Hawaiian Holdings Reports 2022 Second Quarter Financial Results

HONOLULU -- Hawaiian Holdings, Inc. (NASDAQ: HA) (the "Company"), the parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported its financial results for the second quarter of 2022.

"Strong demand in our domestic markets has been joined by an encouraging recovery from our international gateways in the second quarter," said Hawaiian Airlines President and CEO Peter Ingram. "As we move into the summer travel peak, every indication suggests a continuation of these positive trends. I am extremely proud of our team, who continue to deliver the industry's best reliability and service as we pursue our mission to connect people with aloha."

Financial Results

Second Quarter 2022

Second Quarter 2022 Highlights

Revenue Environment

The Company continued to enjoy strong demand throughout its domestic network and is seeing a solid recovery in its international network.  The Company's premium products performed exceptionally well during the quarter, with both business/first class revenue and Extra Comfort revenue exceeding 2019 levels.  The Company's overall operating revenue was down 2.9% from second quarter 2019 as its international network is still rebuilding.

Other revenue was up 26.6% compared to the second quarter of 2019 driven by a record quarter of cargo revenue and sales of HawaiianMiles.

Routes and Network

In April 2022 the Company announced it was resuming three-times-weekly nonstop service between Auckland, New Zealand and Honolulu, Hawai'i starting July 2, 2022, and a seasonal increase in frequency between Seoul, South Korea and Honolulu for the summer of 2022.

In May 2022 the Company announced its plan to resume service between Honolulu's Daniel K. Inouye International Airport (HNL) and Tokyo Haneda Airport (HND) beginning August 1 . The Company also announced an increase in weekly flights between HNL and Narita Airport (NRT) and Osaka's Kansai Airport (KIX) beginning in August.

During the second quarter of 2022, the Company operated at 87% of its 2019 second quarter system capacity, comprised of 115%, 80% and 31% capacity on its North America , Neighbor Island and International routes, respectively.

Liquidity and Capital Resources

As of June 30, 2022, the Company had:

Operational Excellence

The Company maintained its #1 national ranking for On-Time Performance for the 18th consecutive year in 2021, as reported in the U.S. Department of Transportation (DOT) Air Travel Consumer Report.

In July 2022, Travel + Leisure named Hawaiian Airlines Best Domestic Airline.

Environmental, Social and Corporate Governance

In May 2022 , the Company issued its 2022 Corporate Kuleana (Responsibility) Report, providing updates on Environmental, Social and Governance performance and priorities, including new commitments to replace single-use plastics in cabin service by 2029 and to locally source 40% of food and beverage for its Hawai'i-based catering operations by 2025.

In May 2022 , the Company announced a strategic partnership with REGENT to support the initial design of its next-generation 100-person capacity all-electric seaglider known as the Monarch.

In June 2022 , the Company announced a plan to jointly study the commercial viability of locally produced sustainable aviation fuels to replace all or a percentage of traditional fossil fuel-based jet fuel with fuel that is made with sustainable feedstocks.

In July 2022 , the Company appointed Wendy Beck and Craig Vosburg to its Board of Directors.

Third Quarter 2022 Outlook

The Company expects its capacity for the quarter ending September 30, 2022 to be down approximately 5% to down 8% compared to the third quarter of 2019, mostly driven by the delay of the full restoration of its Japan network.

The Company expects its total revenue for the quarter ending September 30, 2022 to sequentially improve from the second quarter and be between down 3.5% to up 0.5% compared to the third quarter of 2019.

The Company expects its CASM excluding fuel and non-recurring items for the quarter ending September 30, 2022 to be consistent with the second quarter at up approximately 8% to 12% compared to the third quarter of 2019.

The Company's outlook for adjusted EBITDA for the quarter ending September 30, 2022 is $15 million to $75 million .

The table below summarizes the Company's expectations for the quarter ending September 30, 2022 expressed as an expected percentage change compared to the results for the quarter ended September 30, 2019 .

Item

 

Third Quarter 2022
Guidance

 

GAAP Equivalent

 

GAAP Third Quarter
2022 Guidance

ASMs

 

Down 5% to 8%

       

Total Revenue

 

Down 3.5% to up 0.5%

       

Costs per ASM excluding fuel and non-
recurring items (a)

 

Up 8% to 12%

 

Costs per ASM (a)

 

up 22% to 25%

Gallons of Jet Fuel Consumed

 

Down 7% to 10%

       

Fuel Price per Gallon (b)

 

$3.50

       

Adjusted EBITDA (c)

 

$15 million to $75
million

 

Net Income (c)

   
   

(a)

See Table 3 for a reconciliation of GAAP operating expenses to operating expenses excluding fuel and non-recurring items.

(b)

Fuel Price per Gallon estimates are based on the July 14, 2022 fuel forward curve.

(c)

The Company is not providing a reconciliation of adjusted EBITDA to GAAP net income, the most directly comparable GAAP measure, as it is unable, without unreasonable efforts, to calculate certain special and non-recurring charges, which could have a significant impact on the GAAP measure.

Statistical information, as well as a reconciliation of certain non-GAAP financial measures, can be found in the accompanying tables.

Full Year 2022 Outlook

The table below summarizes the Company's expectations for the full year ending December 31, 2022 expressed as an expected percentage change compared to the results for the year ended December 31, 2019 . Costs per ASM excludes any adjustments for labor agreements that are currently amendable or become amendable in 2022.

Item

 

Full Year 2022
Guidance

 

GAAP Equivalent

 

GAAP Full Year 2022
Guidance

ASMs

 

Down 11% to 8%

       

Costs per ASM excluding fuel and non-
recurring items (a)

 

Up 12% to 15%

 

Costs per ASM (a)

 

Up 23% to 25.5%

Gallons of Jet Fuel Consumed

 

Down 14% to 11%

       

Fuel Price per Gallon (b)

 

$3.36

       

Effective Tax Rate

 

~19.5%

       

Capital Expenditures

 

$105 million to $125
million

       
   

(a)

See Table under "Non-GAAP Reconciliation" for a reconciliation of GAAP costs per ASM to costs per ASM excluding fuel and non-recurring items.

(b)

Fuel Price per Gallon estimates are based on the July 14, 2022 fuel forward curve.

Statistical information, as well as a reconciliation of certain non-GAAP financial measures, can be found in the accompanying tables.

Investor Conference Call

Hawaiian Holdings' quarterly results conference call is scheduled to begin today, July 26, 2022, at 4:30 p.m. Eastern Time ( USA ).  The conference call will be broadcast live over the Internet. Investors may access and listen to the live audio webcast on the investor relations section of the Company's website at HawaiianAirlines.com . For those who are not available for the live webcast, a replay of the webcast will be archived for 90 days on the investor relations section of the Company's website.

About Hawaiian Airlines

Hawaiian® has led all U.S. carriers in on-time performance for each of the past 18 years (2004-2021) reported by the U.S. Department of Transportation and was named the #1 U.S. airline by Condé Nast Traveler's 2021 Readers Choice Awards. Consumer surveys by Travel + Leisure and TripAdvisor have placed Hawaiian among the top of all domestic airlines serving Hawai'i.

Now in its 93rd year of continuous service, Hawaiian is Hawaiʻi's biggest and longest-serving airline. Hawaiian offers approximately 130 daily flights within the Hawaiian Islands, daily nonstop flights between Hawaiʻi and 16 U.S. gateway cities – more than any other airline – as well as service connecting Honolulu and American Samoa , Australia , Japan , New Zealand , South Korea and Tahiti.

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.

Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA). Additional information is available at HawaiianAirlines.com . Follow Hawaiian's Twitter updates ( @HawaiianAir ), become a fan on Facebook ( Hawaiian Airlines ), and follow us on Instagram ( hawaiianairlines ). For career postings and updates, follow Hawaiian's LinkedIn page.

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 ability, timing and progress in recovering from the impacts of COVID-19 pandemic; the continuation of recovery trends; future domestic and international demand for air travel; the Company's future routes and network changes; the Company's environmental commitments; the Company's outlook for the quarter ending September 30, 2022 and twelve-months ending December 31, 2022 ; and statements as to other matters that do not relate strictly to historical facts or statements of assumptions underlying any of the foregoing.  Words such as "expects," "anticipates," "projects," "intends," "plans," "believes," "estimates," variations of such words, and similar expressions are also intended to identify such forward-looking statements.  These forward-looking statements are and will be subject to many risks, uncertainties and assumptions relating to the Company's operations and business environment, all of which may cause the Company's actual results to be materially different from any future results, expressed or implied, in these forward-looking statements.  These risks and uncertainties include, without limitation, the continuing and developing effects of the spread of COVID-19 on the Company's business operations and financial condition; the duration of government-mandated and other restrictions on travel; the full effect that restrictions on travel and other measures to limit the spread of COVID-19 will have on demand for air travel in the markets in which the Company operates; fluctuations and the extent of declining demand for air transportation in the markets in which the Company operates; the Company's dependence on the tourism industry; the Company's ability to generate sufficient cash and manage its available cash; the Company's ability to accurately forecast economic volatility; macroeconomic developments; political developments; geopolitical conflict; the price and availability of aircraft fuel; labor negotiations; supply chain constraints; regulatory determinations and related developments; competitive pressures, including the impact of industry capacity between North America and Hawai'i and interisland; changes in the Company's future capital needs; and foreign currency exchange rate fluctuations.

The risks, uncertainties and assumptions referred to above that could cause the Company's results to differ materially from the results expressed or implied by such forward-looking statements also include the risks, uncertainties and assumptions discussed from time to time in the Company's other 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 Securities and Exchange Commission.  All forward-looking statements included in this document are based on information available to the Company on the date hereof.  The Company does not undertake 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.

Table 1.

Hawaiian Holdings, Inc.

Consolidated Statements of Operations (unaudited)

 
   

Three Months Ended June 30,

 

Six months ended June 30,

   

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

   

(in thousands, except per share data)

Operating Revenue:

                       

Passenger

 

$   617,463

 

$   356,271

 

73.3 %

 

$  1,021,492

 

$   493,740

 

106.9 %

Other

 

74,402

 

54,510

 

36.5 %

 

147,587

 

99,258

 

48.7 %

Total

 

691,865

 

410,781

 

68.4 %

 

1,169,079

 

592,998

 

97.1 %

Operating Expenses:

                       

Wages and benefits

 

205,686

 

170,858

 

20.4 %

 

408,785

 

330,937

 

23.5 %

Aircraft fuel, including taxes and delivery

 

226,892

 

83,840

 

170.6 %

 

377,874

 

131,576

 

187.2 %

Maintenance, materials and repairs

 

55,967

 

37,083

 

50.9 %

 

111,617

 

71,335

 

56.5 %

Aircraft and passenger servicing

 

35,631

 

25,730

 

38.5 %

 

69,446

 

42,981

 

61.6 %

Depreciation and amortization

 

34,333

 

35,113

 

(2.2) %

 

68,088

 

70,469

 

(3.4) %

Commissions and other selling

 

28,615

 

17,270

 

65.7 %

 

49,262

 

28,679

 

71.8 %

Aircraft rent

 

25,790

 

27,679

 

(6.8) %

 

52,066

 

57,520

 

(9.5) %

Other rentals and landing fees

 

37,041

 

27,339

 

35.5 %

 

71,652

 

47,007

 

52.4 %

Purchased services

 

33,757

 

23,771

 

42.0 %

 

64,444

 

47,868

 

34.6 %

Special items

 

 

8,983

 

(100.0) %

 

 

8,983

 

(100.0) %

Government grant recognition

 

 

(95,119)

 

(100.0) %

 

 

(242,389)

 

(100.0) %

Other

 

34,242

 

29,759

 

15.1 %

 

69,739

 

52,721

 

32.3 %

Total

 

717,954

 

392,306

 

83.0 %

 

1,342,973

 

647,687

 

107.3 %

Operating Income (Loss)

 

(26,089)

 

18,475

 

(241.2) %

 

(173,894)

 

(54,689)

 

218.0 %

Nonoperating Income (Expense):

                       

Interest expense and amortization of debt
discounts and issuance costs

 

(24,517)

 

(30,315)

     

(49,554)

 

(54,008)

   

Interest income

 

6,562

 

1,345

     

10,996

 

2,594

   

Capitalized interest

 

1,060

 

776

     

2,112

 

1,460

   

Gains on fuel derivatives

 

 

     

 

217

   

Loss on extinguishment of debt

 

(8,568)

 

     

(8,568)

 

(3,994)

   

Other components of net periodic benefit
cost

 

1,274

 

981

     

2,560

 

1,962

   

Other, net

 

4,344

 

444

     

15,590

 

21,340

   

Total

 

(19,845)

 

(26,769)

     

(26,864)

 

(30,429)

   

Loss Before Income Taxes

 

(45,934)

 

(8,294)

     

(200,758)

 

(85,118)

   

Income tax benefit

 

(9,160)

 

(2,117)

     

(41,175)

 

(18,250)

   

Net Loss

 

$    (36,774)

 

$       (6,177)

     

$  (159,583)

 

$    (66,868)

   

Net Loss Per Share

                       

Basic

 

$         (0.72)

 

$         (0.12)

     

$         (3.11)

 

$         (1.33)

   

Diluted

 

$         (0.72)

 

$         (0.12)

     

$         (3.11)

 

$         (1.33)

   

Weighted Average Number of Common
Stock Shares Outstanding:

                       

Basic

 

51,356

 

51,156

     

51,322

 

50,319

   

Diluted

 

51,356

 

51,156

     

51,322

 

50,319

   

 

Hawaiian Holdings, Inc.

Consolidated Balance Sheet (unaudited)

 

June 30, 2022

(unaudited)

 

December 31, 2021

   

(in thousands, except shares)

ASSETS

       

Current Assets:

       

Cash and cash equivalents

 

$                424,952

 

$               490,561

Restricted cash

 

17,268

 

17,267

Short-term investments

 

1,117,417

 

1,241,752

Accounts receivable, net

 

89,256

 

92,888

Income taxes receivable

 

69,980

 

71,201

Spare parts and supplies, net

 

39,065

 

34,109

Prepaid expenses and other

 

75,091

 

66,127

Total

 

1,833,029

 

2,013,905

Property and equipment, less accumulated depreciation and amortization of
$1,067,908 and $999,966 as of June 30, 2022 and December 31, 2021, respectively

 

1,905,715

 

1,957,623

Other Assets:

       

Assets held-for-sale

 

22,566

 

29,449

Operating lease right-of-use assets

 

497,214

 

536,154

Long-term prepayments and other

 

92,990

 

80,489

Intangible assets, net

 

13,500

 

13,500

Total Assets

 

$             4,365,014

 

$            4,631,120

LIABILITIES AND SHAREHOLDERS' EQUITY

       

Current Liabilities:

       

Accounts payable

 

$                148,583

 

$               114,400

Air traffic liability and current frequent flyer deferred revenue

 

783,732

 

631,157

Other accrued liabilities

 

166,839

 

165,050

Current maturities of long-term debt, less discount

 

46,857

 

97,096

Current maturities of finance lease obligations

 

27,137

 

24,149

Current maturities of operating leases

 

76,344

 

79,158

Total

 

1,249,492

 

1,111,010

Long-Term Debt

 

1,598,553

 

1,704,298

Other Liabilities and Deferred Credits:

       

Noncurrent finance lease obligations

 

85,679

 

100,995

Noncurrent operating leases

 

385,463

 

423,293

Accumulated pension and other post-retirement benefit obligations

 

154,302

 

160,817

Other liabilities and deferred credits

 

76,603

 

78,340

Noncurrent frequent flyer deferred revenue

 

304,798

 

296,484

Deferred tax liability, net

 

134,571

 

186,797

Total

 

1,141,416

 

1,246,726

Commitments and Contingencies

       

Shareholders' Equity:

       

Special preferred stock, $0.01 par value per share, three shares issued and
outstanding as of June 30, 2022 and December 31, 2021

 

 

Common stock, $0.01 par value per share, 51,385,436 and 51,233,369 shares
outstanding as of June 30, 2022 and December 31, 2021, respectively

 

514

 

512

Capital in excess of par value

 

271,909

 

269,575

Accumulated income

 

221,254

 

380,837

Accumulated other comprehensive loss, net

 

(118,124)

 

(81,838)

Total

 

375,553

 

569,086

Total Liabilities and Shareholders' Equity

 

$             4,365,014

 

$            4,631,120

 

Hawaiian Holdings, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)

 
   

Six months ended June 30,

   

2022

 

2021

   

(in thousands)

Net cash provided by Operating Activities

 

$                  31,665

 

$                417,277

Cash flows from Investing Activities:

       

Additions to property and equipment, including pre-delivery payments

 

(16,521)

 

(17,886)

Proceeds from the disposition of aircraft and aircraft related equipment

 

9,662

 

117

Purchases of investments

 

(575,191)

 

(862,001)

Sales of investments

 

635,385

 

280,007

Net cash provided by (used in) investing activities

 

53,335

 

(599,763)

Cash flows from Financing Activities:

       

Proceeds from the issuance of common stock

 

 

68,132

Long-term borrowings

 

 

1,251,705

Repayments of long-term debt and finance lease obligations

 

(149,019)

 

(342,151)

Debt issuance costs and discounts

 

 

(24,664)

Payment for taxes withheld for stock compensation

 

(1,589)

 

(1,712)

Other

 

 

1,837

Net cash provided by (used in) financing activities

 

(150,608)

 

953,147

Net increase (decrease) in cash and cash equivalents

 

(65,608)

 

770,661

Cash, cash equivalents, and restricted cash - Beginning of Period

 

507,828

 

509,639

Cash, cash equivalents, and restricted cash - End of Period

 

$                442,220

 

$             1,280,300

 

Table 2.

Hawaiian Holdings, Inc.

Selected Statistical Data (unaudited)

 
   

Three months ended June 30,

 

Six months ended June 30,

   

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

   

(in thousands, except as otherwise indicated)

Scheduled Operations (a) :

                       

Revenue passengers flown

 

2,576

 

1,723

 

49.5 %

 

4,606

 

2,456

 

87.5 %

Revenue passenger miles (RPM)

 

3,862,507

 

2,764,719

 

39.7 %

 

6,836,857

 

3,818,847

 

79.0 %

Available seat miles (ASM)

 

4,505,285

 

3,546,316

 

27.0 %

 

8,747,768

 

6,012,358

 

45.5 %

Passenger revenue per RPM (Yield)

 

15.99  ¢

 

12.89  ¢

 

24.0 %

 

14.94  ¢

 

12.93  ¢

 

15.5 %

Passenger load factor (RPM/ASM)

 

85.7 %

 

78.0 %

 

7.7 pts.

 

78.2 %

 

63.5 %

 

14.7 pts.

Passenger revenue per ASM (PRASM)

 

13.71  ¢

 

10.05  ¢

 

36.4 %

 

11.68   ¢

 

8.21  ¢

 

42.3 %

Total Operations (a) :

                       

Revenue passengers flown

 

2,584

 

1,730

 

49.4 %

 

4,620

 

2,466

 

87.3 %

Revenue passenger miles (RPM)

 

3,870,586

 

2,789,129

 

38.8 %

 

6,858,150

 

3,851,446

 

78.1 %

Available seat miles (ASM)

 

4,516,296

 

3,586,928

 

25.9 %

 

8,779,344

 

6,068,574

 

44.7 %

Operating revenue per ASM (RASM)

 

15.32  ¢

 

11.45   ¢

 

33.8 %

 

13.32  ¢

 

9.77  ¢

 

36.3 %

Operating cost per ASM (CASM)

 

15.90  ¢

 

10.94  ¢

 

45.3 %

 

15.30  ¢

 

10.67  ¢

 

43.4 %

CASM excluding aircraft fuel and non-recurring items (b)

 

10.87  ¢

 

11.00   ¢

 

(1.2) %

 

10.97  ¢

 

12.35  ¢

 

(11.2) %

Aircraft fuel expense per ASM (c)

 

5.03  ¢

 

2.34  ¢

 

115.0 %

 

4.31  ¢

 

2.17  ¢

 

98.6 %

Revenue block hours operated

 

47,477

 

39,250

 

21.0 %

 

92,360

 

66,245

 

39.4 %

Gallons of jet fuel consumed

 

57,494

 

44,442

 

29.4 %

 

110,911

 

74,388

 

49.1 %

Average cost per gallon of jet fuel (actual) (c)

 

$3.95

 

$1.89

 

109.0 %

 

$3.41

 

$1.77

 

92.7 %

   

(a)

Includes the operations of the Company's contract carrier under a capacity purchase agreement, which was indefinitely suspended in the first quarter of 2021 and terminated in the second quarter of 2021.

(b)

See Table 3 for a reconciliation of GAAP operating expenses to operating expenses excluding aircraft fuel and non-recurring items.

(c)

Includes applicable taxes and fees.

 

Table 3.
Hawaiian Holdings, Inc.
Non-GAAP Financial Reconciliation (unaudited)

The Company evaluates its financial performance utilizing various GAAP and non-GAAP financial measures, including adjusted net income (loss), adjusted operating expenses, adjusted diluted net income (loss) per share (EPS), CASM, PRASM, RASM, Passenger Revenue per RPM, and Adjusted EBITDA.  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:

The Company believes that adjusting for the impact of the recognition of grant proceeds, changes in fair value of fuel and foreign currency derivative contracts, fluctuations in exchange rates on debt instruments denominated in foreign currency, CBA ratification bonus, and the loss recognized on the extinguishment of debt helps investors better analyze the Company's operational performance and compare its results to other airlines in the periods presented.

   

Three months ended June 30,

 

Six months ended June 30,

   

2022

 

2021

 

2022

 

2021

   

Total

 

Diluted
Net Loss
Per Share

 

Total

 

Diluted
Net Loss
Per Share

 

Total

 

Diluted
Net Loss
Per Share

 

Total

 

Diluted
Net Loss
Per Share

   

(in thousands, except per share data)

Net Loss, as reported

 

$ (36,774)

 

$      (0.72)

 

$      (6,177)

 

$      (0.12)

 

$  (159,583)

 

$      (3.11)

 

$  (66,868)

 

$      (1.33)

Adjusted for:

                               

Government grant
recognition

 

 

 

(95,119)

 

(1.86)

 

 

 

(242,389)

 

(4.82)

Loss on debt
extinguishment

 

8,568

 

0.17

 

 

 

8,568

 

0.17

 

3,994

 

0.08

Changes in fair value of
fuel derivative contracts

 

 

 

 

 

 

 

(382)

 

(0.01)

CBA related expense

 

2,574

 

0.05

 

 

 

4,678

 

0.09

 

 

Unrealized (gains) losses
on foreign debt

 

(20,381)

 

(0.40)

 

92

 

 

(31,963)

 

(0.63)

 

(18,951)

 

(0.38)

Unrealized (gains) losses
on non-designated
foreign exchange
positions

 

 

 

397

 

0.01

 

 

 

(1,352)

 

(0.03)

Gain on sale of aircraft

 

(2,578)

 

(0.05)

 

 

 

(2,578)

 

(0.05)

 

 

Special items

 

 

 

8,983

 

0.18

 

 

 

8,983

 

0.18

Tax effect of adjustments

 

2,482

 

0.05

 

17,986

 

0.35

 

4,472

 

0.09

 

52,520

 

1.04

Adjusted net loss

 

$ (46,109)

 

$      (0.90)

 

$   (73,838)

 

$      (1.44)

 

$  (176,406)

 

$      (3.44)

 

$  (264,445)

 

$      (5.27)

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.

   

Three months ended June 30,

 

Six months ended June 30,

   

2022

 

2021

 

2022

 

2021

   

(in thousands)

Net Loss

 

$            (36,774)

 

(6,177)

 

$          (159,583)

 

(66,868)

Income tax benefit

 

(9,160)

 

(2,117)

 

(41,175)

 

(18,250)

Depreciation and amortization

 

34,333

 

35,113

 

68,088

 

70,469

Interest expense and amortization of debt discounts and issuance costs

 

24,517

 

30,315

 

49,554

 

54,008

EBITDA, as reported

 

12,916

 

57,134

 

(83,116)

 

39,359

Adjusted for:

               

Government grant recognition

 

 

(95,119)

 

 

(242,389)

Loss on extinguishment of debt

 

8,568

 

 

8,568

 

3,994

Changes in fair value of fuel derivative instruments

 

 

 

 

(382)

CBA related expense

 

2,574

 

 

4,678

 

Unrealized gain on non-designated foreign exchange positions

 

 

397

 

 

(1,352)

Unrealized (gains) losses on foreign debt

 

(20,381)

 

92

 

(31,963)

 

(18,951)

Gain on sale of aircraft

 

(2,578)

 

 

(2,578)

 

Special items

 

 

8,983

 

 

8,983

Adjusted EBITDA

 

$                1,099

 

$            (28,513)

 

$          (104,411)

 

$          (210,738)

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 June 30,

 

Six months ended June 30,

   

2022

 

2021

 

2022

 

2021

   

(in thousands, except CASM data)

GAAP Operating Expenses

 

$         717,954

 

$         392,306

 

$      1,342,973

 

$         647,687

Adjusted for:

               

Government grant recognition

 

 

95,119

 

 

242,389

CBA related expense

 

(2,574)

 

 

(4,678)

 

Gain on sale of aircraft

 

2,578

 

 

2,578

 

Special items

 

 

(8,983)

 

 

(8,983)

Operating Expenses excluding non-recurring items

 

$         717,958

 

$         478,442

 

$      1,340,873

 

$         881,093

Aircraft fuel, including taxes and delivery

 

(226,892)

 

(83,840)

 

(377,874)

 

(131,576)

Operating Expenses excluding fuel and non-recurring
items

 

$         491,066

 

$         394,602

 

$         962,999

 

$         749,517

Available Seat Miles

 

4,516,296

 

3,586,928

 

8,779,344

 

6,068,574

CASM - GAAP

 

15.90 ¢

 

10.94 ¢

 

15.30 ¢

 

10.67 ¢

Aircraft fuel, including taxes and delivery

 

(5.03)

 

(2.34)

 

(4.31)

 

(2.17)

Government grant recognition

 

 

2.65

 

 

3.99

CBA related expense

 

(0.06)

 

 

(0.05)

 

Gain on sale of aircraft

 

0.06

 

 

0.03

 

Special items

 

 

(0.25)

 

 

(0.14)

CASM excluding fuel and non-recurring items

 

10.87 ¢

 

11.00 ¢

 

10.97 ¢

 

12.35 ¢

 

   

Estimated three months ending
September 30, 2022

 

Estimated twelve months ending
December 31, 2022

   

(in thousands, except CASM data)

GAAP operating expenses

 

$         716,406

-

$         758,922

 

$      2,738,931

-

$      2,886,081

Aircraft fuel, including taxes and delivery

 

(219,710)

-

(227,034)

 

(779,125)

-

(806,303)

Loss on sale of aircraft and equipment

 

-

 

(676)

-

(676)

CBA related expense

 

-

 

(4,678)

-

(4,678)

Adjusted operating expenses

 

$         496,696

-

$         531,888

 

$      1,954,452

-

$      2,074,424

Available seat miles

 

4,905,360

-

5,065,317

 

18,299,351

-

18,915,951

CASM - GAAP

 

14.60 ¢

-

14.98 ¢

 

14.97 ¢

-

15.26 ¢

Aircraft fuel, including taxes and delivery

 

(4.48)

-

(4.48)

 

(4.26)

-

(4.26)

Loss on sale of aircraft and equipment

 

-

 

-

CBA related expense

 

-

 

(0.02)

-

(0.02)

Adjusted CASM

 

10.12 ¢

-

10.50 ¢

 

10.69 ¢

-

10.98 ¢

 

 

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SOURCE Hawaiian Holdings, Inc.