Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc. reported its financial results for the first quarter of 2024.
“Mahalo to our team for remaining focused on delivering strong operational performance and unparalleled guest experience,” said Hawaiian Airlines President and CEO Peter Ingram . “2024 is off to a positive start as we work to start realizing the return on significant investments we’ve made in our business, including rolling out high-speed Starlink WIFI and taking delivery of our first Boeing 787.”
| First Quarter 2024- Key Financial Metrics and Results | ||||||||
| GAAP | YoY Change | Adjusted (a) | YoY Change | |||||
| Net Loss | ($137.6M) | ($39.3M) | ($143.5M) | ($31.7M) | ||||
| Diluted EPS | ($2.65) | ($0.74) | ($2.77) | ($0.60) | ||||
| Pre-tax Margin | (23.7) % | (3.2) pts. | (24.8) % | (1.8) pts. | ||||
| EBITDA | ($109.0M) | ($20.8M) | ($116.0M) | ($12.6M) | ||||
| Operating Cost per ASM | 15.72¢ | 5.9 % | 11.82¢ | 7.1 % | ||||
| Operating Revenue per ASM | 12.78¢ | 2.6 % | N/A | N/A | ||||
| (a) See Table 4 for a reconciliation of adjusted net loss, adjusted diluted EPS, adjusted pre-tax margin, adjusted EBITDA, and adjusted operating cost per ASM (CASM excluding fuel and non-recurring items) to each of their respective most directly comparable GAAP financial measure. |
The first quarter loss per share includes ($0.32) per share due to the reduction in the Company’s effective tax rate from 21% to 10%. As of 3/31/2024, the Company has generated federal and state net operating losses (NOLs) of approximately $451 million and $969 million , respectively, which will be used to reduce future cash tax obligations. Analysis under GAAP required us to increase the valuation allowance related to the NOLs which resulted in a lower effective tax rate for the period, decreasing our GAAP tax benefit.
Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables.
First Quarter 2024 Highlights
Merger Update
- The Company’s stockholders voted in favor of the merger with Alaska Air Group, Inc. (” Alaska “)
- The Company and Alaska entered into a timing agreement with the Department of Justice (“DOJ”) in which they agreed not to consummate the merger before 90 days following the date on which both parties have certified substantial compliance with the DOJ’s second request for additional information
Liquidity and Capital Resources
As of March 31, 2024, the Company had:
- Unrestricted cash, cash equivalents and short-term investments of $897 million
- Liquidity of $1.15 billion , including an undrawn revolving credit facility of $235 million
- Outstanding debt and finance lease obligations of $1.75 billion
Routes and Network
- Began Boeing 787-9 Dreamliner revenue service on April 15, 2024
- Announced new flying from Salt Lake City (SLC) to Honolulu (HNL) and Sacramento (SMF) to Lihu`e (LIH) and Kona (KOA)
- Announced increased summer flights between HNL and Austin (AUS), Boston (BOS), Las Vegas (LAS) and Pago Pago (PPG)
- Hawaiian will also add a fourth daily flight between HNL and Los Angeles (LAX) from May 24 through September 2
- Hawaiian received its second A330-300 freighter from Amazon which will operate between New York’s JFK and San Bernardino (SBD)
Guest Experience
- Starlink inflight connectivity is now available free of charge on board all 18 A321neo aircraft
- Expanded Premium Airport Service product in its Honolulu hub, offering seamless curb-to-aircraft experience with access to new airport private suite, Apt. 1929
- Signed a multi-year distribution agreement with Sabre that will provide Sabre-connected agencies with long-term access to the carrier’s HA Connect
NDC and traditional EDIFACT content through the Sabre travel marketplace.
NDC and traditional EDIFACT content through the Sabre travel marketplace.Workforce Development
- Partnered with Universal Technical Institute , the transportation, skilled trades and energy education division of UTI, Inc. to expand career opportunities for Universal Technical Institute airframe and powerplant graduates who earn their FAA certifications.
Second Quarter 2024 Outlook
The table below summarizes the Company’s expectations for the quarter ending June 30, 2024 expressed as an expected percentage change compared to the results for the quarter ended June 30, 2023 . Figures include the expected impacts of the Company’s freighter operation, which are not yet expected to be material.
| Item | GAAP Second Quarter 2024 Guidance | Non-GAAP Equivalent | Non-GAAP Second Quarter 2024 Guidance | |||
| Available Seat Miles (ASMs) | Up 3.5% to up 6.5% | |||||
| Operating Revenue per ASM (RASM) | Down 1.5% to up 1.5% | |||||
| Costs per ASM (CASM) | Up 8.4% to up 10.7% | CASM excluding fuel and non-recurring items (a) | Up 5.0% to up 8.0% | |||
| Gallons of Jet Fuel Consumed (b) | Up 2.5% to up 5.5% | |||||
| Average fuel price per gallon, including taxes and delivery (c) | $2.83 | Economic Fuel Price per Gallon (a)(b)(c) | $2.85 | |||
| Effective Tax Rate | ~10% |
Full Year 2024 Outlook
The table below summarizes the Company’s updated expectations for the full year ending December 31, 2024 expressed as an expected percentage change compared to the results for the year ended December 31, 2023 . Figures include the expected impacts of the Company’s freighter operation as the Company establishes its freighter operation.
| Item | Prior GAAP Full Year 2024 Guidance | Updated GAAP Full Year 2024 Guidance | Non-GAAP Equivalent | Prior Non-GAAP Full Year 2024 Guidance | Updated Non-GAAP Full Year 2024 Guidance | |||||
| Available Seat Miles (ASMs) | Up 6.0% to up 9.0% | Up 4.5% to 7.5% | ||||||||
| Costs per ASM | Up 0.7% to up 3.0% | Up 4.1% to up 6.3% | CASM excluding fuel and non-recurring items (a) | Flat to up 3.0% | Up 1.0% to up 4.0% | |||||
| Gallons of Jet Fuel Consumed (b) | Up 4.0% to up 7.0% | Up 3.0% to up 6.0% | ||||||||
| Average fuel price per gallon, including taxes and delivery (c) | $2.55 | $2.80 | Economic Fuel Price per Gallon (a)(b)(c) | $2.59 | $2.83 | |||||
| Capital Expenditures | $500M to $550M | No change |
| (a) See Table 3 and Table 4 for a reconciliation of CASM excluding fuel and non-recurring items and economic fuel price per gallon to each of their respective most directly comparable GAAP financial measures. |
| (b) Gallons of jet fuel consumed do not include fuel used in the freighter operation, as those expenses are pass-through expenses not born by the Company. |
| (c) Average fuel price per gallon and economic fuel price per gallon estimates are based on the April 10, 2024 fuel forward curve. |
Hawaiian Airlines aircraft photo gallery:
