HONOLULU, Jan. 30, 2024 /PRNewswire/ -- Hawaiian Holdings, Inc. (NASDAQ: HA) (the "Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported its financial results for the fourth quarter and full year 2023.
"I am grateful to our team who accomplished an extraordinary amount, including realizing foundational investments during a challenging year," said Hawaiian Airlines President and CEO Peter Ingram. "Demand is solid across our networks, our brand remains strong in Japan as the market recovers, and we have seen steady improvement in travel to Maui. We expect the combination with Alaska will create an even more competitive combined airline, positioning the Hawaiian Airlines brand to flourish in the years ahead."
Fourth Quarter 2023 - Key Financial Metrics and Results | ||||||||
GAAP | YoY Change | Adjusted (a) | YoY Change | |||||
Net Loss | ($101.2M) | ($51.0M) | ($122.7M) | ($98.0M) | ||||
Diluted EPS | ($1.96) | ($0.98) | ($2.37) | ($1.88) | ||||
Pre-tax Margin | (19.0) % | (10.4) pts. | (22.9) % | (18.6) pts. | ||||
EBITDA | ($71.8M) | ($65.7M) | ($98.1M) | ($123.7M) | ||||
Operating Cost per ASM | 15.30¢ | (0.16)¢ | 11.77¢ | 0.88¢ | ||||
Full Year 2023 - Key Financial Metrics and Results | ||||||||
GAAP | YoY Change | Adjusted (a) | YoY Change | |||||
Net Loss | ($260.5M) | ($20.4M) | ($313.5M) | ($103.1M) | ||||
Diluted EPS | ($5.05) | ($0.38) | ($6.08) | ($2.00) | ||||
Pre-tax Margin | (12.1) % | (1.0) pts. | (14.5) % | (4.5) pts. | ||||
EBITDA | ($103.6M) | ($41.8M) | ($169.0M) | ($138.0M) | ||||
Operating Cost per ASM | 14.90¢ | (0.36)¢ | 11.29¢ | 0.51¢ |
(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 December 31, 2023 the Company had:
Revenue Environment
Following the Maui wildfires, Hawaiian saw a steady recovery of travel from North America to Maui. Non-Maui routes and international markets ex-Japan continued to perform and demand remained solid. In international markets, strong U.S. and other point-of sale demand, coupled with an increase in Japan-originating traffic, contributed to a 20.7% point increase in International passenger load factor year-over-year. Premium products continued to demonstrate strong performance for the fourth quarter and full year 2023.
The Company's overall operating revenue for the fourth quarter 2023 was down 8.5% compared to the fourth quarter of 2022 on 3.3% higher capacity. In addition to the impact from the Maui wildfires, pandemic-related spoilage and revenue from pent-up travel demand in 2022 drove the year-over-year decline. The Company's overall operating revenue for 2023 was up 2.8% from 2022 on 8.1% higher capacity.
Other Revenue for fourth quarter 2023 was down 15.9% compared to the same period in 2022, primarily driven by a decrease in cargo revenue. Cargo activity in 2022 was higher than normal due to lingering pandemic-related effects. Full year 2023 Other Revenue was down 16.2% compared to 2022, driven by decreases in cargo revenue and contract services.
Fourth Quarter and Full Year 2023 Highlights
Routes and scheduled services
Awards and Recognition
Guest experience
Environmental, Social and Corporate Governance
In May 2023, the Company published its 2023 Corporate Kuleana (Responsibility) Report, providing progress on Environmental, Social and Governance (ESG) priorities, which included a decarbonization roadmap with interim targets to lower greenhouse gas emissions focused on replacing petroleum jet fuel with sustainable aviation fuel (SAF); plans to decrease life-cycle jet fuel emissions per revenue ton mile by 45% by 2035; and efforts to replace 10% of conventional jet fuel with SAF by 2030. The report also highlights Hawaiian's employee diversity, including the highest percentage of women pilots of any major U.S. airline.
Other activities in 2023 include the following:
The Company continues to focus on creating long-term value and positively impacting the people, environment and communities it serves. The Company will publish its fifth annual Corporate Kuleana Report in the spring of 2024.
Merger Agreement
On December 3, 2023, Alaska Air Group, Inc. and the Company announced that they have entered into a definitive agreement under which Alaska Airlines will acquire Hawaiian for $18.00 per share in cash, for a transaction value of approximately $1.9 billion, inclusive of $0.9 billion of Hawaiian's net debt. The combined company will unlock more destinations for consumers and expand choice of critical air service options and access throughout the Pacific region, Continental United States and globally. The acquisition is conditioned on required regulatory approvals, approval by the Company's shareholders, and other customary closing conditions. It is expected to close in 12-18 months from the announcement date.
First Quarter 2024 Outlook
The table below summarizes the Company's expectations for the quarter ending March 31, 2024 expressed as an expected percentage change compared to the results for the quarter ended March 31, 2023. Figures include the expected impacts of the Company's freighter operation, which are not yet expected to be material.
Item | GAAP First Quarter | Non-GAAP Equivalent | Non-GAAP First | |||
Available Seat Miles (ASMs) | Up 2.5% to up 5.5% | |||||
Operating Revenue per ASM | Down 1.0% to up 2.0% | |||||
Costs per ASM (CASM) | Up 5.0% to up 7.2% | CASM excluding fuel and non- | Up 8.0% to up 11.0% | |||
Gallons of Jet Fuel Consumed (c) | Up 4.0% to up 7.0% | |||||
Average fuel price per gallon, | $2.66 | Economic Fuel Price per Gallon | $2.71 | |||
Effective Tax Rate | ~21% |
Full Year 2024 Outlook
The table below summarizes the Company's 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 | GAAP Full Year 2024 | Non-GAAP Equivalent | Non-GAAP Full Year | |||
ASMs | Up 6.0% to up 9.0% | |||||
CASM | Up 0.7% to up 3.0% | CASM excluding fuel and non- | Flat to up 3.0% | |||
Gallons of Jet Fuel Consumed (c) | Up 4.0% to up 7.0% | |||||
Average fuel price per gallon, | $2.55 | Economic Fuel Price per Gallon | $2.59 | |||
Capital Expenditures | $500M to $550M |
(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) Average fuel price per gallon and economic fuel price per gallon estimates are based on the January 12, 2024 fuel forward curve. |
(c) 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. |
Statistical information, as well as a reconciliation of certain non-GAAP financial measures, can be found in the accompanying tables.
Investor Conference Call
The Company's quarterly and full year earnings conference call is scheduled to begin today (January 30, 2024) 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 HawaiianAirlines.com. For those who are not available for the live webcast, the call will be archived and available for 90 days on the investor relations section of the Company's website.
About Hawaiian Airlines
Now in its 95th year of continuous service, Hawaiian is Hawai?i's largest and longest-serving airline. Hawaiian offers approximately 150 daily flights within the Hawaiian Islands, and nonstop flights between Hawai?i and 15 U.S. gateway cities ? more than any other airline ? as well as service connecting Honolulu and American Samoa, Australia, the Cook Islands, Japan, New Zealand, South Korea and Tahiti.
Consumer surveys by Condé Nast Traveler and TripAdvisor have placed Hawaiian among the top of all domestic airlines serving Hawai?i. The carrier was named Hawai?i's best employer by Forbes in 2022 and has topped Travel + Leisure's World's Best list as the No. 1 U.S. airline for the past two years. Hawaiian has also led all U.S. carriers in on-time performance for 18 consecutive years (2004-2021) as reported by the U.S. Department of Transportation.
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 positioning for the upcoming year; plans for additional route service; expectations related to the merger with Alaska; expectations about the Starlink systems to be installed on the A321 fleet and in-flight amenity kits; expectations related to Hawaiian's freighter operation; the Company's environmental commitments; the Company's outlook for the first fiscal quarter and fiscal year 2024; 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.
The Company is subject to risks, uncertainties and assumptions that could cause the Company's results to differ materially from the results expressed or implied by such forward-looking statements, including the risks, uncertainties and assumptions discussed from time to time in the Company's 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 | ||||||||||||
(in thousands, except for per share data) (unaudited) | ||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||
(in thousands, except per share data) | ||||||||||||
Operating Revenue: | ||||||||||||
Passenger | $ 601,621 | $ 650,841 | (7.6) % | $ 2,460,005 | $ 2,335,440 | 5.3 % | ||||||
Other | 67,453 | 80,194 | (15.9) % | 256,279 | 305,827 | (16.2) % | ||||||
Total | 669,074 | 731,035 | (8.5) % | 2,716,284 | 2,641,267 | 2.8 % | ||||||
Operating Expenses: | ||||||||||||
Wages and benefits | 223,012 | 218,045 | 2.3 % | 951,524 | 833,137 | 14.2 % | ||||||
Aircraft fuel, including taxes and delivery | 202,059 | 213,204 | (5.2) % | 766,133 | 817,077 | (6.2) % | ||||||
Aircraft rent | 28,914 | 25,859 | 11.8 % | 109,741 | 103,846 | 5.7 % | ||||||
Maintenance materials and repairs | 75,296 | 65,219 | 15.5 % | 244,296 | 236,153 | 3.4 % | ||||||
Aircraft and passenger servicing | 44,815 | 42,060 | 6.6 % | 176,698 | 152,550 | 15.8 % | ||||||
Commissions and other selling | 30,808 | 32,076 | (4.0) % | 117,132 | 113,843 | 2.9 % | ||||||
Depreciation and amortization | 32,840 | 33,735 | (2.7) % | 133,615 | 136,169 | (1.9) % | ||||||
Other rentals and landing fees | 44,797 | 37,122 | 20.7 % | 171,371 | 147,143 | 16.5 % | ||||||
Purchased services | 36,001 | 33,637 | 7.0 % | 144,822 | 129,350 | 12.0 % | ||||||
Special items | 10,561 | 12,500 | (15.5) % | 10,561 | 18,803 | (43.8) % | ||||||
Other | 51,721 | 50,365 | 2.7 % | 184,066 | 163,250 | 12.8 % | ||||||
Total | 780,824 | 763,822 | 2.2 % | 3,009,959 | 2,851,321 | 5.6 % | ||||||
Operating Loss | (111,750) | (32,787) | 240.8 % | (293,675) | (210,054) | 39.8 % | ||||||
Nonoperating Income (Expense): | ||||||||||||
Interest expense and amortization of debt | (22,358) | (23,054) | (90,540) | (95,815) | ||||||||
Interest income | 13,543 | 11,858 | 57,231 | 32,141 | ||||||||
Capitalized interest | 3,123 | 1,070 | 8,833 | 4,244 | ||||||||
Other components of net periodic benefit cost | (1,707) | 1,252 | (6,614) | 5,065 | ||||||||
Losses on fuel derivatives | (6,992) | (1,978) | (12,619) | (3,041) | ||||||||
Loss on extinguishment of debt | ? | ? | ? | (8,568) | ||||||||
Gains (losses) on investments, net | 6,304 | (4,563) | (602) | (43,082) | ||||||||
Gains (losses) on foreign debt | (7,245) | (15,629) | 11,500 | 26,667 | ||||||||
Other, net | 100 | 913 | (1,308) | (1,406) | ||||||||
Total | (15,232) | (30,131) | (34,119) | (83,795) | ||||||||
Loss Before Income Taxes | (126,982) | (62,918) | (327,794) | (293,849) | ||||||||
Income tax benefit | (25,800) | (12,758) | (67,300) | (53,768) | ||||||||
Net Loss | $ (101,182) | $ (50,160) | $ (260,494) | $ (240,081) | ||||||||
Net Loss Per Common Stock Share: | ||||||||||||
Basic | $ (1.96) | $ (0.98) | $ (5.05) | $ (4.67) | ||||||||
Diluted | $ (1.96) | $ (0.98) | $ (5.05) | $ (4.67) | ||||||||
Weighted Average Number of Common | ||||||||||||
Basic | 51,655 | 51,413 | 51,596 | 51,361 | ||||||||
Diluted | 51,655 | 51,413 | 51,596 | 51,361 |
Table 2. | ||||||||||||
Hawaiian Holdings, Inc. | ||||||||||||
Selected Statistical Data | ||||||||||||
(in thousands, except as otherwise indicated) (unaudited) | ||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||
(in thousands, except as otherwise indicated) | ||||||||||||
Scheduled Operations: | ||||||||||||
Revenue passengers flown | 2,655 | 2,651 | 0.2 % | 10,876 | 9,995 | 8.8 % | ||||||
Revenue passenger miles (RPM) | 4,219,482 | 3,982,719 | 5.9 % | 16,860,663 | 14,932,750 | 12.9 % | ||||||
Available seat miles (ASM) | 5,100,896 | 4,931,687 | 3.4 % | 20,196,230 | 18,636,466 | 8.4 % | ||||||
Passenger revenue per RPM (Yield) | 14.26 ¢ | 16.34 ¢ | (12.7) % | 14.59 ¢ | 15.64 ¢ | (6.7) % | ||||||
Passenger load factor (RPM/ASM) | 82.7 % | 80.8 % | 1.9 pt. | 83.5 % | 80.1 % | 3.4 pt. | ||||||
Passenger revenue per ASM (PRASM) | 11.79 ¢ | 13.20 ¢ | (10.7) % | 12.18 ¢ | 12.53 ¢ | (2.8) % | ||||||
Total Operations: | ||||||||||||
Revenue passengers flown | 2,656 | 2,655 | ? % | 10,879 | 10,015 | 8.6 % | ||||||
RPM | 4,220,584 | 3,988,798 | 5.8 % | 16,864,998 | 14,964,500 | 12.7 % | ||||||
ASM | 5,103,666 | 4,940,514 | 3.3 % | 20,204,497 | 18,684,642 | 8.1 % | ||||||
Passenger load factor (RPM/ASM) | 82.7 % | 80.7 % | 2.0 pt. | 83.5 % | 80.1 % | 3.4 pt. | ||||||
Operating revenue per ASM (RASM) | 13.11 ¢ | 14.80 ¢ | (11.4) % | 13.44 ¢ | 14.14 ¢ | (5.0) % | ||||||
Operating cost per ASM (CASM) | 15.30 ¢ | 15.46 ¢ | (1.0) % | 14.90 ¢ | 15.26 ¢ | (2.4) % | ||||||
CASM excluding aircraft fuel and non-recurring items (a) | 11.77 ¢ | 10.89 ¢ | 8.1 % | 11.29 ¢ | 10.78 ¢ | 4.7 % | ||||||
Aircraft fuel expense per ASM (b) | 3.96 ¢ | 4.32 ¢ | (8.3) % | 3.79 ¢ | 4.37 ¢ | (13.3) % | ||||||
Revenue block hours operated | 52,961 | 51,715 | 2.4 % | 211,019 | 195,361 | 8.0 % | ||||||
Gallons of jet fuel consumed | 68,756 | 64,485 | 6.6 % | 268,491 | 239,231 | 12.2 % | ||||||
Average cost per gallon of jet fuel (actual) (b) | $ 2.94 | $ 3.31 | (11.2) % | $ 2.85 | $ 3.42 | (16.7) % | ||||||
Economic fuel cost per gallon (b)(c) | $ 2.98 | $ 3.31 | (10.0) % | $ 2.89 | $ 3.42 | (15.5) % |
(a) | See Table 4 for a reconciliation of CASM excluding aircraft fuel and non-recurring items to its most directly comparable GAAP financial measure. |
(b) | Includes applicable taxes and fees. |
(c) | See Table 3 for a reconciliation of economic fuel cost per gallon to its most directly comparable GAAP financial measure. |
Table 3.
Hawaiian Holdings, Inc.
Economic Fuel Expense
(in thousands, except per-gallon amounts) (unaudited)
The price and availability of aircraft fuel is volatile due to global economic and geopolitical factors that we can neither control nor accurately predict. The increase in aircraft fuel expense is illustrated in the following table:
Three Months Ended December 31, | Twelve months ended December 31, | |||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||
(in thousands, except per-gallon amounts) | ||||||||||||
Aircraft fuel expense, including taxes and delivery | $ 202,059 | $ 213,204 | (5.2) % | $ 766,133 | $ 817,077 | (6.2) % | ||||||
Fuel gallons consumed | 68,756 | 64,485 | 6.6 % | 268,491 | 239,231 | 12.2 % | ||||||
Average fuel price per gallon, including taxes and delivery | $ 2.94 | $ 3.31 | (11.2) % | $ 2.85 | $ 3.42 | (16.7) % |
The Company believes that economic fuel expense is a good measure of the effect of fuel prices on its business as it most closely approximates the net cash outflow associated with the purchase of fuel for its operations in a period. The Company defines economic fuel expense as GAAP fuel expense plus losses/(gains) realized through actual cash (receipts)/payments received from or paid to hedge counterparties for fuel hedge derivative contracts settled during the period.
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||
(in thousands, except per-gallon amounts) | ||||||||||||
Aircraft fuel expense, including taxes and delivery | $ 202,059 | $ 213,204 | (5.2) % | $ 766,133 | $ 817,077 | (6.2) % | ||||||
Realized losses on settlement of fuel derivative instruments | 2,749 | 401 | 585.5 % | 10,923 | 401 | 2,623.9 % | ||||||
Economic fuel expense | $ 204,808 | $ 213,605 | (4.1) % | $ 777,056 | $ 817,478 | (4.9) % | ||||||
Fuel gallons consumed | 68,756 | 64,485 | 6.6 % | 268,491 | 239,231 | 12.2 % | ||||||
Economic fuel costs per gallon | $ 2.98 | $ 3.31 | (10.0) % | $ 2.89 | $ 3.42 | (15.5) % |
Estimated three months ending | Estimated twelve months ending | |||||||
(in thousands, except per-gallon amounts) | ||||||||
Aircraft fuel expense, including taxes and delivery | $ 179,716 | - | $ 184,901 | $ 709,756 | - | $ 730,230 | ||
Realized (gains)/losses on settlement of fuel | 2,775 | - | 2,775 | 11,100 | - | 11,100 | ||
Economic fuel expense | $ 182,491 | $ 187,676 | $ 720,856 | $ 741,330 | ||||
Fuel gallons consumed | 67,447 | - | 69,393 | 278,051 | - | 286,072 | ||
Economic fuel costs per gallon | $ 2.71 | - | $ 2.71 | $ 2.59 | - | $ 2.59 |
Table 4.
Hawaiian Holdings, Inc.
Non-GAAP Financial Measures 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, Passenger Revenue per RPM, adjusted EBITDA, and adjusted pre-tax margin. 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:
The Company believes that adjusting for the impact of employee retention credits, changes in fair value of equity securities and fuel derivative contracts, fluctuations in exchange rates on debt instruments denominated in foreign currency, non-recurring expenses and income/gains (including CBA-related, contract termination amortization, special items, interest income on tax refund, gain or loss on sale of aircraft, gain on sale of commercial real estate, and loss on extinguishment of debt and the tax effect of such adjustments helps investors better analyze the Company's operational performance and compare its results to other airlines in the periods presented.
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Total | Diluted | Total | Diluted | Total | Diluted | Total | Diluted | |||||||||
(in thousands, except per share data) | ||||||||||||||||
GAAP net loss, as reported | $ (101,182) | $ (1.96) | $ (50,160) | $ (0.98) | $ (260,494) | $ (5.05) | $ (240,081) | $ (4.67) | ||||||||
Adjusted for: | ||||||||||||||||
CBA related expense | ? | ? | ? | ? | 17,727 | 0.34 | 4,678 | 0.09 | ||||||||
Employee retention credit | (32,516) | (0.63) | ? | ? | (32,516) | (0.63) | ? | ? | ||||||||
Contract termination | ? | ? | ? | ? | (24,085) | (0.47) | ? | ? | ||||||||
Special items | 10,561 | 0.21 | 12,500 | 0.24 | 10,561 | 0.21 | 18,803 | 0.37 | ||||||||
Loss (gain) on sale of | ? | ? | ? | ? | 392 | 0.01 | (2,578) | (0.05) | ||||||||
Gain on sale of | ? | ? | ? | ? | (10,179) | (0.20) | ? | ? | ||||||||
Interest income on federal | (1,820) | (0.03) | ? | ? | (6,492) | (0.13) | ? | ? | ||||||||
Changes in fair value of | 4,243 | 0.08 | 1,577 | 0.03 | 1,696 | 0.03 | 2,640 | 0.05 | ||||||||
Loss on extinguishment of | ? | ? | ? | ? | ? | ? | 8,568 | 0.17 | ||||||||
Unrealized loss (gain) on | 7,123 | 0.14 | 15,501 | 0.30 | (11,668) | (0.22) | (26,196) | (0.51) | ||||||||
Unrealized loss (gain) on | (13,904) | (0.27) | 2,110 | 0.04 | (10,755) | (0.21) | 24,949 | 0.49 | ||||||||
Tax effect of adjustments | 4,824 | 0.09 | (6,211) | (0.12) | 12,269 | 0.24 | (1,242) | (0.02) | ||||||||
Adjusted Net Loss | $ (122,671) | $ (2.37) | $ (24,683) | $ (0.49) | $ (313,544) | $ (6.08) | $ (210,459) | $ (4.08) |
Three months ended December 31, | Twelve months ended December 31, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
(in thousands) | ||||||||
Income (Loss) Before Income Taxes | $ (126,982) | $ (62,918) | $ (327,794) | $ (293,849) | ||||
Adjusted for: | ||||||||
CBA related expense | ? | ? | 17,727 | 4,678 | ||||
Employee retention credit (ERC) | (32,516) | ? | (32,516) | ? | ||||
Contract termination amortization | ? | ? | (24,085) | ? | ||||
Special items | 10,561 | 12,500 | 10,561 | 18,803 | ||||
Loss (gain) on sale of aircraft | ? | ? | 392 | (2,578) | ||||
Gain on sale of commercial real estate | ? | ? | (10,179) | ? | ||||
Interest income on federal tax refund | (1,820) | ? | (6,492) | ? | ||||
Changes in fair value of fuel derivative instruments | 4,243 | 1,577 | 1,696 | 2,640 | ||||
Loss on extinguishment of debt | ? | ? | ? | 8,568 | ||||
Unrealized loss (gain) on foreign debt | 7,123 | 15,501 | (11,668) | (26,196) | ||||
Unrealized loss (gain) on equity securities | (13,904) | 2,110 | (10,755) | 24,949 | ||||
Adjusted Loss Before Income Taxes | $ (153,295) | $ (31,230) | $ (393,113) | $ (262,985) |
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 December 31, | Twelve months ended December 31, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
(in thousands) | ||||||||
Net Loss before Taxes | $ (126,982) | $ (62,918) | $ (327,794) | $ (293,849) | ||||
Depreciation & Amortization | 32,840 | 33,735 | 133,615 | 136,169 | ||||
Interest and amortization of debt | 22,358 | 23,054 | 90,540 | 95,815 | ||||
EBITDA, as reported | (71,784) | (6,129) | (103,639) | (61,865) | ||||
Adjusted for: | ||||||||
CBA related expense | ? | ? | 17,727 | 4,678 | ||||
Employee retention credit (ERC) | (32,516) | ? | (32,516) | ? | ||||
Contract termination amortization | ? | ? | (24,085) | ? | ||||
Special items | 10,561 | 12,500 | 10,561 | 18,803 | ||||
Loss (gain) on sale of aircraft | ? | ? | 392 | (2,578) | ||||
Gain on sale of commercial real estate | ? | ? | (10,179) | ? | ||||
Interest income on federal tax refund | (1,820) | ? | (6,492) | ? | ||||
Changes in fair value of fuel derivative contracts | 4,243 | 1,577 | 1,696 | 2,640 | ||||
Loss on extinguishment of debt | ? | ? | ? | 8,568 | ||||
Unrealized loss (gain) on foreign debt | 7,123 | 15,501 | (11,668) | (26,196) | ||||
Unrealized loss (gain) on investment securities | (13,904) | 2,110 | (10,755) | 24,949 | ||||
Adjusted EBITDA | $ (98,097) | $ 25,559 | $ (168,958) | $ (31,001) |
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 December 31, | Twelve Months Ended December 31, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
(in thousands, except CASM data) | ||||||||
GAAP operating expenses | $ 780,824 | $ 763,822 | $ 3,009,959 | $ 2,851,321 | ||||
Adjusted for: | ||||||||
CBA related expense | ? | ? | (17,727) | (4,678) | ||||
Employee retention credit (ERC) | 32,516 | ? | 32,516 | ? | ||||
Contract termination amortization | ? | ? | 24,085 | ? | ||||
Special items | (10,561) | (12,500) | (10,561) | (18,803) | ||||
Gain (loss) on sale of aircraft | ? | ? | (392) | 2,578 | ||||
Gain on sale of commercial real estate | ? | ? | 10,179 | ? | ||||
Operating Expenses excluding non-recurring items | 802,779 | 751,322 | 3,048,059 | 2,830,418 | ||||
Aircraft fuel, including taxes and delivery | (202,059) | (213,204) | (766,133) | (817,077) | ||||
Operating Expenses excluding fuel and non-recurring items | $ 600,720 | $ 538,118 | $ 2,281,926 | $ 2,013,341 | ||||
Available Seat Miles | 5,103,666 | 4,940,514 | 20,204,497 | 18,684,642 | ||||
CASM?GAAP | 15.30 ¢ | 15.46 ¢ | 14.90 ¢ | 15.26 ¢ | ||||
Aircraft fuel, including taxes and delivery | (3.96) | (4.32) | (3.79) | (4.37) | ||||
CBA related expense | ? | ? | (0.09) | (0.02) | ||||
Employee retention credit (ERC) | 0.64 | ? | 0.15 | ? | ||||
Contract termination amortization | ? | ? | 0.12 | ? | ||||
Special items | (0.21) | (0.25) | (0.05) | (0.10) | ||||
Gain (loss) on sale of aircraft | ? | ? | ? | 0.01 | ||||
Gain on sale of commercial real estate | ? | ? | 0.05 | ? | ||||
CASM excluding fuel and non-recurring items | 11.77 ¢ | 10.89 ¢ | 11.29 ¢ | 10.78 ¢ |
Estimated three months ending | Estimated twelve months ending | |||||||
(in thousands, except CASM data) | ||||||||
GAAP operating expenses | $ 785,786 | - | $ 825,746 | $ 3,214,296 | - | $ 3,377,846 | ||
Aircraft fuel, including taxes and delivery | (179,716) | - | (184,901) | (709,756) | - | (730,230) | ||
Non-recurring items | (4,999) | (4,999) | (85,698) | (85,698) | ||||
Adjusted operating expenses | $ 601,071 | - | $ 635,846 | $ 2,418,842 | - | $ 2,561,918 | ||
Available seat miles | 5,040,454 | - | 5,187,980 | 21,416,766 | - | 22,022,901 | ||
CASM - GAAP | 15.59 ¢ | - | 15.92 ¢ | 15.01 ¢ | - | 15.34 ¢ | ||
Aircraft fuel, including taxes and delivery | (3.57) | - | (3.56) | (3.32) | - | (3.32) | ||
Non-recurring items | (0.10) | (0.10) | (0.40) | (0.39) | ||||
CASM excluding fuel and non-recurring items | 11.92 ¢ | - | 12.26 ¢ | 11.29 ¢ | - | 11.63 ¢ |
Pre-tax margin
The Company excludes unrealized (gains) losses from fuel derivative instruments, foreign debt, and equity securities, gain on the sale of aircraft, and non-recurring items from pre-tax margin for the same reasons as described above.
Three months ended December 31, | Twelve months ended December 31, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Pre-Tax Margin, as reported | (19.0) % | (8.6) % | (12.1) % | (11.1) % | ||||
Adjusted for: | ||||||||
CBA related expense | ? | ? | 0.6 | 0.2 | ||||
Employee retention credit | (4.9) | ? | (1.2) | ? | ||||
Contract termination amortization | ? | ? | (0.9) | ? | ||||
Special items | 1.6 | 1.7 | 0.4 | 0.7 | ||||
Loss (gain) on sale of aircraft | ? | ? | ? | (0.1) | ||||
Gain on sale of commercial real estate | ? | ? | (0.4) | ? | ||||
Interest income on federal tax refund | (0.3) | ? | (0.2) | ? | ||||
Changes in fair value of fuel derivative contracts | 0.6 | 0.2 | 0.1 | 0.1 | ||||
Loss on extinguishment of debt | ? | ? | ? | 0.3 | ||||
Unrealized loss (gain) on foreign debt | 1.2 | 2.1 | (0.4) | (1.0) | ||||
Unrealized loss (gain) on equity securities | (2.1) | 0.3 | (0.4) | 0.9 | ||||
Adjusted Pre-Tax Margin | (22.9) % | (4.3) % | (14.5) % | (10.0) % |
SOURCE Hawaiian Holdings, Inc.
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