HONOLULU, July 25, 2017 /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 2017.
"Our string of outstanding results continued into the second quarter," said Mark Dunkerley, Hawaiian Airlines president and CEO. "These results have come courtesy of strong demand for the Hawai'i vacation, low fuel prices, moderate industry capacity, and an excellent job done by my colleagues in finding new ways to strengthen our performance. My thanks go to all of Hawaiian's employees who contributed to our terrific financial and operational performance."
Statistical information, as well as a reconciliation of the non-GAAP financial measures, can be found in the accompanying tables.
Liquidity and Capital Resources
As of June 30, 2017, the Company had:
- Unrestricted cash, cash equivalents and short-term investments of $844 million.
- Outstanding debt and capital lease obligations of $528 million.
- In addition, the Company repurchased approximately 83 thousand shares of common stock for approximately $4.3 million in the second quarter.
Second Quarter 2017 Highlights
- Contributed approximately $8 million to further reduce its pension obligations.
- Began operating under the 63-month contract ratified in the prior quarter with its pilots represented by the Airline Pilots Association (ALPA).
- Ranked #1 nationally for on-time performance for the months of April and May 2017 as reported in the U.S. Department of Transportation Air Travel Consumer Report.
- Relocated operations at Los Angeles International Airport (LAX) from Terminal 2 to Terminal 5.
New routes and increased frequencies
- Extended seasonal non-stop service between Los Angeles International Airport (LAX) and Kaua'i's Lihu'e Airport (LIH) to year-round non-stop service.
- Commenced summer seasonal service with daily non-stop flights from Oakland International Airport (OAK) to Kaua'i's Lihu'e Airport (LIH), and thrice weekly flights from Los Angeles International Airport (LAX) to Kona International Airport (KOA).
- Announced expanded service for 2018 between North America and Hawai'i capitalizing on the introduction of the A321neo to Hawaiian's fleet, including:
- New non-stop service between Portland International Airport (PDX) and Kahului Airport (OGG) beginning January 2018
- Extending seasonal non-stop service between Los Angeles International Airport (LAX) and Kona International Airport (KOA) to year-round non-stop service beginning March 2018
- Extending seasonal non-stop service between Oakland International Airport (OAK) and Kaua'i's Lihu'e Airport (LIH) to year-round non-stop service beginning April 2018
Product and loyalty
Continued remodeling of its A330 fleet with the addition of lie flat premium seats and expanded Extra Comfort capacity.
Fleet and financing
Completed a sale-leaseback transaction covering three Boeing 767 aircraft as part of the planned exit from its 767 fleet.
Third Quarter and Full Year 2017 Outlook
The table below summarizes the Company's expectations for the quarter ending September 30, 2017 and full year ending December 31, 2017, expressed as an expected percentage change compared to the results for the quarter ended September 30, 2016 and full year ended December 31, 2016, as applicable.
The Company is lowering its guidance range for economic fuel cost per gallon for the full year ending December 31, 2017 due to lower than expected year-to-date fuel costs and the forward fuel price curve as of July 14, 2017.