Tag Archives: Hawaiian Airlines

Hawaiian Holdings reports its 2019 third quarter financial results

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

Third Quarter 2019 – Key Financial Metrics
   

GAAP

 

YoY Change

 

Adjusted

 

YoY Change

Net Income  

$80.1M

 

($13.5M)

 

$81.5M

 

($15.2M)

Diluted EPS  

$1.70

 

($0.14)

 

$1.72

 

($0.19)

Pre-tax Margin  

14.4%

 

(1.0) pts.

 

14.6%

 

(1.3) pts.

“Our team did a fantastic job this quarter, demonstrating once again that Hawaiian Airlines is the carrier of choice for guests traveling to, from and within the Hawaiian Islands,” said Peter Ingram, Hawaiian Airlines president and CEO. “In the face of heightened competition, we delivered strong financial results and made significant progress towards accomplishing the strategic priorities that we established at the beginning of the year.  As we enter the home stretch of 2019, we look forward to continuing to execute our proven formula for generating value for our guests and our investors.  I extend my thanks, as always, to my 7,300 colleagues for their tireless efforts to deliver award-winning, authentic Hawaiian hospitality every day.”

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 $25.7 million to shareholders in the third quarter through share repurchases of $20.0 million and a dividend payment of $5.7 million.

On October 18, 2019, the Company’s Board of Directors declared a quarterly cash dividend of 12 cents per share to be paid on November 29, 2019 to all shareholders of record as of November 15, 2019.

As of September 30, 2019, the Company had:

• Unrestricted cash, cash equivalents and short-term investments of $745 million

• Outstanding debt and finance lease obligations of $782 million

 

Third Quarter 2019 Highlights

Leadership and People

• Appointed Robin Kobayashi as interim Senior Vice President of Human Resources.

Operational

• Ranked #1 nationally for on-time performance year-to-date through August 2019, as reported in the U.S. Department of Transportation Air Travel Consumer Report, adding to its record of 15 consecutive years as the most punctual airline.

• Implemented Amadeus’ Departure Control Flight Management to optimize load planning and improve operational efficiency.

Products and Services

• In September and October, launched sales of Main Cabin Basic fares in all North American markets, enhancing Hawaiian’s product portfolio with a fare option that appeals to the most price-conscious travelers.

Routes and Network

• Received final U.S. Department of Transportation approval to operate one additional daily nonstop flight between Tokyo Haneda Airport (HND) and Honolulu Daniel K. Inouye International Airport (HNL) starting in March of 2020.

• Announced service for three new routes with its A321neo fleet:

◦ Four-times-weekly service between Maui’s Kahului Airport (OGG) and Las Vegas’ McCarran International Airport (LAS) beginning December 15, 2019

◦ Thrice-weekly nonstop service between Honolulu (HNL) and Seattle-Tacoma International Airport (SEA) starting January 7, 2020, supplementing existing daily A330-200 service

◦ Seasonal winter service between Maui (OGG) and Los Angeles International Airport (LAX) from December 14, 2019 through January 5, 2020, supplementing existing daily A330-200 service

Fleet & Financing

•     Took delivery of two Airbus A321neo aircraft, increasing the size of its A321neo fleet to fifteen aircraft.

•     Entered into two Japanese Yen-denominated debt financings, collateralized by four Airbus A330 aircraft and two Airbus A321neo aircraft.

•     Extended the leases on three A330 aircraft, enabling cost savings while maintaining fleet flexibility for future growth.

Fourth Quarter and Full Year 2019 Outlook

The table below summarizes the Company’s expectations for the fourth quarter ending December 31, 2019, and the full year ending December 31, 2019, expressed as an expected percentage change compared to the results for the quarter and the full year ended December 31, 2018, as applicable.

   

Fourth Quarter

     

GAAP Fourth Quarter

Item  

2019 Guidance

  GAAP Equivalent  

2019 Guidance

ASMs  

Up 3.0 – 4.5%

       
Operating revenue per ASM  

Down 0.5 – 3.5%

       
Cost per ASM excluding fuel and non-recurring items (a)  

Up 0.5 – 3.5%

  Cost per ASM (a)  

Down 0.1 – 2.5%

Gallons of jet fuel consumed  

Up 0.5 – 2.5%

       
Economic fuel cost per gallon (b)(c)  

$2.02

  Fuel cost per gallon (b)  

$1.98

 

   

Full Year

     

GAAP Full Year

Item  

2019 Guidance

  GAAP Equivalent  

2019 Guidance

ASMs  

Up 1.9 – 2.4%

       
Cost per ASM excluding fuel and non-recurring items (a)  

Up 1.8 – 2.6%

  Cost per ASM (a)  

Down 2.3 – 2.9%

Gallons of jet fuel consumed  

Down 1.0 – 1.5%

       
Economic fuel cost per gallon (b)(c)  

$2.05

  Fuel cost per gallon (b)  

$2.00

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

(b) Fuel cost per gallon estimates are based on the October 10, 2019 fuel forward curve.

(c) See Table 3 for a reconciliation of GAAP fuel costs to economic fuel costs.

Hawaiian Airlines aircraft photo library:

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Hawaiian Airlines launches main cabin basic fares in select North American markets

Hawaiian Airlines has begun sales of Main Cabin Basic fares in select North American markets, offering guests a new option to book the carrier’s lowest fares while still enjoying authentic Hawaiian hospitality.


Hawaiian’s Main Cabin Basic fare product is initially being offered on select, nonstop flights between Honolulu and three of its 13 U.S. mainland gateway cities – Los Angeles, Long Beach and San Jose – for travel beginning Oct. 21. This new product is designed for guests who prefer to forgo standard Hawaiian travel services such as advanced seat selection and the ability to upgrade in exchange for the most affordable fares.

Guests choosing Hawaiian’s Main Cabin Basic fare will be able to select a seat when checking in for a flight, or they will be assigned a seat at the gate, and they will retain their Main Cabin benefit of a complimentary carry-on bag and one personal item. HawaiianMiles members will continue to earn a mile per mile flown.

MCB vs MC Chart2x

 

Main Cabin Basic complements Hawaiian’s suite of products by providing an additional fare option to better serve its guests’ needs and preferences when traveling to and from Hawai‘i. Hawaiian also offers Main Cabin, Extra Comfort and First Class fare products, including a premium lie-flat experience on board its Airbus A330 aircraft and luxurious recliners on flights on board its Airbus A321neo aircraft.

Hawaiian Airlines aircraft photo gallery:

Hawaiian Airlines to launch new Maui-Las Vegas flights in December

Hawaiian Airlines has made this announcement:

Maui residents visiting Hawai‘i’s adopted “ninth island” will be able to fly straight to the popular Nevada destination when Hawaiian Airlines inaugurates its newest narrow-body Airbus A321neo aircraft route later this year.

The airline announced that it will begin four-times-weekly service between Maui’s Kahului Airport (OGG) and Las Vegas’ McCarran International Airport (LAS) on December 15.

The airline today also announced the start of sales for two other new A321neo routes — thrice-weekly nonstop service between Honolulu’s Daniel K. Inouye International Airport (HNL) and Seattle-Tacoma International Airport (SEA) starting Jan. 7; and seasonal winter service between OGG and Los Angeles International Airport (LAX) from Dec. 14 through Jan. 5. The new flights complement existing daily nonstop service offered on each route with wide-body Airbus A330 aircraft.

Kahului (OGG) – Las Vegas (LAS)

FLIGHT ROUTE DEPARTS ARRIVES FREQUENCY START DATE
HA32 OGG-LAS 8:50 p.m. 4:30 a.m. Mon., Wed., Fri., Sun. Dec. 15, 2019
HA31 LAS-OGG 6:30 a.m. 11:00 a.m. Mon., Tues., Thurs., Sat. Dec. 16, 2019

Honolulu (HNL) – Seattle (SEA)

FLIGHT ROUTE DEPARTS ARRIVES FREQUENCY START DATE
HA28 HNL-SEA 10:00 p.m. 5:50 a.m. Tues., Thurs., Sat. Jan. 7, 2020
HA27 SEA-HNL 7:20 a.m. 11:40 a.m. Wed., Fri., Sun. Jan. 8, 2020

 

Kahului (OGG) – Los Angeles (LAX)

FLIGHT ROUTE DEPARTS ARRIVES FREQUENCY START DATE END DATE
HA56 OGG-LAX 9:45 p.m. 5:00 a.m. Tues., Thurs., Sat. Dec. 14, 2019 Jan. 4, 2020
HA55 LAX-OGG 12:00 p.m. 3:50 p.m. Wed., Fri., Sun. Dec. 15, 2019 Jan. 5, 2020

Hawaiian first launched Honolulu-Las Vegas service in September 1985 with Lockheed L-1011 aircraft, and previously operated OGG-LAS flights from October 2010 to October 2012 with Boeing 767 aircraft. Hawaiian, which today offers up to three daily nonstop flights between Honolulu and Las Vegas with A330 aircraft, carried more than 470,000 guests between the two cities in 2018.

In other news, Hawaiian Airlines has confirmed plans to increase service between Tokyo and Honolulu in the summer of 2020, after receiving final U.S. Department of Transportation approval to operate one additional daily nonstop flight between Haneda Airport (HND) and Daniel K. Inouye International Airport (HNL).

Hawaiian has significantly invested in the Japan-Hawai‘i market since it launched daily Haneda-Honolulu flights in 2010 and became the first U.S. airline to serve the Tokyo airport. In 2016, Hawaiian added additional flights at Haneda, serving Honolulu four times a week and Kona three times per week. That same year, the carrier also commenced daily flights between Tokyo’s Narita airport and Honolulu.

Hawaiian, which today operates a leading 31 weekly nonstop flights between Japan and Hawai‘i with wide-body Airbus A330 aircraft, will further expand its network on Nov. 26, when it begins four weekly flights between Fukuoka and Honolulu. The airline also offers flights between Hawai‘i and both Kansai International Airport in Osaka and New Chitose Airport in Sapporo.

All photos by the airline.

 

Hawaiian Holdings reports 2019 second quarter financial results

Delivered on February 28, 2019

Hawaiian Holdings, Inc. , parent company of Hawaiian Airlines, Inc. (“Hawaiian”), today reported its financial results for the second quarter of 2019.

“We’re encouraged by another quarter of strong performance,” said Peter Ingram, Hawaiian Airlines president and CEO. “For the last year and a half, we’ve delivered consistently solid operational and financial results while facing heightened competitive pressures head on.  I want to thank the entire Hawaiian ‘ohana for demonstrating day in and day out that no other airline is better suited to serve the needs of guests traveling to, from, and within the Hawaiian Islands than Hawaiian Airlines.”

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 $25.3 million to shareholders in the second quarter through share repurchases of $19.6 million and a dividend payment of $5.7 million.

On July 19, 2019, the Company’s Board of Directors declared a quarterly cash dividend of 12 centsper share to be paid on August 30, 2019 to all shareholders of record as of August 16, 2019.

As of June 30, 2019, the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $539 million
  • Outstanding debt and finance lease obligations of $565 million

Second Quarter 2019 Highlights

Leadership and People

  • Welcomed Justin Doane as Vice President of Labor Relations and David LeNoir Jr. as Vice President of Financial Planning and Analysis.

Operational

  • Ranked #1 nationally for on-time performance year-to-date through May 2019 as reported in the U.S. Department of Transportation Air Travel Consumer Report, adding to its record of 15 consecutive years as the most punctual U.S. airline.
  • Became the first U.S. airline to adopt the Pacelab Flight Profile Optimizer, a cutting-edge application by software provider PACE that enhances real-time aircraft and weather data to help determine the safest, most comfortable, and efficient flight routes while lowering annual fuel consumption and carbon emissions.
  • Announced the expansion of its in-house pilot training capabilities with its planned purchase of a Boeing 787-9 flight simulator to prepare for the arrival of its new Dreamliner fleet beginning early 2021.

Customer Experience

  • Debuted a newly designed lobby at Maui’s Kahului Airport (OGG), Hawai’i’s second busiest airport, as part of its ongoing plans to improve the day-of travel experience for its guests.  Similar lobby renovations are expected in 2019 at Kona International Airport (KOA), HiloInternational Airport (ITO), and Lihue Airport (LIH).

Routes and Network

  • Received a preliminary decision from the U.S. Department of Transportation for additional service from Tokyo Haneda Airport (HND) to Honolulu’s Daniel K. Inouye International Airport (HNL).  The additional service, expected to begin in early 2020, will expand Hawaiian’s existing service between Tokyo and Hawai’i that consists of flights between Haneda (HND) and Honolulu (HNL) and Kona (KOA), and Tokyo Narita International Airport (NRT) and Honolulu(HNL).
  • Continued its international expansion with the announcement of non-stop service between Fukuoka Airport (FUK) and Honolulu (HNL) beginning November 2019.
  • Continued its domestic expansion with the launch of non-stop service between SacramentoInternational Airport (SMF) and Maui (OGG), and non-stop service between Boston’s Logan International Airport (BOS) and Honolulu (HNL).

Fleet & Financing

  • Took delivery of one Airbus A321neo aircraft in May, increasing the size of its A321neo fleet to thirteen aircraft.
  • Retired its Boeing 717-200 Aircraft Facility with scheduled payments of approximately $45 million, increasing its unencumbered fleet to 37 aircraft.
  • On July 1, 2019, Fitch Ratings affirmed Hawaiian’s and the Company’s corporate rating of BB- with Stable outlook.

Third Quarter and Full Year 2019 Outlook

The table below summarizes the Company’s expectations for the third quarter ending September 30, 2019, and the full year ending December 31, 2019, expressed as an expected percentage change compared to the results for the quarter ended September 30, 2018, and the full year ended December 31, 2018, as applicable.

For the full year ending December 31, 2019, the Company expects its effective tax rate to be in the range of 26% to 28%.

Top Copyright Photo (all others by the airline): Hawaiian Airlines Airbus A321-271N WL N218HA (msn 8764) PAE (Nick Dean). Image: 945839.

Hawaiian Airlines aircraft slide show:

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.

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: