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Hawaiian Holdings Reports 2014 Second Quarter Financial Results

July 24, 2014 Financial No Comments Email Email

Hawaiian Holdings, Inc. (“Holdings” or the “Company”), parent company of Hawaiian Airlines, Inc. (“Hawaiian”), today reported its financial results for the second quarter of 2014. 

  • GAAP net income in the second quarter of $27.3 million or $0.43 per diluted share.
  • Adjusted net income, reflecting economic fuel expense, in the second quarter of $22.4 million or $0.35 per diluted share, an increase of $9.7 million or $0.11 cents per diluted share year-over-year.
  • Passenger revenue per available seat mile (PRASM) increase of 4.1% and operating revenue per available seat mile (RASM) increase of 6.7%.
  • Unrestricted cash, cash equivalents and short-term investments of $564 million.

“The same trajectory of substantially improving financial performance was evident in the second quarter as it has been over the last few quarters,” said Mark Dunkerley, Hawaiian Airlines president and chief executive officer.  “Strong demand across our geographies, good macro-economic conditions, stable fuel prices and good cost control inside the business all played their part.  Absent changes to the environment or competitor behavior, our prospects in the back half of the year look similar.  As ever, we continue to build the business with new routes, this summer featuring our first flights from North America to Kaua’i and the island of Hawai’i, and a host of customer improvements including the roll out of our extra comfort economy section of the aircraft.  Our wonderful employees continue to deliver the level of service on the ground and in the air that set the standard for others to aspire to.  Without their dedication, none of this would be possible.”

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

Liquidity and Capital Resources

As of June 30, 2014 the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $564 million.
  • Available borrowing capacity of $69.4 million under Hawaiian’s Revolving Credit Facility.
  • Outstanding debt and capital lease obligations of approximately $1,071 million consisting of the following:
    • $708 million outstanding under secured loan agreements to finance a portion of the purchase price for eleven Airbus A330-200 aircraft.
    • $146 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.
    • $106 million in capital lease obligations to finance the acquisition of an Airbus A330-200, two Boeing 717-200 aircraft and aircraft-related equipment.
    • $32 million outstanding under floating rate notes for two Boeing 767-300 ER aircraft.
    • $79 million of outstanding Convertible Senior Notes.

Second Quarter 2014 Highlights


  • Ranked #1 nationally for on-time performance for the months of March, April and May 2014.
  • Ranked the #1 domestic carrier for travel to Hawai’i by Travel + Leisure for 2014.

Fleet and financing

  • Added two new A330-200 aircraft that were financed through Enhanced Equipment Trust Certificates (EETCs) at a fixed blended rate of 4.13% and retired one Boeing 767-300 aircraft.

New routes and increased frequencies

  • Los Angeles to Kona, three-times-weekly, and Los Angeles to Lihu’e, four-times-weekly, summer seasonal service launched in June.
  • Oakland to Kona, three-times-weekly and Oakland to Lihu’e, four-times-weekly, summer seasonal service launched in June.
  • Los Angeles to Maui daily service launched in May and a second daily summer seasonal service reintroduced in June.
  • San Jose to Honolulu daily service reintroduced in May.
  • ‘Ohana by Hawaiian expanded its network with new flights between Maui and Moloka’i, Kona and Hilo launched in July.
  • Announced additional seasonal service from Los Angeles to Honolulu and Maui for the winter months.

Third Quarter and Full Year 2014 Outlook

The table below summarizes the Company’s expectations for the third quarter ending September  30, 2014 and the full year endingDecember 31, 2014, expressed as an expected percentage change compared to the results for the quarter ended September 30, 2013 or the year ended December 31, 2013, as applicable (the results for which are presented for reference).






Cost per ASM Excluding Fuel (cents)


 Up 1% to up 4% 

Operating Revenue Per ASM (cents)


 Up 3% to up 6% 

ASMs (millions)


 Up 1% to up 3% 

Gallons of jet fuel consumed (millions)


 Up 0.5% to up 2.5% 

Full Year




Cost per ASM Excluding Fuel (cents)


Up 3% to up 5%

ASMs (millions)


Up 1% to up 3%

Investor Conference Call
Hawaiian Holdings’ quarterly earnings conference call is scheduled to begin today (July 22, 2014) at 4:30 p.m. Eastern Time (USA).  The conference call will be broadcast live over the Internet. Investors may listen to the live audio webcast on the investor relations section of the Company’s website at www.HawaiianAirlines.com. For those who are not available for the live webcast, the call will be archived for 90 days on Hawaiian’s investor website.

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