Tag Archives: Airbus A330-243

Air Serbia is recommencing flights to its popular destinations

Remembering Nikola Tesla

Air Serbia has made this announcement:

Starting from May 28, 2021, Air Serbia will recommence flights to its destinations on the Croatian coast – Dubrovnik and Split. The flights to popular vacation destinations in Dalmatia will be operated two times a week, on Mondays and Fridays, and from 13 June, the third weekly flight to Split will be added on Sundays.

In addition to seasonal routes, Air Serbia will recommence its scheduled services to Bucharest on June 4, 2021. The Serbian national airline will be operating flights to the capital of Romania three times a week – on Mondays, Fridays and Saturdays. By the end of June, it is planned to increase the number of weekly flights to Bucharest to five, by adding one flight on Sundays and Mondays each.

In addition, the company will also recommence flights to Thessaloniki, and will be resuming flights to Prague and Sofia from June 4, 2021.

During the summer season, the Serbian national airline will be operating flights to Thessaloniki seven times a week – twice daily on Mondays and Fridays and once daily on Tuesdays, Saturdays and Sundays. A direct flight on this route lasts one hour and 15 minutes on average.

For the majority of the summer season, Air Serbia will be operating flights to Prague two times a week – on Mondays and Fridays. A direct flight between the Serbian and Czech capitals lasts one hour and 40 minutes on average.

It is planned to operate Air Serbia flights to Sofia three times a week – twice daily on Mondays and once daily on Fridays. Direct flight between the capitals of Serbia and Bulgaria lasts one hour and five minutes on average.

“We are glad that the summer season is approaching and, judging by the apparent changes in demand, the situation is developing in a positive direction. We are pleased that we have the opportunity to enable passengers to plan their summer vacation in popular coastal destinations such as Dubrovnik and Split, for which there is traditionally a lot of interest because of their beauty and proximity. The air connection to the capital of Romania is also very important to us, primarily for economic reasons,” said Jiri Marek, General Manager, Commercial and Strategy, Air Serbia.

Top Copyright Photo: Air Serbia Airbus A330-243 YU-ARB (msn 973) (Nikola Tesla) JFK (Fred Freketic). Image: 953667.

Air Serbia aircraft slide show:

Hawaiian Airlines ramps up its hiring efforts ahead of summer travel season

Hawaiian Airlines Airbus A330-243 N386HA (msn 1302) LAX (Michael B. Ing). Image: 952315.

Hawaiian Airlines is seeking qualified candidates to fill more than 400 positions ahead of what is expected to be a busy summer travel season.

Hawaiian saw a rebound in demand in the first quarter and has been rebuilding its network and workforce to accommodate steadily growing interest in travel to its home state. The need for team members on Maui is particularly acute, and Hawaiian is offering a $2,000 sign-on bonus to attract experienced applicants for most jobs on the Valley Isle.

“We aspire to be the employer of choice,” said Robin Kobayashi, senior vice president of human resources at Hawaiian Airlines. “We offer rewarding career opportunities along with generous travel privileges. As businesses recover from the pandemic, the need for qualified workers is increasing. It is imperative that we remain competitive, and we hope our sign-on bonus for positions on Maui generates a lot of interest.”

Hawai‘i’s hometown airline currently employs about 6,850 people, more than 90 percent of whom are based in the state. Most new positions are in airport operations and include guest service agents, ramp agents, operations managers and aircraft mechanics in Honolulu, Maui, Hilo, Kona, Līhu‘e and in select cities on the U.S. West Coast; the majority are part-time positions. Full-time job opportunities at the company’s corporate office in Honolulu are in IT, marketing, human resources and sales.

Although Hawaiian recalled nearly all furloughed employees, it is hiring to backfill vacant positions and to fill openings that support new routes. The company recently launched nonstop services between Honolulu and Orlando, Austin and Ontario, California, and added flights connecting Maui to Long Beach and Phoenix.

“We’re looking for team members who can help us deliver the exceptional service and guest experience that Hawaiian is known for,” added Kobayashi.

For a complete list of job openings, position descriptions, qualifications, and benefits, visit www.hawaiianairlines.com/careers.

Top Copyright Photo: Hawaiian Airlines Airbus A330-243 N386HA (msn 1302) LAX (Michael B. Ing). Image: 952315.

Hawaiian aircraft slide show:

Hawaiian loses $60.7 million in the first quarter

Hawaiian Airlines Airbus A330-243 N386HA (msn 1302) LAX (Michael B. Ing). Image: 952315.

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

First Quarter 2021 – Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Loss

($60.7M)

$83.7M

($190.6M)

($156.6M)

Diluted EPS

($1.23)

$1.91

($3.85)

($3.11)

Pre-tax Margin

(42.2)%

(10.9) pts.

(132.4)%

(124.4) pts.

“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 in North America improved materially as we began to realize the pent up demand for leisure travel after a year of lockdown,” said Peter Ingram , 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 of $60.7 million , and adjusted net loss of $190.6 million .

The Company reported total revenue of $182 million , down 72% compared to the first quarter of 2019, on 49% lower capacity.  After a slow start to the year, the Company experienced a rebound in close-in demand in North America in March 2021.

The Company reported total operating expenses of $255.4 million , and operating expenses excluding non-recurring items of $402.7 million , 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 in North America . During the first quarter, the Company operated an average of 51% of its first quarter system 2019 capacity, comprised of 73%, 38% and 12% of North America , Neighbor Island and International 2019 capacity levels, respectively.

In March and April of 2021, the Company launched four new North America routes. Starting in the summer of 2021, the Company will expand frequencies on the less than daily routes.

  • Daily service between Kahului Maui (OGG) and Long Beach (LGB), which started March 9, 2021 .
  • Twice weekly service between Honolulu’s Daniel K. Inouye International Airport (HNL) and Orlando International Airport (MCO), which started March 11, 2021 .
  • Five-times-weekly service between Honolulu’s Daniel K. Inouye International Airport (HNL) and Ontario International Airport (ONT), which started March 16, 2021 .
  • Twice weekly service between Honolulu’s Daniel K. Inouye International Airport (HNL) and Austin-Bergstrom International Airport (AUS), which started April 21, 2021 .

In April 2021 , the Company announced it will initiate four-times-weekly service between Kahului Maui (OGG) and Phoenix Sky Harbor International Airport (PHX) starting in May 2021 .

Liquidity and Capital Resources

As of March 31, 2021, the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $1.9 billion , up $1.0 billion from December 31, 2020
  • Outstanding debt and finance lease obligations of $2.1 billion , up $852 million from December 31, 2020
  • Air traffic liability of $687 million , up $154 million from December 31, 2020

The Company further enhanced its liquidity position during the first quarter of 2021, including:

  • In February 2021 , 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 of $1.2 billion principal amount of 5.75% senior secured notes due 2026.
  • In March 2021 , 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 of $109 million , of which $68 million was raised in the first quarter of 2021.
  • As of March 31, 2021 , the Company has received $147.3 million in grants and $20.2 million in loans pursuant to the Payroll Support Program Extension Agreement (the “PSP Extension Agreement”) with the U.S. Department of the Treasury.

In February 2021 , the Company repaid in full the $45 million 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 $4 million.

In February 2021 , the Company repaid $235 million 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 approximately $25.1 million pursuant to the PSP Extension Agreement and approximately $179.7 million 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 of March 31, 2021 , the Company had $2.1 billion in liquidity, including the undrawn portion of its revolver. This figure does not include the $205 million 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. In April 2021 , the Company announced that HawaiianMiles – the currency of its award-winning loyalty program – 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 ( Japan 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.

Starting June 1, 2021 , 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.  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 ending June 30, 2021 , expressed as an expected percentage change compared to the results for the quarter ended June 30, 2019 , as applicable.

Item

Second Quarter 2021
Guidance

GAAP Equivalent

GAAP Second
Quarter 2021
Guidance

ASMs

Down 30 to 33%

Total Revenue

Down 45 to 50%

Operating Expenses, excluding non-recurring items (a)

Down 20 to 24%

Operating Expenses (a)

Down 35 to 39%

Interest Expense

$30 million

Adjusted EBITDAR (b)

($70) million to ($20)  million

Effective Tax Rate

~21%

Fuel Price per Gallon

$1.75

(a) See Table 4 for a reconciliation of GAAP operating expenses to operating expenses excluding non-recurring items.

(b) 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.

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 $50 and $60 million.

Top Copyright Photo: Hawaiian Airlines Airbus A330-243 N386HA (msn 1302) LAX (Michael B. Ing). Image: 952315.

Hawaiian aircraft slide show:

American Airlines reports a third quarter net loss of $2.4 billion, will retire its 15 Airbus A330-200s

American Airlines Group Inc. today reported its third-quarter 2020 financial results, including:

  • Third-quarter revenue of $3.2 billion, down 73% year-over-year on a 59% year-over-year reduction in total available seat miles (ASMs).
  • Third-quarter pretax loss of $3.1 billion. Excluding net special items1, third-quarter pretax loss of $3.6 billion.
  • Third-quarter net loss of $2.4 billion, or ($4.71) per share. Excluding net special items1, third-quarter net loss of $2.8 billion, or ($5.54) per share.
  • Ended third quarter with approximately $13.6 billion of total available liquidity. In addition, in October, the company increased its loan capacity by $2 billion through the CARES Act loan program to $7.5 billion. With this increase, the company’s third-quarter pro forma liquidity balance is approximately $15.6 billion.
  • Announced authorization to issue up to $1 billion of equity in an at-the-market offering to further bolster liquidity.

“During the third quarter, we took action to reduce our costs, strengthen our financial position, and ensure our customers return to travel with confidence,” said American Airlines Chairman and CEO Doug Parker. “The American Airlines team is doing a remarkable job taking care of our customers and each other during the most challenging time in our industry’s history.

“We have a long road ahead and our team remains fully engaged and focused not just on managing through the pandemic, but on making sure we are prepared for when demand returns. We are confident that the continued efforts of our team and the actions we have taken will drive customer confidence and strengthen our company for the future.”

Supporting team members, customers and communities

To ensure the safety and well-being of its team members and customers, American:

  • Upgraded its Clean Commitment by adding the electrostatic spraying solution SurfaceWise®2 to its cleaning and safety program. SurfaceWise2 is approved by the EPA as the first-ever long-lasting product to help fight the spread of the novel coronavirus and it will be applied to American’s entire fleet in the coming months.
  • Announced a preflight COVID-19 testing program to help reopen markets to travel. Testing options are now available to customers traveling to Hawaii and Costa Rica, with Jamaica and the Bahamas soon to follow.
  • Launched a new travel tool to help customers quickly see the current COVID-19 travel guidelines for domestic and international destinations.
  • Continues to work with the Global Biorisk Advisory Council for GBAC STAR® Accreditation for its aircraft and lounges. American is the first airline to seek the accreditation and expects to receive the designation by the end of 2020.

To provide its customers additional flexibility, American:

  • Eliminated change fees for most domestic and short-haul international flying. American will also allow customers to keep the full value of their original tickets if they change their plans prior to scheduled travel.
  • Is giving customers the option to stand by on flights on the same day at no charge.
  • Enhanced its Basic Economy product to give customers the ability to tailor their travel experience, including upgrades, Preferred and Main Cabin Extra seats, priority boarding, and same-day flight changes.
  • Is allowing AAdvantage® elite members to apply their current travel benefits when purchasing a Basic Economy fare.
  • Reopened additional Admirals Club lounges with enhanced cleaning and safety protocols as customers begin planning holiday travel.

To support the communities it serves, American:

  • More than doubled its cargo-only flying from August to September and operated more than 1,900 flights serving 32 destinations during the third quarter. To date, these cargo flights have helped the airline’s customers move more than 85 million pounds of critical goods around the world amidst the COVID-19 outbreak. Through these efforts, the company’s cargo revenue was $207 million in the third quarter, effectively flat year-over-year on a 59% reduction in total ASMs.
  • Donated more than 1 million pounds of food to fight hunger in communities around the world since the start of the pandemic. Through its partnership with Feeding America® and other charitable organizations, American has contributed its surplus food to help provide meals to families in need throughout the U.S., Europe, Asia and Latin America.

American Airlines Airbus A330-243 N286AY (msn 1415) ZRH (Andi Hiltl). Image: 927524.

Above Copyright Photo: American Airlines Airbus A330-243 N286AY (msn 1415) ZRH (Andi Hiltl). Image: 927524.

Conserving cash

American continues to take aggressive action to reduce costs and preserve cash. The airline estimates that it has removed approximately $17 billion from its operating and capital budgets for 2020. This has been achieved primarily through cost savings resulting from reduced flying. The company also:

  • Removed more than 150 aircraft from its fleet through early retirements or by placing aircraft into temporary storage. In addition to the previously announced retirements of the Boeing 757, Boeing 767, Embraer E190, Airbus A330-300, Bombardier CRJ-200 and certain other regional aircraft, the company recently decided to permanently retire all 15 of its Airbus A330-200 aircraft (above). Note: For the record, the last AA Airbus A330-200 revenue flight was operated on April 23, 2020 between San Salvador and El Paso (AA9608) with N284AY.
  • Reached an agreement with Boeing to secure rights to defer deliveries of 18 737 MAX aircraft scheduled to be delivered in 2021 and 2022 to 2023 and 2024. The company also finalized a series of sale-leaseback transactions to finance its remaining Airbus A321 aircraft deliveries in 2021. As a result, the company now has financing secured for
  • Made the difficult decision to proceed with furloughs to reduce headcount absent an extension of the CARES Act Payroll Support Program (PSP). In total, more than 20,000 team members have opted for an early out or long-term leave, and 19,000 team members were furloughed beginning Oct. 1. The company, along with its union partners, continues to aggressively fight for an extension of the PSP that would allow the airline to bring back those furloughed employees and reinstate service to small- and medium-sized markets that have suffered without the extension of funds.
  • Reduced its non-aircraft capital expense — by $700 million in 2020 and another $300 million in 2021 — through reductions in fleet modification work, the elimination of all new ground service equipment purchases, and pausing all noncritical facility investments and IT projects.

Bolstering liquidity

In addition to reducing its operating and capital expenditures, American continues to strengthen its liquidity position. The company:

  • Finalized a $5.5 billion loan agreement with the U.S. Department of the Treasury through the CARES Act loan program. In October, the company increased its loan capacity through the program to $7.5 billion.
  • Closed $1.2 billion of financing with Goldman Sachs Merchant Bank through two senior secured note transactions. American does not have any large non-aircraft debt maturities until its $750 million unsecured bonds mature in June 2022.
  • Received the final payments of allotted PSP funds, including an incremental $168 million of previously unallocated funds identified by the Treasury Department.
  • Announced authorization to issue up to $1 billion of equity in an at-the-market offering to further bolster liquidity.
  • Reduced its daily cash burn rate2 to approximately $44 million per day in the third quarter from approximately $58 million per day in the second quarter. The company presently expects its fourth-quarter cash burn rate to be approximately $25 to $30 million per day.
  • The company’s third-quarter pro forma liquidity balance is approximately $15.6 billion and it expects to end the fourth quarter with more than $13 billion in total available liquidity, which excludes any proceeds from the $1 billion at-the-market equity offering.

Demand and capacity outlook

American saw improvements in passenger demand and load factors during the third quarter, but both continue to be significantly below 2019 levels. The company will continue to match its forward capacity with observed bookings trends and currently expects its fourth-quarter system capacity to be down more than 50% year over year, with long-haul international capacity down approximately 75% year over year.

American Airlines aircraft photo gallery (Airbus):

Avianca Peru is being liquidated

Avianca (Peru) Airbus A330-243 N279AV (msn 1279) MIA (Brian McDonough). Image: 925808.

Avianca Group, as part of its Chapter 11 reorganization, made this announcement about Avianca Peru, formerly TACA Peru:

In parallel to its Chapter 11 filing in the U.S., as previously announced, Avianca is commencing a liquidation of its operations in Peru pursuant to local laws, which will allow Avianca to renew its focus on core markets upon emergence from its court-supervised reorganization.

Avianca Perú is an airline based in Lima, Peru. It operates domestic services and international services. Its main base is Jorge Chávez International Airport (LIM), Lima. The airline operates out of 18 airports. It is part of the Synergy Group and operates its flights with TACA’s codes. Through Synergy Group, it is one of the seven nationally branded airlines (Avianca Ecuador, Avianca Honduras, etc.) in the Avianca Holdings group of Latin American airlines.

In other news, Avianca Group announced first day approvals of its motions in the bankruptcy court:

Avianca Holdings S.A. has announced that all “first day” motions related to the Company’s voluntary reorganization proceedings initiated on May 10, 2020 have been approved on an interim or final basis by the U.S. Bankruptcy Court for the Southern District of New York. Collectively, the orders granted by the Court at the hearing will help ensure that Avianca continues normal business operations throughout the reorganization process.

Among other things, the Court approved motions that will allow Avianca to protect employees and suppliers while also continuing to serve customers. Avianca received authorization to:

  • Pay certain employee wages, compensation and benefit obligations owed from before the filing date, as well as to continue paying wages and honoring employee benefit programs in the normal course of business during its Chapter 11 cases;
  • Maintain its network of customer programs throughout this process. Customers can continue to arrange travel and fly with Avianca in the same way they always have. Additionally, Avianca customers will continue to accrue miles when they fly with Avianca, and can continue to redeem miles earned through LifeMiles™ to purchase tickets with Avianca during this process; and,
  • Honor various obligations owed to certain of its travel agency partners, vendors and suppliers from before the filing date. The Company will also continue to pay vendors and suppliers, as well as travel agency partners, in the ordinary course for goods and services provided on or after May 10, 2020.

The success of Avianca’s “first day” hearing marks the first significant milestone of the Company’s Chapter 11 case, and will allow it to both issue various critical payments and maintain operational continuity throughout its reorganization. With its requested relief granted, the Company can look forward to productively engaging with key stakeholders and other interested parties. Notably, the next Court hearing is currently scheduled for June 11, 2020, where Avianca hopes to secure approval of all interim orders on a final basis.

Ongoing Government Discussions

As previously announced, Avianca – like many other airlines around the world, including in the United States, the European Union, and Asia as well as in Latin America – is seeking financial support from the governments of the countries where it provides essential services. Avianca continues to be engaged in discussions with the government of Colombia, as well as those of its other key markets, regarding financing structures that would provide critical additional liquidity to support the Company during the Chapter 11 process and play a vital role in ensuring that the Company emerges from its court-supervised reorganization as a highly competitive and successful carrier in the Americas. In the interim, while these discussions are ongoing, the Company intends to utilize its cash on hand, combined with funds generated from its ongoing operations (such as cargo), to support the business during the court-supervised reorganization process.

Top Copyright Photo: Avianca (Peru) Airbus A330-243 N279AV (msn 1279) MIA (Brian McDonough). Image: 925808.

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Etihad Airways to sell off its fleet of Airbus A330s

Etihad Airways is selling its fleet of 16 Airbus A330-200s and six A330-300s. It is also selling its 16 Boeing 777-300 ERs but will leased them back.

KKR issued this statement:

KKR, a leading global investment firm, and Altavair AirFinance, a leader in commercial aviation finance, have announced the signing of a definitive agreement to acquire a portfolio of commercial aircraft from Etihad Airways, the national airline of the United Arab Emirates. The acquisition will be made through aircraft leasing investment platform Altitude Aircraft Leasing, which was established by KKR’s credit and infrastructure funds in 2018 to acquire aircraft serviced by Altavair.

Etihad Airways Airbus A330-243 A6-EYI (msn 730) CGK (Michael B. Ing). Image: 938430.

Above Copyright Photo: Etihad Airways Airbus A330-243 A6-EYI (msn 730) CGK (Michael B. Ing). Image: 938430.

 

The aircraft portfolio being acquired includes Etihad Airways’ owned fleet of Boeing 777-300ERs and Trent powered Airbus A330-300s and A330-200s. The transaction provides for the Boeing 777-300ERs to be leased back to Etihad upon purchase in early 2020, while the Airbus A330s will be delivered over the next 22 months and placed on lease with other international operators for either passenger operations or as converted freighters.

Etihad Airways aircraft photo gallery:

Hawaiian Airlines awarded tentative approval for a new Tokyo Haneda route

"Kealiiokonaikalewa"

Hawaiian Airlines received a preliminary decision from the U.S. Department of Transportation to allocate a new slot to the airline for expanded service to Haneda Airport. This is a critical step toward gaining rights to provide additional service between Honolulu and Tokyo before the start of the 2020 Olympic Summer games. The allocation is contingent upon the successful conclusion of consultations by the Government of Japan with affected local governments and communities.

“Although we are disappointed that the tentative award does not grant our full request for three new routes, Hawaiian looks forward to the opportunity to expand its service between Tokyo Haneda and Honolulu,’’ said Peter Ingram, president and CEO of Hawaiian Airlines. “With this new service we will be able to better serve the needs of guests traveling between Honolulu and Haneda as well as those connecting beyond these gateway cities.”

The U.S. DOT’s Order to Show Cause invites comments on the DOT’s preliminary decision within two weeks and Hawaiian Airlines will continue to press for additional slots during this time.

In its Feb. 21, 2019 application, Hawaiian noted that it has been flying to Haneda since 2010, longer than any other U.S. airline, and has since grown the market by providing consistent and uninterrupted service. In 2016, the carrier added additional service from Haneda, serving Honolulu four times a week and Kona three times per week. That same year, the carrier also commenced service between Honolulu and Tokyo’s Narita airport.

The tentative approval of one new slot is expected to allow Hawaiian to arrive and depart Haneda earlier, thereby allowing substantially more connections to banks of flights departing and arriving from points throughout Japan.  Through its codeshare with Japan Airlines, Hawaiian expects connecting traffic to points beyond Tokyo, primarily to other cities in Japan, to grow dramatically, increasing the quantity and quality of service options as well as needed competition in some underserved locales.

The Honolulu/Tokyo market is, by far, the largest U.S.-Japan city pair with more than 2,300 passengers per day each way. Honolulu’s Daniel K. Inouye International Airport has more than twice the market size of passengers flying to and from Tokyo, than the second largest U.S. airport, Los Angeles International Airport. By stimulating traffic between Tokyo and Honolulu, Hawaiian has brought hundreds of thousands of tourists to the United States and the money they spend is a U.S. export that generates significant economic benefits to the domestic economy. Hawaiian estimates additional stimulation of one additional flight will lead to about 31,100 additional visitors, resulting in an annual economic impact of $80 million in sales, $25 million in earnings, and more than 750 U.S. jobs.

Top Copyright Photo: Hawaiian Airlines Airbus A330-243 N389HA (msn 1316) LAX (Michael B. Ing). Image: 944831.

Hawaiian Airlines aircraft slide show:

 

Hawaiian Airlines to restore the Fukuoka route

"Hokulea"

Hawaiian Airlines made this announcement:

Hawaiian Airlines has announced it intends to provide new nonstop service between Fukuoka, Japan and Honolulu starting as soon as November 2019, subject to government approvals. Hawaiian plans to operate four weekly flights between Fukuoka Airport (FUK) on the island of Kyushu and Honolulu’s Daniel K. Inouye International Airport (HNL) on O‘ahu.

Hawaiian’s proposed new service is subject to the airline securing FUK slots that enable a commercially viable schedule. Additional approvals are also required from Japanese and U.S. government agencies.

Fukuoka Prefecture is home to more than 5 million of the 13 million residents of Kyushu, the third largest and most southerly of Japan’s four main islands. In 1981, the prefecture became Hawai‘i’s first sister state in recognition of their deep cultural and economic ties. Hawaiian previously operated non-stop service between FUK and HNL from April 2012 through June 2014.

Hawaiian’s restored FUK-HNL flights would complement the airline’s Japan network, which includes non-stop service connecting the Hawaiian Islands with both Haneda and Narita in Tokyo, as well as Osaka and Sapporo.

Guests traveling with Hawaiian Airlines between Japan and Hawai‘i enjoy the roominess and comfort of the carrier’s wide-body Airbus A330 aircraft, which would serve the new Fukuoka-Honolulu route.

Top Copyright Photo: Hawaiian Airlines Airbus A330-243 N381HA (msn 1114) LAX (Michael B. Ing). Image: 944825.

Hawaiian Airlines aircraft slide show:

The winner is: Part 1: Hawaiian Airlines

Hawaiian Airlines Airbus A330-243 N360HA (msn 1732) LAX (Michael B. Ing). Image: 944624.

A week ago we asked what was your favorite airline livery. The series will geographically group airlines in an open competition (by vote of our readers) with a final winner to be announced later this summer.

Part 1 was for the Major Scheduled U.S. Airlines. 11 airlines were pitted against each other with their current liveries.

It was a clear run-away. Hawaiian Airlines won by a large margin. Alaska Airlines was the runner-up.

Here are the results:

Hawaiian Airlines: 34.9%

Alaska Airlines: 14.3%

Delta Air Lines: 11.9%

American Airlines: 9.7%

United Airlines: 6.4%

JetBlue Airways: 6.2%

Frontier Airlines: 4.9%

Southwest Airlines: 4.6%

Sun Country Airlines: 2.7%

Spirit Airlines: 2.3%

Allegiant Air: 1.4%

The marketing folks at Hawaiian should be very proud.

Top Copyright Photo: Hawaiian Airlines Airbus A330-243 N360HA (msn 1732) LAX (Michael B. Ing). Image: 944624.

Hawaiian aircraft slide show:

Hawaiian Holdings reports 2019 first quarter financial results

"Humu"

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., today reported its financial results for the first quarter of 2019.

First Quarter 2019 – Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Income

$36.4M

+$7.8M

$32.6M

$(23.3)M

Diluted EPS

$0.75

+$0.19

$0.67

$(0.42)

Pre-tax Margin

7.5%

+1.9 pts.

6.7%

(4.3) pts.

 

“Hawaiian is off to a solid start in 2019,” said Peter Ingram, Hawaiian Airlines president and CEO. “We made important progress against our 2019 priorities in the first quarter, advancing a host of initiatives that will bring lasting value to our guests, our team, and our shareholders. Executing the winning formula we have crafted in the course of 90 years of serving Hawai’i with the best mix of service, products, and aircraft positions us well to continue to succeed in the face of an evolving competitive environment. We look forward to the rest of 2019 and demonstrating, yet again, that Hawaiian is the carrier of choice to Hawai’i.”

Statistical information, as well as a reconciliation of the non-GAAP financial measures, can be found in the accompanying tables.

Shareholder Returns, Liquidity and Capital Resources

The Company returned $16.9 million to shareholders in the first quarter through share repurchases of $11.1 million and a dividend payment of $5.8 million.

On April 19, 2019 the Company’s Board of Directors declared a quarterly cash dividend of 12 cents per share to be paid on May 31, 2019 to all shareholders of record as of May 17, 2019.

As of March 31, 2019, the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $532 million
  • Outstanding debt and capital lease obligations of $613 million

First Quarter 2019 Highlights

Awards and Recognition

  • Ranked #1 nationally for on-time performance for the 15th consecutive year in 2018 as reported in the U.S. Department of Transportation (DOT) Air Travel Consumer Report.

Partnerships

  • Received notification from the U.S. Department of Transportation (DOT) that its antitrust immunity application with Japan Airlines was deemed substantially completed.
  • Announced a partnership with Carbon Lighthouse to launch a two-month pilot program focused on reducing energy waste at its Airport Center building.
  • In April, announced an expanded 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.

Products and Services

  • In April, selected partners for development of its Boeing 787-9 Dreamliner seats. Adient Aerospace and Collins Aerospace will design and supply seats for the Company’s new flagship aircraft scheduled to enter its transpacific route network in 2021.
  • Launched a brand new Hawaiian Airlines mobile app with features designed to improve guests’ day-of-travel experience.

Routes and Network

  • In April, began service on its second East Coast route with five-times-a-week non-stop service between Boston’s Logan International Airport (BOS) and Honolulu’s Daniel K. Inouye International Airport (HNL).
  • Expanded its service to Northern California with:
    • the launch of new daily non-stop service between Maui’s Kahului Airport (OGG) and Sacramento International Airport (SMF); and
    • the announcement of new daily non-stop service between San FranciscoInternational Airport (SFO) and Honolulu (HNL) using new Airbus A321neo aircraft beginning October 2019, augmenting daily flights between San Francisco(SFO) and both Honolulu (HNL) and Maui (OGG).
  • Submitted its application to the U.S. Department of Transportation (DOT) for three additional daily flights between Honolulu (HNL) and Tokyo Haneda Airport (HND).

Fleet

  • Took delivery of one Airbus A321neo aircraft in March, increasing the size of its A321neo fleet to twelve aircraft.
  • Retired the last of its Boeing 767-300 aircraft in January.

Top Copyright Photo (all others by the airline): Hawaiian Airlines Airbus A330-243 N375HA (msn 1606) SEA (Michael B. Ing). Image: 946279.

Hawaiian aircraft slide show: