Hawaiian Holdings Reports 2024 First Quarter Financial Results
"Mahalo to our team for remaining focused on delivering strong operational performance and unparalleled guest experience," said
First Quarter 2024- Key Financial Metrics and Results |
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|
|
GAAP |
|
YoY Change |
|
Adjusted (a) |
|
YoY Change |
Net Loss |
|
( |
|
( |
|
( |
|
( |
Diluted EPS |
|
( |
|
( |
|
( |
|
( |
Pre-tax Margin |
|
(23.7) % |
|
(3.2) pts. |
|
(24.8) % |
|
(1.8) pts. |
EBITDA |
|
( |
|
( |
|
( |
|
( |
Operating Cost per ASM |
|
15.72¢ |
|
5.9 % |
|
11.82¢ |
|
7.1 % |
Operating Revenue per ASM |
|
12.78¢ |
|
2.6 % |
|
N/A |
|
N/A |
|
(a) See Table 4 for a reconciliation of adjusted net loss, adjusted diluted EPS, adjusted pre-tax margin, adjusted EBITDA, and adjusted operating cost per ASM (CASM excluding fuel and non-recurring items) to each of their respective most directly comparable GAAP financial measure. |
The first quarter loss per share includes (
Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables.
First Quarter 2024 Highlights
Merger Update
- The Company's stockholders voted in favor of the merger with Alaska Air Group, Inc. ("
Alaska ") - The Company and
Alaska entered into a timing agreement with theDepartment of Justice ("DOJ") in which they agreed not to consummate the merger before 90 days following the date on which both parties have certified substantial compliance with the DOJ's second request for additional information
Liquidity and Capital Resources
As of
- Unrestricted cash, cash equivalents and short-term investments of
$897 million - Liquidity of
$1.15 billion , including an undrawn revolving credit facility of$235 million - Outstanding debt and finance lease obligations of
$1.75 billion
Routes and Network
- Began Boeing 787-9 Dreamliner revenue service on
April 15, 2024 - Announced new flying from
Salt Lake City (SLC) toHonolulu (HNL) andSacramento (SMF) to Lihu`e (LIH) and Kona (KOA) - Announced increased summer flights between HNL and
Austin (AUS),Boston (BOS),Las Vegas (LAS) andPago Pago (PPG) - Hawaiian will also add a fourth daily flight between HNL and
Los Angeles (LAX) fromMay 24 through September 2 - Hawaiian received its second A330-300 freighter from Amazon which will operate between
New York's JFK andSan Bernardino (SBD)
Guest Experience
- Starlink inflight connectivity is now available free of charge on board all 18 A321neo aircraft
- Expanded Premium Airport Service product in its
Honolulu hub, offering seamless curb-to-aircraft experience with access to new airport private suite, Apt. 1929 - Signed a multi-year distribution agreement with Sabre that will provide Sabre-connected agencies with long-term access to the carrier's HA Connect™ NDC and traditional EDIFACT content through the Sabre travel marketplace.
- Partnered with Universal Technical Institute, the transportation, skilled trades and energy education division of UTI, Inc. to expand career opportunities for Universal Technical Institute airframe and powerplant graduates who earn their
FAA certifications.
Second Quarter 2024 Outlook
The table below summarizes the Company's expectations for the quarter ending
Item |
|
GAAP Second Quarter 2024 Guidance |
|
Non-GAAP Equivalent |
|
Non-GAAP Second Quarter 2024 Guidance |
Available Seat Miles (ASMs) |
|
Up 3.5% to up 6.5% |
|
|
|
|
Operating Revenue per ASM (RASM) |
|
Down 1.5% to up 1.5% |
|
|
|
|
Costs per ASM (CASM) |
|
Up 8.4% to up 10.7% |
|
CASM excluding fuel and non-recurring items (a) |
|
Up 5.0% to up 8.0% |
Gallons of Jet Fuel Consumed (b) |
|
Up 2.5% to up 5.5% |
|
|
|
|
Average fuel price per gallon, including taxes and delivery (c) |
|
|
|
Economic Fuel Price per Gallon (a)(b)(c) |
|
|
Effective Tax Rate |
|
~10% |
|
|
|
|
Full Year 2024 Outlook
The table below summarizes the Company's updated expectations for the full year ending
Item |
|
Prior GAAP Full Year 2024 Guidance |
|
Updated GAAP Full Year 2024 Guidance |
|
Non-GAAP Equivalent |
|
Prior Non-GAAP Full Year 2024 Guidance |
|
Updated Non-GAAP Full Year 2024 Guidance |
Available Seat Miles (ASMs) |
|
Up 6.0% to up 9.0% |
|
Up 4.5% to 7.5% |
|
|
|
|
|
|
Costs per ASM |
|
Up 0.7% to up 3.0% |
|
Up 4.1% to up 6.3% |
|
CASM excluding fuel and non-recurring items (a) |
|
Flat to up 3.0% |
|
Up 1.0% to up 4.0% |
Gallons of Jet Fuel Consumed (b) |
|
Up 4.0% to up 7.0% |
|
Up 3.0% to up 6.0% |
|
|
|
|
|
|
Average fuel price per gallon, including taxes and delivery (c) |
|
|
|
|
|
Economic Fuel Price per Gallon (a)(b)(c) |
|
|
|
|
Capital Expenditures |
|
|
|
No change |
|
|
|
|
|
|
|
(a) See Table 3 and Table 4 for a reconciliation of CASM excluding fuel and non-recurring items and economic fuel price per gallon to each of their respective most directly comparable GAAP financial measures. |
(b) Gallons of jet fuel consumed do not include fuel used in the freighter operation, as those expenses are pass-through expenses not born by the Company. |
(c) Average fuel price per gallon and economic fuel price per gallon estimates are based on the |
Statistical information, as well as a reconciliation of certain non-GAAP financial measures, can be found in the accompanying tables.
Investor Conference Call
About
Now in its 95th year of continuous service, Hawaiian is Hawaiʻi's biggest and longest-serving airline. Hawaiian offers approximately 150 daily flights within the Hawaiian Islands, and nonstop flights between Hawaiʻi and 15 U.S. gateway cities – more than any other airline – as well as service connecting
Consumer surveys by Condé Nast Traveler and TripAdvisor have placed Hawaiian among the top of all domestic airlines serving Hawaiʻi. The carrier was named Hawaiʻi's best employer by Forbes in 2022 and has topped Travel + Leisure's World's Best list as the No. 1 U.S. airline for the past two years. Hawaiian has also led all
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.
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 work to integrate and capture return on significant investments; expectations for service between
The Company is subject to risks, uncertainties and assumptions that could cause the Company's results to differ materially from the results expressed or implied by such forward-looking statements, including the risks, uncertainties and assumptions discussed from time to time in the Company's 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
Table 1.
Consolidated Statements of Operations (unaudited) |
||||||
|
||||||
|
|
Three Months Ended |
||||
|
|
2024 |
|
2023 |
|
% Change |
|
|
(in thousands, except per share data) |
||||
Operating Revenue: |
|
|
|
|
|
|
Passenger |
|
$ 583,448 |
|
$ 548,526 |
|
6.4 % |
Other |
|
62,119 |
|
64,077 |
|
(3.1) % |
Total |
|
645,567 |
|
612,603 |
|
5.4 % |
Operating Expenses: |
|
|
|
|
|
|
Wages and benefits |
|
261,935 |
|
241,933 |
|
8.3 % |
Aircraft fuel, including taxes and delivery |
|
188,778 |
|
197,625 |
|
(4.5) % |
Maintenance, materials and repairs |
|
70,971 |
|
50,287 |
|
41.1 % |
Aircraft and passenger servicing |
|
45,424 |
|
42,532 |
|
6.8 % |
Depreciation and amortization |
|
32,967 |
|
32,667 |
|
0.9 % |
Aircraft rent |
|
29,706 |
|
28,171 |
|
5.4 % |
Commissions and other selling |
|
28,443 |
|
28,238 |
|
0.7 % |
Other rentals and landing fees |
|
43,127 |
|
38,720 |
|
11.4 % |
Purchased services |
|
38,475 |
|
35,072 |
|
9.7 % |
Special items |
|
8,482 |
|
— |
|
100.0 % |
Other |
|
45,905 |
|
34,785 |
|
32.0 % |
Total |
|
794,213 |
|
730,030 |
|
8.8 % |
Operating Loss |
|
(148,646) |
|
(117,427) |
|
26.6 % |
Nonoperating Income (Expense): |
|
|
|
|
|
|
Interest expense and amortization of debt discounts and issuance costs |
|
(24,069) |
|
(22,880) |
|
|
Interest income |
|
10,021 |
|
16,465 |
|
|
Capitalized interest |
|
3,134 |
|
1,458 |
|
|
Losses on fuel derivatives |
|
(582) |
|
(5,065) |
|
|
Other components of net periodic benefit cost |
|
(927) |
|
(1,494) |
|
|
Gains on investments, net |
|
470 |
|
697 |
|
|
Gains on foreign debt |
|
8,519 |
|
2,260 |
|
|
Other, net |
|
(770) |
|
155 |
|
|
Total |
|
(4,204) |
|
(8,404) |
|
|
Loss Before Income Taxes |
|
(152,850) |
|
(125,831) |
|
|
Income tax benefit |
|
(15,285) |
|
(27,574) |
|
|
Net Loss |
|
$ (137,565) |
|
$ (98,257) |
|
|
Net Loss Per Share |
|
|
|
|
|
|
Basic |
|
$ (2.65) |
|
$ (1.91) |
|
|
Diluted |
|
$ (2.65) |
|
$ (1.91) |
|
|
Weighted Average Number of Common Stock Shares Outstanding: |
|
|
|
|
|
|
Basic |
|
51,838 |
|
51,507 |
|
|
Diluted |
|
51,838 |
|
51,507 |
|
|
Consolidated Balance Sheet |
||||
|
||||
|
|
(unaudited) |
|
|
|
|
(in thousands, except shares) |
||
ASSETS |
|
|
|
|
Current Assets: |
|
|
|
|
Cash and cash equivalents |
|
$ 230,865 |
|
$ 153,273 |
Restricted cash |
|
17,250 |
|
17,250 |
Short-term investments |
|
666,432 |
|
755,224 |
Accounts receivable, net |
|
99,117 |
|
105,858 |
Income taxes receivable |
|
642 |
|
669 |
Spare parts and supplies, net |
|
65,444 |
|
60,115 |
Prepaid expenses and other |
|
80,304 |
|
78,551 |
Total |
|
1,160,054 |
|
1,170,940 |
Property and equipment, less accumulated depreciation and amortization of |
|
2,104,442 |
|
2,013,616 |
Other Assets: |
|
|
|
|
Assets held-for-sale |
|
1,091 |
|
1,135 |
Operating lease right-of-use assets |
|
393,769 |
|
413,237 |
Long-term prepayments and other |
|
118,057 |
|
121,097 |
Intangible assets, net |
|
13,500 |
|
13,500 |
Total Assets |
|
$ 3,790,913 |
|
$ 3,733,525 |
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
Current Liabilities: |
|
|
|
|
Accounts payable |
|
$ 214,848 |
|
$ 199,223 |
Air traffic liability and current frequent flyer deferred revenue |
|
757,855 |
|
633,345 |
Other accrued liabilities |
|
165,430 |
|
175,591 |
Current maturities of long-term debt, less discount |
|
75,132 |
|
43,857 |
Current maturities of finance lease obligations |
|
8,791 |
|
10,053 |
Current maturities of operating leases |
|
79,281 |
|
83,332 |
Total |
|
1,301,337 |
|
1,145,401 |
Long-Term Debt |
|
1,612,235 |
|
1,537,152 |
Other Liabilities and Deferred Credits: |
|
|
|
|
Noncurrent finance lease obligations |
|
56,269 |
|
60,116 |
Noncurrent operating leases |
|
283,836 |
|
303,119 |
Accumulated pension and other post-retirement benefit obligations |
|
142,367 |
|
140,742 |
Other liabilities and deferred credits |
|
78,499 |
|
77,154 |
Noncurrent frequent flyer deferred revenue |
|
304,099 |
|
308,502 |
Deferred tax liability, net |
|
52,492 |
|
65,914 |
Total |
|
917,562 |
|
955,547 |
Commitments and Contingencies |
|
|
|
|
Shareholders' Equity: |
|
|
|
|
Special preferred stock, |
|
— |
|
— |
Common stock, |
|
518 |
|
518 |
Capital in excess of par value |
|
294,599 |
|
293,797 |
Accumulated loss |
|
(257,303) |
|
(119,738) |
Accumulated other comprehensive loss, net |
|
(78,035) |
|
(79,152) |
Total |
|
(40,221) |
|
95,425 |
Total Liabilities and Shareholders' Equity |
|
$ 3,790,913 |
|
$ 3,733,525 |
Condensed Consolidated Statements of Cash Flows (unaudited) |
||||
|
||||
|
|
Three months ended |
||
|
|
2024 |
|
2023 |
|
|
(in thousands) |
||
Net cash provided by Operating Activities |
|
$ 254 |
|
$ 118,291 |
Cash flows from Investing Activities: |
|
|
|
|
Additions to property and equipment, including pre-delivery payments |
|
(127,018) |
|
(106,215) |
Proceeds from the disposition of aircraft and aircraft related equipment |
|
105 |
|
9,563 |
Purchases of investments |
|
(15,824) |
|
(96,806) |
Proceeds from sales and maturities of investments |
|
109,485 |
|
144,069 |
Net cash used in investing activities |
|
(33,252) |
|
(49,389) |
Cash flows from Financing Activities: |
|
|
|
|
Long-term borrowings |
|
131,400 |
|
— |
Repayments of long-term debt and finance lease obligations |
|
(18,760) |
|
(24,953) |
Debt issuance costs and discounts |
|
(1,849) |
|
— |
Payment for taxes withheld for stock compensation |
|
(201) |
|
(1,066) |
Net cash provided by (used in) financing activities |
|
110,590 |
|
(26,019) |
Net increase in cash and cash equivalents |
|
77,592 |
|
42,883 |
Cash, cash equivalents, and restricted cash - Beginning of Period |
|
170,523 |
|
246,620 |
Cash, cash equivalents, and restricted cash - End of Period |
|
$ 248,115 |
|
$ 289,503 |
Table 2.
Selected Consolidated Statistical Data (unaudited) |
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|
|
|
||||
|
|
Three months ended |
||||
|
|
2024 |
|
2023 |
|
% Change |
|
|
(in thousands, except as otherwise indicated) |
||||
Scheduled Operations: |
|
|
|
|
|
|
Revenue passengers flown |
|
2,620 |
|
2,592 |
|
1.1 % |
Revenue passenger miles (RPM) |
|
4,072,473 |
|
3,844,061 |
|
5.9 % |
Available seat miles (ASM) |
|
5,049,598 |
|
4,914,619 |
|
2.7 % |
Passenger revenue per RPM (Yield) |
|
14.33 ¢ |
|
14.27 ¢ |
|
0.4 % |
Passenger load factor (RPM/ASM) |
|
80.6 % |
|
78.2 % |
|
2.4 pts. |
Passenger revenue per ASM (PRASM) |
|
11.55 ¢ |
|
11.16 ¢ |
|
3.5 % |
Total Operations: |
|
|
|
|
|
|
Revenue passengers flown |
|
2,621 |
|
2,593 |
|
1.1 % |
Revenue passenger miles (RPM) |
|
4,073,159 |
|
3,845,978 |
|
5.9 % |
Available seat miles (ASM) |
|
5,050,841 |
|
4,917,517 |
|
2.7 % |
Operating revenue per ASM (RASM) |
|
12.78 ¢ |
|
12.46 ¢ |
|
2.6 % |
Operating cost per ASM (CASM) |
|
15.72 ¢ |
|
14.85 ¢ |
|
5.9 % |
CASM excluding aircraft fuel and non-recurring items (a) |
|
11.82 ¢ |
|
11.04 ¢ |
|
7.1 % |
Aircraft fuel expense per ASM (b) |
|
3.74 ¢ |
|
4.02 ¢ |
|
(7.0) % |
Revenue block hours operated |
|
52,141 |
|
52,228 |
|
(0.2) % |
Gallons of jet fuel consumed (c) |
|
67,651 |
|
64,853 |
|
4.3 % |
Average cost per gallon of jet fuel (actual) (b) |
|
|
|
|
|
(8.5) % |
|
|
(a) |
See Table 4 for a reconciliation of CASM excluding aircraft fuel and non-recurring items to its most directly comparable GAAP financial measure.. |
(b) |
Includes applicable taxes and fees. |
(c) |
Excludes operations under the ATSA with Amazon. |
Table 3.
Economic Fuel Expense (unaudited)
The Company believes that economic fuel expense is a good measure of the effect of fuel prices on its business as it most closely approximates the net cash outflow associated with the purchase of fuel for its operations in a period. The Company defines economic fuel expense as GAAP fuel expense plus losses/(gains) realized through actual cash (receipts)/payments received from or paid to hedge counterparties for fuel hedge derivative contracts settled during the period.
|
|
Three months ended |
|||||||||||
|
|
2024 |
|
2023 |
|
% Change |
|||||||
|
|
(in thousands, except per-gallon amounts) |
|||||||||||
Aircraft fuel expense, including taxes and delivery |
|
$ 188,778 |
|
$ 197,625 |
|
(4.5) % |
|||||||
Realized losses on settlement of fuel derivative contracts |
|
2,398 |
|
1,513 |
|
58.5 % |
|||||||
Economic fuel expense |
|
$ 191,176 |
|
$ 199,138 |
|
(4.0) % |
|||||||
Fuel gallons consumed |
|
67,651 |
|
64,853 |
|
4.3 % |
|||||||
Economic fuel price per gallon |
|
$ 2.83 |
|
$ 3.07 |
|
(7.8) % |
|||||||
|
|||||||||||||
|
|
Estimated three months ending |
|
Estimated full year ending |
|||||||||
|
|
(in thousands, except per-gallon amounts) |
|||||||||||
Aircraft fuel expense, including taxes and delivery |
|
$ 192,675 |
- |
$ 198,314 |
|
$ 772,335 |
- |
$ 794,830 |
|||||
Realized losses on settlement of fuel derivative contracts |
|
1,456 |
- |
1,456 |
|
6,431 |
- |
6,431 |
|||||
Economic fuel expense |
|
$ 194,131 |
- |
$ 199,770 |
|
$ 778,766 |
- |
$ 801,261 |
|||||
Fuel gallons consumed |
|
68,032 |
- |
70,024 |
|
275,377 |
|
283,398 |
|||||
Economic fuel price per gallon |
|
$ 2.85 |
- |
$ 2.85 |
|
$ 2.83 |
- |
$ 2.83 |
Table 4.
Non-GAAP Financial Reconciliation (unaudited)
The Company evaluates its financial performance utilizing various GAAP and non-GAAP financial measures, including adjusted net loss, adjusted diluted EPS, adjusted pre-tax margin, adjusted EBITDA, and adjusted operating cost per ASM (CASM excluding fuel and non-recurring items). 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:
-
CBA related expense. In
February 2023 , pilots represented by theAir Line Pilots Association (ALPA) ratified a new four-year CBA, which included, amongst other things, a signing bonus, pay scale increases across all fleet types, improved health benefits and cost sharing, and enhancements to the Company's postretirement and disability plans. In connection with the ratification, the Company recorded a signing bonus and vacation liability true-up of$17.7 million which were recorded in wages and benefits during the quarter endedMarch 31, 2023 . -
Contract termination amortization
. In
December 2022 , the Company entered into a Memorandum of Understanding (MOU) with one of its third-party service providers to early terminate its Amended and Restated Complete Fleet Services Agreement (Amended CFS) covering A330-200 aircraft. The Amended CFS was originally scheduled to run throughDecember 2027 , but was terminated inApril 2023 . During the three months endedMarch 31, 2023 , the Company recognized approximately$18.1 million in amortization within Maintenance, materials and repairs in the Consolidated Statements of Operations. -
Special items
. During the three months ended
March 31, 2024 , the Company recorded$8.5 million in Special items as a result of expenses related to its merger withAlaska , primarily consisting of legal, advisory, and other fees. -
Gain on sale of commercial real estate
. In
February 2023 , the Company entered into an agreement for the sale of its commercial real estate and recognized a gain on sale of$10.2 million , which was recorded in Other operating expense in the Consolidated Statements of Operations. -
Interest income on federal tax refund. In
March 2023 , the Company received$4.7 million in interest income in connection with a$66.8 million federal tax refund received related to fiscal year 2018. The interest income received was recorded in Interest income in the Consolidated Statements of Operations. - Changes in fair value of fuel derivative contracts. 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.
- Unrealized gain on foreign debt . Unrealized gain on foreign debt is based on fluctuation in exchange rates and the measurement of foreign-denominated debt to the Company's functional currency.
- Unrealized gain on equity securities. Unrealized gain on equity securities is driven by changes in market prices and currency fluctuations, which is recorded in Other nonoperating expense in the Consolidated Statements of Operations.
The Company believes that adjusting for the impact of the changes in fair value of equity securities and fuel derivative contracts, fluctuations in exchange rates on debt instruments denominated in foreign currency, and non-recurring expenses and income/gains (including CBA-related, contract termination amortization, special items, interest income on federal tax refund, gain or loss on sale of aircraft, and gain on sale of commercial real estate), helps investors better analyze the Company's operational performance and compare its results to other airlines in the periods presented.
|
|
Three months ended |
||||||
|
|
2024 |
|
2023 |
||||
|
|
Total |
|
Diluted Net Loss Per Share |
|
Total |
|
Diluted Net Loss Per Share |
|
|
(in thousands, except per share data) |
||||||
Net Loss, as reported |
|
$ (137,565) |
|
$ (2.65) |
|
$ (98,257) |
|
$ (1.91) |
Adjusted for: |
|
|
|
|
|
|
|
|
CBA related expense |
|
— |
|
— |
|
17,727 |
|
0.35 |
Contract termination amortization |
|
— |
|
— |
|
(18,114) |
|
(0.35) |
Special items |
|
8,482 |
|
0.16 |
|
— |
|
— |
Gain on sale of commercial real estate |
|
— |
|
— |
|
(10,179) |
|
(0.20) |
Interest income on federal tax refund |
|
— |
|
— |
|
(4,672) |
|
(0.09) |
Changes in fair value of fuel derivative contracts |
|
(1,816) |
|
(0.04) |
|
3,552 |
|
0.07 |
Unrealized gain on foreign debt |
|
(8,555) |
|
(0.17) |
|
(2,488) |
|
(0.05) |
Unrealized gain on equity securities |
|
(5,115) |
|
(0.10) |
|
(944) |
|
(0.02) |
Tax effect of adjustments |
|
1,037 |
|
0.03 |
|
1,568 |
|
0.03 |
Adjusted net loss |
|
$ (143,532) |
|
$ (2.77) |
|
$ (111,807) |
|
$ (2.17) |
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.
The Company reclassified prior period EBITDA and Adjusted EBITDA to conform to the current period presentation.
|
|
Three months ended |
||
|
|
2024 |
|
2023 |
|
|
(in thousands) |
||
Net Loss |
|
$ (137,565) |
|
$ (98,257) |
Income tax benefit |
|
(15,285) |
|
(27,574) |
Depreciation and amortization |
|
32,967 |
|
32,667 |
Interest expense and amortization of debt discounts and issuance costs |
|
24,069 |
|
22,880 |
Interest income |
|
(10,021) |
|
(16,465) |
Capitalized interest |
|
(3,134) |
|
(1,458) |
EBITDA, as reported |
|
(108,969) |
|
(88,207) |
Adjusted for: |
|
|
|
|
CBA related expense |
|
— |
|
17,727 |
Contract termination amortization |
|
— |
|
(18,114) |
Special items |
|
8,482 |
|
— |
Gain on sale of commercial real estate |
|
— |
|
(10,179) |
Interest income on tax refund |
|
— |
|
(4,672) |
Changes in fair value of fuel derivative instruments |
|
(1,816) |
|
3,552 |
Unrealized gain on foreign debt |
|
(8,555) |
|
(2,488) |
Unrealized gain on equity securities |
|
(5,115) |
|
(944) |
Adjusted EBITDA |
|
$ (115,973) |
|
$ (103,325) |
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 |
||
|
|
2024 |
|
2023 |
|
|
(in thousands, except CASM data) |
||
GAAP Operating Expenses |
|
$ 794,213 |
|
$ 730,030 |
Adjusted for: |
|
|
|
|
CBA related expense |
|
— |
|
(17,727) |
Contract termination amortization |
|
— |
|
18,114 |
Special items |
|
(8,482) |
|
— |
Gain on sale of commercial real estate |
|
— |
|
10,179 |
Operating Expenses excluding non-recurring items |
|
$ 785,731 |
|
$ 740,596 |
Aircraft fuel, including taxes and delivery |
|
(188,778) |
|
(197,625) |
Operating Expenses excluding fuel and non-recurring items |
|
$ 596,953 |
|
$ 542,971 |
Available Seat Miles |
|
5,050,841 |
|
4,917,517 |
CASM - GAAP |
|
15.72 ¢ |
|
14.85 ¢ |
Aircraft fuel, including taxes and delivery |
|
(3.74) |
|
(4.02) |
CBA related expense |
|
— |
|
(0.36) |
Contract termination amortization |
|
— |
|
0.37 |
Special items |
|
(0.16) |
|
— |
Gain on sale of commercial real estate |
|
— |
|
0.20 |
CASM excluding fuel and non-recurring items |
|
11.82 ¢ |
|
11.04 ¢ |
|
|
Estimated three months ending |
|
Estimated year ending |
||||
|
|
(in thousands, except CASM data) |
||||||
GAAP operating expenses |
|
$ 803,834 |
- |
$ 844,733 |
|
$ 3,273,023 |
- |
$ 3,438,253 |
Aircraft fuel, including taxes and delivery |
|
(192,675) |
- |
(198,314) |
|
(772,335) |
- |
(794,830) |
Less: non recurring items |
|
(7,245) |
- |
(7,245) |
|
(92,229) |
- |
(92,229) |
Adjusted operating expenses |
|
$ 603,914 |
- |
$ 639,174 |
|
$ 2,408,459 |
- |
$ 2,551,194 |
Available seat miles |
|
5,189,938 |
- |
5,340,371 |
|
21,113,699 |
- |
21,719,834 |
CASM - GAAP |
|
15.49 ¢ |
- |
15.82 ¢ |
|
15.50 ¢ |
- |
15.83 ¢ |
Aircraft fuel, including taxes and delivery |
|
(3.71) |
- |
(3.71) |
|
(3.66) |
- |
(3.66) |
Non-recurring items |
|
(0.14) |
- |
(0.14) |
|
(0.44) |
- |
(0.42) |
CASM excluding fuel and non-recurring items |
|
11.64 ¢ |
- |
11.97 ¢ |
|
11.40 ¢ |
- |
11.75 ¢ |
Pre-tax margin
The Company excludes changes in fair value of equity securities and fuel derivative contracts, fluctuations and exchange rates on debt instruments denominated in foreign currency, and non-recurring items from pre-tax margin for the same reasons as described above.
|
|
Three months ended |
||
|
|
2024 |
|
2023 |
|
|
(23.7) % |
|
(20.5) % |
CBA ratification bonus |
|
— |
|
2.9 |
Contract termination amortization |
|
— |
|
(3.0) |
Special items |
|
1.3 |
|
— |
Gain on sale of commercial real estate |
|
— |
|
(1.7) |
Interest income on federal tax refund |
|
— |
|
(0.8) |
Changes in fair value of fuel derivative contracts |
|
(0.3) |
|
0.6 |
Unrealized gain on foreign debt |
|
(1.3) |
|
(0.4) |
Unrealized (gain) loss on equity securities |
|
(0.8) |
|
(0.1) |
Adjusted |
|
(24.8) % |
|
(23.0) % |
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