Hawaiian Holdings Reports 2014 Third Quarter 2014 Financial Results

HONOLULU, Oct. 21, 2014 /PRNewswire/ — Hawaiian Holdings, Inc. (NASDAQ: HA) (“Holdings” or the “Company”), parent company of Hawaiian Airlines, Inc. (“Hawaiian”), today reported its financial results for the third quarter of 2014.

GAAP net income in the third quarter of $35.6 million or $0.56 per diluted share.
Adjusted net income, reflecting economic fuel expense, in the third quarter of $49.5 million or $0.79 per diluted share, an increase of $12.7 million or $0.10 cents per diluted share year-over-year.
Operating revenue per available seat mile (RASM) increase of 4.6% and passenger revenue per available seat mile (PRASM) increase of 2.2%.
Unrestricted cash, cash equivalents and short-term investments of $582 million.

“We are pleased with our 35 percent improvement in adjusted net income for the third quarter versus last year,” said Mark Dunkerley, Hawaiian Airlines president and chief executive officer. “Strong demand across each of our main geographies, the impact of several new routes maturing and a favorable cost environment combined in this last quarter to bolster our results. Assuming these conditions continue and allowing for the uncertainties of competitor behavior, we look forward to continued improvements in the remainder of the year.”

“As we approach our 85th anniversary in a few days’ time, I’d like to thank all of Hawaiian’s ’ohana, presently employed by the company or retired, who over these eight and a half decades have made this company what it is today. Our next decade looks bright thanks to their effort and dedication.”
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 September 30, 2014 the Company had:
Unrestricted cash, cash equivalents and short-term investments of $582 million.

Outstanding debt and capital lease obligations of approximately $1,057 million consisting of the following:
$701 million outstanding under secured loan agreements to finance a portion of the purchase price for 11 Airbus A330-200 aircraft.
$141 million outstanding under secured loan agreements to finance a portion of the purchase price for 15 Boeing 717-200 aircraft.
$104 million in capital lease obligations to finance the acquisition of an Airbus A330-200, two Boeing 717-200 aircraft and aircraft-related equipment.
$31 million outstanding under floating rate notes to finance the acquisition of two Boeing 767-300 ER aircraft.
$80 million of outstanding Convertible Senior Notes.

Third Quarter 2014 Highlights

Operational
Ranked #1 nationally for on-time performance for the months of June, July and August 2014.

New routes and increased frequencies
Announced new service from San Francisco to Maui beginning November 2014.
Operated Los Angeles to Kona, three-times-weekly, and Los Angeles to Lihu’e, four-times-weekly, summer seasonal service through the beginning of September.
Operated Oakland to Kona, three-times-weekly and Oakland to Lihu’e, four-times-weekly, summer seasonal service through the beginning of September.
Operated Los Angeles to Maui second daily summer seasonal service through the beginning of September.
Fleet and financing

Paid off debt on an existing A330 financing using cash in October.