Hawaiian Holdings Reports Third Quarter Net Loss
Airlines Business / Finance

Hawaiian Holdings Reports Third Quarter Net Loss

DALLAS – Hawaiian Airlines’ (HA) parent company, Hawaiian Holdings, reported its Q3 results today with an adjusted net loss of US$7.7m, earnings per share (EPS) of US$0.15, and earnings before interest, tax, depreciation, and amortization (EBITDA) of US$47.9m.

The airline reported strong passenger demand throughout the summer season. Peter Ingram, CEO and president at HA, said, “We enjoyed strong demand for travel to Hawaii this summer led by our North American routes and are encouraged to see these trends continue into the fall, while the relaxation of travel restrictions in Japan sets the stage for the full restoration of our network in the months ahead.”

Ingram further added that the carrier’s competitive position is “strong” and “will continue to have the best team in the business that has taken on every challenge over the last few years and continues to deliver outstanding service and hospitality.”

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

Q3 Revenue Outlook and Activities

When compared to Q3 of 2019, operating revenue decreased by 1.9% for Q3 of 2022. However, the airline maintained strong passenger demand for its domestic network and witnessed a strong recovery for its international network.

HawaiianMiles sales and cargo revenue for this quarter secured HA an increase in other revenues by 28.2% when compared to the same quarter in 2019. The carrier operated at 93% of its system capacity in Q3 2019; comprising of 116%, 82%, and 52% capacity on its North America, Neighbor Island, and International routes, respectively.

For the period ending September 30, 2022, HA held unrestricted cash, cash equivalents, and short-term investments of US$1.4bn; reported liquidity of US$1.7bn (including its undrawn US$235m revolving credit facility); Aar traffic liability and current frequent flyer deferred revenue of US$700m; outstanding debt and finance lease obligations of US$1.7bn.

The company was also involved in environmental thrives and awarded a US$100,000 grant to Kākoʻo ʻŌiwi, a nonprofit organization dedicated to advancing the cultural, spiritual, and traditional practices of the Native Hawaiian community, to construct a wash and pack facility in Heʻeia that can be accessed by area farmers to process locally grown crops.

During the quarter, the carrier also launched a partnership with Honolulu Community College to increase access to Aviation Maintenance Technician careers— this will enable the college to double the number of students enrolled in the Aeronautics Maintenance Technology program by the fall of 2023.

To top it all off, Forbes named HA as Hawai’i’s Best Employer as part of the 2022 America’s Best Employers by State rankings.

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

What to Expect in Q4?

For the quarter ending on December 31, 2022, the company expects its capacity to be reduced by 7% when compared to the same quarter in 2019. This expectation is mainly based on the delay in the full restoration of its Japan network.

On brighter horizons, the airline expects its total revenue to be up 5.5% compared to the fourth quarter of 2019. CASM excluding fuel and non-recurring items is expected to be up approximately 13% to 16% compared to the fourth quarter of 2019. Current predictions for the adjusted EBITDA are set at US$5m to US$35m  which would be less than the third quarter EBITDA of 2022.

HA also announced an eight-year agreement with Amazon on October 21, 2022. The agreement stipulates that HA will operate and maintain a minimum of 10 Airbus A330-300 freighters by the second half of 2023 (expected for the fall season). Amazon’s A330s will fly under HA’s FAA air carrier certificate to transport cargo between airports in close proximity to the retailer’s facilities.

Despite the current challenges being faced by HA, executives are optimistic about the gradual recovery of the financial position of the carrier, and with new ventures and agreements, the optimism is validated.

Featured image: Hawaiian Airlines N383HA. Airbus A330-200. Photo: Brandon Farris/Airways

From residing in the Caribbean, Tarik has developed an interest in studying how developing nations benefit from the presence of the aviation industry through tourism, trade, and other linkages. Based in Jamaica.

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