Hawaiian Holdings reports 2014 second quarter financial results

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., today reported its financial results for the second quarter of 2014.

Hawaiian Holdings reports 2014 second quarter financial results

Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., today reported its financial results for the second quarter of 2014.

GAAP net income in the second quarter was reported at $27.3 million or $0.43 per diluted share.

Adjusted net income was reported, reflecting economic fuel expense, in the second quarter as $22.4 million or $0.35 per diluted share, an increase of $9.7 million or $0.11 cents per diluted share year-over-year.

Passenger revenue per available seat mile (PRASM) increase of 4.1% and operating revenue per available seat mile (RASM) increase of 6.7%.
Unrestricted cash, cash equivalents and short-term investments of $564 million.

“The same trajectory of substantially improving financial performance was evident in the second quarter as it has been over the last few quarters,” said Mark Dunkerley, Hawaiian Airlines president and chief executive officer. “Strong demand across our geographies, good macro-economic conditions, stable fuel prices and good cost control inside the business all played their part. Absent changes to the environment or competitor behavior, our prospects in the back half of the year look similar. As ever, we continue to build the business with new routes, this summer featuring our first flights from North America to Kaua’i and the island of Hawai’i, and a host of customer improvements including the roll out of our extra comfort economy section of the aircraft. Our wonderful employees continue to deliver the level of service on the ground and in the air that set the standard for others to aspire to. Without their dedication, none of this would be possible.”

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, 2014 the Company had:

Unrestricted cash, cash equivalents and short-term investments of $564 million.

Available borrowing capacity of $69.4 million under Hawaiian’s Revolving Credit Facility.

Outstanding debt and capital lease obligations of approximately $1,071 million consisting of the following:

$708 million outstanding under secured loan agreements to finance a portion of the purchase price for eleven Airbus A330-200 aircraft.
$146 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.

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$106 million in capital lease obligations to finance the acquisition of an Airbus A330-200, two Boeing 717-200 aircraft and aircraft-related equipment.

$32 million outstanding under floating rate notes for two Boeing 767-300 ER aircraft.

$79 million of outstanding Convertible Senior Notes.

Second Quarter 2014 Highlights
Operational

Ranked #1 nationally for on-time performance for the months of March, April and May 2014.
Ranked the #1 domestic carrier for travel to Hawai’i by Travel + Leisure for 2014.

Fleet and financing

Added two new A330-200 aircraft that were financed through Enhanced Equipment Trust Certificates (EETCs) at a fixed blended rate of 4.13% and retired one Boeing 767-300 aircraft.
New routes and increased frequencies

Los Angeles to Kona, three-times-weekly, and Los Angeles to Lihu’e, four-times-weekly, summer seasonal service launched in June.
Oakland to Kona, three-times-weekly and Oakland to Lihu’e, four-times-weekly, summer seasonal service launched in June.

Los Angeles to Maui daily service launched in May and a second daily summer seasonal service reintroduced in June.

San Jose to Honolulu daily service reintroduced in May.
‘Ohana by Hawaiian expanded its network with new flights between Maui and Moloka’i, Kona and Hilo launched in July.

Announced additional seasonal service from Los Angeles to Honolulu and Maui for the winter months.

Hawaiian® has led all U.S. carriers in on-time performance for each of the past 10 years (2004-2013) as reported by the U.S. Department of Transportation. Consumer surveys by Condé Nast Traveler, Travel + Leisure and Zagat have all ranked Hawaiian the highest of all domestic airlines serving Hawai’i.

Now in its 85th 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, China, Australia, New Zealand, American Samoa and Tahiti. Hawaiian also provides approximately 160 jet flights daily between the Hawaiian Islands, with a total of more than 200 daily flights system-wide.

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