HONOLULU, Jan. 8, 2018 /PRNewswire/ -- Hawaiian
Airlines, Inc., a subsidiary of Hawaiian Holdings, Inc. (NASDAQ:
HA) ("Hawaiian" or the "Company"), welcomed a record 11,505,324
guests in 2017, a 4.1 percent increase over the previous
year. Hawai'i's largest and longest-serving airline today
announced its system-wide traffic statistics for the month,
quarter, and full year ended December
31, 2017. The Company also updated its expectations
for certain fourth quarter and full year 2017 financial
metrics.
The record number of passengers in 2017
marks 13 straight years of growth as the Company continues
to expand its network and fleet, providing travelers with more
options to fly to, and within, the Hawaiian Islands than any other
carrier.
Hawaiian took delivery of its first of 18 A321neo aircraft in
November, and its second in December. The A321neo aircraft
will help the airline to build upon its already strong U.S. West
Coast presence, highlighted by recent announcements that included
new daily non-stop service to Maui's Kahului Airport from San Diego and Portland international airports
as well as to Honolulu's Daniel K.
Inouye Airport from Long Beach Airport. Hawaiian will also
expand its summer seasonal service with four additional daily
summer flights in 2018, including its first international seasonal
service between Narita and
Honolulu international airports.
Additionally, Hawaiian added its 24th A330-200 aircraft in October
and its first of three expected ATR 72 turboprop aircraft in an
all-cargo configuration in December.
SYSTEM-WIDE
OPERATIONS1
|
|
|
DECEMBER
|
2017
|
2016
|
% CHANGE
|
PAX
|
1,000,646
|
927,521
|
7.9%
|
RPMS (000)
|
1,388,279
|
1,336,613
|
3.9%
|
ASMS (000)
|
1,645,354
|
1,589,264
|
3.5%
|
LF
|
84.4%
|
84.1%
|
0.3 pts
|
|
|
|
|
FOURTH
QUARTER
|
2017
|
2016
|
% CHANGE
|
PAX
|
2,913,591
|
2,729,726
|
6.7%
|
RPMS (000)
|
4,125,894
|
3,932,713
|
4.9%
|
ASMS (000)
|
4,798,039
|
4,570,679
|
5.0%
|
LF
|
86.0%
|
86.0%
|
0.0 pts
|
|
|
|
|
YEAR-TO-DATE
|
2017
|
2016
|
% CHANGE
|
PAX
|
11,505,324
|
11,050,911
|
4.1%
|
RPMS (000)
|
16,316,739
|
15,492,509
|
5.3%
|
ASMS (000)
|
19,006,682
|
18,384,637
|
3.4%
|
LF
|
85.8%
|
84.3%
|
1.5 pts
|
|
|
PAX
|
Passengers
transported
|
RPM
|
Revenue Passenger
Miles; one paying passenger transported one mile
|
ASM
|
Available Seat
Miles; one seat transported one mile
|
LF
|
Load Factor;
percentage of seating capacity filled
|
|
1Includes the operations of
contract carriers under capacity purchase
agreements.
|
Fourth Quarter & Full Year 2017 Outlook
The Company has revised certain of its expectations for the
quarter and year ended December 31,
2017, that were previously provided in its Third Quarter
2017 Earnings Release on October 19,
2017 and updated on December 5,
2017.
Specifically, for the quarter and year ended December 31, 2017, the Company:
- expects its operating revenue per ASM to be at the favorable
end of the prior guidance range due to stronger than expected close
in bookings;
- is raising its estimates for gallons of jet fuel consumed due
to higher than expected payloads; and
- is raising its estimates for operating costs per ASM (CASM)
excluding fuel and special items due to higher than expected
revenue related expenses and the shift of certain operating
expenses into 2017 that were originally expected in 2018.
Excluding the impact of these items, the Company's expectations of
CASM excluding fuel and special items would be roughly in line with
the prior fourth quarter and full year 2017 guidance.
The tables below summarize the Company's revised expectations,
expressed as an expected percentage change compared to the results
for the quarter and year ended December 31,
2016.
Item
|
|
Prior Fourth
Quarter 2017 Guidance
|
|
Revised Fourth
Quarter 2017 Guidance
|
|
GAAP
Equivalent
|
|
Prior GAAP Fourth
Quarter 2017 Guidance
|
|
Revised GAAP
Fourth Quarter 2017 Guidance
|
Cost per ASM
excluding fuel and special items (a)
|
|
Up 3.5% to up
6.5%
|
|
Up 6.0% to up
7.0%
|
|
Cost per ASM
(a)
|
|
Down 10.3% to down
13.5%
|
|
Down 8.6% to down
10.5%
|
Operating revenue per
ASM
|
|
Up 1.5% to up
3.5%
|
|
Up 2.5% to up
3.5%
|
|
|
|
|
|
|
Gallons of jet fuel
consumed
|
|
Up 5.0% to up
8.0%
|
|
Up 7.5% to up
8.5%
|
|
|
|
|
|
|
|
Item
|
|
Prior Full Year
2017 Guidance
|
|
Revised Full Year
2017 Guidance
|
|
GAAP
Equivalent
|
|
Prior GAAP Full
Year 2017 Guidance
|
|
Revised GAAP Full
Year 2017 Guidance
|
Cost per ASM
excluding fuel and special items (a)
|
|
Up 6.0% to up
7.0%
|
|
Up 6.7% to up
7.2%
|
|
Cost per ASM
(a)
|
|
Up 3.6% to up
5.5%
|
|
Up 4.3% to up
6.0%
|
Operating revenue per
ASM
|
|
Up 5.5% to up
6.5%
|
|
Up 6.1% to up
6.6%
|
|
|
|
|
|
|
Gallons of jet fuel
consumed
|
|
Up 5.5% to up
6.5%
|
|
Up 6.3% to up
6.8%
|
|
|
|
|
|
|
|
|
(a)
|
See Table 1 for a
reconciliation of GAAP operating expenses to operating expenses
excluding aircraft fuel and special items
|
The Company believes that CASM excluding fuel and special items
provides useful information about the underlying cost structure of
the Company and is consistent with the metrics used by management
to measure and monitor the Company's costs.
Tax Reform Impact
For the quarter ended December 31,
2017, the Company expects to record a one-time reduction to
income tax expense in the range of $90 - $140 million
due to the expected effect of the Tax Cuts and Jobs Act of 2017.
This reduction is a result of the difference between rates in
effect when income tax expense was accrued, and the rates expected
to be in effect when the income taxes will likely be paid. This
estimated impact is a non-cash item and is expected to be treated
as a special item.
Non-GAAP Financial
Reconciliations
|
(in
thousands)
|
|
Table
1
|
|
|
|
Estimated three
months ended December 31, 2017
|
GAAP operating
expenses
|
|
$
|
579,637
|
|
to
|
$
|
591,763
|
|
Less: aircraft fuel,
including taxes and delivery
|
|
(120,887)
|
|
to
|
(128,685)
|
|
Adjusted operating
expenses - excluding aircraft fuel
|
|
$
|
458,750
|
|
to
|
$
|
463,078
|
|
Available Seat
Miles
|
|
4,798,039
|
|
to
|
4,798,039
|
|
|
|
|
|
|
CASM -
GAAP
|
|
12.08
|
¢
|
to
|
12.33
|
¢
|
Less: aircraft
fuel
|
|
(2.52)
|
|
to
|
(2.68)
|
|
CASM - excluding
aircraft fuel and special items
|
|
9.56
|
¢
|
to
|
9.65
|
¢
|
|
|
|
|
Estimated twelve
months ended December 31, 2017
|
GAAP operating
expenses
|
|
$
|
2,194,731
|
|
to
|
$
|
2,230,991
|
|
Less: aircraft fuel,
including taxes and delivery
|
|
(427,190)
|
|
to
|
(455,277)
|
|
Less: special
items
|
|
|
|
|
|
|
Loss on sale of aircraft
|
|
(4,771)
|
|
to
|
(4,771)
|
|
Collective bargaining charge
|
|
(18,679)
|
|
To
|
(18,679)
|
|
Adjusted operating
expenses - excluding aircraft fuel
|
|
$
|
1,744,091
|
|
to
|
$
|
1,752,264
|
|
Available Seat
Miles
|
|
19,006,682
|
|
to
|
19,006,682
|
|
|
|
|
|
|
CASM -
GAAP
|
|
11.55
|
¢
|
to
|
11.74
|
¢
|
Less: aircraft
fuel
|
|
(2.24)
|
|
to
|
(2.39)
|
|
Less: special
items
|
|
|
|
|
|
|
Loss on sale of aircraft
|
|
(0.03)
|
|
to
|
(0.03)
|
|
Collective bargaining charge
|
|
(0.10)
|
|
to
|
(0.10)
|
|
CASM - excluding
aircraft fuel and special items
|
|
9.18
|
¢
|
to
|
9.22
|
¢
|
Safe Harbor Statement
This press release contains forward-looking statements that
reflect the Company's current views with respect to certain current
and future events and financial performance including but not
limited to the Company's expectations regarding operating revenue
per ASM, CASM excluding fuel and special items and gallons of jet
fuel consumed each for the quarter and full year ended December 31, 2017. These forward-looking
statements are subject to change in connection with the preparation
and audit of the Company's financial statements for the quarter and
full year ended December 31, 2017.
The Company undertakes no obligation 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. Additional information
on risk factors that could potentially affect the Company's
operations and financial results may be found in the Company's
Annual Report on Form 10-K for the fiscal year ended December 31, 2016, and subsequent filings with
the Securities Exchange Commission.
About Hawaiian Airlines
Hawaiian®, the world's most punctual airline as reported by OAG,
has led all U.S. carriers in on-time performance for each of the
past 13 years (2004-2016) as reported by the U.S. Department of
Transportation. Consumer surveys by Condé Nast
Traveler and Travel + Leisure have placed
Hawaiian among the top of all domestic airlines serving
Hawai'i.
Now in its 89th year of continuous service, Hawaiian is
Hawai'i's biggest and longest-serving airline. Hawaiian offers
non-stop service to Hawai'i from more U.S. gateway cities (11) than
any other airline, along with service from Japan, South
Korea, China, Australia, New
Zealand, American Samoa and
Tahiti. Hawaiian also provides approximately 170 jet flights daily
between the Hawaiian Islands, with a total of more than 250 daily
flights system-wide.
Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings,
Inc. (NASDAQ: HA). Additional information is available
at HawaiianAirlines.com. Follow updates on Twitter about
Hawaiian (@HawaiianAir) and its special fare offers
(@HawaiianFares), and become a fan on its Facebook page (Hawaiian
Airlines). For career postings and updates, follow
Hawaiian's LinkedIn page.
For media inquiries, please visit Hawaiian Airlines' online
newsroom.
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SOURCE Hawaiian Airlines