Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., today reported its financial results for the second quarter of 2021.
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Second Quarter 2021 – Key Financial Metrics |
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GAAP |
YoY Change |
Adjusted |
YoY Change |
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|
Net Loss |
$(6.2)M |
$100.7M |
$(73.8)M |
$100.9M |
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Diluted EPS |
$(0.12) |
$2.21 |
$(1.44) |
$2.37 |
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Pre-tax Margin |
(2.0)% |
+252.2 pts. |
(22.9)% |
+361.0 pts. |
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“We made meaningful strides toward recovery during the second quarter, propelled by continued strong demand on our U.S. mainland routes,” saidย Peter Ingramย , Hawaiian Airlines president and CEO. “It is encouraging to see how far we’ve come and I am optimistic about our continued recovery. My immense appreciation goes out to our team, who continues to embrace our purpose, in spite of the challenges facing them.”
Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables.

Second Quarter 2021
Financial Results
For the second quarter of 2021, the Company reported a net loss ofย $6.2 millionย , and an adjusted net loss ofย $73.8 millionย .
The Company reported total revenue ofย $410.8 millionย , down 42% compared to the second quarter of 2019, on 30% lower capacity.
The Company reported total operating expenses ofย $392.3 millionย , and operating expenses excluding non-recurring items ofย $478.4 millionย , down 23% compared to the second quarter of 2019.

Routes and Network
The State of Hawai’i made several positive changes to its Safe Travels program in the second quarter of 2021, including:
- Beginningย May 11, 2021ย , travelers who were fully vaccinated in Hawaiสปi and had proof of vaccination were permitted to bypass COVID-19 testing and quarantine restrictions when traveling within the Hawaiian islands.
- Beginningย June 15, 2021ย , all travel restrictions were removed for travel within the Hawaiian islands, and travelers who were fully vaccinated in Hawaiสปi were permitted to bypass COVID-19 testing and quarantine restrictions with proof of vaccination when traveling into the state.
- Beginningย July 8, 2021ย , all domestic travelers who were fully vaccinated in the U.S. were permitted to bypass COVID-19 testing and quarantine restrictions with proof of vaccination when traveling into the state.
- The State of Hawaiสปi announced that the Safe Travelpย Program will end when 70% of the state’s residents are fully vaccinated.
In the second quarter of 2021, the Company continued to rebuild and expand its network, primarily inย North Americaย . Inย June 2021ย , Hawaiian’sย North Americaย traffic exceededย June 2019ย levels. During the second quarter of 2021, the Company operated at an average of 70% of its 2019 second quarter system capacity, comprised of 97%, 57% and 11% capacity on itsย North Americaย , Neighbor Island and International routes, respectively.
Inย April 2021ย , the Company launched twice weekly service betweenย Honolulu’sย Daniel K. Inouye International Airport (HNL) and Austin-Bergstrom International Airport (AUS), and expanded this service to three-times-weekly for the summer of 2021.
Inย May 2021ย , the Company launched four-times-weekly seasonal service throughย August 15, 2021ย betweenย Kahuluiย ,ย Mauiย (OGG) and Phoenix Sky Harbor International Airport (PHX).
Inย June 2021ย , the Company announced the resumption of its Tahiti service following the launch of a pre-travel testing program between Hawaiสปi andย French Polynesiaย that allows for quarantine-free travel between the two archipelagos.ย As part of the program, travelers inbound to Hawai’i will need to provide proof of a negative test result from a State-approved testing partner, while travelers outbound to Tahiti will need to provide proof of vaccination and have fulfilled the government of Tahiti’s COVID-19 entry requirements prior to travel.ย Beginningย August 7, 2021ย , the Company will reinstate its nonstop once-weekly service betweenย Honolulu’sย Daniel K. Inouye International Airport (HNL) and Tahiti’s Fa’a’ฤ International Airport (PPT).
Liquidity and Capital Resources
As of Juneย 30, 2021, the Company had:
- Unrestricted cash, cash equivalents and short-term investments ofย $2.2 billionย , upย $304 millionย fromย March 31, 2021
- Outstanding debt and finance lease obligations ofย $2.2 billionย , upย $22 millionย fromย March 31, 2021
- Air traffic liability ofย $823 millionย , upย $136 millionย fromย March 31, 2021
The Company further enhanced its liquidity position during the second quarter of 2021 withย $173.4 millionย in grants andย $31.4 millionย in loans pursuant to the Payroll Support Program Extension Agreement (the “PSP Extension Agreement”) and Payroll Support Program 3 Agreement with the U.S. Department of the Treasury.
As ofย June 30, 2021ย , the Company hadย $2.4 billionย in liquidity, including the undrawn portion of itsย $235 millionย revolving credit facility.
Guest Experience
Inย June 2021ย , the Company announced a partnership with Boyd Gaming Corporation that will allow members to earn greater benefits and rewards with Boyd Gaming’s award-winning B Connected player loyalty program and the HawaiianMiles program. Boyd Gaming and Hawaiian Airlines loyalty members will enjoy reciprocal earning and redemption benefits, providing the Company’s guestsย with greater access to B Connected’s selection of rewards tiers, exclusive player benefits and entertainment experiences, as well as more ways to earn and use HawaiianMiles.
As ofย July 15, 2021ย , the Company restored its full cabin meal and beverage service, while maintaining safety standards 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 protective 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 face masks or coverings, with guests required to wear masks throughout their travel, including at our airport spaces, during boarding, in-flightย (except when eating or drinking) and when deplaning.
- Performing enhanced aircraft cleaning between flights and during overnight parking.
Environmental, Social and Corporate Governance
Inย July 2021ย , the Company published its 2021 Corporate Kuleana Report reinforcing its commitment to sustainability and outlining its progress advancing various environmental, social and governance (ESG) initiatives. A link to the report can be found through the Investor Relations, Corporate Responsibility section of Hawaiian’s website.
Addressing climate change remains one of the Company’s key ESG priorities. The Company has committed to achieving net-zero carbon emissions by 2050 through ongoing fleet investments, more efficient flying, carbon offsets, industry advocacy for air traffic control reform and development of sustainable aviation fuel supply. Starting this year, the Company has pledged to offset emissions from international flights above 2019 levels, in accordance with the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
In 2020, the Company decreased Available Seat Miles (ASMs) by 63.3 percent and Revenue Passenger Miles (RPMs) by 74.3 percent compared to 2019. The Company’s CO2 greenhouse gas emissions (GHG) dropped commensurately by 60.7 percent.ย After adjusting its fuel consumption figures to remove cargo-only flying, the Company reduced CO2 emissions intensity per ASM year-over-year by 2.1%.
The Company also defined steps it is taking to foster diversity and inclusion. Evidence-based processes to minimize bias in hiring and promotional practices across the Company have contributed to team diversity, with approximately 78% of Hawaiian’s active workforce identifying as diverse based on ethnicity and 44% based on gender.
Third Quarter 2021 Outlook
The Company expects to continue to rebuild its network in the third quarter, driven primarily byย North Americaย and Neighbor Island flying, as the timing of International demand recovery remains uncertain. The Company expects improvement in total revenue, with continued strength inย North Americaย demand, and steady improvement in Neighbor Island routes. The Company expects an increase in operating expenses, excluding non-recurring items, primarily driven by the increase in capacity as compared to the second quarter, higher fuel price, higher airport rates, and costs related to preparing for the resumption of more significant international flying.
The table below summarizes the Company’s expectations for the third quarter endingย September 30, 2021ย , expressed as an expected percentage change compared to the results for the quarter endedย September 30, 2019ย , as applicable.
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Item |
Third Quarter 2021 |
GAAP Equivalent |
GAAP Third Quarter |
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ASMs |
Down 20 to 23% |
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Total Revenue |
Down 28 to 33% |
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Operating Expenses, excluding non-recurring items (a) |
Down 10 to 14% |
Operating Expenses (a) |
Down 22 to 26% |
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Interest Expense |
$30 million |
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Adjusted EBITDA (b) |
$(20) million to $20ย million |
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Effective Tax Rate |
~21% |
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Fuel Price per Gallon (c) |
$2.04 |
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(a) |
See Table 4 for a reconciliation of GAAP operating expenses to operating expenses excluding non-recurring items. |
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(b) |
The Company is not providing a reconciliation of adjusted EBITDA 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. |
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(c) |
Fuel Price per Gallon estimates are based on the July 23, 2021 fuel forward curve. |





























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