Hawaiian Holdings, Inc. (NASDAQ: HA) (the "Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported its financial results for the fourth quarter and full year 2019.
"Hawaiian delivered another year of strong financial results in 2019, despite the heightened competitive capacity environment we faced throughout the year," said Peter Ingram, Hawaiian Airlines president and CEO. "These results are a testament to the competitive advantages we have built and give me great confidence in our ability to continue to execute well in the years ahead. My thanks, as always, go out to the 7,400 outstanding professionals both in the day-to-day operation and in the back office, for keeping us competition-fit, running the best operation in the business, and delivering aloha to our guests day-in and day-out."
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
The Company returned $91.6 million to shareholders in 2019 through $68.8 million in share repurchases and $22.8 million in dividends.
On January 24, 2020 the Company's Board of Directors declared a quarterly cash dividend of 12 cents per share to be paid on February 28, 2020 to all shareholders of record as of February 14, 2020.
As of December 31, 2019 the Company had:
- Unrestricted cash, cash equivalents and short-term investments of $619 million.
- Outstanding debt and finance lease obligations of $764 million.
- Carried 11.8 million passengers in 2019.
- Ranked #1 nationally for on-time performance year-to-date through November 2019, as reported in the U.S. Department of Transportation Air Travel Consumer Report, adding to its record of 15 consecutive years as the most punctual airline.
- Opened a new 15,000 square-foot Information Technology Center in Tempe, Arizona.
- Announced the expansion of its in-house pilot training capabilities with its planned purchase of a Boeing 787-9 flight simulator.
- Debuted newly designed lobbies at Daniel K. Inouye International Airport (HNL), Kahului Airport (OGG), Kona International Airport (KOA), Hilo International Airport (ITO), and Lihue Airport (LIH), as part of its ongoing initiative to improve the day-of travel experience for its guests.
New routes and increased frequencies
- North America
- Began service on its second East Coast route with new five-times-weekly non-stop flights between Boston Logan International Airport (BOS) and Honolulu (HNL).
- Expanded its routes to Northern California with the launch of new daily non-stop flights between Sacramento International Airport (SMF) and Maui (OGG) and expanded service between San Francisco International Airport (SFO) and Honolulu (HNL).
- Expanded its routes to Las Vegas with the launch of new four-times-weekly non-stop flights between McCarran International Airport (LAS) and Maui (OGG).
- Announced expanded service to the Pacific Northwest with additional thrice-weekly non-stop flights between Seattle-Tacoma International Airport (SEA) and Honolulu (HNL) beginning January 2020.
- Began service on its sixth Japan route with new four-times-weekly non-stop flights between Fukuoka Airport (FUK) and Honolulu (HNL).
- Received final U.S. Department of Transportation approval to operate one additional daily non-stop flight between Tokyo Haneda Airport (HND) and Honolulu (HNL) beginning March 2020.
Product and loyalty
- Launched sales of Main Cabin Basic fares in all North American markets, enhancing Hawaiian's product portfolio with a fare option that appeals to the most price-conscious travelers.
- Launched a new Hawaiian Airlines mobile app with features designed to improve guests' day-of-travel experience.
- Expanded its codeshare agreement with Virgin Australia that offers travelers in more than a dozen Australian and New Zealand cities a broader and more convenient network of flights to Hawai'i.
Fleet and financing
- Took delivery of six Airbus A321neo aircraft, increasing the size of its Airbus A321neo fleet to seventeen aircraft.
- Retired the last of its Boeing 767 aircraft.
- Completed two Japanese Yen-denominated debt financings, collateralized by four Airbus A330 aircraft and two Airbus A321neo aircraft.
- Extended the leases on three Airbus A330 and five Boeing 717 aircraft, enabling cost savings while maintaining fleet flexibility for future growth.
- Celebrated its 90th year of service in the Hawaiian Islands with festivities in the air and on the ground to thank the customers and local communities who supported its evolution from pioneer interisland carrier to global airline.
First Quarter and Full Year 2020 Outlook
The table below summarizes the Company's expectations for the first quarter ending March 31, 2020 and the full year ending December 31, 2020 expressed as an expected percentage change compared to the results for the quarter ended March 31, 2019 or the year ended December 31, 2019, as applicable.
The Company expects its effective tax rate for the full year ending December 31, 2020 to be in the range of 26 percent to 28 percent.