HONOLULU, Oct. 7, 2019 /PRNewswire/ -- Hawaiian Airlines,
Inc., a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA)
("Hawaiian" or the "Company"), today announced its system-wide
traffic statistics for the month and quarter ended September 30, 2019. The Company also updated its
expectations for certain third quarter 2019 financial metrics.
Hawaiian welcomed more than 931,000 guests in September 2019. Total traffic (revenue passenger
miles) increased 3.0 percent on an increase of 0.7 percent in
capacity (available seat miles) compared to September 2018. Load factor increased 1.9 points
to 85.5 percent.
For the third quarter ended September 30,
2019, Hawaiian welcomed more than 3 million guests. Total
traffic increased 2.7 percent on a decrease of 0.4 percent in
capacity. Load factor increased 2.7 points to 87.8 percent.
The table below summarizes September, third quarter, and
year-to-date statistics compared to the respective prior-year
periods.
SYSTEM-WIDE OPERATIONS1
SEPTEMBER
|
2019
|
2018
|
% CHANGE
|
PAX
|
931,280
|
918,715
|
1.4%
|
RPMs (000)
|
1,490,482
|
1,446,766
|
3.0%
|
ASMs (000)
|
1,742,249
|
1,729,723
|
0.7%
|
LF
|
85.5%
|
83.6%
|
1.9 pts
|
|
|
|
|
THIRD
QUARTER
|
2019
|
2018
|
% CHANGE
|
PAX
|
3,071,854
|
3,039,107
|
1.1%
|
RPMs (000)
|
4,679,632
|
4,557,706
|
2.7%
|
ASMs (000)
|
5,331,914
|
5,352,976
|
(0.4)%
|
LF
|
87.8%
|
85.1%
|
2.7 pts
|
|
|
|
|
YEAR-TO-DATE
|
2019
|
2018
|
% CHANGE
|
PAX
|
8,853,052
|
8,948,975
|
(1.1)%
|
RPMs (000)
|
13,300,090
|
12,921,666
|
2.9%
|
ASMs (000)
|
15,341,510
|
15,104,500
|
1.6%
|
LF
|
86.7%
|
85.5%
|
1.2 pts
|
PAX
|
Passengers
transported
|
RPM
|
Revenue Passenger
Mile; one paying passenger transported one mile
|
ASM
|
Available Seat
Mile; one seat transported one mile
|
LF
|
Load Factor;
percentage of seating capacity filled
|
|
1Includes the operations of
contract carriers under capacity purchase
agreements.
|
Third Quarter 2019 Outlook
The Company has revised certain of its expectations for the
quarter ended September 30, 2019 that
were previously provided in its Second Quarter Earnings Release on
July 30, 2019.
Specifically, the Company:
- raised its estimates for operating revenue per ASM due to
better than expected yields in long-haul markets, particularly in
its International entity;
- narrowed its estimates for operating cost per ASM excluding
fuel and non-recurring items;
- narrowed its estimates for gallons of jet fuel consumed;
and
- lowered its estimates for economic fuel cost per gallon.
The table below summarizes the Company's revised expectations
for the quarter ended September 30,
2019 expressed as an expected percentage change compared to
the results for the quarter ended September
30, 2018.
Item
|
|
Prior Third
Quarter 2019 Guidance
|
|
Revised Third
Quarter 2019 Guidance
|
|
GAAP
Equivalent
|
|
Prior GAAP Third
Quarter 2019 Guidance
|
|
Revised GAAP Third
Quarter 2019 Guidance
|
Operating revenue per
available seat mile (ASM)
|
|
Down 1.5 -
4.5%
|
|
Down 0.5% - up
0.5%
|
|
|
|
|
|
|
Cost per ASM (CASM)
excluding aircraft fuel and non-recurring items (a)
|
|
Up 3.5 -
6.5%
|
|
Up 4.5 -
5.5%
|
|
Cost per ASM
(a)
|
|
Down 0.5% - Up
1.7%
|
|
Down 0.8% - Up
0.2%
|
Gallons of jet fuel
consumed
|
|
Down 2.5 -
4.5%
|
|
Down 3.0 -
4.0%
|
|
|
|
|
|
|
Economic fuel cost per
gallon (b)
|
|
$2.11
|
|
$2.04
|
|
Fuel cost per gallon
(b)
|
|
$2.07
|
|
$1.99
|
|
|
(a)
|
See Table 1 for a
reconciliation of GAAP operating expenses to operating expenses
excluding aircraft fuel and non-recurring items.
|
(b)
|
See Table 2 for a
reconciliation of GAAP fuel costs to economic fuel
costs.
|
Non-GAAP Financial Reconciliation
Table
1.
|
Operating Costs
per Available Seat Mile (CASM)
|
(in thousands,
except CASM data) (unaudited)
|
|
|
|
Estimated three
months ended September 30, 2019
|
GAAP operating
expenses
|
$
|
635,989
|
|
|
to
|
$
|
642,227
|
|
|
Less: aircraft fuel,
including taxes and delivery
|
|
(137,865)
|
|
|
to
|
|
(139,337)
|
|
|
Adjusted operating
expenses - excluding aircraft fuel
|
$
|
498,124
|
|
|
to
|
$
|
502,890
|
|
|
Available Seat
Miles
|
|
5,331,914
|
|
|
to
|
|
5,331,914
|
|
|
CASM –
GAAP
|
|
11.93
|
|
¢
|
to
|
|
12.04
|
|
¢
|
Less: aircraft fuel,
including taxes and delivery
|
|
(2.59)
|
|
|
to
|
|
(2.61)
|
|
|
CASM - excluding
aircraft fuel
|
|
9.34
|
|
¢
|
to
|
|
9.43
|
|
¢
|
Table
2.
|
Hawaiian Holdings,
Inc.
|
Economic Fuel
Expense (unaudited)
|
|
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.
|
|
|
|
Estimated three
months ending
September 30,
2019
|
|
|
(in thousands,
except per-gallon amounts)
|
Aircraft fuel
expense, including taxes and delivery
|
|
$
|
137,865
|
|
to
|
$
|
139,337
|
|
Realized losses
(gains) on settlement of fuel derivative contracts
|
|
3,400
|
|
to
|
3,400
|
|
Economic fuel
expense
|
|
$
|
141,265
|
|
to
|
$
|
142,737
|
|
Fuel gallons
consumed
|
|
69,247
|
|
to
|
69,969
|
|
Economic fuel costs
per gallon
|
|
$
|
2.04
|
|
to
|
$
|
2.04
|
|
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 expectations regarding operating revenue per available
seat mile, cost per available seat mile, and cost per available
seat mile excluding fuel for the quarter ended September 30, 2019; 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, as
the case may 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 Company's ability to
accurately forecast quarterly results; economic volatility;
macroeconomic developments; political developments; the price and
availability of aircraft fuel; fluctuations in demand for
transportation in the markets in which the Company operates,
including due to the occurrence of natural disasters, such as
hurricanes, earthquakes and tsunamis; the Company's dependence on
tourist travel; labor negotiations and related developments;
competitive pressures, including the impact of rising industry
capacity between North America and
Hawai'i; the Company's ability to continue to generate sufficient
cash flow to support the payment of a quarterly dividend; changes
in the Company's future capital needs; foreign currency exchange
rate fluctuations; and the Company's ability to implement its
growth strategy.
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.
About Hawaiian Airlines
Hawaiian® has led all U.S. carriers in on-time performance for
each of the past 15 years (2004-2018) as reported by the U.S.
Department of Transportation. Consumer surveys by Condé Nast
Traveler, Travel + Leisure and TripAdvisor have
placed Hawaiian among the top of all domestic airlines serving
Hawai'i.
Now in its 90th year of continuous service, Hawaiian is
Hawaii's biggest and
longest-serving airline. Hawaiian offers non-stop service to
Hawai'i from more U.S. gateway cities (13) than any other airline,
along with service from Japan,
South Korea, Australia, New
Zealand, American Samoa and
Tahiti. Hawaiian also provides, on average, more than 170 jet
flights daily between the Hawaiian Islands, and over 260 daily
flights system-wide.
Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings,
Inc. (NASDAQ: HA). Additional information is available at Hawaiian
Airlines.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.
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SOURCE Hawaiian Airlines