Report of unscheduled material events or corporate changes.

8-K
Document



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

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported):

January 8, 2018

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).                                
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐





Item 2.02 Results of Operations and Financial Condition.

On January 8, 2018, the registrant issued a press release reporting its system-wide traffic statistics for the month, quarter and full year ended December 31, 2017, as well as updating its expectations for certain fourth quarter and full year 2017 financial metrics. 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.
 





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: January 8, 2018 By:
/s/ Shannon L. Okinaka
 
 
Name: Shannon L. Okinaka
Title: Executive Vice President, Chief Financial Officer and Treasurer
 
 
 




Exhibit


Exhibit 99.1
NEWS

http://quotemedia.10kwizard.com/cgi/image?quest=1&rid=23&ipage=11976709&doc=3

FOR IMMEDIATE RELEASE
Monday, January 8, 2018
 
 
 
Investor Relations Contact:
Daniel Wong (808) 835-3291
Investor.Relations@HawaiianAir.com

Media Relations Contact:
Alex Da Silva (808) 835-3712
Alex.DaSilva@HawaiianAir.com
Hawaiian Airlines Carries Record 11.5 Million Passengers in 2017,
Updates Expected Fourth Quarter and Full Year 2017 Metrics

HONOLULU – Hawaiian Airlines, Inc., a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA) (“Hawaiian” or the "Company"), welcomed a record 11,505,324 guests in 2017, a 4.1 percent increase over the previous year. Hawai’i’s largest and longest-serving airline today announced its system-wide traffic statistics for the month, quarter, and full year ended December 31, 2017. The Company also updated its expectations for certain fourth quarter and full year 2017 financial metrics.

The record number of passengers in 2017 marks 13 straight years of growth as the Company continues to expand its network and fleet, providing travelers with more options to fly to, and within, the Hawaiian Islands than any other carrier.

Hawaiian took delivery of its first of 18 A321neo aircraft in November, and its second in December. The A321neo aircraft will help the airline to build upon its already strong U.S. West Coast presence, highlighted by recent announcements that included new daily non-stop service to Maui’s Kahului Airport from San Diego and Portland international airports as well as to Honolulu's Daniel K. Inouye Airport from Long Beach Airport. Hawaiian will also expand its summer seasonal service with four additional daily summer flights in 2018, including its first international seasonal service between Narita and Honolulu international airports. Additionally, Hawaiian added its 24th A330-200 aircraft in October and its first of three expected ATR 72 turboprop aircraft in an all-cargo configuration in December.








SYSTEM-WIDE OPERATIONS1 
DECEMBER
2017
2016
% CHANGE
PAX
1,000,646
927,521
7.9%
RPMS (000)
1,388,279
1,336,613
3.9%
ASMS (000)
1,645,354
1,589,264
3.5%
LF
84.4%
84.1%
0.3 pts
FOURTH QUARTER
2017
2016
% CHANGE
PAX
2,913,591
2,729,726
6.7%
RPMS (000)
4,125,894
3,932,713
4.9%
ASMS (000)
4,798,039
4,570,679
5.0%
LF
86.0%
86.0%
0.0 pts
YEAR-TO-DATE
2017
2016
% CHANGE
PAX
11,505,324
11,050,911
4.1%
RPMS (000)
16,316,739
15,492,509
5.3%
ASMS (000)
19,006,682
18,384,637
3.4%
LF
85.8%
84.3%
1.5 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
1Includes the operations of contract carriers under capacity purchase agreements.


Fourth Quarter & Full Year 2017 Outlook

The Company has revised certain of its expectations for the quarter and year ended December 31, 2017, that were previously provided in its Third Quarter 2017 Earnings Release on October 19, 2017 and updated on December 5, 2017.

Specifically, for the quarter and year ended December 31, 2017, the Company:
expects its operating revenue per ASM to be at the favorable end of the prior guidance range due to stronger than expected close in bookings;
is raising its estimates for gallons of jet fuel consumed due to higher than expected payloads; and
is raising its estimates for operating costs per ASM (CASM) excluding fuel and special items due to higher than expected revenue related expenses and the shift of certain operating expenses into 2017 that were originally expected in 2018. Excluding the impact of these items, the Company's expectations of CASM excluding fuel and special items would be roughly in line with the prior fourth quarter and full year 2017 guidance.






The tables below summarize the Company’s revised expectations, expressed as an expected percentage change compared to the results for the quarter and year ended December 31, 2016.

Item
 
Prior Fourth Quarter 2017 Guidance
 
Revised Fourth Quarter 2017 Guidance
 
GAAP Equivalent
 
Prior GAAP Fourth Quarter 2017 Guidance
 
Revised GAAP Fourth Quarter 2017 Guidance
Cost per ASM excluding fuel and special items (a)
 
Up 3.5% to up 6.5%
 
Up 6.0% to up 7.0%
 
Cost per ASM (a)
 
Down 10.3% to down 13.5%
 
Down 8.6% to down 10.5%
Operating revenue per ASM
 
Up 1.5% to up 3.5%
 
Up 2.5% to up 3.5%
 
 
 
 
 
 
Gallons of jet fuel consumed
 
Up 5.0% to up 8.0%
 
Up 7.5% to up 8.5%
 
 
 
 
 
 
Item
 
Prior Full Year 2017 Guidance
 
Revised Full Year 2017 Guidance
 
GAAP Equivalent
 
Prior GAAP Full Year 2017 Guidance
 
Revised GAAP Full Year 2017 Guidance
Cost per ASM excluding fuel and special items (a)
 
Up 6.0% to up 7.0%
 
Up 6.7% to up 7.2%
 
Cost per ASM (a)
 
Up 3.6% to up 5.5%
 
Up 4.3% to up 6.0%
Operating revenue per ASM
 
Up 5.5% to up 6.5%
 
Up 6.1% to up 6.6%
 
 
 
 
 
 
Gallons of jet fuel consumed
 
Up 5.5% to up 6.5%
 
Up 6.3% to up 6.8%
 
 
 
 
 
 
(a)
See Table 1 for a reconciliation of GAAP operating expenses to operating expenses excluding aircraft fuel and special items

The Company believes that CASM excluding fuel and special items provides useful information about the underlying cost structure of the Company and is consistent with the metrics used by management to measure and monitor the Company's costs.

Tax Reform Impact

For the quarter ended December 31, 2017, the Company expects to record a one-time reduction to income tax expense in the range of $90 - $140 million due to the expected effect of the Tax Cuts and Jobs Act of 2017. This reduction is a result of the difference between rates in effect when income tax expense was accrued, and the rates expected to be in effect when the income taxes will likely be paid. This estimated impact is a non-cash item and is expected to be treated as a special item.








Non-GAAP Financial Reconciliations
(in thousands)
Table 1
 
 
Estimated three months ended December 31, 2017
GAAP operating expenses
 
$
579,637
 
to
$
591,763
 
Less: aircraft fuel, including taxes and delivery
 
(120,887)
 
to
(128,685)
 
Adjusted operating expenses - excluding aircraft fuel
 
$
458,750
 
to
$
463,078
 
Available Seat Miles
 
4,798,039
 
to
4,798,039
 
 
 
 
 
 
CASM - GAAP
 
12.08
¢
to
12.33
¢
Less: aircraft fuel
 
(2.52)
 
to
(2.68)
 
CASM - excluding aircraft fuel and special items
 
9.56
¢
to
9.65
¢

 
 
Estimated twelve months ended December 31, 2017
GAAP operating expenses
 
$
2,194,731
 
to
$
2,230,991
 
Less: aircraft fuel, including taxes and delivery
 
(427,190)
 
to
(455,277)
 
Less: special items
 
 
 
 
 
 
    Loss on sale of aircraft
 
(4,771)
 
to
(4,771)
 
    Collective bargaining charge
 
(18,679)
 
To
(18,679)
 
Adjusted operating expenses - excluding aircraft fuel
 
$
1,744,091
 
to
$
1,752,264
 
Available Seat Miles
 
19,006,682
 
to
19,006,682
 
 
 
 
 
 
CASM - GAAP
 
11.55
¢
to
11.74
¢
Less: aircraft fuel
 
(2.24)
 
to
(2.39)
 
Less: special items
 
 
 
 
 
 
    Loss on sale of aircraft
 
(0.03)
 
to
(0.03)
 
    Collective bargaining charge
 
(0.10)
 
to
(0.10)
 
CASM - excluding aircraft fuel and special items
 
9.18
¢
to
9.22
¢


Safe Harbor Statement

This press release 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 the Company's expectations regarding operating revenue per ASM, CASM excluding fuel and special items and gallons of jet fuel consumed each for the quarter and full year ended December 31, 2017. These forward-looking statements are subject to change in connection with the preparation and audit of the Company’s financial statements for the quarter and full year ended December 31, 2017. 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® 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 placed Hawaiian among the top of all domestic airlines serving Hawai‘i.

Now in its 89th year of continuous service, Hawaiian is Hawai‘i’s biggest and longest-serving airline. 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 (Hawaiian Airlines). For career postings and updates, follow Hawaiian’s LinkedIn page.

For media inquiries, please visit Hawaiian Airlines’ online newsroom.