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
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 aircraft photo gallery:
