will operate its final flight from Honolulu to Taipei on Sunday, April 6, 2014. Return Flight HA808 will operate for the final time on Monday, April 7, 2014 from Taipei to Honolulu. Hawaiian Airlines’ reservations department will be contacting passengers booked to fly after that date to accommodate them on other airlines.

Also in April, Hawaiian Airlines will launch thrice-weekly service to Beijing, China, subject to government approval, its 10^th international gateway launched since November 2010. The airline has also scheduled new nonstop summer service from Los Angeles and Oakland, California to Kona, Hawai‘i Island and Līhu‘e, Kaua‘i.

Hawaiian Airlines:

Route Map:

Hawaiian to drop the Fukuoka, Japan route

Hawaiian Airlines (Honolulu) has announced it will suspend its daily service to Fukuoka this summer. Hawaiian Airlines flight HA 453 will make its final trip from Honolulu to Fukuoka on June 29, 2014, and HA 454 will make its final return from Fukuoka to Honolulu on June 30, 2014.

Passengers with reservations to fly after June 30 will be re-accommodated. The airline’s reservations department will be contacting affected passengers in the next several weeks. The airline will continue to accept reservations for travel between Honolulu and Fukuoka prior to June 30, 2014.

The Fukuoka daily service was launched on April 16, 2012. Hawaiian Airlines also provides daily service to Tokyo and Osaka, and thrice-weekly service to Sendai and Sapporo.

Fukuoka was the third destination in Japan, following Tokyo (November 2010) and Osaka (July 2011).

Hawaiian Airlines:

Hawaiian swings to a 1Q net loss of $17.1 million

Hawaiian Holdings, Inc. (Honolulu), the parent company of Hawaiian Airlines, Inc. (Honolulu), reported its financial results for the first quarter of 2013.

First Quarter 2013 Financial Results

Available seat mile (ASM) for scheduled operations increased 26.1% year-over-year.
Adjusted net loss, reflecting economic fuel expense, of $14.8 million or $0.29 per diluted share.
GAAP net loss of $17.1 million or $0.33 cents per diluted share.
Cost per available seat mile (CASM), excluding fuel, decrease of 7.9% year-over-year.
CASM decrease of 5.7% year-over-year.
Unrestricted cash and cash equivalents of $438.2 million.

Mark Dunkerley, the Company’s President and Chief Executive Officer, commented that “Our results for the quarter were disappointing but unsurprising. Our performance was undermined by an extraordinary increase in total industry capacity between Hawaii and the U.S. West Coast and in certain international markets during what is traditionally the weakest quarter of the year. However, good cost control and an improvement in our Neighbor Island segment helped offset some of the impact during the period. Looking ahead, published schedules show capacity beginning to decline in the second half which should improve the operating environment.

Throughout, Hawaiian continued to develop its network by growing into new origin markets for the Hawaii visitor. We launched services to Auckland, New Zealand in March and in the next six months will add Sendai, Japan and Taipei, Taiwan to our increasingly diverse network of destinations. Our formula of competitive unit costs and a high level of service have allowed us to establish the optimal brand for serving Hawaii that makes us the carrier of choice in the markets we serve.”

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

As of March 31, 2013, the Company had:

Unrestricted cash and cash equivalents of $438.2 million.
Available borrowing capacity of $69 million under Hawaiian’s Revolving Credit Facility.
Outstanding debt and capital lease obligations of approximately $648 million consisting of the following:
- $242 million outstanding under secured loan agreements to finance a portion of the purchase price for four Airbus A330-200 aircraft.
- $167 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.
- $104 million in capital lease obligations to finance an Airbus A330-200 and two Boeing 717-200 aircraft.
- $61 million outstanding under floating rate notes issued in conjunction with the acquisition of three Boeing 767-300 ER aircraft.
- $74 million outstanding of Convertible Senior Notes.

Business Highlights

Operational

Ranked #1 nationally for the ninth consecutive year for on-time performance in 2012 and the month of February 2013 by the U.S. Department of Transportation Air Travel Consumer Report.
Unveiled branding and livery for our new Neighbor Island turboprop operations as ‘Ohana by Hawaiian for service to begin in the summer between Honolulu and Moloka’i and Lana’i.

Fleet

Added one new Airbus A330-200 aircraft in February for North America and International service.
Executed a purchase agreement with Airbus for 16 new A321neo aircraft for delivery between 2017 and 2020, with purchase rights for an additional nine aircraft. The long-range, single-aisle aircraft will complement Hawaiian’s existing fleet of twin-aisle aircraft used for long-haul flying between Hawaii and the U.S. West Coast.

New routes and increased frequencies

Honolulu to Auckland, New Zealand three-times-weekly service launched in March 2013.
Announced Honolulu to Sendai, Japan three-times-weekly service beginning in June 2013.
Announced Honolulu to Taipei, Taiwan three-times-weekly service beginning in July 2013.
Announced the addition of seasonal frequency flights between Honolulu and three Oceania gateways, Sydney, Brisbane and Auckland in September and October 2013.
Announced three-times-weekly service between Honolulu and Beijing, China beginning in April 2014 pending government approval.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A330-243 N382HA (msn 1171) is pictured on final approach into Los Angeles International Airport.

Hawaiian Airlines: