HONOLULU, Oct. 27, 2020 /PRNewswire/ -- Hawaiian
Holdings, Inc. (NASDAQ: HA) ("we" or the "Company"), parent
company of Hawaiian Airlines, Inc. ("Hawaiian"), today
reported its financial results for the third quarter of 2020.
Third Quarter 2020
- Key Financial Metrics
|
|
|
GAAP
|
|
YoY
Change
|
|
Adjusted
|
|
YoY
Change
|
Net
Income
|
|
($97.1M)
|
|
($177.2M)
|
|
($172.7M)
|
|
($254.1M)
|
Diluted
EPS
|
|
($2.11)
|
|
($3.81)
|
|
($3.76)
|
|
($5.48)
|
Pre-tax
Margin
|
|
(189.0)%
|
|
(203.4)
pts.
|
|
(321.4)%
|
|
(336) pts.
|
"The COVID-19 pandemic and State of Hawai'i quarantines
continued to have a dramatic effect on our business in the third
quarter," said Peter Ingram,
Hawaiian Airlines President and CEO. "Despite these
monumental challenges, my colleagues throughout the business have
done an incredible job adapting to the evolving environment.
We have taken action to reduce expenses, preserve cash, bolster our
liquidity and care for our guests, positioning us to begin the
recovery process in earnest with the introduction of the State of
Hawai'i's pre-travel testing regime in the fourth quarter."
Liquidity and Capital Resources
As of September 30, 2020, the Company had:
- Unrestricted cash, cash equivalents and short-term investments
of $979 million
- Outstanding debt and finance lease obligations of $1,299 million
- Air traffic liability of $515
million
Third Quarter 2020
The State of Hawai'i was under mandatory 14-day self-quarantine
for all incoming travelers throughout the third quarter of 2020,
and for neighbor island travel starting from August 11, 2020 and as a consequence, the Company
operated an extremely limited schedule during the third
quarter.
During the quarter, the Company implemented both permanent and
extended voluntary leave programs with each of its workgroups, and
prepared for involuntary reductions effective October 1, 2020. In total, the Company
reduced its workforce by approximately 2,400 employees, or more
than 32 percent of all employees, of which almost 2,100 were
through voluntary means.
To increase liquidity, the Company closed on approximately
$421 million of new financing during
the quarter, including:
- Raising approximately $114
million through the sale and leaseback of two Airbus A321neo
aircraft
- Raising approximately $262
million through the issuance of Enhanced Equipment Trust
Certificates backed by two Airbus A330 aircraft and six Airbus
A321neo aircraft
- Drawing approximately $45 million
of the $420 million available through
the Economic Relief Program ("ERP") loans offered under the
Coronavirus Aid, Relief, and Economic Security Act (the "CARES
Act")
As of September 30, 2020, the
Company has received $240.6 million
in grants and $60.3 million in loans
pursuant to the CARES Act Payroll Support Program ("PSP"), of which
$38 million was received in the third
quarter.
In October 2020, the Company
executed an amendment with the U.S. Treasury increasing the total
amount of the ERP loan from $420
million to $622 million, of
which $577 million is undrawn; the
Company has until March 2021 to
determine how much of the remaining ERP funds to borrow.
Guest Experience
During the third quarter, the Company announced the following
guest experience improvements:
- Eliminated change fees on all domestic and international
flights in order to provide guests with travel flexibility across
its network
- Launched a program to offer guests pre-travel COVID-19 testing
through mail-in test kits and proprietary drive-through testing
labs in select U.S. mainland gateways
In addition, the Company continued its enhanced cleaning
procedures and revised guest-facing procedures as part of its
health and safety program, which is aligned with current
recommendations from leading public health authorities.
The Company currently has limited capacity to 70 percent on its
flights through December 15,
2020.
Fourth Quarter 2020
The State of Hawai'i launched a pre-travel testing program for
travelers entering the State on or after October 15, 2020. Travelers who choose to
participate in the program can bypass the State's mandatory 14-day
quarantine with proof of a negative COVID-19 test from one of the
State's approved testing partners.
The Company expects its fourth quarter 2020 capacity to be
approximately 70 percent below the capacity flown during the same
period last year. As a significant portion of the Company's
costs are fixed, operating expenses are not expected to decline in
proportion to the capacity decline.
In October 2020, the Company
reached an agreement with Boeing to push back the timing of 787-9
deliveries under its purchase agreement for 10 aircraft. The
Company now expects to take delivery of 787-9 aircraft from 2022 to
2026 with its first aircraft to be delivered in September 2022.
Statistical information, as well as a reconciliation of the
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 (October 27, 2020) 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 16 years (2004-2019) 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 91st year of continuous service, Hawaiian is
Hawai'i's biggest and longest-serving airline. In 2019, Hawaiian
offered nonstop flights between Hawai'i and more U.S. gateway
cities (13) than any other airline, along with service connecting
the islands with Japan,
South Korea, Australia, New
Zealand, American Samoa and
Tahiti. As a result of the COVID-19 pandemic, Hawaiian is offering
an adjusted schedule of daily flights within the Hawaiian Islands
and between Hawai'i and the U.S. mainland as well as
Japan.
The airline is committed to the health and safety of its guests
and employees and has reinforced enhanced cleaning procedures
across its business. While the experience may be a little
different, the authentic Hawaiian hospitality remains unchanged.
Additional details on how Hawaiian is keeping guests and employees
safe can be found at HawaiianAirlines.com/KeepingYouSafe.
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 business plans and ability to rebuild its business as the
demand for air travel recovers; the Company's expectations
regarding capacity for the fourth quarter of 2020; the Company's
operating expenses in the fourth quarter of 2020; the Company's
expectations related to the delivery and timing of its Boeing 787-9
aircraft purchases; 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; whether the Company's cost-cutting plans related to the
COVID-19 pandemic will be effective or sufficient; the duration of
government-mandated and other restrictions on travel; the full
effect that the quarantine, 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; the price and
availability of aircraft fuel; labor negotiations; 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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
%
Change
|
|
2020
|
|
2019
|
|
%
Change
|
|
(in thousands,
except per share data)
|
Operating
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
|
$
|
39,777
|
|
|
$
|
694,263
|
|
|
(94.3)
|
%
|
|
$
|
573,008
|
|
|
$
|
1,948,990
|
|
|
(70.6)
|
%
|
Other
|
36,205
|
|
|
60,888
|
|
|
(40.5)
|
%
|
|
122,122
|
|
|
175,101
|
|
|
(30.3)
|
%
|
Total
|
75,982
|
|
|
755,151
|
|
|
(89.9)
|
%
|
|
695,130
|
|
|
2,124,091
|
|
|
(67.3)
|
%
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Wages and
benefits
|
19,494
|
|
|
182,862
|
|
|
(89.3)
|
%
|
|
238,077
|
|
|
537,997
|
|
|
(55.7)
|
%
|
Aircraft fuel,
including taxes and delivery
|
14,544
|
|
|
138,586
|
|
|
(89.5)
|
%
|
|
135,025
|
|
|
405,290
|
|
|
(66.7)
|
%
|
Maintenance, materials
and repairs
|
18,664
|
|
|
61,363
|
|
|
(69.6)
|
%
|
|
93,067
|
|
|
182,539
|
|
|
(49.0)
|
%
|
Aircraft and passenger
servicing
|
5,140
|
|
|
41,762
|
|
|
(87.7)
|
%
|
|
46,459
|
|
|
120,303
|
|
|
(61.4)
|
%
|
Depreciation and
amortization
|
36,734
|
|
|
41,596
|
|
|
(11.7)
|
%
|
|
115,516
|
|
|
119,274
|
|
|
(3.2)
|
%
|
Commissions and other
selling
|
5,201
|
|
|
33,291
|
|
|
(84.4)
|
%
|
|
34,844
|
|
|
96,598
|
|
|
(63.9)
|
%
|
Aircraft
rent
|
26,230
|
|
|
30,534
|
|
|
(14.1)
|
%
|
|
77,120
|
|
|
91,773
|
|
|
(16.0)
|
%
|
Other rentals and
landing fees
|
14,156
|
|
|
33,345
|
|
|
(57.5)
|
%
|
|
57,599
|
|
|
95,777
|
|
|
(39.9)
|
%
|
Purchased
services
|
22,878
|
|
|
33,120
|
|
|
(30.9)
|
%
|
|
77,006
|
|
|
98,306
|
|
|
(21.7)
|
%
|
Special
items
|
17,489
|
|
|
—
|
|
|
100.0
|
%
|
|
178,407
|
|
|
—
|
|
|
100.0
|
%
|
Other
|
16,525
|
|
|
42,056
|
|
|
(60.7)
|
%
|
|
80,143
|
|
|
118,041
|
|
|
(32.1)
|
%
|
Total
|
197,055
|
|
|
638,515
|
|
|
(69.1)
|
%
|
|
1,133,263
|
|
|
1,865,898
|
|
|
(39.3)
|
%
|
Operating Income
(Loss)
|
(121,073)
|
|
|
116,636
|
|
|
(203.8)
|
%
|
|
(438,133)
|
|
|
258,193
|
|
|
(269.7)
|
%
|
Nonoperating
Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
Other nonoperating
special items
|
(7,011)
|
|
|
—
|
|
|
|
|
(7,011)
|
|
|
—
|
|
|
|
Interest expense and
amortization of debt discounts and issuance costs
|
(11,596)
|
|
|
(6,438)
|
|
|
|
|
(26,612)
|
|
|
(21,268)
|
|
|
|
Interest
income
|
1,942
|
|
|
3,148
|
|
|
|
|
7,728
|
|
|
9,205
|
|
|
|
Capitalized
interest
|
831
|
|
|
1,171
|
|
|
|
|
2,583
|
|
|
3,713
|
|
|
|
Losses on fuel
derivatives
|
(297)
|
|
|
(4,553)
|
|
|
|
|
(6,933)
|
|
|
(7,203)
|
|
|
|
Other, net
|
(6,380)
|
|
|
(1,445)
|
|
|
|
|
(2,915)
|
|
|
(5,553)
|
|
|
|
Total
|
(22,511)
|
|
|
(8,117)
|
|
|
|
|
(33,160)
|
|
|
(21,106)
|
|
|
|
Income (Loss)
Before Income Taxes
|
(143,584)
|
|
|
108,519
|
|
|
|
|
(471,293)
|
|
|
237,087
|
|
|
|
Income tax expense
(benefit)
|
(46,485)
|
|
|
28,443
|
|
|
|
|
(122,918)
|
|
|
62,820
|
|
|
|
Net Income
(Loss)
|
$
|
(97,099)
|
|
|
$
|
80,076
|
|
|
|
|
$
|
(348,375)
|
|
|
$
|
174,267
|
|
|
|
Net Income (Loss)
Per Share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(2.11)
|
|
|
$
|
1.70
|
|
|
|
|
$
|
(7.58)
|
|
|
$
|
3.65
|
|
|
|
Diluted
|
$
|
(2.11)
|
|
|
$
|
1.70
|
|
|
|
|
$
|
(7.58)
|
|
|
$
|
3.64
|
|
|
|
Weighted Average
Number of Common Stock Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
46,001
|
|
|
47,119
|
|
|
|
|
45,980
|
|
|
47,784
|
|
|
|
Diluted
|
46,001
|
|
|
47,236
|
|
|
|
|
45,980
|
|
|
47,847
|
|
|
|
Table
2.
|
Hawaiian
Holdings, Inc.
|
Selected
Statistical Data (unaudited)
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
2020
|
|
2019
|
|
%
Change
|
|
2020
|
|
2019
|
|
%
Change
|
|
(in thousands, except as otherwise indicated)
|
Scheduled
Operations (a) :
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passengers
flown
|
331
|
|
|
3,066
|
|
|
(89.2)
|
%
|
|
2,873
|
|
|
8,843
|
|
|
(67.5)
|
%
|
Revenue passenger
miles (RPM)
|
181,878
|
|
|
4,673,734
|
|
|
(96.1)
|
%
|
|
3,988,435
|
|
|
13,288,823
|
|
|
(70.0)
|
%
|
Available seat miles
(ASM)
|
711,151
|
|
|
5,321,812
|
|
|
(86.6)
|
%
|
|
6,095,612
|
|
|
15,325,559
|
|
|
(60.2)
|
%
|
Passenger revenue per
RPM (Yield)
|
21.87
|
¢
|
|
14.85
|
¢
|
|
47.3
|
%
|
|
14.37
|
¢
|
|
14.67
|
¢
|
|
(2.0)
|
%
|
Passenger load factor
(RPM/ASM)
|
25.6
|
%
|
|
87.8
|
%
|
|
(62.2)
|
pts.
|
|
65.4
|
%
|
|
86.7
|
%
|
|
(21.3)
|
pts.
|
Passenger revenue per
ASM (PRASM)
|
5.59
|
¢
|
|
13.05
|
¢
|
|
(57.2)
|
%
|
|
9.40
|
¢
|
|
12.72
|
¢
|
|
(26.1)
|
%
|
Total Operations
(a) :
|
|
|
|
|
|
|
|
|
|
|
|
Revenue passengers
flown
|
332
|
|
|
3,072
|
|
|
(89.2)
|
%
|
|
2,877
|
|
|
8,853
|
|
|
(67.5)
|
%
|
Revenue passenger
miles (RPM)
|
185,788
|
|
|
4,679,632
|
|
|
(96.0)
|
%
|
|
3,995,644
|
|
|
13,300,090
|
|
|
(70.0)
|
%
|
Available seat miles
(ASM)
|
718,405
|
|
|
5,331,914
|
|
|
(86.5)
|
%
|
|
6,107,424
|
|
|
15,341,510
|
|
|
(60.2)
|
%
|
Operating revenue per
ASM (RASM)
|
10.58
|
¢
|
|
14.16
|
¢
|
|
(25.3)
|
%
|
|
11.38
|
¢
|
|
13.85
|
¢
|
|
(17.8)
|
%
|
Operating cost per ASM
(CASM)
|
27.43
|
¢
|
|
11.98
|
¢
|
|
129.0
|
%
|
|
18.56
|
¢
|
|
12.16
|
¢
|
|
52.6
|
%
|
CASM excluding
aircraft fuel and non-recurring items (b)
|
40.94
|
¢
|
|
9.38
|
¢
|
|
336.5
|
%
|
|
17.36
|
¢
|
|
9.53
|
¢
|
|
82.2
|
%
|
Aircraft fuel expense
per ASM (c)
|
2.02
|
¢
|
|
2.60
|
¢
|
|
(22.3)
|
%
|
|
2.22
|
¢
|
|
2.64
|
¢
|
|
(15.9)
|
%
|
Revenue block hours
operated
|
12,388
|
|
|
56,088
|
|
|
(77.9)
|
%
|
|
71,743
|
|
|
162,556
|
|
|
(55.9)
|
%
|
Gallons of jet fuel
consumed
|
13,394
|
|
|
69,749
|
|
|
(80.8)
|
%
|
|
84,975
|
|
|
201,547
|
|
|
(57.8)
|
%
|
Average cost per
gallon of jet fuel (actual) (c)
|
$
|
1.09
|
|
|
$
|
1.99
|
|
|
(45.2)
|
%
|
|
$
|
1.59
|
|
|
$
|
2.01
|
|
|
(20.9)
|
%
|
Economic fuel cost per
gallon (c)(d)
|
$
|
1.24
|
|
|
$
|
2.04
|
|
|
(39.2)
|
%
|
|
$
|
1.68
|
|
|
$
|
2.06
|
|
|
(18.4)
|
%
|
|
|
(a)
|
Includes the
operations of the Company's contract carrier under a capacity
purchase agreement.
|
(b)
|
See Table 4 for a
reconciliation of GAAP operating expenses to operating expenses
excluding aircraft fuel and non-recurring items.
|
(c)
|
Includes applicable
taxes and fees.
|
(d)
|
See Table 3 for a
reconciliation of GAAP fuel costs to economic fuel
costs.
|
Table 3.
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.
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
2020
|
|
2019
|
|
%
Change
|
|
2020
|
|
2019
|
|
%
Change
|
|
(in thousands,
except per-gallon amounts)
|
Aircraft fuel
expense, including taxes and delivery
|
$
|
14,544
|
|
|
$
|
138,586
|
|
|
(89.5)
|
%
|
|
$
|
135,025
|
|
|
$
|
405,290
|
|
|
(66.7)
|
%
|
Realized losses on
settlement of fuel derivative contracts
|
2,062
|
|
|
3,399
|
|
|
(39.3)
|
%
|
|
7,899
|
|
|
9,294
|
|
|
(15.0)
|
%
|
Economic fuel
expense
|
$
|
16,606
|
|
|
$
|
141,985
|
|
|
(88.3)
|
%
|
|
$
|
142,924
|
|
|
$
|
414,584
|
|
|
(65.5)
|
%
|
Fuel gallons
consumed
|
13,394
|
|
|
69,749
|
|
|
(80.8)
|
%
|
|
84,975
|
|
|
201,547
|
|
|
(57.8)
|
%
|
Economic fuel costs
per gallon
|
$
|
1.24
|
|
|
$
|
2.04
|
|
|
(39.2)
|
%
|
|
$
|
1.68
|
|
|
$
|
2.06
|
|
|
(18.4)
|
%
|
Table 4.
Hawaiian
Holdings, Inc.
Non-GAAP Financial Reconciliation
(unaudited)
The Company evaluates its financial performance utilizing
various GAAP and non-GAAP financial measures, including net income,
diluted net income per share, CASM, PRASM, RASM, Passenger Revenue
per RPM, EBITDAR, and 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:
- During the three and nine months ended September 30, 2020, the effective tax rate
included a tax benefit of $6.1
million and $29.5 million,
respectively, resulting from the rate differential between the
prevailing tax rate of 21% during the years that generated net
operating losses and the previous tax rate of 35% that was in
effect during the years to which net operating losses were carried
back as a result of the enactment of the CARES Act.
- During the three and nine months ended September 30, 2020, the Company recognized
$129.1 million and $240.6 million in contra-expense related to grant
proceeds from the PSP. The grant proceeds were recognized in
proportion to estimated wages and benefits expense over the period
the PSP covers. The Company utilized all proceeds from the PSP as
of September 30, 2020.
- 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.
- 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.
- Unrealized loss (gain) on foreign debt is based on fluctuation
in exchange rates and the measurement of foreign-denominated debt
to our functional currency.
- The Company recorded the following as special items:
-
- During the three months ended March 31,
2020, a charge of $20.2
million was recorded for the ratification of a collective
bargaining agreement with the Association of Flight Attendants in
April 2020 (related to service prior
to January 1, 2020).
- During the three months ended March 31,
2020, a special charge of $106.7
million was recorded for goodwill impairment resulting from
the decline in the market value of the Company's equity (i.e.,
share price), and the Company's inability to support the carrying
value of goodwill on its financial statements.
- During the three months ended June 30,
2020, an impairment charge of $27.5
million was recorded related to the Company's ATR-42 and
ATR-72 fleets. An additional impairment charge of $3.4 million was recorded related to the
Company's commercial real estate subsidiary.
- During the three months ended June 30,
2020, the Company recorded $3.1
million of charges related to write-downs of projects
permanently suspended as a result of the COVID-19 pandemic.
- During the three months ended September
30, 2020, the Company recorded $24.5
million in special items related to its voluntary and
involuntary separation programs, of which $17.5 million was recorded as an operating
special item related to severance and benefits and $7.0 million was recorded as a non-operating
special item related to termination benefits and curtailment
loss.
- During the nine months ended September
30, 2019, the Company recorded a gain on disposal of Boeing
767-300 aircraft equipment of $1.9
million in conjunction with the retirement of its B767
fleet.
The Company believes that adjusting for the impact of an
effective tax rate differential, the receipt of grant proceeds,
changes in fair value of fuel derivative contracts and foreign
currency derivative contracts, fluctuations in foreign exchange
rates, special items, and the sale of aircraft and aircraft
equipment helps investors better analyze the Company's operational
performance and compare its results to other airlines in the
periods presented.
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Total
|
|
Diluted
Net Loss
Per Share
|
|
Total
|
|
Diluted
Net
Income
Per Share
|
|
Total
|
|
Diluted
Net Loss
Per Share
|
|
Total
|
|
Diluted
Net
Income
Per Share
|
|
(in thousands,
except per share data)
|
GAAP Net Income
(Loss), as reported
|
$
|
(97,099)
|
|
|
$
|
(2.11)
|
|
|
$
|
80,076
|
|
|
$
|
1.70
|
|
|
$
|
(348,375)
|
|
|
$
|
(7.58)
|
|
|
$
|
174,267
|
|
|
$
|
3.64
|
|
Add: CARES Act
carryback of additional NOLs
|
(6,143)
|
|
|
(0.13)
|
|
|
—
|
|
|
—
|
|
|
(29,537)
|
|
|
(0.64)
|
|
|
—
|
|
|
—
|
|
Add: CARES Act grant
recognition
|
(129,088)
|
|
|
(2.81)
|
|
|
—
|
|
|
—
|
|
|
(240,648)
|
|
|
(5.23)
|
|
|
—
|
|
|
—
|
|
Add (deduct): changes
in fair value of fuel derivative contracts
|
(1,765)
|
|
|
(0.04)
|
|
|
1,154
|
|
|
0.02
|
|
|
(966)
|
|
|
(0.02)
|
|
|
(2,091)
|
|
|
(0.04)
|
|
Add: unrealized loss
on foreign debt
|
5,119
|
|
|
0.11
|
|
|
717
|
|
|
0.01
|
|
|
7,541
|
|
|
0.16
|
|
|
2,254
|
|
|
0.05
|
|
Add: gain on sale of
aircraft equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,948)
|
|
|
(0.04)
|
|
Add: unrealized loss
(gain) on non-designated fx positions
|
623
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
423
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
Add: special
items
|
17,489
|
|
|
0.38
|
|
|
—
|
|
|
—
|
|
|
178,407
|
|
|
3.88
|
|
|
—
|
|
|
—
|
|
Add: nonoperating
special items
|
7,011
|
|
|
0.15
|
|
|
—
|
|
|
—
|
|
|
7,011
|
|
|
0.15
|
|
|
—
|
|
|
—
|
|
Deduct: tax effect of
adjustments
|
31,189
|
|
|
0.68
|
|
|
(490)
|
|
|
(0.01)
|
|
|
48,017
|
|
|
1.04
|
|
|
473
|
|
|
0.01
|
|
Adjusted Net Income
(Loss)
|
$
|
(172,664)
|
|
|
$
|
(3.76)
|
|
|
$
|
81,457
|
|
|
$
|
1.72
|
|
|
$
|
(378,127)
|
|
|
$
|
(8.23)
|
|
|
$
|
172,955
|
|
|
$
|
3.62
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(in
thousands)
|
Income Before Income
Taxes, as reported
|
$
|
(143,584)
|
|
|
$
|
108,519
|
|
|
$
|
(471,293)
|
|
|
$
|
237,087
|
|
Add: CARES Act grant
recognition
|
(129,088)
|
|
|
—
|
|
|
(240,648)
|
|
|
—
|
|
Add (deduct): changes
in fair value of fuel derivative contracts
|
(1,765)
|
|
|
1,154
|
|
|
(966)
|
|
|
(2,091)
|
|
Add: unrealized loss
on foreign debt
|
5,119
|
|
|
717
|
|
|
7,541
|
|
|
2,254
|
|
Add: gain on sale of
aircraft and equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,948)
|
|
Add: unrealized
loss (gain) on non-designated fx positions
|
623
|
|
|
—
|
|
|
423
|
|
|
—
|
|
Add: special
items
|
17,489
|
|
|
—
|
|
|
178,407
|
|
|
—
|
|
Add: nonoperating
special items
|
7,011
|
|
|
—
|
|
|
7,011
|
|
|
—
|
|
Adjusted Income
Before Income Taxes
|
$
|
(244,195)
|
|
|
$
|
110,390
|
|
|
$
|
(519,525)
|
|
|
$
|
235,302
|
|
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
September 30,
|
|
Nine months ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(in thousands,
except CASM data)
|
GAAP Operating
Expenses
|
$
|
197,055
|
|
|
$
|
638,515
|
|
|
$
|
1,133,263
|
|
|
$
|
1,865,898
|
|
Less: aircraft fuel,
including taxes and delivery
|
(14,544)
|
|
|
(138,586)
|
|
|
(135,025)
|
|
|
(405,290)
|
|
Less: CARES Act grant
recognition
|
129,088
|
|
|
—
|
|
|
240,648
|
|
|
—
|
|
Less: gain on sale of
aircraft and equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
1,948
|
|
Less: special
items
|
(17,489)
|
|
|
—
|
|
|
$
|
(178,407)
|
|
|
—
|
|
Adjusted Operating
Expenses
|
$
|
294,110
|
|
|
$
|
499,929
|
|
|
$
|
1,060,479
|
|
|
$
|
1,462,556
|
|
Available Seat
Miles
|
718,405
|
|
|
5,331,914
|
|
|
6,107,424
|
|
|
15,341,510
|
|
CASM -
GAAP
|
27.43
|
¢
|
|
11.98
|
¢
|
|
18.56
|
¢
|
|
12.16
|
¢
|
Less: aircraft fuel,
including taxes and delivery
|
(2.02)
|
|
|
(2.60)
|
|
|
(2.22)
|
|
|
(2.64)
|
|
Less: CARES Act grant
recognition
|
17.97
|
|
|
—
|
|
|
3.94
|
|
|
—
|
|
Less: gain on sale of
aircraft and equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
Less: special
items
|
(2.44)
|
|
|
—
|
|
|
(2.92)
|
|
|
—
|
|
Adjusted
CASM
|
40.94
|
¢
|
|
9.38
|
¢
|
|
17.36
|
¢
|
|
9.53
|
¢
|
Pre-tax margin
The Company excludes unrealized losses
(gains) from fuel derivative contracts and foreign currency
derivative contracts, and non-recurring items from pre-tax margin
for the same reasons as described above.
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Pre-Tax Margin, as
reported
|
(189.0)
|
%
|
|
14.4
|
%
|
|
(67.8)
|
%
|
|
11.2
|
%
|
Add: CARES Act grant
recognition
|
(169.9)
|
|
|
—
|
|
|
(34.6)
|
|
|
—
|
|
Add: changes in fair
value of fuel derivative contracts
|
(2.3)
|
|
|
0.1
|
|
|
(0.1)
|
|
|
(0.1)
|
|
Add: unrealized loss
on foreign debt
|
6.8
|
|
|
0.1
|
|
|
1.0
|
|
|
0.1
|
|
Add: gain on sale of
aircraft and equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
Add: unrealized loss
(gain) on non-designated fx positions
|
0.8
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Add: special
items
|
23.0
|
|
|
—
|
|
|
25.7
|
|
|
—
|
|
Add: nonoperating
special items
|
9.2
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
Adjusted Pre-Tax
Margin
|
(321.4)
|
%
|
|
14.6
|
%
|
|
(74.7)
|
%
|
|
11.1
|
%
|
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SOURCE Hawaiian Holdings, Inc.