Hawaiian Airlines, Hawaiʻi’s hometown carrier since 1929, today introduced an elevated standard of leisure travel, inspired by early Polynesian voyages, with the unveiling of its Boeing 787-9 Dreamliner interior and new class of premium service – the Leihōkū Suites.
Guests onboard Hawaiian’s 787 – entering service beginning early next year on select routes – will be immersed 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.
Hawaiian’s 300-seat 787 features its newest premium product, Leihōkū (garland of stars): 34 suites that envelop guests in a tranquil, elegant space with fully lie-flat seating, an 18-inch in-flight entertainment screen, personal outlets, wireless charging and direct aisle access. Set in a 1-2-1 configuration with doors, the suites can offer privacy or a shared experience, with combined double seats allowing couples to fall asleep while gazing at a starlit ceiling.
In developing its Leihōkū Suite, Hawaiian became the first airline to partner with Adient Aerospace – a joint venture between the Boeing Company and Adient, a world leader in automotive seats.
In Hawaiianʻs 787 Dreamliner Main Cabin, consisting of 266 Collins Aerospace Aspire seats with ergonomically contoured back and arm rests, guests will enjoy a lightweight, modern design that maximizes seat space, offers more shoulder and hip room, and features a 12-inch seatback monitor with USB-A and USB-C charging ports.
In Hawaiianʻs 787 Dreamliner Main Cabin, consisting of 266 Collins Aerospace Aspire seats with ergonomically contoured back and arm rests, guests will enjoy a lightweight, modern design that maximizes seat space, offers more shoulder and hip room, and features a 12-inch seatback monitor with USB-A and USB-C charging ports.
Hawaiian Airlines Airbus A321-271N WL N204HA (msn 7959) LGB (Michael B. Ing). Image: 942740.
Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc. reported its financial results for the first quarter of 2023.
“A big mahalo to our team who continue to make us a stronger, better airline. The demand for leisure travel remains strong in the domestic markets we serve, and we see similar conditions in most of our international markets,” said Hawaiian Airlines President and CEO Peter Ingram. “In recent days, our team completed a significant technology initiative, one of many projects underway in 2023 that position us for a bright future. We look forward to sustaining momentum on these initiatives and returning Hawaiian to profitability.”
First Quarter 2023- Key Financial Metrics and Results
GAAP
YoY Change
Adjusted (a)
YoY Change
Net Loss
($98.3M)
+$35.0M
($111.8M)
+$18.5M
Diluted EPS
($1.91)
+$0.69
($2.17)
+$0.37
Pre-tax Margin
(20.5) %
+14.3 pts.
(23.0) %
+11.4 pts.
EBITDA
($70.3M)
+$37.2M
($85.4M)
+$20.1M
Operating Cost per ASM
14.85¢
0.19¢
11.04¢
(0.03)¢
Operating Revenue per ASM
12.46¢
1.27¢
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.
Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables.
Liquidity and Capital Resources
As of March 31, 2023, the Company had:
Unrestricted cash, cash equivalents and short-term investments of $1.4 billion
$1.6 billion in liquidity, including its undrawn $235 million revolving credit facility
Outstanding debt and finance lease obligations of $1.7 billion
Revenue Environment
Hawaiian benefited from continued robust leisure demand from North America to Hawaiʻi and the restoration of its international network excluding Japan. International traffic was buoyed by strong U.S. point of sale activity. Demand remained strong for premium products both domestically and internationally. The Company’s overall operating revenue for the first quarter 2023 was up 28.4% from the first quarter 2022 on 15.4% higher capacity as Hawaiian recovered from the effects of the Omicron variant of COVID-19, which impacted results in the first quarter 2022.
Other revenue was down 12.4% compared to the first quarter of 2022 driven by a decrease in cargo revenue.
Operational Environment
Several challenges continued to negatively affect the environment in which the Company operates. Constraints on the availability of A321 aircraft due to Pratt & Whitney engine delays, ongoing runway construction at Daniel K. Inouye International Airport in Honolulu (HNL), and delays related to air traffic control protocols disrupted Hawaiian’s on-time performance, impaired its scheduling, and adversely affected its financial results.
Limitations on Hawaiian’s A321 fleet availability necessitated the substitution of A330 aircraft, which are less fuel efficient, on some A321 routes. Fuel consumption for the first quarter 2023 was up 21.4% as compared to the first quarter of 2022 due to higher capacity and inefficiencies resulting from these challenges.
First Quarter 2023 Highlights
Technology Advancement
Transitioned its Passenger Service System to Amadeus’ Altea platform marking a significant information technology (“IT”) accomplishment for the Company in April; this new platform will enable the Company to be more commercially and operationally nimble
Routes and Network
Operated at 115% of its 2022 first quarter capacity, comprised of 98%, 119%, and 275% capacity on its North America, Neighbor Island and International routes, respectively
Announced an increase in summer weekly frequencies between Honolulu and Austin, Boston, Las Vegas, and Pago Pago in preparation for strong summer demand to Hawai’i as well as a fourth daily flight between Honoluluand Los Angeles twice per week
Announced resumption of service between Honolulu and Fukuoka beginning April 28 with thrice-weekly service
Guest Experience
Streamlined the Honolulu travel experience with the opening of a new TSA security checkpoint at HNL, which added 1,000 square feet for passenger queuing and 3,000 square feet of screening area; expanded screening capacity alleviates congestion and benefits all guests whether they are flying to a neighbor island or boarding a transpacific flight
People
Received ratification by Hawaiian’s pilots represented by the Air Line Pilots Association of a four-year contract that provides for pay scale increases across all fleet types, improved health benefits, a signing bonus, and cost sharing, and enhancements to the postretirement and disability plans for more than 1,000 employees
Formed a partnership with Embry-Riddle Aeronautical University’s Aviation Maintenance Technology SkillBridge program which provides an opportunity for veterans to bridge the transition into the civilian aviation and aerospace sector
Established a $100,000 scholarship fund in partnership with Arizona State University’s W.P. Carey School of Business to encourage Hawai’i students to pursue careers in IT with the potential to build a career at Hawaiian
Environmental, Social and Corporate Governance
Committed to new milestones on the path to net-zero greenhouse gas emissions by 2050; the Company’s decarbonization roadmap relies on several key drivers, including the use of sustainable aviation fuel (SAF), fleet modernization and new aircraft technologies, operational best practices to improve fuel efficiency, and advocacy for air traffic control system improvements
Announced an agreement with biofuel company Gevo, Inc. to purchase 50 million gallons of SAF over five years with deliveries to Hawaiian’s gateway cities in California anticipated starting in 2029
Published the No Kākou a Pau (“interconnectedness”) economic impact report which underscores the ways Hawaiian is connected to the economy of its home state including stimulating $10.2 billion in economic activity in Hawai’i and providing, directly or indirectly, for 53,500 jobs statewide in 2022
Second Quarter 2023 Outlook
The table below summarizes the Company’s expectations for the quarter ending June 30, 2023 expressed as an expected percentage change compared to the results for the quarter ended June 30, 2022.
Item
Second Quarter 2023 Guidance
GAAP Equivalent
GAAP Second Quarter 2023 Guidance
Available Seat Miles (ASMs)
Up 10.5% to up 13.5%
Operating Revenue per ASM (RASM)
Down 8.5% to down 11.5%
CASM excluding fuel and non-recurring items (a)
Flat to up 3%
Costs per ASM
Down 8.2% to down 10.2%
Gallons of Jet Fuel Consumed
Up 16.5% to up 19.5%
Economic Fuel Price per Gallon (a)(b)
$2.62
Average fuel price per gallon, including taxes and delivery
Effective Tax Rate
21.0 %
Full Year 2023 Outlook
The table below summarizes the Company’s updated expectations for the full year ending December 31, 2023expressed as an expected percentage change compared to the results for the year ended December 31, 2022.
Item
Prior Full Year 2023 Guidance
Full Year 2023 Guidance
Gallons of Jet Fuel Consumed
Up 10.5% to up 13.5%
Up 12.5% to up 15.5%
Economic Fuel Price per Gallon (a)(b)
$2.92
$2.70
(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) Fuel Price per Gallon estimates are based on the April 11, 2023 fuel forward curve.
Statistical information, as well as a reconciliation of certain non-GAAP financial measures, can be found in the accompanying tables.
Top Copyright Photo: Hawaiian Airlines Airbus A321-271N WL N204HA (msn 7959) LGB (Michael B. Ing). Image: 942740.
Hawaiian Airlines is preparing for strong summer demand to Hawai’i by increasing weekly frequencies between Honolulu and Austin (AUS), Boston (BOS), Las Vegas (LAS) and Pago Pago (PPG). The airline will also add a fourth daily flight between Honolulu and Los Angeles (LAX) twice per week.
Hawaiian will operate the routes with a mix of Airbus A330 and A321neo aircraft. Guests on all flights experience culinary delights through the airline’s Featured Chef Series, signature beverages by Maui Brewing Co. and KōHana Hawaiian Rum, and island treats from the Pau Hana snack cart. Complimentary in-flight entertainment is offered on all transpacific flights and includes the airline’s specially curated video collection, Hana Hou! TV.
Summer Service Schedule
AUSTIN: Adding 1x-weekly flight on Fridays (totaling 4x-weekly) | May 26 – Aug. 18.
BOSTON: Adding 1x-weekly flight on Thursdays (totaling 5x-weekly) | June 15 – Aug. 17.
LAS VEGAS (HA5/6): Adding 1x-weekly flight on Wednesdays | May 31 – Aug. 30. Adding second weekly flight on Saturdays | June 3 – July 29. *Peak summer frequency for LAS will be 20x-weekly
LOS ANGELES: Adding 2x-daily LAX-HNL on Tuesdays and Fridays | June 2 – July 28. *Peak summer frequency for LAX will be 23x-weekly
PAGO PAGO: Adding 1x-weekly on Wednesdays (totaling 3x-weekly) | June 7 – Aug. 30.
Top Copyright Photo: Hawaiian Airlines Airbus A330-243 N396HA (msn 1488) LAX (Jay Selman). Image: 404276.
Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., reported its financial results for the fourth quarter and full year 2022.
“A heartfelt mahalo to our team as they tirelessly worked through a year in which we had multiple projects in motion that make us a stronger, better airline,” said Hawaiian Airlines President and CEO Peter Ingram. “I am incredibly proud of what our team members do to care for our company, our guests and each other. We saw continued strong demand in our domestic markets and recovery in our international markets illustrating that Hawaiʻi is a top destination and we are the carrier of choice. I am excited to see what we can accomplish in 2023 as we continue to build a solid foundation for our future.”
Fourth Quarter 2022 – Key Financial Metrics and Results
GAAP
Yo3Y Change
Adjusted (a)
Yo3Y Change
Net Loss
($50.2M)
($99.9M)
($24.7M)
($70.6M)
Diluted EPS
($0.98)
($2.05)
($0.49)
($1.49)
Pre-tax Margin
(8.6) %
(18.2) pts.
(4.3) %
(13.2) pts.
EBITDA
($6.1M)
($120.3M)
$25.6M
($83.4M)
Operating Cost per ASM
15.46¢
3.30¢
10.89¢
1.35¢
Full Year 2022 – Key Financial Metrics and Results
GAAP
Yo3Y Change
Adjusted (a)
Yo3Y Change
Net Loss
($240.1M)
($464.1M)
($210.5M)
($429.3M)
Diluted EPS
($4.67)
($9.38)
($4.08)
($8.68)
Pre-tax Margin
(11.1) %
(21.9) pts.
(10.0) %
(20.5) pts.
EBITDA
($61.9M)
($553.6M)
($31.0M)
($515.8M)
Operating Cost per ASM
15.26¢
3.10¢
10.78¢
1.24¢
(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.
Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables.
Liquidity and Capital Resources
As of December 31, 2022 the Company had:
Unrestricted cash, cash equivalents and short-term investments of $1.4 billion
Outstanding debt and finance lease obligations of $1.7 billion
Air traffic liability of $590.8 million
Liquidity of $1.6 billion, including an undrawn revolving credit facility of $235 million
Revenue Environment
The strength of the leisure market was evident as Hawaiian saw robust demand in its U.S. Mainland to Hawaiʻi routes and international routes excluding Japan. Demand remained strong for premium products and there was positive momentum in sales of its Extra Comfort product and newer preferred seat option. The Company’s overall operating revenue for the fourth quarter 2022 was up 3.2% compared to the fourth quarter 2019 on 6% lower capacity. The Company’s overall operating revenue for 2022 was down 6.7% from 2019 on 9.3% lower capacity as the impacts of Omicron were experienced industry wide in most of the first quarter.
Other revenue for fourth quarter 2022 was up 35.1% compared to the same period in 2019 and for the full year 2022 up 30.4% compared to 2019 driven by cargo revenue and sales of HawaiianMiles.
2022 Highlights
Routes and scheduled services
Operated at 91% of its 2019 capacity, comprised of 115%, 79%, and 44% capacity on its North America, Neighbor Island, and International routes, respectively
Resumed international flights, between Honolulu, Hawaiʻi and Auckland, New Zealand, and Honolulu, Hawaiʻi and Tokyo Haneda Airport
Signed agreement with Amazon to operate and maintain an initial fleet of 10 Airbus A330-300 freighters to move cargo between airports near Amazon’s distribution facilities starting in the fall of 2023
Announced a new nonstop flight between Honolulu and Rarotonga, Cook Islands, which will launch in May 2023, providing travelers from Hawaiian’s 15 U.S. Mainland gateway cities convenient one-stop connection to the Cook Islands
Guest experience
Announced agreement with Starlink to provide complimentary industry leading satellite internet connectivity to every guest onboard flights between Hawaiʻi and the continental U.S., Asia, and Oceania starting in 2023
Introduced the benefit of two free checked bags for primary cardmembers who purchase their tickets directly with the Company in partnership with Barclays, its co-brand credit card issuer
Established a new interline agreement with Mokulele to facilitate travel bookings and connections for passengers connecting from Mokulele-served airports to any Hawaiian Airlines destination worldwide in a single transaction
Boeing 787=9 Dreamliner
Fleet and financing
Entered into an agreement with Boeing to purchase 2 additional Boeing 787-9 aircraft, bringing the Company’s total order to 12 aircraft, the first of which is scheduled for delivery in the fourth quarter of 2023
Amended and extended $235 million revolving credit facility that matures in December 2025
Repurchased the remaining $62.4 million of outstanding Series-2020-1A and Series-2020-1B Equipment Notes
Top Copyright Photo: Hawaiian Airlines Airbus A330-243 N384HA (msn 1259) LAX (Michael B. Ing). Image: 960007.
Hawaiian Airlines has announced it will restart three-times-weekly service between Honolulu (HNL) and Fukuoka (FUK) beginning April 28, 2023.
Hawaiian, which today offers daily service between HNL and Tokyo’s Haneda (HND) and Narita Airports (NRT) and Osaka’s Kansai Airport (KIX), will operate flight HA827 from HNL to FUK on Tuesdays, Fridays and Sundays at 1:35 p.m., arriving into FUK at 6:40 p.m. the following day. The return flight, HA828, will depart at 8:40 p.m. on Wednesdays, Saturdays and Mondays and arrive at HNL at 9:55 a.m. the same day.
Hawaiian, Hawai’i’s largest and longest-serving airline, inaugurated FUK service in November 2019 before suspending the route in March 2020 due to the COVID-19 pandemic.
Hawaiian will continue to operate its Japan routes with its 278-seat, spacious wide-body Airbus A330 aircraft, which feature 18 Premium Cabin lie-flat leather seats, 68 of its popular Extra Comfort seats, and 192 Main Cabin seats.
Top Copyright Photo: Hawaiian Airlines Airbus A330-243 N391HA (msn 1309) LAX (Michael B. Ing). Image: 959494.
Hawaiian Airlines pilots, represented by the Air Line Pilots Association, Int’l, have reached a tentative agreement with management on a new four-year contract that includes substantial pay increases, including current industry-leading rates for the carrier’s new cargo operation.
The agreement includes an average 32.9 percent pay increase over the duration of the deal for HAL’s five aircraft types, including an average 16.6 percent increase on date of signing. It adds a signing bonus, raises company retirement contributions, creates a new health reimbursement account, increases schedule flexibility, and improves pilot quality of life.
One of the highlights of the proposed agreement is the pay rate for Hawaiian’s future fleet of Airbus A330F freighters, which it will begin flying for Amazon in 2024. The A330F rates will be the highest in the industry, surpassing existing rates at cargo giants UPS and FedEx Express.The HAL ALPA MEC unanimously approved sending the tentative agreement to the airline’s 1,000 pilots for ratification and will open two weeks of ratification voting on January 27. If ratified, the agreement would take effect March 2.
Top Copyright Photo: Hawaiian Airlines Airbus A330-243 N390HA (msn 1389) SEA (Michael B. Ing). Image: 959919.
