Hawaiian Airlines Fourth Quarter 2023 Financial Results

DALLAS — The parent company of Hawaiian Airlines (HA), Hawaiian Holdings (the company), has released its financial results for the fourth quarter and the full year 2023.

Hawaiian Airlines President and CEO Peter Ingram said of the results, "Demand is solid across our networks, our brand remains strong in Japan as the market recovers, and we have seen steady improvement in travel to Maui. We expect the combination with Alaska will create an even more competitive combined airline, positioning the Hawaiian Airlines brand to flourish in the years ahead."

The CEO also remarked that he was grateful for the HA team, which accomplished an extraordinary amount, including realizing foundational investments during a challenging year.

Some highlights for the fourth quarter and full year 2023 include:

The company operated at 108% of its 2022 capacity, with 96%, 112%, and 172% capacity on its North America, Neighbor Island, and International routes.
Ticket sales were launched for the new daily nonstop service between Salt Lake City and Honolulu, starting May 15, 2024.
The company announced an expansion of service in Sacramento, with four weekly flights to Līhuʻe, Kauaʻi, starting on May 24, 2024, and three weekly flights to Kona on the Island of Hawaiʻi, starting on May 25, 2024.

N375HA, Hawaiian Airlines Airbus A330-200 @KPDX. Photo: Michael Rodeback/Airways

Fourth Quarter 2023: Key Metrics and Results

In the fourth quarter of 2023, the company reported the following financial metrics and results (all figures are expressed in USD):

Net Loss: The net loss for the quarter was $101.2 million on a GAAP basis and $122.7 million on an adjusted basis.
Diluted EPS: The diluted earnings per share (EPS) for the quarter was $1.96 on a GAAP basis and $2.37 on an adjusted basis.
Pre-tax Margin: The pre-tax margin for the quarter was 19.0% on a GAAP basis and 22.9% on an adjusted basis.
EBITDA: The EBITDA for the quarter was $71.8 million on a GAAP basis and $98.1 million on an adjusted basis.
Operating Cost per ASM: The operating cost per available seat mile (ASM) for the quarter was 15.30¢ on a GAAP basis and 11.77¢ on an adjusted basis.

Hawaiian Airlines N392HAAirbus A330-200. Photo: Luca Flores/Airways

Full Year 2023: Key Financial Metrics and Results

For the full year 2023, the company reported the following financial metrics and results:

Net Loss: The net loss for the year was $260.5 million on a GAAP basis and $313.5 million on an adjusted basis.
Diluted EPS: The diluted EPS for the year was $5.05 on a GAAP basis and $6.08 on an adjusted basis.
Pre-tax Margin: The pre-tax margin for the year was 12.1% on a GAAP basis and 14.5% on an adjusted basis.
EBITDA: The EBITDA for the year was $103.6 million on a GAAP basis and $169.0 million on an adjusted basis.
Operating Cost per ASM: The operating cost per ASM for the year was 14.90¢ on a GAAP basis and 11.29¢ on an adjusted basis.

Liquidity and Capital Resources

As of December 31, 2023, the company had the following liquidity and capital resources:

Unrestricted cash, cash equivalents, and short-term investments of $908.5 million.
Outstanding debt and finance lease obligations of $1.7 billion.
Liquidity of $1.1 billion, including an undrawn revolving credit facility of $235 million.

N392HA Hawaiian Airlines Airbus A330-200 KLAX LAX. Photo: Brandon Farris/Airways — N392HA Hawaiian Airlines Airbus A330-200 at LAX. Photo: Brandon Farris/Airways

Revenue Environment

In the fourth quarter of 2023, HA saw a steady travel recovery from North America to Maui after the Maui wildfires. Non-Maui routes and international markets, excluding Japan, also performed well with solid demand. The international passenger load factor increased by 20.7% compared to the previous year, driven by strong U.S. and other point-of-sale demand and increased Japan-originating traffic. Premium products demonstrated strong performance throughout the quarter and the full year 2023.

The company's overall operating revenue for the fourth quarter of 2023 was down 8.5% compared to the same period in 2022, despite a 3.3% increase in capacity. The decline was attributed to the impact of the Maui wildfires, pandemic-related spoilage, and revenue from pent-up travel demand in 2022. However, the overall operating revenue for the full year 2023 increased by 2.8% compared to 2022, with an 8.1% increase in capacity.

Other revenue for the fourth quarter of 2023 decreased by 15.9% compared to the same period in 2022, primarily due to a decrease in cargo revenue. The higher cargo activity in 2022 was a result of lingering pandemic-related effects. For the full year 2023, other revenue decreased by 16.2% compared to 2022, driven by decreases in cargo revenue and contract services.

Featured image: Hawaiian Airlines N370HA Airbus A330-200. Photo: Mateo Skinner/Airways