HONOLULU, July 26,
2022 /PRNewswire/ -- Hawaiian Holdings, Inc. (NASDAQ:
HA) (the "Company"), parent company of Hawaiian Airlines, Inc.
("Hawaiian"), today reported its financial results for the second
quarter of 2022.
"Strong demand in our domestic markets has been joined by an
encouraging recovery from our international gateways in the second
quarter" said Peter Ingram, Hawaiian
Airlines President and CEO. "As we move into the summer
travel peak every indication suggests a continuation of these
positive trends. I am extremely proud of our team who
continue to deliver the industry's best reliability and service as
we pursue our mission to connect people with aloha."
Financial Results
Second Quarter 2022
- The Company reported a GAAP net loss of $(36.8) million, and an adjusted net loss of
$(46.1) million.
- The Company reported GAAP EPS of $(0.72), and adjusted EPS of $(0.90).
- The Company reported EBITDA of $12.9
million, and adjusted EBITDA of $1.1
million.
Second Quarter 2022
Highlights
Revenue Environment
The Company continued to enjoy strong demand throughout its
domestic network and is seeing a solid recovery in its
international network. The Company's premium products
performed exceptionally well during the quarter, with both
business/first class revenue and Extra Comfort revenue exceeding
2019 levels. The Company's overall operating revenue was down
2.9% from second quarter 2019 as its international network is still
rebuilding.
Other revenue was up 26.6% compared to the second quarter of
2019 driven by a record quarter of cargo revenue and sales of
HawaiianMiles.
Routes and Network
In April 2022 the Company
announced it was resuming three-times-weekly nonstop service
between Auckland, New Zealand and
Honolulu, Hawai'i starting
July 2, 2022 and a seasonal increase
in frequency between Seoul, South
Korea and Honolulu for the
summer of 2022.
In May 2022 the Company announced
its plan to resume service between Honolulu's Daniel K. Inouye International
Airport (HNL) and Tokyo Haneda Airport (HND) beginning August 1. The Company also announced an increase
in weekly flights between HNL and Narita Airport (NRT) and
Osaka's Kansai Airport (KIX)
beginning in August.
During the second quarter of 2022, the Company operated at 87%
of its 2019 second quarter system capacity, comprised of 115%, 80%
and 31% capacity on its North
America, Neighbor Island and International routes,
respectively.
Liquidity and Capital Resources
As of June 30, 2022, the Company had:
- Unrestricted cash, cash equivalents and short-term investments
of $1.5 billion
- $1.8 billion in liquidity,
including its undrawn $235 million
revolving credit facility
- Outstanding debt and finance lease obligations of $1.8 billion
- Air traffic liability of $784
million
Operational Excellence
The Company maintained its #1 national ranking for On-Time
Performance for the 18th consecutive year in 2021, as reported in
the U.S. Department of Transportation (DOT) Air Travel Consumer
Report.
In July 2022, Travel + Leisure
named Hawaiian Airlines Best Domestic Airline.
Environmental, Social and Corporate Governance
In May 2022, the Company issued
its 2022 Corporate Kuleana (Responsibility) Report, providing
updates on Environmental, Social and Governance performance and
priorities, including new commitments to replace single-use
plastics in cabin service by 2029 and to locally source 40% of food
and beverage for its Hawai'i-based catering operations by 2025.
In May 2022, the Company announced
a strategic partnership with REGENT to support the initial design
of its next-generation 100-person capacity all-electric seaglider
known as the Monarch.
In June 2022, the Company
announced a plan to jointly study the commercial viability of
locally produced sustainable aviation fuels to replace all or a
percentage of traditional fossil fuel-based jet fuel with fuel that
is made with sustainable feedstocks.
In July 2022, the Company
appointed Wendy Beck and
Craig Vosburg to its Board of
Directors.
Third Quarter 2022
Outlook
The Company expects its capacity for the quarter ending
September 30, 2022 to be down
approximately 5% to down 8% compared to the third quarter of 2019,
mostly driven by the delay of the full restoration of its
Japan network.
The Company expects its total revenue for the quarter ending
September 30, 2022 to sequentially
improve from the second quarter and be between down 3.5% to up 0.5%
compared to the third quarter of 2019.
The Company expects its CASM excluding fuel and non-recurring
items for the quarter ending September 30,
2022 to be consistent with the second quarter at up
approximately 8% to 12% compared to the third quarter of 2019.
The Company's outlook for adjusted EBITDA for the quarter ending
September 30, 2022 is $15 million to $75
million.
The table below summarizes the Company's expectations for the
quarter ending September 30, 2022
expressed as an expected percentage change compared to the results
for the quarter ended September 30,
2019.
Item
|
|
Third Quarter
2022
Guidance
|
|
GAAP
Equivalent
|
|
GAAP Third
Quarter
2022 Guidance
|
ASMs
|
|
Down 5% to
8%
|
|
|
|
|
Total
Revenue
|
|
Down 3.5% to up
0.5%
|
|
|
|
|
Costs per ASM
excluding fuel and non-
recurring items (a)
|
|
Up 8% to 12%
|
|
Costs per ASM
(a)
|
|
up 22% to
25%
|
Gallons of Jet Fuel
Consumed
|
|
Down 7% to
10%
|
|
|
|
|
Fuel Price per
Gallon (b)
|
|
$3.50
|
|
|
|
|
Adjusted EBITDA
(c)
|
|
$15 million to $75
million
|
|
Net Income
(c)
|
|
|
|
|
(a)
|
See Table 3 for a
reconciliation of GAAP operating expenses to operating expenses
excluding fuel and non-recurring items.
|
(b)
|
Fuel Price per Gallon
estimates are based on the July 14, 2022 fuel forward
curve.
|
(c)
|
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.
|
Statistical information, as well as a reconciliation of certain
non-GAAP financial measures, can be found in the accompanying
tables.
Full Year 2022
Outlook
The table below summarizes the Company's expectations for the
full year ending December 31, 2022
expressed as an expected percentage change compared to the results
for the year ended December 31, 2019.
Costs per ASM excludes any adjustments for labor agreements that
are currently amendable or become amendable in 2022.
Item
|
|
Full Year 2022
Guidance
|
|
GAAP
Equivalent
|
|
GAAP Full Year
2022
Guidance
|
ASMs
|
|
Down 11% to
8%
|
|
|
|
|
Costs per ASM
excluding fuel and non-
recurring items (a)
|
|
Up 12% to
15%
|
|
Costs per ASM
(a)
|
|
Up 23% to
25.5%
|
Gallons of Jet Fuel
Consumed
|
|
Down 14% to
11%
|
|
|
|
|
Fuel Price per
Gallon (b)
|
|
$3.36
|
|
|
|
|
Effective Tax
Rate
|
|
~19.5%
|
|
|
|
|
Capital
Expenditures
|
|
$105 million to
$125
million
|
|
|
|
|
|
|
(a)
|
See Table under
"Non-GAAP Reconciliation" for a reconciliation of GAAP costs per
ASM to costs per ASM excluding fuel and non-recurring
items.
|
(b)
|
Fuel Price per Gallon
estimates are based on the July 14, 2022 fuel forward
curve.
|
Statistical information, as well as a reconciliation of certain
non-GAAP financial measures, can be found in the accompanying
tables.
Investor Conference Call
Hawaiian Holdings' quarterly results conference call is
scheduled to begin today, July 26, 2022, at 4:30 p.m. Eastern Time (USA). The conference call will be
broadcast live over the Internet. Investors may access and listen
to the live audio webcast on the investor relations section of the
Company's website at HawaiianAirlines.com. For those who are
not available for the live webcast, a replay of the webcast will be
archived for 90 days on the investor relations section of the
Company's website.
About Hawaiian Airlines
Hawaiian® has led all U.S. carriers in on-time performance for
each of the past 18 years (2004-2021) reported by the U.S.
Department of Transportation and was named the #1 U.S. airline by
Condé Nast Traveler's 2021 Readers Choice Awards. Consumer surveys
by Travel + Leisure and TripAdvisor have placed Hawaiian among the
top of all domestic airlines serving Hawai'i.
Now in its 93rd year of continuous service, Hawaiian is
Hawaiʻi's biggest and longest-serving airline. Hawaiian offers
approximately 130 daily flights within the Hawaiian Islands, daily
nonstop flights between Hawaiʻi and 16 U.S. gateway cities – more
than any other airline – as well as service connecting Honolulu and American Samoa, Australia, Japan, New
Zealand, South Korea and
Tahiti.
The airline is committed to connecting people with aloha by
offering complimentary meals for all guests on transpacific routes
and the convenience of no change fees on Main Cabin and Premium
Cabin seats. HawaiianMiles members also enjoy flexibility with
miles that never expire. As Hawai'i's hometown airline, Hawaiian
encourages guests to Travel Pono and experience the islands safely
and respectfully.
Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings,
Inc. (NASDAQ: HA). Additional information is available at
HawaiianAirlines.com. Follow Hawaiian's Twitter updates
(@HawaiianAir), become a fan on Facebook (Hawaiian Airlines), and
follow us on Instagram (hawaiianairlines). For career postings and
updates, follow Hawaiian's LinkedIn page.
For media inquiries, please visit Hawaiian Airlines' online
newsroom.
Forward-Looking
Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995
that reflect the Company's current views with respect to certain
current and future events and financial performance. Such
forward-looking statements include, without limitation, the
Company's ability, timing and progress in recovering from the
impacts of COVID-19 pandemic; the continuation of recovery trends;
future domestic and international demand for air travel; the
Company's future routes and network changes; the Company's
environmental commitments; the Company's outlook for the quarter
ending September 30, 2022 and
twelve-months ending December 31,
2022; and statements as to other matters that do not relate
strictly to historical facts or statements of assumptions
underlying any of the foregoing. Words such as "expects,"
"anticipates," "projects," "intends," "plans," "believes,"
"estimates," variations of such words, and similar expressions are
also intended to identify such forward-looking statements.
These forward-looking statements are and will be subject to many
risks, uncertainties and assumptions relating to the Company's
operations and business environment, all of which may cause the
Company's actual results to be materially different from any future
results, expressed or implied, in these forward-looking
statements. These risks and uncertainties include, without
limitation, the continuing and developing effects of the spread of
COVID-19 on the Company's business operations and financial
condition; the duration of government-mandated and other
restrictions on travel; the full effect that restrictions on travel
and other measures to limit the spread of COVID-19 will have on
demand for air travel in the markets in which the Company operates;
fluctuations and the extent of declining demand for air
transportation in the markets in which the Company operates; the
Company's dependence on the tourism industry; the Company's ability
to generate sufficient cash and manage its available cash; the
Company's ability to accurately forecast economic volatility;
macroeconomic developments; political developments; geopolitical
conflict; the price and availability of aircraft fuel; labor
negotiations; supply chain constraints; regulatory determinations
and related developments; competitive pressures, including the
impact of industry capacity between North
America and Hawai'i and interisland; changes in the
Company's future capital needs; and foreign currency exchange rate
fluctuations.
The risks, uncertainties and assumptions referred to above that
could cause the Company's results to differ materially from the
results expressed or implied by such forward-looking statements
also include the risks, uncertainties and assumptions discussed
from time to time in the Company's other public filings and public
announcements, including the Company's Annual Report on Form 10-K
and the Company's Quarterly Reports on Form 10-Q, as well as other
documents that may be filed by the Company from time to time with
the Securities and Exchange Commission. All forward-looking
statements included in this document are based on information
available to the Company on the date hereof. The Company does
not undertake to publicly update or revise any forward-looking
statements to reflect events or circumstances that may arise after
the date hereof even if experience or future changes make it clear
that any projected results expressed or implied herein will not be
realized.
Table
1.
|
Hawaiian
Holdings, Inc.
|
Consolidated
Statements of Operations (unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2022
|
|
2021
|
|
%
Change
|
|
2022
|
|
2021
|
|
%
Change
|
|
|
(in thousands,
except per share data)
|
Operating
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
|
|
$
617,463
|
|
$
356,271
|
|
73.3 %
|
|
$
1,021,492
|
|
$
493,740
|
|
106.9 %
|
Other
|
|
74,402
|
|
54,510
|
|
36.5 %
|
|
147,587
|
|
99,258
|
|
48.7 %
|
Total
|
|
691,865
|
|
410,781
|
|
68.4 %
|
|
1,169,079
|
|
592,998
|
|
97.1 %
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Wages and
benefits
|
|
205,686
|
|
170,858
|
|
20.4 %
|
|
408,785
|
|
330,937
|
|
23.5 %
|
Aircraft fuel,
including taxes and delivery
|
|
226,892
|
|
83,840
|
|
170.6 %
|
|
377,874
|
|
131,576
|
|
187.2 %
|
Maintenance, materials
and repairs
|
|
55,967
|
|
37,083
|
|
50.9 %
|
|
111,617
|
|
71,335
|
|
56.5 %
|
Aircraft and passenger
servicing
|
|
35,631
|
|
25,730
|
|
38.5 %
|
|
69,446
|
|
42,981
|
|
61.6 %
|
Depreciation and
amortization
|
|
34,333
|
|
35,113
|
|
(2.2) %
|
|
68,088
|
|
70,469
|
|
(3.4) %
|
Commissions and other
selling
|
|
28,615
|
|
17,270
|
|
65.7 %
|
|
49,262
|
|
28,679
|
|
71.8 %
|
Aircraft
rent
|
|
25,790
|
|
27,679
|
|
(6.8) %
|
|
52,066
|
|
57,520
|
|
(9.5) %
|
Other rentals and
landing fees
|
|
37,041
|
|
27,339
|
|
35.5 %
|
|
71,652
|
|
47,007
|
|
52.4 %
|
Purchased
services
|
|
33,757
|
|
23,771
|
|
42.0 %
|
|
64,444
|
|
47,868
|
|
34.6 %
|
Special
items
|
|
—
|
|
8,983
|
|
(100.0) %
|
|
—
|
|
8,983
|
|
(100.0) %
|
Government grant
recognition
|
|
—
|
|
(95,119)
|
|
(100.0) %
|
|
—
|
|
(242,389)
|
|
(100.0) %
|
Other
|
|
34,242
|
|
29,759
|
|
15.1 %
|
|
69,739
|
|
52,721
|
|
32.3 %
|
Total
|
|
717,954
|
|
392,306
|
|
83.0 %
|
|
1,342,973
|
|
647,687
|
|
107.3 %
|
Operating Income
(Loss)
|
|
(26,089)
|
|
18,475
|
|
(241.2) %
|
|
(173,894)
|
|
(54,689)
|
|
218.0 %
|
Nonoperating Income
(Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
amortization of debt
discounts and issuance costs
|
|
(24,517)
|
|
(30,315)
|
|
|
|
(49,554)
|
|
(54,008)
|
|
|
Interest
income
|
|
6,562
|
|
1,345
|
|
|
|
10,996
|
|
2,594
|
|
|
Capitalized
interest
|
|
1,060
|
|
776
|
|
|
|
2,112
|
|
1,460
|
|
|
Gains on fuel
derivatives
|
|
—
|
|
—
|
|
|
|
—
|
|
217
|
|
|
Loss on extinguishment
of debt
|
|
(8,568)
|
|
—
|
|
|
|
(8,568)
|
|
(3,994)
|
|
|
Other components of
net periodic benefit
cost
|
|
1,274
|
|
981
|
|
|
|
2,560
|
|
1,962
|
|
|
Other, net
|
|
4,344
|
|
444
|
|
|
|
15,590
|
|
21,340
|
|
|
Total
|
|
(19,845)
|
|
(26,769)
|
|
|
|
(26,864)
|
|
(30,429)
|
|
|
Loss Before Income
Taxes
|
|
(45,934)
|
|
(8,294)
|
|
|
|
(200,758)
|
|
(85,118)
|
|
|
Income tax
benefit
|
|
(9,160)
|
|
(2,117)
|
|
|
|
(41,175)
|
|
(18,250)
|
|
|
Net
Loss
|
|
$
(36,774)
|
|
$
(6,177)
|
|
|
|
$
(159,583)
|
|
$
(66,868)
|
|
|
Net Loss Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.72)
|
|
$
(0.12)
|
|
|
|
$
(3.11)
|
|
$
(1.33)
|
|
|
Diluted
|
|
$
(0.72)
|
|
$
(0.12)
|
|
|
|
$
(3.11)
|
|
$
(1.33)
|
|
|
Weighted Average
Number of Common
Stock Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
51,356
|
|
51,156
|
|
|
|
51,322
|
|
50,319
|
|
|
Diluted
|
|
51,356
|
|
51,156
|
|
|
|
51,322
|
|
50,319
|
|
|
Hawaiian
Holdings, Inc.
Consolidated Balance
Sheet (unaudited)
|
|
June 30,
2022
(unaudited)
|
|
December 31,
2021
|
|
|
(in thousands,
except shares)
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
424,952
|
|
$
490,561
|
Restricted
cash
|
|
17,268
|
|
17,267
|
Short-term
investments
|
|
1,117,417
|
|
1,241,752
|
Accounts receivable,
net
|
|
89,256
|
|
92,888
|
Income taxes
receivable
|
|
69,980
|
|
71,201
|
Spare parts and
supplies, net
|
|
39,065
|
|
34,109
|
Prepaid expenses and
other
|
|
75,091
|
|
66,127
|
Total
|
|
1,833,029
|
|
2,013,905
|
Property and equipment,
less accumulated depreciation and amortization of
$1,067,908 and $999,966 as of June 30, 2022 and
December 31, 2021, respectively
|
|
1,905,715
|
|
1,957,623
|
Other
Assets:
|
|
|
|
|
Assets
held-for-sale
|
|
22,566
|
|
29,449
|
Operating lease
right-of-use assets
|
|
497,214
|
|
536,154
|
Long-term prepayments
and other
|
|
92,990
|
|
80,489
|
Intangible assets,
net
|
|
13,500
|
|
13,500
|
Total
Assets
|
|
$
4,365,014
|
|
$
4,631,120
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
148,583
|
|
$
114,400
|
Air traffic liability
and current frequent flyer deferred revenue
|
|
783,732
|
|
631,157
|
Other accrued
liabilities
|
|
166,839
|
|
165,050
|
Current maturities of
long-term debt, less discount
|
|
46,857
|
|
97,096
|
Current maturities of
finance lease obligations
|
|
27,137
|
|
24,149
|
Current maturities of
operating leases
|
|
76,344
|
|
79,158
|
Total
|
|
1,249,492
|
|
1,111,010
|
Long-Term
Debt
|
|
1,598,553
|
|
1,704,298
|
Other Liabilities
and Deferred Credits:
|
|
|
|
|
Noncurrent finance
lease obligations
|
|
85,679
|
|
100,995
|
Noncurrent operating
leases
|
|
385,463
|
|
423,293
|
Accumulated pension
and other post-retirement benefit obligations
|
|
154,302
|
|
160,817
|
Other liabilities and
deferred credits
|
|
76,603
|
|
78,340
|
Noncurrent frequent
flyer deferred revenue
|
|
304,798
|
|
296,484
|
Deferred tax
liability, net
|
|
134,571
|
|
186,797
|
Total
|
|
1,141,416
|
|
1,246,726
|
Commitments and
Contingencies
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
Special preferred
stock, $0.01 par value per share, three shares issued and
outstanding as of June 30, 2022 and December 31,
2021
|
|
—
|
|
—
|
Common stock, $0.01
par value per share, 51,385,436 and 51,233,369 shares
outstanding as of June 30, 2022 and December 31, 2021,
respectively
|
|
514
|
|
512
|
Capital in excess of
par value
|
|
271,909
|
|
269,575
|
Accumulated
income
|
|
221,254
|
|
380,837
|
Accumulated other
comprehensive loss, net
|
|
(118,124)
|
|
(81,838)
|
Total
|
|
375,553
|
|
569,086
|
Total Liabilities
and Shareholders' Equity
|
|
$
4,365,014
|
|
$
4,631,120
|
Hawaiian
Holdings, Inc.
|
Condensed
Consolidated Statements of Cash Flows (unaudited)
|
|
|
|
Six months ended
June 30,
|
|
|
2022
|
|
2021
|
|
|
(in
thousands)
|
Net cash provided by
Operating Activities
|
|
$
31,665
|
|
$
417,277
|
Cash flows from
Investing Activities:
|
|
|
|
|
Additions to property
and equipment, including pre-delivery payments
|
|
(16,521)
|
|
(17,886)
|
Proceeds from the
disposition of aircraft and aircraft related equipment
|
|
9,662
|
|
117
|
Purchases of
investments
|
|
(575,191)
|
|
(862,001)
|
Sales of
investments
|
|
635,385
|
|
280,007
|
Net cash provided by
(used in) investing activities
|
|
53,335
|
|
(599,763)
|
Cash flows from
Financing Activities:
|
|
|
|
|
Proceeds from the
issuance of common stock
|
|
—
|
|
68,132
|
Long-term
borrowings
|
|
—
|
|
1,251,705
|
Repayments of
long-term debt and finance lease obligations
|
|
(149,019)
|
|
(342,151)
|
Debt issuance costs
and discounts
|
|
—
|
|
(24,664)
|
Payment for taxes
withheld for stock compensation
|
|
(1,589)
|
|
(1,712)
|
Other
|
|
—
|
|
1,837
|
Net cash provided by
(used in) financing activities
|
|
(150,608)
|
|
953,147
|
Net increase
(decrease) in cash and cash equivalents
|
|
(65,608)
|
|
770,661
|
Cash, cash
equivalents, and restricted cash - Beginning of
Period
|
|
507,828
|
|
509,639
|
Cash, cash
equivalents, and restricted cash - End of Period
|
|
$
442,220
|
|
$
1,280,300
|
Table
2.
|
Hawaiian
Holdings, Inc.
|
Selected Statistical
Data (unaudited)
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2022
|
|
2021
|
|
%
Change
|
|
2022
|
|
2021
|
|
%
Change
|
|
|
(in thousands, except as otherwise indicated)
|
Scheduled Operations
(a) :
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passengers
flown
|
|
2,576
|
|
1,723
|
|
49.5 %
|
|
4,606
|
|
2,456
|
|
87.5 %
|
Revenue passenger
miles (RPM)
|
|
3,862,507
|
|
2,764,719
|
|
39.7 %
|
|
6,836,857
|
|
3,818,847
|
|
79.0 %
|
Available seat miles
(ASM)
|
|
4,505,285
|
|
3,546,316
|
|
27.0 %
|
|
8,747,768
|
|
6,012,358
|
|
45.5 %
|
Passenger revenue per
RPM (Yield)
|
|
15.99
¢
|
|
12.89
¢
|
|
24.0 %
|
|
14.94
¢
|
|
12.93
¢
|
|
15.5 %
|
Passenger load factor
(RPM/ASM)
|
|
85.7 %
|
|
78.0 %
|
|
7.7
pts.
|
|
78.2 %
|
|
63.5 %
|
|
14.7
pts.
|
Passenger revenue per
ASM (PRASM)
|
|
13.71
¢
|
|
10.05
¢
|
|
36.4 %
|
|
11.68 ¢
|
|
8.21 ¢
|
|
42.3 %
|
Total Operations
(a) :
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passengers
flown
|
|
2,584
|
|
1,730
|
|
49.4 %
|
|
4,620
|
|
2,466
|
|
87.3 %
|
Revenue passenger
miles (RPM)
|
|
3,870,586
|
|
2,789,129
|
|
38.8 %
|
|
6,858,150
|
|
3,851,446
|
|
78.1 %
|
Available seat miles
(ASM)
|
|
4,516,296
|
|
3,586,928
|
|
25.9 %
|
|
8,779,344
|
|
6,068,574
|
|
44.7 %
|
Operating revenue per
ASM (RASM)
|
|
15.32
¢
|
|
11.45 ¢
|
|
33.8 %
|
|
13.32
¢
|
|
9.77 ¢
|
|
36.3 %
|
Operating cost per ASM
(CASM)
|
|
15.90
¢
|
|
10.94
¢
|
|
45.3 %
|
|
15.30
¢
|
|
10.67
¢
|
|
43.4 %
|
CASM excluding
aircraft fuel and non-recurring items (b)
|
|
10.87
¢
|
|
11.00 ¢
|
|
(1.2) %
|
|
10.97
¢
|
|
12.35
¢
|
|
(11.2) %
|
Aircraft fuel expense
per ASM (c)
|
|
5.03 ¢
|
|
2.34 ¢
|
|
115.0 %
|
|
4.31 ¢
|
|
2.17 ¢
|
|
98.6 %
|
Revenue block hours
operated
|
|
47,477
|
|
39,250
|
|
21.0 %
|
|
92,360
|
|
66,245
|
|
39.4 %
|
Gallons of jet fuel
consumed
|
|
57,494
|
|
44,442
|
|
29.4 %
|
|
110,911
|
|
74,388
|
|
49.1 %
|
Average cost per
gallon of jet fuel (actual) (c)
|
|
$3.95
|
|
$1.89
|
|
109.0 %
|
|
$3.41
|
|
$1.77
|
|
92.7 %
|
|
|
(a)
|
Includes the operations
of the Company's contract carrier under a capacity purchase
agreement, which was indefinitely suspended in the first quarter of
2021 and terminated in the second quarter of 2021.
|
(b)
|
See Table 3 for a
reconciliation of GAAP operating expenses to operating expenses
excluding aircraft fuel and non-recurring items.
|
(c)
|
Includes applicable
taxes and fees.
|
Table 3.
Hawaiian
Holdings, Inc.
Non-GAAP Financial Reconciliation
(unaudited)
The Company evaluates its financial performance utilizing
various GAAP and non-GAAP financial measures, including adjusted
net income (loss), adjusted operating expenses, adjusted diluted
net income (loss) per share (EPS), CASM, PRASM, RASM, Passenger
Revenue per RPM, and Adjusted EBITDA. Pursuant to Regulation
G, the Company has included the following reconciliation of
reported non-GAAP financial measures to comparable financial
measures reported on a GAAP basis. The adjustments are
described below:
- During the three and six months ended June 30, 2021 the Company recognized $95.1 million and $242.4
million, respectively, in contra-expense related to grant
proceeds under the federal Payroll Support Programs (Government
grant recognition). The grant proceeds were recognized in
proportion to estimated wages and benefits expense over the period
to which the Payroll Support Programs relate.
- During the three and six months ended June 30, 2022, the Company recognized a
$8.6 million loss on the
extinguishment of its remaining outstanding Series 2020-1A and
Series 2020-1B Equipment Notes. Loss
on extinguishment of debt is excluded to allow investors to better
analyze the Company's core operational performance and more readily
compare its results to other airlines in the periods presented
below.
- Changes in fair value of fuel derivative contracts, net of tax,
are based on market prices for open contracts as of the end of the
reporting period, and include the unrealized amounts of fuel
derivatives (not designated as hedges) that will settle in future
periods and the reversal of prior period unrealized amounts.
- In January 2022, the Company
reached a tentative agreement with the representatives of its
International Association of Machinists and Aerospace Workers
(IAM-M) and International Association of Machinists and Aerospace
Workers - Clerical Division (IAM-C) employees. In February 2022, the Company received notice from
IAM that the agreement was ratified by its members. The new CBA
included a signing bonus of $2.1
million, which was recorded in wages and benefits.
Negotiated as part of the new CBA, the Company offered a separation
program for the IAM-M and IAM-C employees and recorded a one-time
severance payment of $2.6 million,
which was recorded in wages and benefits during the three months
ended June 30, 2022.
- Unrealized loss (gain) on foreign debt is based on fluctuation
in exchange rates and the measurement of foreign-denominated debt
to the Company's functional currency.
- Changes in fair value of foreign currency derivative contracts,
net of tax, are based on market prices for open contracts as of the
end of the reporting period, including the unrealized amounts of
foreign currency derivatives (not designated as hedges) that will
settle in future periods and the reversal of prior period
unrealized amounts.
- During the three months ended June 30,
2022, the Company sold three ATR-72 aircraft and recorded a
$2.6 million gain on sale of
aircraft, which was recorded in other operating expense.
- During the six months ended June 30,
2021, the Company announced the termination of our 'Ohana by
Hawaiian operations, which operated under a Capacity Purchase
Agreement (CPA) with a third-party carrier. The termination did not
meet the requirements of discontinued operations under ASC 205;
however, the asset group met the requirements for, and was
reclassified as Held-for-Sale on the Consolidated Balance Sheets.
We fair valued the asset group resulting in the write-down of
approximately $6.4 million.
Additionally, we recorded an early termination charge associated
with our CPA of approximately $2.6
million.
The Company believes that adjusting for the impact of the
recognition of grant proceeds, changes in fair value of fuel and
foreign currency derivative contracts, fluctuations in exchange
rates on debt instruments denominated in foreign currency, CBA
ratification bonus, and the loss recognized on the extinguishment
of debt helps investors better analyze the Company's operational
performance and compare its results to other airlines in the
periods presented.
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
Total
|
|
Diluted
Net Loss
Per Share
|
|
Total
|
|
Diluted
Net Loss
Per Share
|
|
Total
|
|
Diluted
Net Loss
Per Share
|
|
Total
|
|
Diluted
Net Loss
Per Share
|
|
|
(in thousands,
except per share data)
|
Net Loss, as
reported
|
|
$ (36,774)
|
|
$ (0.72)
|
|
$ (6,177)
|
|
$ (0.12)
|
|
$
(159,583)
|
|
$ (3.11)
|
|
$
(66,868)
|
|
$ (1.33)
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government grant
recognition
|
|
—
|
|
—
|
|
(95,119)
|
|
(1.86)
|
|
—
|
|
—
|
|
(242,389)
|
|
(4.82)
|
Loss on debt
extinguishment
|
|
8,568
|
|
0.17
|
|
—
|
|
—
|
|
8,568
|
|
0.17
|
|
3,994
|
|
0.08
|
Changes in fair value
of
fuel derivative contracts
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(382)
|
|
(0.01)
|
CBA related
expense
|
|
2,574
|
|
0.05
|
|
—
|
|
—
|
|
4,678
|
|
0.09
|
|
—
|
|
—
|
Unrealized (gains)
losses
on foreign debt
|
|
(20,381)
|
|
(0.40)
|
|
92
|
|
—
|
|
(31,963)
|
|
(0.63)
|
|
(18,951)
|
|
(0.38)
|
Unrealized (gains)
losses
on non-designated
foreign exchange
positions
|
|
—
|
|
—
|
|
397
|
|
0.01
|
|
—
|
|
—
|
|
(1,352)
|
|
(0.03)
|
Gain on sale of
aircraft
|
|
(2,578)
|
|
(0.05)
|
|
—
|
|
—
|
|
(2,578)
|
|
(0.05)
|
|
—
|
|
—
|
Special
items
|
|
—
|
|
—
|
|
8,983
|
|
0.18
|
|
—
|
|
—
|
|
8,983
|
|
0.18
|
Tax effect of
adjustments
|
|
2,482
|
|
0.05
|
|
17,986
|
|
0.35
|
|
4,472
|
|
0.09
|
|
52,520
|
|
1.04
|
Adjusted net
loss
|
|
$ (46,109)
|
|
$ (0.90)
|
|
$
(73,838)
|
|
$ (1.44)
|
|
$
(176,406)
|
|
$ (3.44)
|
|
$
(264,445)
|
|
$ (5.27)
|
Adjusted EBITDA
The Company believes that adjusting earnings for interest,
taxes, depreciation and amortization, non-recurring operating
expenses (such as changes in unrealized gains and losses on
financial instruments) and one-time charges helps investors better
analyze the Company's financial performance by allowing for
company-to-company and period-over-period comparisons that are
unaffected by company-specific or one-time occurrences.
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(in
thousands)
|
Net Loss
|
|
$
(36,774)
|
|
(6,177)
|
|
$
(159,583)
|
|
(66,868)
|
Income tax
benefit
|
|
(9,160)
|
|
(2,117)
|
|
(41,175)
|
|
(18,250)
|
Depreciation and
amortization
|
|
34,333
|
|
35,113
|
|
68,088
|
|
70,469
|
Interest expense and
amortization of debt discounts and issuance costs
|
|
24,517
|
|
30,315
|
|
49,554
|
|
54,008
|
EBITDA, as
reported
|
|
12,916
|
|
57,134
|
|
(83,116)
|
|
39,359
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
Government grant
recognition
|
|
—
|
|
(95,119)
|
|
—
|
|
(242,389)
|
Loss on extinguishment
of debt
|
|
8,568
|
|
—
|
|
8,568
|
|
3,994
|
Changes in fair value
of fuel derivative instruments
|
|
—
|
|
—
|
|
—
|
|
(382)
|
CBA related
expense
|
|
2,574
|
|
—
|
|
4,678
|
|
—
|
Unrealized gain on
non-designated foreign exchange positions
|
|
—
|
|
397
|
|
—
|
|
(1,352)
|
Unrealized (gains)
losses on foreign debt
|
|
(20,381)
|
|
92
|
|
(31,963)
|
|
(18,951)
|
Gain on sale of
aircraft
|
|
(2,578)
|
|
—
|
|
(2,578)
|
|
—
|
Special
items
|
|
—
|
|
8,983
|
|
—
|
|
8,983
|
Adjusted
EBITDA
|
|
$
1,099
|
|
$
(28,513)
|
|
$
(104,411)
|
|
$
(210,738)
|
Operating Costs per Available Seat Mile (CASM)
The Company has separately listed in the table below its fuel
costs per ASM and non-GAAP unit costs, excluding fuel and
non-recurring items. These amounts are included in CASM, but
for internal purposes the Company consistently uses cost metrics
that exclude fuel and non-recurring items (if applicable) to
measure and monitor its costs.
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(in thousands,
except CASM data)
|
GAAP Operating
Expenses
|
|
$
717,954
|
|
$
392,306
|
|
$ 1,342,973
|
|
$
647,687
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
Government grant
recognition
|
|
—
|
|
95,119
|
|
—
|
|
242,389
|
CBA related
expense
|
|
(2,574)
|
|
—
|
|
(4,678)
|
|
—
|
Gain on sale of
aircraft
|
|
2,578
|
|
—
|
|
2,578
|
|
—
|
Special
items
|
|
—
|
|
(8,983)
|
|
—
|
|
(8,983)
|
Operating Expenses
excluding non-recurring items
|
|
$
717,958
|
|
$
478,442
|
|
$ 1,340,873
|
|
$
881,093
|
Aircraft fuel,
including taxes and delivery
|
|
(226,892)
|
|
(83,840)
|
|
(377,874)
|
|
(131,576)
|
Operating Expenses
excluding fuel and non-recurring
items
|
|
$
491,066
|
|
$
394,602
|
|
$
962,999
|
|
$
749,517
|
Available Seat
Miles
|
|
4,516,296
|
|
3,586,928
|
|
8,779,344
|
|
6,068,574
|
CASM - GAAP
|
|
15.90 ¢
|
|
10.94 ¢
|
|
15.30 ¢
|
|
10.67 ¢
|
Aircraft fuel,
including taxes and delivery
|
|
(5.03)
|
|
(2.34)
|
|
(4.31)
|
|
(2.17)
|
Government grant
recognition
|
|
—
|
|
2.65
|
|
—
|
|
3.99
|
CBA related
expense
|
|
(0.06)
|
|
—
|
|
(0.05)
|
|
—
|
Gain on sale of
aircraft
|
|
0.06
|
|
—
|
|
0.03
|
|
—
|
Special
items
|
|
—
|
|
(0.25)
|
|
—
|
|
(0.14)
|
CASM excluding fuel and
non-recurring items
|
|
10.87 ¢
|
|
11.00 ¢
|
|
10.97 ¢
|
|
12.35 ¢
|
|
|
Estimated three
months ending
September 30, 2022
|
|
Estimated twelve
months ending
December 31, 2022
|
|
|
(in thousands,
except CASM data)
|
GAAP operating
expenses
|
|
$
716,406
|
-
|
$
758,922
|
|
$ 2,738,931
|
-
|
$ 2,886,081
|
Aircraft fuel,
including taxes and delivery
|
|
(219,710)
|
-
|
(227,034)
|
|
(779,125)
|
-
|
(806,303)
|
Loss on sale of
aircraft and equipment
|
|
—
|
-
|
—
|
|
(676)
|
-
|
(676)
|
CBA related
expense
|
|
—
|
-
|
—
|
|
(4,678)
|
-
|
(4,678)
|
Adjusted operating
expenses
|
|
$
496,696
|
-
|
$
531,888
|
|
$ 1,954,452
|
-
|
$ 2,074,424
|
Available seat
miles
|
|
4,905,360
|
-
|
5,065,317
|
|
18,299,351
|
-
|
18,915,951
|
CASM - GAAP
|
|
14.60 ¢
|
-
|
14.98 ¢
|
|
14.97 ¢
|
-
|
15.26 ¢
|
Aircraft fuel,
including taxes and delivery
|
|
(4.48)
|
-
|
(4.48)
|
|
(4.26)
|
-
|
(4.26)
|
Loss on sale of
aircraft and equipment
|
|
—
|
-
|
—
|
|
—
|
-
|
—
|
CBA related
expense
|
|
—
|
-
|
—
|
|
(0.02)
|
-
|
(0.02)
|
Adjusted
CASM
|
|
10.12 ¢
|
-
|
10.50 ¢
|
|
10.69 ¢
|
-
|
10.98 ¢
|
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multimedia:https://www.prnewswire.com/news-releases/hawaiian-holdings-reports-2022-second-quarter-financial-results-301593732.html
SOURCE Hawaiian Holdings, Inc.