Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., reported its financial results for the second quarter of 2024.
“This quarter we delivered on important investments in the future of our company, including flying the first two Boeing 787-9’s in our fleet, rolling out free, high-speed Starlink WiFi across our long-haul narrow body fleet, and adding three new routes to our North America network,” said Hawaiian Airlines President and CEO Peter Ingram. “While delivering on those initiatives and prioritizing our return to industry-leading levels of operational performance, we continue to pursue regulatory clearance to complete our combination with Alaska Airlines. I’m grateful to our team for taking on such ambitious challenges and continuing to provide exemplary service to our guests.”
| Second Quarter 2024- Key Financial Metrics and Results | ||||||||
| GAAP | YoY Change | Adjusted (a) | YoY Change | |||||
| Net Loss | ($67.6M) | ($55.3M) | ($71.0M) | ($46.9M) | ||||
| Diluted EPS | ($1.30) | ($1.06) | ($1.37) | ($0.90) | ||||
| Pre-tax Margin | (9.2) % | (7.2) pts. | (9.7) % | (5.5) pts. | ||||
| EBITDA | ($17.9M) | ($44.0M) | ($21.3M) | ($32.1M) | ||||
| Operating Cost per ASM | 15.05¢ | 5.3 % | 11.50¢ | 3.8 % | ||||
| Operating Revenue per ASM | 13.99¢ | (0.8) % | 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. |
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, 2024, the Company had:
- Unrestricted cash, cash equivalents and short-term investments of $1.3 billion
- Liquidity of $1.5 billion, including an undrawn revolving credit facility of $235 million
- Outstanding debt and finance lease obligations of $2.3 billion
On June 24, 2024, Hawaiian launched an offer to exchange any and all of its outstanding 5.75% Senior Secured Notes Due 2026 (Old Notes) for 11.00% Senior Secured Notes due 2029 (New Notes) and cash which closed on July 26, 2024. In exchange for $1,193.7 million of Old Notes, representing 99.5% of Old Notes outstanding, Hawaiian issued $984.8 million in New Notes and paid $204.7 million in cash to existing holders, leaving $6.3 million in Old Notes outstanding.
Revenue Environment
The Company’s overall operating revenue for the second quarter of 2024 was up 3.5% from the second quarter of 2023 on 4.3% higher capacity which illustrated steady demand for travel to Hawaiʻi on the majority of its routes.
Other Revenue was up 6.4% compared to the second quarter of 2023 driven primarily by an increase in cargo revenue and activity from its freighter operations.
Merger Update
- The Company and Alaska previously 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 (the “Second Request”)
- On May 7, 2024, the Company and Alaska certified substantial compliance with the Second Request. The certification of substantial compliance triggered the start of the 90-day review period
- On July 29, 2024, the Company and Alaska agreed to extend the expiration of the review period expiration from August 5, 2024, to 12:01 a.m., Eastern time, on August 15, 2024
- The Company and Alaska continue to work cooperatively with the DOJ
Second Quarter 2024 Highlights
Operations
- Established partnership with Air France Industries KLM Engineering & Maintenance who will be the component support provider for the Company’s 787-9 aircraft
Routes and Network
- Commenced daily nonstop service between Salt Lake City (SLC) and Honolulu (HNL)
- Launched new non-stop service between Sacramento (SMF) and both Kona (KOA) and Lihu’e (LIH)
- Took delivery of its third A330-300 freighter from Amazon and commenced operations in June 2024
