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 2017.
"The third quarter's excellent results add to the great year we are having," said Mark Dunkerley, Hawaiian Airlines president and CEO. "Apart from the helpful environment characterized by low fuel prices, manageable industry capacity and strong demand for the Hawaii vacation, our team is doing a terrific job improving the company and widening the gap between us and our competitors."
Statistical information, as well as a reconciliation of the non-GAAP financial measures, can be found in the accompanying tables.
Liquidity and Capital Resources
On October 12, 2017, the Company announced the initiation of a quarterly cash dividend of 12 cents per share to be paid on November 30, 2017 to all stockholders of record as of November 17, 2017.
In addition, the Company repurchased approximately 1.1 million shares of common stock for approximately $46.2 million in the third quarter, which leaves $49.5 million remaining under its share repurchase program.
As of September 30, 2017, the Company had:
Unrestricted cash, cash equivalents and short-term investments of $619 million
Outstanding debt and capital lease obligations of $506 million
Third Quarter 2017 Highlights
People
Contributed $134.6 million during the quarter to employee benefit plans, comprised of a one-time payment of $18.5 million to fully fund and terminate the Hawaiian Airlines, Inc. Salaried & IAM Merged Pension Plan, a one-time payment of $101.9 million to settle a portion of the post-65 medical plan obligation in connection with the ratification of a contract amendment with the Air Line Pilots Association, representing its pilots, and a contribution of approximately $14.2 million, $12.7 million above the minimum required, to further reduce pension obligations.
Operational
Ranked #1 nationally for on-time performance for the months of June, July, and August 2017 as reported in the U.S. Department of Transportation Air Travel Consumer Report.
Partnerships
Announced a new partnership with Japan Airlines (JAL) that provides for extensive code sharing, lounge access and frequent flyer program reciprocity, taking effect on March 25, 2018 (subject to government approval). Also announced the intention to establish a joint venture with JAL designed to provide even more choices, convenience and enhancements to the traveling public to/from Japan and beyond to multiple Asian markets.
Increased frequencies
Announced the expansion of non-stop service between Honolulu's Daniel K. Inouye International Airport (HNL) and New Zealand's Auckland Airport (AKL) with up to five non-stop flights weekly beginning March 2018.
Product and loyalty
Continued remodeling the A330 fleet with the addition of lie flat premium seats and increased Extra Comfort capacity. Also announced the introduction of remodeled A330 aircraft to its non-stop service between Honolulu's Daniel K. Inouye International Airport (HNL) and Sapporo's New Chitose Airport (CTS) starting February 2018.
Fleet and financing
Took delivery of its 24th A330-200 in September.
Took delivery of its first ATR 72 turboprop aircraft in an all-cargo configuration in September.