Document



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

June 6, 2017

HAWAIIAN HOLDINGS, INC.
(Exact name of registrant as specified in its charter)

Delaware
 
001-31443
 
71-0879698
(State or other jurisdiction of incorporation)
 
(Commission File Number)
 
(IRS Employer
Identification No.)

3375 Koapaka Street, Suite G-350
Honolulu, HI 96819
(Address of principal executive offices, including zip code)

(808) 835-3700
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))






Item 7.01     Regulation FD Disclosure.
 
On June 6, 2017, the registrant issued a press release announcing its system-wide traffic statistics for the month of May and updating its expectations for operating revenue per available seat mile and economic fuel cost per gallon for the second quarter of 2017. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference.
 
None of the information furnished in this report (including Exhibit 99.1) shall be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and unless expressly set forth by specific reference in such filings, shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1
Press Release dated June 6, 2017.



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
HAWAIIAN HOLDINGS, INC.
 
Date: June 6, 2017
By:
/s/ Shannon L. Okinaka
 
 
Name: Shannon L. Okinaka
Title: Executive Vice President, Chief Financial Officer and Treasurer
 
 
 



EXHIBIT INDEX

99.1
Press Release dated June 6, 2017.




Document


Exhibit 99.1
NEWS
http://quotemedia.10kwizard.com/cgi/image?quest=1&rid=23&ipage=11641499&doc=3

FOR IMMEDIATE RELEASE
Tuesday, June 6, 2017
 
Investor Relations Contact:
Jay Schaefer (808) 838-6751
Investor.Relations@HawaiianAir.com 

Media Relations Contact:
Alison Croyle (808) 835-3886
Alison.Croyle@HawaiianAir.com


 
 
Hawaiian Airlines Reports May 2017 Traffic Statistics
and Updates Expected Second Quarter Metrics

 
HONOLULU – Hawaiian Airlines, Inc., a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA), has announced its system-wide traffic statistics for the month of May and year-to-date. It also updated its expectations for certain second quarter financial metrics.

SYSTEM-WIDE OPERATIONS1 
May
2017
2016
% CHANGE
PAX
966,179
919,030
5.1%
RPMS (000)
1,369,417
1,268,341
8.0%
ASMS (000)
1,579,843
1,505,283
5.0%
LF
86.7%
84.3%
2.4 pts.

YEAR-TO-DATE
2017
2016
% CHANGE
PAX
4,574,329
4,433,277
3.2%
RPMS (000)
6,462,948
6,014,172
7.5%
ASMS (000)
7,619,942
7,322,216
4.1%
LF
84.8%
82.1%
2.7 pts.

PAX
Passengers transported
RPM
Revenue Passenger Miles; one paying passenger transported one mile
ASM
Available Seat Miles; one seat transported one mile
LF
Load Factor; percentage of seating capacity filled
1 Includes the operations of contract carriers under capacity purchase agreements.




Second Quarter 2017 Outlook

The Company has revised its expectations for the quarter ending June 30, 2017 provided in its First Quarter 2017 Earnings Release on April 20, 2017.

Specifically, the Company raised its expectation for operating revenue per ASM growth due to better than expected load factors and stronger yields primarily in the domestic network, and decreased its expectation for economic fuel cost per gallon.

The table below summarizes the Company’s expectations for the quarter ending June 30, 2017, expressed as an expected percentage change compared to the results for the quarter ended June 30, 2016.

Item
 
Original Second
Quarter 2017 Guidance
 
Revised Second
Quarter 2017 Guidance
 
GAAP
Equivalent
 
Original GAAP
Second Quarter
2017 Guidance
 
Revised GAAP
Second Quarter
2017 Guidance
Operating Revenue Per ASM
 
Up 5.5% to
up 8.5%
 
Up 7.5% to
up 10.5%
 
N/A
 
 
 
 
Economic fuel cost per gallon (a)(b)
 
$1.65 to $1.75
 
$1.60 to $1.70
 
Fuel cost per gallon
 
$1.65 to $1.75
 
$1.57 to $1.67

(a)
See reconciliation of actual fuel costs to economic fuel costs.
(b)
Economic fuel cost per gallon estimates are based on May 19, 2017 fuel forward curve.

The Company believes that economic fuel expense is the best measure of the effect of fuel prices on the business as it most closely approximates the net cash outflow associated with the purchase of fuel for operations in a period and is consistent with how management manages the business and assesses operating performance. The Company defines economic fuel expense as raw fuel expense plus (gains)/losses realized through actual cash payments to/(receipts from) hedge counterparties for fuel hedge derivatives settled in the period inclusive of costs related to hedging premiums.

Completed Sale Leaseback Transaction

In the second quarter, the Company completed a sale leaseback transaction of three Boeing 767 aircraft as part of the planned exit from its 767 fleet. The transaction resulted in a loss of $4.7 million, which will have no impact on CASM excluding fuel and special items.

Non-GAAP Financial Reconciliations
(in thousands)
 
 
Estimated three months ending
June 30, 2017
 
 
(in thousands, except per-gallon amounts)
Aircraft fuel expense, including taxes and delivery
 
$
100,024
 
 
to
$
108,411
 
Realized (gains)/losses on settlement of fuel derivative contracts
 
1,700
 
 
to
1,700
 
Economic fuel expense
 
$
101,724
 
 
to
$
110,111
 
Fuel gallons consumed
 
63,577
 
 
to
64,771
 
Economic fuel cost per gallon
 
$
1.60
 
 
to
$
1.70
 




Safe Harbor Statement
This investor update contains forward-looking statements that reflect the Company’s current views with respect to certain current and future events and financial performance including but not limited to statements regarding the Company’s operating revenue per available seat mile, gallons of jet fuel consumed, and economic fuel cost per gallon, each for the quarter ending June 30, 2017. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company’s operations and business environment which may cause the Company’s actual results for the quarter ending June 30, 2017 to be materially different from any expected results, expressed or implied, in these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date hereof even if experience or future changes make it clear that any projected results expressed or implied herein will not be realized. Additional information on risk factors that could potentially affect the Company’s operations and financial results may be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, and subsequent filings with the Securities Exchange Commission.

About Hawaiian Airlines
Hawaiian®, the world’s most punctual airline as reported by OAG, has led all U.S. carriers in on-time performance for each of the past 13 years (2004-2016) as reported by the U.S. Department of Transportation. Consumer surveys by Condé Nast Traveler and Travel + Leisure have ranked Hawaiian the highest of all domestic airlines serving Hawai‘i.

Now in its 88th year of continuous service, Hawaiian is Hawai‘i’s biggest and longest-serving airline, as well as the largest provider of passenger air service from its primary visitor markets on the U.S. Mainland.
Hawaiian offers non-stop service to Hawai‘i from more U.S. gateway cities (11) than any other airline, along with service from Japan, South Korea, China, Australia, New Zealand, American Samoa and Tahiti. Hawaiian also provides approximately 170 jet flights daily between the Hawaiian Islands, with a total of more than 250 daily flights system-wide.     
Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA). Additional information is available at HawaiianAirlines.com. Follow updates on Twitter about Hawaiian (@HawaiianAir) and its special fare offers (@HawaiianFares), and become a fan on its Facebook page. For career postings and updates, follow Hawaiian’s LinkedIn page.
For media inquiries, please visit Hawaiian Airlines’ online newsroom.