Tag Archives: 76733A

Air Canada rouge to start Toronto-Las Vegas flights on October 27

Air Canada rouge (Toronto-Pearson) on October 27 launches service between Toronto (Pearson) and Las Vegas and will launch service between Montreal and Las Vegas on March 13, 2014.

Starting this Sunday, Air Canada rouge will offer ten flights a week from Toronto to Las Vegas for the winter 2013-2014 season featuring 264-seat wide-body Boeing 767-300 ER aircraft, representing a capacity increase of 13% on the route over last winter when it was operated by Air Canada. Air Canada rouge will assume the Montreal-Las Vegas route from Air Canada effective March 13, 2014 with ten flights a week. Air Canada will continue to operate service between Vancouver and Calgary to/from Las Vegas for the winter season.

Toronto-Las Vegas winter flight schedule (effective October 27, 2013):

Air Canada rouge’s service between Toronto and Las Vegas features convenient flight times that maximize travellers’ time in Las Vegas. The daily flight departs Toronto at 9:05 a.m., arriving in Las Vegas at 10:59 a.m. and departs Las Vegas at 12:15 p.m. arriving in Toronto at 7:22 p.m. The second flight, which operates on Thursdays, Fridays and Sundays departs Toronto at 8:45 p.m., arriving in Las Vegas at 10:39 p.m. and departs Las Vegas at 11:55 p.m., arriving the next day in Toronto at 7:00 a.m.

Montreal Las Vegas winter flight schedule (effective March 13, 2014):

Air Canada rouge’s winter service between Montreal and Las Vegas also features convenient, customer-friendly flight times. The daily flight will depart Montreal at 7:40 a.m. arriving in Las Vegas at 10:28 a.m. and will depart Las Vegas at 11:15 a.m. arriving in Montreal at 7:08 p.m. The second flight, which will operate on Thursdays, Fridays and Sundays departs Montreal at 7:50 p.m., arriving Las Vegas at 10:38 p.m. and departs Las Vegas at 10:20 p.m., arriving the next day in Montreal at 7:13 a.m.

Air Canada rouge will operate the Toronto-Las Vegas route with a 264-seat wide-body Boeing 767 aircraft featuring three classes of seating: Premium rouge, rouge Plus and rouge. Premium rouge has 18 seats in a 2 + 2 + 2 configuration with a 41- 42″ pitch, a 7″ inch recline. rouge Plus has 4 rows in a 2 + 3 + 2 configuration behind Premium rouge, with a 35″ pitch, up to 5″, and rouge seating has 246 seats in a 2 + 3 + 2 configuration with a 30-32″ pitch and a 6″ recline. Premium rouge customers on Air Canada rouge North American flights now earn enhanced Aeroplan Miles, have access to priority security lines and complimentary Maple Leaf Lounge access.

Air Canada rouge crew offer the airline’s unique warm welcome onboard. Trained in customer service excellence, the rouge crew take every measure to ensure that flights are relaxed, enjoyable and are part of a memorable start and end to a Las Vegas vacation.

A tasty selection of meals, drinks and snacks, as well as comfort items such as pillows, blankets and headphones, are available onboard through Air Canada rouge’s Buy On Board service.

Air Canada rouge aircraft are all equipped with player, a next generation in-flight entertainment system that streams unlimited live entertainment — including movies, TV shows, kids programming, music and an About Us section — to customers’ personal electronic devices. Air Canada rouge is one of the first airlines in North America to offer streaming onboard content. player is offered at a nominal fee of $5 for rouge and rouge Plus customers for unlimited movie and TV show access; music and destination content are always complimentary. Customers simply need to bring their own fully-charged laptop or iPad, iPod or iPhone, or they can rent an iPad on board for $10.

Air Canada rouge:

Hawaiian Airlines to seek Tokyo Haneda-Kona authority, reports a 3Q net profit of $36.8 million

Hawaiian Airlines (Honolulu) has announced it will file an application to provide nonstop service between Tokyo International Airport at Haneda and Kona International Airport on Hawai’i Island, utilizing operating slots at the Haneda airport being returned by American Airlines later this year.

Hawai’i’s flagship carrier will file its application with the U.S. Department of Transportation on Thursday, proposing daily service using its 294-seat A330 aircraft. Hawaiian Airlines’ 2012 application for non-stop Haneda-Kona service included 175 letters of support from members of the Kona community.

Hawaiian Airlines has been connecting Hawai’i and Japan since November 2010, when it launched daily service between Haneda and Honolulu. The airline quickly followed with service between Honolulu and Osaka, Fukuoka, Sapporo and Sendai, and now provides 6,700 seats per week between Japan and the Hawaiian Islands.

Kona has been without a non-stop flight from Japan since October 29, 2010, when Japan Airlines discontinued direct service to West Hawai’i from Narita International Airport.

On the financial side, the company reported a third quarter net profit of $36.8 million. Hawaiian Holdings issued this statement:

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc. reported its financial results for the third quarter of 2013.

Third Quarter 2013 Financial Results

Adjusted net income, reflecting economic fuel expense, of $36.8 million or $0.69 per diluted share.
GAAP net income of $40.6 million or $0.76 cents per diluted share.
Available seat miles (ASMs) increase of 9.0% year-over-year.
Passenger revenue per available seat mile (PRASM) increase of 0.2% and operating revenue per available seat per mile (RASM) increase of 0.1%.
Cost per available seat mile (CASM), excluding fuel, increase of 2.1% year-over-year.
CASM increase of 1.5% year-over-year.

Mark Dunkerley, the Company’s President and Chief Executive Officer, commented that “our third quarter results are a good step towards improving financial performance. The tide of industry capacity between the US West Coast and Hawai’i is beginning to recede and our new international routes are maturing, both of which are helpful developments. The strengthening of the US dollar against our major foreign currencies is pushing the other way. Indeed, were it not for foreign exchange effects, our third quarter results would have been the best in the company’s history.”

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 September 30, 2013 the Company had:

Unrestricted cash and cash equivalents of $441 million.
Available borrowing capacity of $70 million under Hawaiian’s Revolving Credit Facility.
Outstanding debt and capital lease obligations of approximately $763 million consisting of the following:
- $361 million outstanding under secured loan agreements to finance a portion of the purchase price for six Airbus A330-200 aircraft.
- $159 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.
- $112 million in capital lease obligations to finance the acquisition of an Airbus A330-200, two Boeing 717-200 aircraft and aircraft-related equipment.
- $55 million of outstanding floating rate notes issued in conjunction with the acquisition of three Boeing 767-300 ER aircraft.
- $76 million of outstanding Convertible Senior Notes.

Business Highlights

Operational

Ranked #1 nationally for on-time performance for the months of June and July 2013 by the U.S. Department of Transportation Air Travel Consumer Report.
Exceeded our internal on-time performance goals for the third quarter.

Fleet and financing

Returned one Boeing 767-300 aircraft at the end of its lease term.
Took delivery of one ATR 42-500 twin-turboprop aircraft to inaugurate new service to Moloka’i and Lana’i.

Product

Enhanced our inflight experience on our Boeing 767-300 aircraft by becoming the only U.S. carrier to offer the Apple iPad mini as a replacement for the prior portable entertainment system.

New routes and increased frequencies

Honolulu to Taipei, Taiwan three-times-weekly service launched July 9, 2013.
Announced the reintroduction of daily non-stop service from Honolulu to Oakland beginning in January 2014, an increase from four times weekly. Also, announced seasonal service, during the summer of 2014, between Oakland and Kona, three times weekly and Oakland and Lihu’e, four times weekly.
Announced seasonal service, during the summer of 2014 between Los Angeles and Kona, three times weekly and Los Angeles and Lihu’e, four times weekly.

Hawaiian Airlines:

Hawaiian Holdings reports 2Q net income of $11.3 million

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

Second Quarter 2013 Financial Results

Adjusted net income, reflecting economic fuel expense, of $12.6 million or $0.24 per diluted share.
GAAP net income of $11.3 million or $0.21 cents per diluted share.
Available seat miles (ASMs) increase of 20.9% year-over-year.
Cost per available seat mile (CASM), excluding fuel, decrease of 11.2% year-over-year.
CASM decrease of 9.7% year-over-year.

Mark Dunkerley, the Company’s President and Chief Executive Officer, commented that “Our results for the quarter were better than expected thanks chiefly to some good cost control. Demand across all of our geographies remains strong, even overseas where the dollar has strengthened against foreign currencies. In North America, our business is coming back as the rate of industry capacity growth moderated in the quarter while our Neighbor Island business is now performing well. On our international routes we are seeing the strengthening of the dollar undermine some of the excellent results we have had in the last couple of years but this portion of our business remains the core focus of our expansion plans.

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 June 30, 2013 the Company had:

Unrestricted cash and cash equivalents of $478 million.
Available borrowing capacity of $70 million under Hawaiian’s Revolving Credit Facility.
Outstanding debt and capital lease obligations of approximately $767 million consisting of the following:
- $369 million outstanding under secured loan agreements to finance a portion of the purchase price for six Airbus A330-200 aircraft.
- $163 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.
- $103 million in capital lease obligations to finance an Airbus A330-200 and two Boeing 717-200 aircraft.
- $58 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 on-time performance for the months of March, April and May 2013 by the U.S. Department of Transportation Air Travel Consumer Report.
Ranked the #1 domestic carrier for travel to Hawai’i by Travel + Leisure.
Expanded our frequent flyer partnership with American Airlines.
Announced codeshare and interline agreements with China Airlines for connecting travel through Taipei, Taiwan.

Fleet and Financing

Financed our next six Airbus A330-200 aircraft deliveries through 2014 with Enhanced Equipment Trust Certificates (EETC).
Added three new Airbus A330-200 aircraft for North America and International service.

New routes and increased frequencies

Honolulu to Sendai, Japan three-times-weekly service launched June 25, 2013.
Honolulu to Taipei, Taiwan three-times-weekly service launched July 9, 2013.

Third Quarter and Full Year 2013 Outlook

The table below summarizes the Company’s expectations for the quarter ending September 30, 2013 and the full year ending December 31, 2013, expressed as an expected change compared to the results for the quarter ended September 30, 2012 or the year ended December 31, 2012, as applicable (the results for which are presented for reference).

	Third
	Quarter
Item	2012	Guidance

Cost per ASM Excluding Fuel (cents)	7.62	Up 2.5% to up 5.5%
Passenger Revenue Per ASM (cents)	12.30	Down 0.5% to up 2.5%
Operating Revenue Per ASM (cents)	13.56	Down 0.5% to up 2.5%
Passenger Revenue Per RPM (cents)	14.77	Down 2.5% to up 0.5%
Passenger Load Factor	83.3%	Up 1 pts to Up 3 pts
ASMs (millions)	4,052.2	Up 7.5% to up 10.5%
Gallons of jet fuel consumed (millions)	54.5	Up 7% to up 10%



	Full Year
Item	2012	Guidance
Cost per ASM Excluding Fuel (cents)	8.18	Down in the low single digits
ASMs (millions)	14,687.5	Up 12.5% to up 15.5%

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 767-33A N580HA (msn 28140) lines up to land at Los Angeles International Airport.

Hawaiian Airlines:

Air Canada to expand Air Canada rouge to 23 holiday destinations, will expand to 50 aircraft

Air Canada (Montreal) announced the growth of its leisure carrier subsidiary, Air Canada rouge, is on track to expand to a total of 23 holiday destinations in the Caribbean, Mexico, Florida and Las Vegas for its 2013-2014 winter season.

“We are delighted with the response to Air Canada rouge’s inaugural summer season as it prepares for take-off July 1st,” said Calin Rovinescu, President and Chief Executive Officer, inToronto for a pre-inaugural event with employees and media. “Our plans for growing the Air Canada rouge fleet are on track to serve more holiday destination markets where we can now compete on a more cost effective basis operating our new leisure carrier, while leveraging the strength of Air Canada Vacations. Once Air Canada rouge completes its inaugural summer season to Edinburgh, Venice, Athens and a number of Caribbean destinations, its flying will expand southward for the winter to an additional 13 destinations in the Caribbean, Mexico and select U.S. holiday markets. I would like to commend Michael Friisdahl and his team at Air Canada rouge for overcoming the complexity and challenges of launching a new carrier in record time with professionalism and an impressive sense of purpose. I also congratulate the first Air Canada rouge inflight graduating class who we expect will set an excellent customer service standard for vacation travel.”

“As new Boeing 777-300 ER and 787 aircraft enter the Air Canada mainline fleet, we intend to continue spooling up Air Canada rouge to reach a total of up to 50 aircraft. The growth of our leisure carrier, in tandem with the mainline fleet renewal and international network expansion, is a key element of Air Canada’s overall strategy for sustainable, profitable growth, both at the mainline and leisure carrier. With a renewed, more efficient fleet combined with our award-winning product, Air Canada will be well positioned to expand its mainline global network to new, higher business-demand destinations while Air Canada rouge profitably expands Air Canada’s presence on a lower cost basis in current and future leisure markets that present new opportunities,” concluded Mr. Rovinescu.

Air Canada will take delivery of five new Boeing 777-300 ER aircraft for its mainline fleet between June 2013 and February 2014, and the first three of 37 Boeing 787 aircraft by the summer of 2014. Air Canada is scheduled to take delivery of seven 787 aircraft in 2014 and the remaining 30 between 2015 and 2019.

Air Canada rouge’s July 1 start-up fleet consisting of two Airbus A319 aircraft and two Boeing 767-300 ER aircraft will grow to ten aircraft by the end of 2013 with the addition of six Airbus A319 aircraft by December 2013, and an additional four Airbus A319 aircraft by March 2014, for a total of 14 aircraft by the end of the 2013-2014 winter season.

A number of popular holiday destinations currently served by Air Canada’s mainline carrier will be converted to Air Canada rouge service on a phased-in basis beginning October 2013 through March 2014 as additional aircraft are released by the mainline airline for operation by its leisure carrier.

Air Canada rouge will operate flights to the following popular holiday destinations for its 2013-2014 Winter Schedule. Flights are now available for purchase at aircanada.com and through travel agents:

Mexico: flights from Toronto to Cancun, Puerto Vallarta*, Cabo San Lucas* and Huatulco*, subject to government approval.

United States: flights from Toronto and Montreal to Orlando and Las Vegas, and from Toronto to Sarasota*, Florida.

Caribbean: flights from Toronto to Montego Bay, Jamaica; Grenada*; St. Kitts*; Grand Exuma, Bahamas; Curacao*, Netherlands Antilles; and La Romana*, Dominican Republic. This is in addition to Air Canada rouge service commencing with its summer 2013 schedule on July 1 from Toronto year-round to 10 Caribbean and Central America destinations: Kingston, Jamaica; the Dominican Republic (Punta Cana, Puerto Plata and Samana), Cuba (Varadero, Cayo Coco, Holguin and Santa Clara) and Costa Rica (San Jose and Liberia).

* Seasonal services where indicated. All other routes are year-round services.

All flights will be operated using Airbus A319 aircraft, with the exception of Toronto-Las Vegas and Toronto-Montego Bay flights that will be operated with Boeing 767-300 ER aircraft.

Air Canada rouge’s Boeing 767-300 ER aircraft feature a two-cabin configuration with three customer comfort options including rouge, rouge Plus with preferred seating with additional legroom, and, beginning in winter 2013, Premium rouge offering both additional room and enhanced service. The airline’s Airbus A319 aircraft are configured with rouge and rouge Plus preferred seating. All flights will offer customers streamed wireless inflight entertainment, stylish and modern cabin interiors with innovative new seats, and the ability to earn and redeem Aeroplan miles.

Copyright Photo: Greenwing/AirlinersGallery.com. Air Canada rouge’s pilots have been performing proving flights to Dublin before the official July 1 launch. Boeing 767-33A ER C-GHPE (msn 33423) taxies at DUB.

Air Canada:

Air Canada rouge:

Expanding Route Map:

Hawaiian starts nonstop service to Sendai, Japan

Hawaiian Airlines (Honolulu) yesterday (June 25) launched its inaugural flight from Honolulu to Sendai, its fifth gateway in Japan and 10th new international destination it has introduced or announced in less than three years.

Passengers of the inaugural flight enjoyed a festive island-style send-off at Honolulu International Airport before boarding, featuring Hawaiian music and hula, a traditional Hawaiian blessing, presentation of fresh flower lei, and a special performance honoring the Japanese culture.

Copyright Photo: Hawaiian Airlines Customer Service Agents Starlynn Kuaana (left) and Charael Perry (right) greet passengers with lei as they board the inaugural flight from Honolulu to Sendai today. Sendai is Hawaiian Airlines’ fifth gateway in Japan and 10th new international destination it has announced or introduced in less than three years. (PRNewsFoto/Hawaiian Airlines).

Sendai is the largest city in the Tohoku region of northern Honshu, which has a population of more than 9 million. Sendai is known in Japan as “Mori no Miyako,” or Forest City, for its many green spaces in its city center. It is also known for its high quality rice and for its summer Tanabata Festival, which draws thousands of visitors from across Japan.

Hawaiian’s Honolulu-Sendai service is the first scheduled service between Sendai and Hawai’i since another carrier left the market in 2004, and among the first new services to be introduced at Sendai Airport since it was closed for more than a month in 2011 due to damage caused by the Tohoku earthquake and subsequent tsunami.

Hawaiian’s flight HA 441 departs Honolulu International Airport on Tuesdays, Thursdays, and Saturdays at 12:55 p.m. (1255), cross the international dateline, and arrive at Sendai International Airportat 4:30 p.m. (1630) the following day. The return flight HA 442 will then continue to Sapporo’s New Chitose Airport at 5:45 p.m. (1745) on Wednesdays, Fridays and Sundays, arriving at New Chitose at 7:00 p.m. (1900) before departing to Honolulu at 9:10 p.m. (2110), crossing the international dateline and arriving in Honolulu at 9:50 a.m. (0950) the same day.

Hawaiian operates the Honolulu-Sendai-Sapporo flights using its fleet of Boeing 767-300E R aircraft that seat up to 264 passengers.

The addition of Sendai to Hawaiian’s international network follows the launches of service to Tokyo in November 2010, Seoul in January 2011, Osaka in July 2011, Fukuoka in April 2012, New York in June 2012, Sapporo in October 2012, Brisbane in November 2012 and Auckland in March 2013. Hawaiian previously announced new service to Taipei, Taiwan in July 2013. New nonstop service will begin between Honolulu and Beijing, China in April 2014, subject to government approvals.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 767-33A ER N591HA (msn 33423) arrives in Los Angeles.

Hawaiian Airlines:

Route Map:

Hawaiian Airlines is coming to Sendai, Japan

Hawaiian Airlines (Honolulu) will add its fifth Japan gateway in June with the launch of new service three times a week to Sendai, Japan, starting June 25, pending Japan government approval.

The new flights will be the first scheduled service between Sendai and Hawai’i since another carrier left the market in 2004, and among the first new services to be introduced at Sendai Airport since it was closed for more than a month in 2011 due to damage caused by the Tohoku earthquake and subsequent tsunami.

Hawaiian’s new Sendai service will connect with and complement its existing service to Sapporo, operating nonstop from Honolulu to Sendai, with one-stop service returning to Honolulu via Sapporo.

Starting June 25, Hawaiian’s Flight HA 441 will depart Honolulu International Airport on Tuesdays, Thursdays, and Saturdays at 12:15 p.m., cross the international dateline, and arrive at Sendai Airport at 4:00 p.m. the following day.

The return Flight HA 442 will then continue to Sapporo’s New Chitose Airport at 5:55 p.m. on Wednesdays, Fridays and Sundays, arriving at New Chitose at 7:10 p.m. before departing to Honolulu at 9:10 p.m., crossing the international dateline, and arriving in Honolulu at 9:50 a.m. the same day.

Hawaiian will operate the Honolulu-Sendai-Sapporo flights using its wide-body, twin-aisle Boeing 767-300 ER aircraft that seat up to 264 passengers.

Sendai is the largest city in the Tohoku region of northern Honshu, which has a population of more than 9 million. Sendai is known in Japan as “Mori no Miyako,” or Forest City, for its many green spaces in its city center. It is also known for its high quality rice and for its summer Tanabata Festival, which draws thousands of visitors from across Japan.

Sendai will be the tenth new destination that Hawaiian has introduced or announced in less than three years, following the launches of service to Tokyo in November 2010, Seoul in January 2011, Osaka in July 2011, Fukuoka in April 2012, New York in June 2012, Sapporo in October 2012, and Brisbane in November 2012. The company has previously announced new service to Auckland, New Zealand commencing on March 13, and to Taipei, Taiwan in July 2013.

Copyright Photo: Ton Jochems. Boeing 767-3G5 ER N586HA (msn 24259) taxies on the ramp at Los Angeles International Airport.

Hawaiian Airlines:

Route Map:

AeroSvit struggles to maintain operations

AeroSvit Ukrainian Airlines (Kiev), which filed for bankruptcy protection and reorganization on December 29, is struggling to maintain its downsized operations on schedule. One flight from Bangkok to Kiev was delayed due to problems with the prompt payments for airport services in Bangkok due to the time difference and being on a cash basis. The airline has apologized an stated the transfer of funds had been delayed according to this report by the Kyiv Post.

The airline has called on its service providers to fulfill their contractual agreements.

As previously reported, AeroSvit is turning over most of its European routes to Ukraine International Airlines (UIA).

Read the full report: CLICK HERE

Copyright Photo: Stephen Tornblom. According to the report, the New York flights could also be impacted. Boeing 767-33A UR-VVV (msn 25536) on the ramp at New York (JFK) is assigned to the long-range routes which the airline is trying to maintain.

AeroSvit Ukrainian Airlines:

Hawaiian Airlines and Virgin America move closer together with a new interline and code-sharing agreement

Hawaiian Airlines (Honolulu) and Virgin America (San Francisco) today announced new cooperative marketing agreements that expand the reach of their respective networks and provide a range of new travel benefits for their customers.

The two airlines also announced that Hawaiian Airlines has placed its two-letter HA code on Virgin America flights to Boston, Dallas/Worth, Fort Lauderdale/Hollywood, Washington D.C. (IAD); New York (JFK); Las Vegas; Los Angeles; Chicago; Philadelphia; Portland, Oregon; Seattle/Tacoma and San Francisco.

Copyright Photo: Ton Jochems. Boeing 767-33A ER WL N582HA (msn 28139) taxies to the runway at Los Angeles International Airport.

Hawaiian Airlines:

Virgin America:

Hawaiian Airlines launches a new route to Sapporo, Japan

Hawaiian Airlines (Honolulu) yesterday (October 30) launched its inaugural flight from Honolulu to Sapporo, Japan, and restored nonstop service between the two cities that had been discontinued by other carriers nine years earlier.

The capital city of the island of Hokkaido, Japan’s second-largest and northernmost island, Sapporo is Japan’s fourth-largest city with a population of 1.9 million. Sapporo is renowned for its ski resorts – the city hosted the 1972 Winter Olympics – and the world-famous Sapporo Snow Festival, which annually attracts millions of visitors each February to see its spectacular snow and ice sculptures.

Hawaiian’s Honolulu-Sapporo service is adding 41,000 new air seats to the market annually and the benefit to Hawai’i’s visitor industry will be significant, according to the Hawai’i Tourism Authority.

Hawaiian’s Flight HA 441 departs Honolulu International Airport on Tuesday, Thursday, and Saturday at 2:45 p.m., crosses the international dateline, and arrives at Sapporo’s New Chitose Airport at 7:00 p.m. the following day.

The return flight HA 442 departs Sapporo on Wednesday, Friday, and Sunday at 9:30 p.m., crosses the international dateline, and arrives in Honolulu at 9:55 a.m. the same day.

Hawaiian will operate its Honolulu-Sapporo flights offering the comfort and roominess of its wide-body, twin-aisle Boeing 767-300 ER aircraft (see below) seating 264 passengers, with 18 in Business Class and 246 in the Main Cabin.

Travelers will enjoy a customized presentation of Hawaiian’s signature inflight hospitality program, combining its celebration of the islands’ culture, people, and Aloha Spirit with entertainment options and special onboard products designed for the Japanese traveler.

Sapporo is the fourth city in Japan that Hawaiian has introduced nonstop service in the past two years following Tokyo (November 2010), Osaka (July 2011), and Fukuoka (April 2012).

Top Copyright Photo: Guests of Hawaiian Airlines’ inaugural flight today from Honolulu to Sapporo, Japan were treated to hula and Hawaiian music before boarding. Photo Credit: Anthony Consillio. (PRNewsFoto/Hawaiian Airlines)

Hawaiian Airlines:

Bottom Copyright Photo: Bruce Drum. Boeing 767-33A ER N581HA (msn 28141) taxies to the runway at Los Angeles International Airport.

Hawaiian reports a third quarter net profit of $40.6 million

Hawaiian Holdings, Inc. (Honolulu), parent company of Hawaiian Airlines, Inc. (Honolulu), reported third quarter 2012 adjusted net income of $40.6 million or $0.77 per diluted share, reflecting economic fuel expense, and GAAP net income for the third quarter of 2012 of $45.5 million, or $0.86 per diluted share.

Financial Highlights:

Adjusted net income, reflecting economic fuel expense, increase of 35.2% year-over-year and GAAP net income increase of 77.6% year-over-year.
Adjusted operating margin of 13.4%, reflecting economic fuel expense, and operating margin of 13.6%
Adjusted net income margin of 7.4%, reflecting economic fuel expense, and net income margin of 8.3%.
Operating cost per available seat mile (CASM) excluding fuel decrease of 6.8%.
Unrestricted cash and cash equivalents of $433.5 million.

The Company reported operating income of $74.9 million in the third quarter of 2012, compared with operating income of $60.9 million in the same period in 2011.

Operating revenue was $549.3 million, a 20.5% increase compared to the same period in 2011. Capacity for the third quarter of 2012 increased 28.0% year-over-year to 4.1 billion available seat miles, resulting in operating revenue per available seat mile (ASM) of 13.56 cents, down 5.8% from the same period in 2011. Passenger yield (passenger revenue per revenue passenger mile) decreased 3.6% year-over-year to 14.77 cents, resulting in a year-over-year decrease in passenger revenue per ASM of 5.7% to 12.30 cents. Selected Statistical Data is included in Table 2.

Total operating expenses increased 20.1% year-over-year to $474.4 million. CASM decreased 6.1% year-over-year to 11.71 cents. Excluding fuel, CASM decreased 6.8% year-over-year to 7.62 cents. Reconciliations of GAAP and non-GAAP financial measures are included in Tables 2 and 6.

Aircraft fuel costs increased 21.9% year-over-year to $165.8 million and represented 34.9% of total operating expenses. Hawaiian’s average cost per gallon of jet fuel decreased 4.1% year-over-year to $3.04 (including taxes and delivery). The financial impact of hedging activities is included in nonoperating income (expense), and as such is not reflected in fuel expense.

The Company believes that economic fuel expense is the best measure of the effect of fuel prices on its business as it most closely approximates the net cash outflow associated with the purchase of fuel for its operations in a period. The Company defines economic fuel expense as GAAP fuel expense plus (gains)/losses realized through actual cash (receipts)/payments received from or paid to hedge counterparties for fuel hedge derivative contracts settled during the period. For the three months ended September 30, 2012, economic fuel expense was $167.4 million ($3.07 per gallon), compared with $138.3 million ($3.22 per gallon) in the prior-year period. Analyses of economic fuel expense for the third quarter 2012 and 2011 and pro-forma net income (loss) and diluted net income (loss) per share reflecting economic fuel expense are included in Tables 3 and 4.

Nonoperating income (expense) totaled ($1.1) million, compared with ($13.6) million in the same period in 2011. The Company recognized gains on its fuel hedging activities, reflected in nonoperating income (expense), totaling $6.5 million compared with losses of $9.7 millionduring the same period in 2011.

A summary of the Company’s fuel derivatives contracts as of October 17, 2012 is included as Table 5.

As of September 30, 2012, the Company had:

Unrestricted cash and cash equivalents of $433.5 million.
Available borrowing capacity of $67.4 million under Hawaiian’s Revolving Credit Facility.
Outstanding debt and capital lease obligations of approximately $674 million consisting of the following:
- $251.2 million outstanding under secured loan agreements to finance a portion of the purchase price for four Airbus A330-200 aircraft.
- $174.6 million in secured loan agreements for a portion of the purchase price for 15 previously leased Boeing 717-200 aircraft.
- $108.2 million in capital lease obligations for an Airbus A330-200 aircraft and two Boeing 717-200 aircraft.
- $68.0 million outstanding under floating rate notes issued in conjunction with the acquisition of three Boeing 767-300 ER aircraft.
- $71.8 million outstanding of Convertible Senior Notes.

Copyright Photo: Bruce Drum. Boeing 767-33A ER N589HA (msn 33422) taxies to the runway at Seattle/Tacoma bound for Honolulu.

Hawaiian Airlines: