26 July, 2023

The second quarter performance of Hawaiian Airlines.

This week Hawaiian Holdings, the parent company of Hawaiian Airlines published its financial results for the second quarter of 2023. The carrier witnessed a rapid increase in bookings from people in Japan as well as across the route network. 

Leisure demand remains historically high the carrier reports, its North America load factor was  90.4% - the highest second-quarter load factor since 2017. Neighbour Island services load factor of 75.3% which is the highest for the quarter since 2015. International load factor saw a positive increase and international revenue increased 160.2% from the second quarter of 2022 on a 141.4% increase in capacity

Hawaiian Airlines President and CEO Peter Ingram said: "Demand remains strong throughout our network, and we have recently seen a significant increase in bookings by travellers in Japan, an important geography that has trailed in the recovery of the overall market. Against the backdrop of improving operations and robust demand, I am excited about the major initiatives we're on track to deliver in the second half of the year."

The second quarter also saw the airline complete the transition of A330 aircraft maintenance from an outside company to an internal self-managed maintenance operation, which the carrier hopes will save money, be more effective and allow it to have greater control.

Another development regarding aircraft was the unveiling of Hawaiian's Boeing 787 Dreamliner cabin design and a new business class product, the Leihลkลซ suites.  These 34 seats feature flat beds, privacy doors and shared double suites and will immerse all guests in cabin design elements that evoke Hawaiสปi's rich natural world through bold textures, island-inspired sunrise and sunset lighting and sinuous ocean and wind patterns. These aircraft are expected to enter service during 2024. 

During the second quarter of 2023, Hawaiian Airlines completed the sale of one ATR-42 aircraft with a loss of approximately $0 .4 million.  During the three months ended June 30, 2022, the airline sold three ATR-72 aircraft and recorded a $2.6 million gain on the sale of aircraft.

In terms of routes,  the key two developments during the quarter were resumed service between Honolulu and Fukuoka, Japan on 28th April with a service running three time a week. And, starting a weekly service to Rarotonga on 20th May, greatly expanding travel opportunities between Hawaiian's 15 gateways on the US Mainland and the Cook Islands.


Hawaiian Holdings, Inc.
Consolidated Statements of Operations (unaudited)

  

Three Months Ended June 30,

 

Six months ended June 30,

  

2023

 

2022

 

% Change

 

2023

 

2022

 

% Change

  

(in thousands, except per share data)

Operating Revenue:

            

Passenger

 

$   644,992

 

$   617,463

 

4.5 %

 

$  1,193,518

 

$  1,021,492

 

16.8 %

Other

 

61,936

 

74,402

 

(16.8) %

 

126,013

 

147,587

 

(14.6) %

Total

 

706,928

 

691,865

 

2.2 %

 

1,319,531

 

1,169,079

 

12.9 %

Operating Expenses:

            

Wages and benefits

 

237,680

 

205,686

 

15.6 %

 

479,613

 

408,785

 

17.3 %

Aircraft fuel, including taxes and delivery

 

166,380

 

226,892

 

(26.7) %

 

364,005

 

377,874

 

(3.7) %

Maintenance, materials and repairs

 

53,657

 

55,967

 

(4.1) %

 

103,943

 

111,617

 

(6.9) %

Aircraft and passenger servicing

 

43,126

 

35,631

 

21.0 %

 

85,658

 

69,446

 

23.3 %

Depreciation and amortization

 

33,348

 

34,333

 

(2.9) %

 

66,015

 

68,088

 

(3.0) %

Commissions and other selling

 

28,391

 

28,615

 

(0.8) %

 

56,630

 

49,262

 

15.0 %

Aircraft rent

 

26,159

 

25,790

 

1.4 %

 

54,330

 

52,066

 

4.3 %

Other rentals and landing fees

 

41,487

 

37,041

 

12.0 %

 

80,207

 

71,652

 

11.9 %

Purchased services

 

37,181

 

33,757

 

10.1 %

 

72,254

 

64,444

 

12.1 %

Other

 

49,099

 

34,242

 

43.4 %

 

83,884

 

69,739

 

20.3 %

Total

 

716,508

 

717,954

 

(0.2) %

 

1,446,539

 

1,342,973

 

7.7 %

Operating Loss

 

(9,580)

 

(26,089)

 

(63.3) %

 

(127,008)

 

(173,894)

 

(27.0) %

Nonoperating Income (Expense):

            

Interest expense and amortization of debt
discounts and issuance costs

 

(22,705)

 

(24,517)

   

(45,585)

 

(49,554)

  

Interest income

 

13,539

 

6,562

   

30,004

 

10,996

  

Capitalized interest

 

1,945

 

1,060

   

3,404

 

2,112

  

Losses on fuel derivatives

 

(3,658)

 

   

(8,724)

 

  

Loss on extinguishment of debt

 

 

(8,568)

   

 

(8,568)

  

Other components of net periodic benefit
cost

 

(1,707)

 

1,274

   

(3,201)

 

2,560

  

Losses on investments, net

 

(3,549)

 

(22,127)

   

(2,852)

 

(34,491)

  

Gains on foreign debt

 

12,174

 

20,556

   

14,434

 

32,318

  

Other, net

 

(920)

 

(2,005)

   

(764)

 

(1,631)

  

Total

 

(4,881)

 

(27,765)

   

(13,284)

 

(46,258)

  

Loss Before Income Taxes

 

(14,461)

 

(53,854)

   

(140,292)

 

(220,152)

  

Income tax benefit

 

(2,126)

 

(6,480)

   

(29,700)

 

(39,500)

  

Net Loss

 

$    (12,335)

 

$    (47,374)

   

$  (110,592)

 

$  (180,652)

  

Net Loss Per Share

            

Basic

 

$        (0.24)

 

$        (0.92)

   

$        (2.15)

 

$        (3.52)

  

Diluted

 

$        (0.24)

 

$        (0.92)

   

$        (2.15)

 

$        (3.52)

  

Weighted Average Number of Common
Stock Shares Outstanding:

            

Basic

 

51,587

 

51,356

   

51,547

 

51,322

  

Diluted

 

51,587

 

51,356

   

51,547

 

51,322

  

 Hawaiian Holdings, Inc.

Selected Consolidated Statistical Data (unaudited)

  

Three months ended June 30,

 

Six months ended June 30,

  

2023

 

2022

 

% Change

 

2023

 

2022

 

% Change

  

(in thousands, except as otherwise indicated)

Scheduled Operations:

            

Revenue passengers flown

 

2,801

 

2,576

 

8.7 %

 

5,394

 

4,606

 

17.1 %

Revenue passenger miles (RPM)

 

4,346,815

 

3,862,507

 

12.5 %

 

8,190,876

 

6,836,857

 

19.8 %

Available seat miles (ASM)

 

5,014,251

 

4,505,285

 

11.3 %

 

9,928,870

 

8,747,768

 

13.5 %

Passenger revenue per RPM (Yield)

 

14.84  ¢

 

15.99  ¢

 

(7.2) %

 

14.57  ¢

 

14.94  ¢

 

(2.5) %

Passenger load factor (RPM/ASM)

 

86.7 %

 

85.7 %

 

1.0   pts.

 

82.5 %

 

78.2 %

 

4.3   pts.

Passenger revenue per ASM (PRASM)

 

12.86  ¢

 

13.71  ¢

 

(6.2) %

 

12.02  ¢

 

11.68   ¢

 

2.9 %

Total Operations:

            

Revenue passengers flown

 

2,802

 

2,584

 

8.4 %

 

5,395

 

4,620

 

16.8 %

Revenue passenger miles (RPM)

 

4,346,953

 

3,870,586

 

12.3 %

 

8,192,931

 

6,858,150

 

19.5 %

Available seat miles (ASM)

 

5,014,432

 

4,516,296

 

11.0 %

 

9,931,949

 

8,779,344

 

13.1 %

Operating revenue per ASM (RASM)

 

14.10  ¢

 

15.32  ¢

 

(8.0) %

 

13.29  ¢

 

13.32  ¢

 

(0.2) %

Operating cost per ASM (CASM)

 

14.29  ¢

 

15.90  ¢

 

(10.1) %

 

14.56  ¢

 

15.30  ¢

 

(4.8) %

CASM excluding aircraft fuel and non-
recurring items (a)

 

11.08   ¢

 

10.87  ¢

 

1.9 %

 

11.06   ¢

 

10.97  ¢

 

0.8 %

Aircraft fuel expense per ASM (b)

 

3.32  ¢

 

5.03  ¢

 

(34.0) %

 

3.66  ¢

 

4.31  ¢

 

(15.1) %

Revenue block hours operated

 

52,228

 

47,477

 

10.0 %

 

143,646

 

92,360

 

55.5 %

Gallons of jet fuel consumed

 

66,360

 

57,494

 

15.4 %

 

131,214

 

110,911

 

18.3 %

Average cost per gallon of jet fuel (actual)
(b)

 

$2.51

 

$3.95

 

(36.5) %

 

$2.77

 

$3.41

 

(18.8) %

 

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