HA
$13.14
Hawaiian Hlds
($.22)
(1.65%)
Earnings Details
2nd Quarter June 2022
Tuesday, July 26, 2022 4:05:00 PM
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Summary

Hawaiian Holdings Guides In-line

Hawaiian Hlds (HA) reported a 2nd Quarter June 2022 loss of $0.90 per share on revenue of $691.9 million. The consensus estimate was a loss of $0.86 per share on revenue of $644.9 million. Revenue grew 68.4% on a year-over-year basis.

The company said it expects third quarter revenue of $728.72 million to $758.93 million. The current consensus revenue estimate is $747.05 million for the quarter ending September 30, 2022.

Hawaiian Holdings Inc, through its subsidiaries, is engaged in the scheduled air transportation of passengers and cargo amongst the Hawaiian Islands, between the Hawaiian Islands and certain cities in the United States.

Results
Reported Earnings
($0.90)
Earnings Whisper
-
Consensus Estimate
($0.86)
Reported Revenue
$691.9 Mil
Revenue Estimate
$644.9 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Hawaiian Holdings Reports 2022 Second Quarter Financial Results

HONOLULU, July 26, 2022 /PRNewswire/ -- Hawaiian Holdings, Inc. (NASDAQ: HA) (the "Company"), 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 Peter Ingram, Hawaiian Airlines President and CEO.  "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

  • The Company reported a GAAP net loss of $(36.8) million, and an adjusted net loss of $(46.1) million.
  • The Company reported GAAP EPS of $(0.72), and adjusted EPS of $(0.90).
  • The Company reported EBITDA of $12.9 million, and adjusted EBITDA of $1.1 million.
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:

  • Unrestricted cash, cash equivalents and short-term investments of $1.5 billion
  • $1.8 billion in liquidity, including its undrawn $235 million revolving credit facility
  • Outstanding debt and finance lease obligations of $1.8 billion
  • Air traffic liability of $784 million

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 Hawai?i's biggest and longest-serving airline. Hawaiian offers approximately 130 daily flights within the Hawaiian Islands, daily nonstop flights between Hawai?i 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:

  • During the three and six months ended June 30, 2021 the Company recognized $95.1 million and $242.4 million, respectively, in contra-expense related to grant proceeds under the federal Payroll Support Programs (Government grant recognition). The grant proceeds were recognized in proportion to estimated wages and benefits expense over the period to which the Payroll Support Programs relate.
  • During the three and six months ended June 30, 2022, the Company recognized a $8.6 million loss on the extinguishment of its remaining outstanding Series 2020-1A and Series 2020-1B Equipment Notes. Loss on extinguishment of debt is excluded to allow investors to better analyze the Company's core operational performance and more readily compare its results to other airlines in the periods presented below.
  • Changes in fair value of fuel derivative contracts, net of tax, are based on market prices for open contracts as of the end of the reporting period, and include the unrealized amounts of fuel derivatives (not designated as hedges) that will settle in future periods and the reversal of prior period unrealized amounts.
  • In January 2022, the Company reached a tentative agreement with the representatives of its International Association of Machinists and Aerospace Workers (IAM-M) and International Association of Machinists and Aerospace Workers - Clerical Division (IAM-C) employees. In February 2022, the Company received notice from IAM that the agreement was ratified by its members. The new CBA included a signing bonus of $2.1 million, which was recorded in wages and benefits. Negotiated as part of the new CBA, the Company offered a separation program for the IAM-M and IAM-C employees and recorded a one-time severance payment of $2.6 million, which was recorded in wages and benefits during the three months ended June 30, 2022.
  • Unrealized loss (gain) on foreign debt is based on fluctuation in exchange rates and the measurement of foreign-denominated debt to the Company's functional currency.
  • Changes in fair value of foreign currency derivative contracts, net of tax, are based on market prices for open contracts as of the end of the reporting period, including the unrealized amounts of foreign currency derivatives (not designated as hedges) that will settle in future periods and the reversal of prior period unrealized amounts.
  • During the three months ended June 30, 2022, the Company sold three ATR-72 aircraft and recorded a $2.6 million gain on sale of aircraft, which was recorded in other operating expense.
  • During the six months ended June 30, 2021, the Company announced the termination of our 'Ohana by Hawaiian operations, which operated under a Capacity Purchase Agreement (CPA) with a third-party carrier. The termination did not meet the requirements of discontinued operations under ASC 205; however, the asset group met the requirements for, and was reclassified as Held-for-Sale on the Consolidated Balance Sheets. We fair valued the asset group resulting in the write-down of approximately $6.4 million. Additionally, we recorded an early termination charge associated with our CPA of approximately $2.6 million.

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.