Hawaiian Holdings Reports 2013 Second Quarter Financial Results

HONOLULU, July 23, 2013 /PRNewswire/ -- Hawaiian Holdings, Inc. (NASDAQ: HA) ("Holdings" or the "Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported its financial results for the second quarter of 2013. 

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Second Quarter 2013 Financial Results

• Adjusted net income, reflecting economic fuel expense, of $12.6 million or $0.24 per diluted share.
• GAAP net income of $11.3 million or $0.21 cents per diluted share.
• Available seat miles (ASMs) increase of 20.9% year-over-year.
• Cost per available seat mile (CASM), excluding fuel, decrease of 11.2% year-over-year.
• CASM decrease of 9.7% year-over-year.

Mark Dunkerley, the Company's President and Chief Executive Officer, commented that "Our results for the quarter were better than expected thanks chiefly to some good cost control. Demand across all of our geographies remains strong, even overseas where the dollar has strengthened against foreign currencies.  In North America, our business is coming back as the rate of industry capacity growth moderated in the quarter while our Neighbor Island business is now performing well.  On our international routes we are seeing the strengthening of the dollar undermine some of the excellent results we have had in the last couple of years but this portion of our business remains the core focus of our expansion plans.

"Everyone in the company worked hard as we continued with the heavy pace of new developments.  We inaugurated new routes, we secured financing for future aircraft deliveries on very favorable terms, we implemented new computer systems and completed countless other initiatives.  Throughout, my colleagues on the ground and in the air continue to keep us ahead of the field in taking care of our customers safely, efficiently and with the hospitality that is our hallmark."

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, 2013 the Company had:

• Unrestricted cash and cash equivalents of $478 million.
• Available borrowing capacity of $70 million under Hawaiian's Revolving Credit Facility.
• Outstanding debt and capital lease obligations of approximately $767 million consisting of the following:
  • $369 million outstanding under secured loan agreements to finance a portion of the purchase price for six Airbus A330-200 aircraft.
  • $163 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.
  • $103 million in capital lease obligations to finance an Airbus A330-200 and two Boeing 717-200 aircraft.
  • $58 million outstanding under floating rate notes issued in conjunction with the acquisition of three Boeing 767-300 ER aircraft.
  • $74 million outstanding of Convertible Senior Notes.

Business Highlights

Operational

• Ranked #1 nationally for on-time performance for the months of March, April and May 2013 by the U.S. Department of Transportation Air Travel Consumer Report.
• Ranked the #1 domestic carrier for travel to Hawai'i by Travel + Leisure.
• Expanded our frequent flyer partnership with American Airlines.
• Announced codeshare and interline agreements with China Airlines for connecting travel through Taipei, Taiwan.

Fleet and Financing

• Financed our next six Airbus A330-200 aircraft deliveries through 2014 with Enhanced Equipment Trust Certificates (EETC).
• Added three new Airbus A330-200 aircraft for North America and International service.

New routes and increased frequencies

• Honolulu to Sendai, Japan three-times-weekly service launched June 25, 2013.
• Honolulu to Taipei, Taiwan three-times-weekly service launched July 9, 2013.

Third Quarter and Full Year 2013 Outlook

The table below summarizes the Company's expectations for the quarter ending September 30, 2013 and the full year ending December 31, 2013, expressed as an expected change compared to the results for the quarter ended September 30, 2012 or the year ended December 31, 2012, as applicable (the results for which are presented for reference).

Investor Conference Call
Hawaiian Holdings' quarterly earnings conference call is scheduled to begin today (July 23, 2013) 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 www.HawaiianAirlines.com. For those who are not available for the live webcast, the call will be archived for 90 days on Hawaiian's investor website.

About Hawaiian Airlines
Hawaiian has led all U.S. carriers in on-time performance for each of the past nine years (2004-2012) as reported by the U.S. Department of Transportation. Consumer surveys by Conde Nast Traveler, Travel + Leisure and Zagat have all ranked Hawaiian the highest of all domestic airlines serving Hawai'i.

Now in its 84th year of continuous service, Hawaiian is Hawai'i's biggest and longest-serving airline, as well as the largest provider of passenger air service from its primary visitor markets on the U.S. mainland. Hawaiian offers nonstop service to Hawai'i from more U.S. gateway cities (11) than any other airline, along with service from Japan, South Korea, the Philippines, Australia, New Zealand, American Samoa, and Tahiti. New nonstop service will begin between Honolulu and Beijing, China in April 2014, subject to government approvals.  Hawaiian also provides approximately 160 jet flights daily between the Hawaiian Islands.

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).

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, statements by our CEO relating to the 2013 fiscal year, capacity, demand, the Company's North America, Neighbor Island and international routes, the operating environment and the Company's expansion plans; statements regarding the addition of new aircraft, potential route expansion, changes in our fleet plan, expected delivery of aircraft and potential purchases of additional aircraft; the Company's expectations regarding cost per available seat mile excluding fuel, passenger revenue per available seat mile, operating revenue per available seat mile, passenger revenue per revenue passenger mile, passenger load factor, available seat miles and gallons of jet fuel consumed, each for the quarter ending September 30, 2013; the Company's expectations regarding cost per available seat mile excluding fuel and available seat miles, each for the year ending December 31, 2013; 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 quarter and year-end results; economic volatility; the price and availability of aircraft fuel; fluctuations in demand for transportation in the markets in which the Company operates; the Company's dependence on tourist travel; foreign currency exchange rate fluctuations; and the Company's ability to implement its growth strategy and related cost reduction goals.

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 for the year ended December 31, 2012 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.

SOURCE Hawaiian Holdings, Inc.