Tag Archives: Hawaiian Airlines

Beat of Hawaii: Trouble brewing for Hawaiian Airlines at LAX

According to this report by Beat of Hawaii, Hawaiian Airlines has been asked by Los Angeles World Airports (LAWA) management to move from overcrowded Terminal 5 in order to accomodate the consolidation of American Airlines. According to the article, this will put HA at a disadvantage since it be asked to move to the Midfield Satellite Concourse (MSC). Read the full story.

According to LAWA:

Phase 1 (MSC North Project) of the MSC Program is the construction of the northern portion of the multi-story MSC facility and associated improvements. The MSC North Project will improve the terminal operations, concessions facilities, and overall passenger experience at LAX. The facility is designed to serve both domestic and international traffic. The MSC North Project will provide LAWA with the flexibility to accommodate demand for aircraft gates while modernizing other terminals at LAX and reduce reliance on the West Remote gates.

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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:

Hawaiian Airlines arrives in Boston

Hawaiian Airlines Flight 90 flew into aviation history on April 5, inaugurating the nation’s longest interstate route when it left Honolulu’s Daniel K. Inouye International Airport (HNL) on April 4 and touched down at Boston Logan International Airport (BOS) on the morning of April 5, bringing with it a five-times-a-week dose of aloha to New England.

Prior to this flight, Boston was the largest U.S. market without nonstop service to Hawai‘i with some 250 people flying between eastern New England and the islands each way on any given day. Boston’s renowned educational and medical facilities are among the many attractions drawing Hawai‘i travelers to the Bay State. The route generated about $79 million in ticket sales last year.

A celebration of Hawaiian Airlines inaugural flight from Honolulu to Boston on 4/5/2019.

In addition to vacations, the route opens economic and cultural opportunities. The seafood industry, important in both states, will benefit. On board Flight HA89 as it departed Boston for Hawai‘i: nearly one-and-a-half tons of live lobster. Hawaiian fish and produce will also be regularly flown to New England.

At 5,095 miles, Hawaiian’s HNL-BOS route is the longest regularly scheduled interstate route in U.S. history. It will take nearly 10 hours traveling to Boston from Honolulu, and roughly 11.5 hours traveling from Boston in the morning and arriving in Honolulu in the afternoon. When the ship Thaddeus sailed from Boston to Hawai’i in 1819, it took the missionaries who were onboard 164 days to reach the islands.

For JetBlue fans, Hawaiian’s expanded codeshare with Boston’s largest airline lets customers earn and redeem TrueBlue points on Hawaiian flights. The relationship also opens a plethora of new cities with connections through Boston, including Washington, D.C. (DCA), Pittsburgh (PIT), Philadelphia (PHL), Baltimore (BWI), Cleveland (CLE), and Detroit (DTW), all of which currently cannot connect to Hawai‘i through JetBlue in New York.

Last year, about 127,000 people from New England – more than half of them from Massachusetts — visited Hawai’i, according to the Hawai‘i Tourism Authority.

Hawaiian Holdings reports 2018 fourth quarter and full year financial results

Named "Nahiku"

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., reported its financial results for the fourth quarter and full year 2018.

Fourth Quarter 2018 – Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Income

$31.6M

$(116.8)M

$49.2M

$(5.7)M

Diluted EPS

$0.64

(2.20)

$1.00

$(0.05)

Pre-tax Margin

6.0%

(9.5) pts.

9.3%

(3.8) pts.

Full Year 2018 – Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Income

$233.2M

$(97.4)M

$274.8M

$(14.1)M

Diluted EPS

$4.62

$(1.57)

$5.44

+$0.03

Pre-tax Margin

10.6%

(4.0) pts.

12.6%

(4.4) pts.

 

“Hawaiian delivered another year of strong financial results in 2018, with an adjusted pre-tax margin in the top tier of industry performance,” said Peter Ingram, Hawaiian Airlines president and CEO.  “Undaunted by higher fuel prices, elevated competitive capacity, aircraft delivery delays and severe weather events, our employees once again demonstrated why Hawaiian is the carrier of choice to Hawai’i.

“2019 will be an important year for Hawaiian.  Successfully dealing with all of 2018’s twists and turns gives me tremendous confidence in our ability to sustain and build upon our achievements in the years ahead.”

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

The Company returned $126.7 million to shareholders in 2018 through $102.5 million in share repurchases and $24.2 million in dividends.  In December 2018, the Company also announced a new $100 million share repurchase program in effect through December 31, 2020.

On January 25, 2019 the Company’s Board of Directors declared a quarterly cash dividend of 12 cents per share to be paid on February 22, 2019 to all shareholders of record as of February 8, 2019.

As of December 31, 2018 the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $501 million.
  • Outstanding debt and capital lease obligations of $710 million.

2018 Highlights

Operational

  • Carried a record 11.8 million passengers in 2018, a 2.9 percent increase over the previous year.
  • Announced it will open a technology center in Phoenix, Arizona, in the first quarter of 2019 to strengthen its IT capabilities.

New routes and increased frequencies

  • North America
    • Expanded its routes to the Pacific Northwest with the launch of new daily nonstop service between Portland International Airport (PDX) and Maui’s Kahului Airport (OGG).
    • Expanded its routes to Southern California with the launch of new daily nonstop flights between Long Beach Airport (LGB) and Honolulu’s Daniel K. Inouye International Airport (HNL), and new daily nonstop flights between San DiegoInternational Airport (SAN) and Maui (OGG).
    • Extended seasonal nonstop service to year-round non-stop service between Los Angeles International Airport (LAX) and Ellison Onizuka Kona International Airport (KOA).
    • Announced expanded service to Northern California with new daily nonstop flights between Sacramento International Airport (SMF) and Maui (OGG) beginning April 2019.
    • Announced its second East Coast route with new five-times-a-week nonstop service between Boston’s Logan International Airport (BOS) and Honolulu (HNL) beginning April 2019.
  • International
    • Expanded seasonal winter service to international destinations, including:
      • increasing nonstop service between Seoul’s Incheon International Airport (ICN) and Honolulu (HNL) to daily flights between mid-January and early-February 2019; and
      • increasing nonstop service between Sapporo’s New Chitose Airport (CTS) and Honolulu (HNL) with five weekly flights during the first half of February 2019.

Commercial

  • Expanded its cargo services with the launch of All-Cargo Neighbor Island service between Honolulu (HNL), Lihu’e Airport (LIH) and Hilo International Airport (ITO).  The All-Cargo Neighbor Island service, which currently consists of two ATR 72 aircraft, is expected to expand in 2019 with the addition of flights between Honolulu (HNL) and both Maui (OGG) and Kona (KOA).

Product and loyalty

  • Announced the expansion of its Business Class auction upgrade service, Bid Up by Hawaiian Airlines, to include flights operating between Hawai’i and Japan and South Korea, in addition to flights operating between Hawai’i and North America.
  • Extended its partnership with Barclaycard US, Hawaiian’s co-branded credit card partner, under a new agreement through 2024 that includes improved economics for Hawaiian and a refreshed rewards structure for the Hawaiian Airlines World Elite Mastercard and the Hawaiian Airlines Business Mastercard to enable cardmembers to earn more miles faster.

Partnerships

  • Together with Japan Airlines, filed an application with the U.S. Department of Transportation (DOT) and Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) seeking antitrust immunity to create a joint venture that promises significant consumer benefits and the opportunity for service expansion.
  • Enhanced its comprehensive partnership with Japan Airlines with the implementation of reciprocal frequent flyer benefits for HawaiianMiles and JAL Mileage Bank members effective October 2018.  The enhanced program is the second phase of the comprehensive partnership launched in March 2018 with codeshare flights.
  • Announced an expansion of the codeshare agreement with JetBlue that allows travelers from dozens of cities, most of them in the eastern U.S., to easily connect to the Hawaiian Islands via Boston’s Logan International Airport (BOS) starting in April 2019.

Fleet and financing

  • Secured its flagship widebody aircraft of the next decade with the signing of a definitive purchase agreement with Boeing for the purchase of 10 Boeing 787-9 aircraft, including purchase rights for an additional 10 aircraft, to be delivered starting in 2021.
  • Signed a definitive agreement with General Electric for the purchase of GEnx engines to power its Boeing 787-9 fleet.
  • Took delivery of nine Airbus A321neo aircraft, increasing the size of its Airbus A321neo fleet to eleven aircraft.
  • Entered into two Japanese Yen-denominated debt financings, each collateralized by an Airbus A321neo aircraft.
  • Took delivery of an ATR 42 turboprop aircraft in June, increasing the size of its ‘Ohana by Hawaiian passenger turboprop fleet to four aircraft.
  • Increased the size of its secured revolving credit facility from $225 million to $235 millionand extended the term through December 2022.

People

  • Contributed $50 million during the year to its pilots’ pension plan. The plan’s funded status improved from 69.6 percent funded at the end of 2017 to 77.4 percent at the end of 2018.
  • Celebrated the beginning of its 90th year of service in the Hawaiian Islands with a company-matched employee giving campaign that generated $187,000 in donations to non-profit agencies across the State of Hawai’i.  The 90th year fundraiser is in addition to sponsorships and grants the Company provides annually through its Team Kokua program and Hawaiian Airlines Foundation.

Top Copyright Photo (all others by the airline): Hawaiian Airlines Airbus A330-243 N388HA (msn 1310) LAX (Michael B. Ing). Image: 944822.

Hawaiian aircraft slide show:

Route Maps:

Fact Sheet: