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 Leihōkū suites.  These 34 seats feature flat beds, privacy doors and shared double suites and will immerse all guests in cabin design elements that evoke Hawaiʻi'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) %