Hawaiian Holdings, Inc. (Honolulu), parent company of Hawaiian Airlines, Inc., reported consolidated net income for the three months ended June 30, 2012 of $3.9 million, or $0.07 per diluted share, on total operating revenue of $484.6 million. This compares to a net loss of $50.0 million, or $0.99 per basic and diluted share, on total operating revenue of $395.0 million for the three months ended June 30, 2011. Results for the three months ended June 30, 2011 included the impact of a non-recurring pre-tax lease termination expense of $70.0 million related to the purchase of 15 Boeing 717-200 aircraft previously operated under lease agreements.
Reflecting economic fuel expense, the Company reported adjusted net income of $11.7 million, or $0.22 per diluted share for the three months ended June 30, 2012. This compares with adjusted net income of $0.1 million, reflecting economic fuel expense and excluding the impact of lease termination costs, or $0.00 per diluted share, for the three months ended June 30, 2011. Table 4 sets forth a reconciliation of net income (loss) and diluted net income (loss) per share on a GAAP basis and non-GAAP net income (loss) and diluted net income (loss) per share reflecting economic fuel expense and excluding lease termination costs.
Copyright Photo: Andy Jung. Boeing 717-22A N484HA (msn 55129) departs from Kahului, Maui.
Hawaiian Airlines‘ (Honolulu) parent company, Hawaiian Holdings, has signed a Letter of Intent to acquire turbo-prop aircraft with the aim of establishing a subsidiary carrier to serve routes not currently in Hawaiian’s neighbor island system.
The announcement came in a press release about lower inter-island fares. Hawaiian Airlines has implemented a new fare structure for neighbor island travel that lowers ticket prices across all of its fare classes from 4 to 25 percent.
Under the new fare structure, the lowest fare for a one-way nonstop interisland flight (including taxes and mandatory federal fees) is $65 for travel from Honolulu to Kahului and Lihu’e.
The new fare structure complements the additional neighbor island capacity and routes Hawaiian introduced earlier this year. Over the past year, Hawaiian has increased capacity by 13 percent and created a Maui hub to increase service between the Valley Isle, Kaua’i and Hawai’i Island. The turbo-prop subsidiary will allow Hawaiian to further expand capacity with daily flights to rural areas.
Hawaiian has operated turboprops in the past including the de Havilland Canada DHC-7 Dash 7 for its inter-island services.
Copyright Photo: Ivan K. Nishimura. Today Hawaiian operates the Boeing 717 on its inter-island network. Boeing 717-22A N475HA taxies at the HNL hub.