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Hawaiian Holdings Reports 2013 First Quarter Financial Results

        Hawaiian Holdings Reports 2013 First Quarter Financial Results

PR Newswire

HONOLULU, April 23, 2013

HONOLULU, April 23, 2013 /PRNewswire/ --Hawaiian Holdings, Inc. (NASDAQ: HA)
("Holdings" or the "Company"), parent company of Hawaiian Airlines, Inc.
("Hawaiian"), today reported its financial results for the first quarter of
2013.

(Logo: http://photos.prnewswire.com/prnh/20040827/LAF044LOGO)

First Quarter 2013 Financial Results

  oAvailable seat mile (ASM) for scheduled operations increased 26.1%
    year-over-year.
  oAdjusted net loss, reflecting economic fuel expense, of $14.8 million or
    $0.29 per diluted share.
  oGAAP net loss of $17.1 million or $0.33 cents per diluted share.
  oCost per available seat mile (CASM), excluding fuel, decrease of 7.9%
    year-over-year.
  oCASM decrease of 5.7% year-over-year.
  oUnrestricted cash and cash equivalents of $438.2 million.

Mark Dunkerley, the Company's President and Chief Executive Officer, commented
that "Our results for the quarter were disappointing but unsurprising. Our
performance was undermined by an extraordinary increase in total industry
capacity between Hawaii and the U.S. West Coast and in certain international
markets during what is traditionally the weakest quarter of the year.
However, good cost control and an improvement in our Neighbor Island segment
helped offset some of the impact during the period. Looking ahead, published
schedules show capacity beginning to decline in the second half which should
improve the operating environment.

Throughout, Hawaiian continued to develop its network by growing into new
origin markets for the Hawaii visitor. We launched services to Auckland, New
Zealand in March and in the next six months will add Sendai, Japan and Taipei,
Taiwan to our increasingly diverse network of destinations. Our formula of
competitive unit costs and a high level of service have allowed us to
establish the optimal brand for serving Hawaii that makes us the carrier of
choice in the markets we serve."

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 March 31, 2013, the Company had:

  oUnrestricted cash and cash equivalents of $438.2 million.
  oAvailable borrowing capacity of $69 million under Hawaiian's Revolving
    Credit Facility.
  oOutstanding debt and capital lease obligations of approximately $648
    million consisting of the following:

       o$242 million outstanding under secured loan agreements to finance a
         portion of the purchase price for four Airbus A330-200 aircraft.
       o$167 million outstanding under secured loan agreements to finance a
         portion of the purchase price for 15 Boeing 717-200 aircraft.
       o$104 million in capital lease obligations to finance an Airbus
         A330-200 and two Boeing 717-200 aircraft.
       o$61 million outstanding under floating rate notes issued in
         conjunction with the acquisition of three Boeing 767-300 ER aircraft.
       o$74 million outstanding of Convertible Senior Notes.

Business Highlights

Operational

  oRanked #1 nationally for the ninth consecutive year for on-time
    performance in 2012 and the month of February 2013 by the U.S. Department
    of Transportation Air Travel Consumer Report.
  oUnveiled branding and livery for our new Neighbor Island turboprop
    operations as 'Ohana by Hawaiian for service to begin in the summer
    between Honolulu and Moloka'i and Lana'i.

Fleet

  oAdded one new Airbus A330-200 aircraft in February for North America and
    International service.
  oExecuted a purchase agreement with Airbus for 16 new A321neo aircraft for
    delivery between 2017 and 2020, with purchase rights for an additional
    nine aircraft. The long-range, single-aisle aircraft will complement
    Hawaiian's existing fleet of twin-aisle aircraft used for long-haul flying
    between Hawaii and the U.S. West Coast.

New routes and increased frequencies

  oHonolulu to Auckland, New Zealand three-times-weekly service launched in
    March 2013.
  oAnnounced Honolulu to Sendai, Japan three-times-weekly service beginning
    in June 2013.
  oAnnounced Honolulu to Taipei, Taiwan three-times-weekly service beginning
    in July 2013.
  oAnnounced the addition of seasonal frequency flights between Honolulu and
    three Oceania gateways, Sydney, Brisbane and Auckland in September and
    October 2013.
  oAnnounced three-times-weekly service between Honolulu and Beijing, China
    beginning in April 2014 pending government approval.

Second Quarter and Full Year 2013 Outlook

The table below summarizes the Company's expectations for the quarter ending
June 30, 2013 and the full year ending December 31, 2013, expressed as an
expected change compared to the results for the quarter ended June 30, 2012 or
the year ended December 31, 2012, as applicable (the results for which are
presented for reference).

                                       Second
                                       Quarter
Item                                   2012      Guidance
Cost per ASM Excluding Fuel (cents)    8.74      Down 7.5% to down 4.5%
Passenger Revenue Per ASM (cents)      12.59     Down 10% to down 7%
Operating Revenue Per ASM (cents)      13.90     Down 10% to down 7%
Passenger Revenue Per RPM (cents)      14.98     Down 7% to down 4%
Passenger Load Factor                  84.0%     Down 3.5pts to down 1.5pts
ASMs (millions)                        3,487.0   Up 20% to up 23%
Gallons of jet fuel consumed           47.3      Up 17.5% to up 20.5%
(millions)
                                       Full Year
Item                                   2012      Guidance
Cost per ASM Excluding Fuel (cents)    8.18      Down in the low single digits
ASMs (millions)                        14,687.5  Up 13.5% to up 16.5%

Investor Conference Call
Hawaiian Holdings' quarterly earnings conference call is scheduled to begin
today (April 23, 2013) at 4:30 p.m. Eastern Time (USA). The conference call
will be broadcast live over the Internet. Investors may listen to the live
audio webcast on the investor relations section of the Company's website at
www.HawaiianAirlines.com. For those who are not available for the live
webcast, the call will be archived for 90 days on Hawaiian's investor website.

About Hawaiian Airlines
Hawaiian has led all U.S. carriers in on-time performance for each of the past
nine years (2004-2012) as reported by the U.S. Department of Transportation.
Consumer surveys by Conde Nast Traveler, Travel + Leisure and Zagat have all
ranked Hawaiian the highest of all domestic airlines serving Hawaii.

Now in its 84th year of continuous service, Hawaiian is Hawaii'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 Hawaii from more U.S. gateway cities (11) than any other
airline, as well as service to Japan, South Korea, the Philippines, Australia,
New Zealand, American Samoa, and Tahiti. New nonstop service will begin
between Honolulu and Taipei, Taiwan on July 9, 2013. Hawaiian also provides
approximately 160 daily jet flights between the Hawaiian Islands.

Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (NASDAQ:
HA). Additional information is available at HawaiianAirlines.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995 that reflect the
Company's current views with respect to certain current and future events and
financial performance. Such forward-looking statements include, without
limitation, statements by our CEO relating to the 2013 fiscal year, capacity,
the operating environment and inauguration of service to new destinations;
statements regarding the addition of new aircraft, potential route expansion,
changes in our fleet plan, expected delivery of aircraft and potential
purchases of additional aircraft; the Company's expectations regarding cost
per available seat mile excluding fuel, passenger revenue per available seat
mile, operating revenue per available seat mile, passenger revenue per revenue
passenger mile, passenger load factor, available seat miles and gallons of jet
fuel consumed, each for the quarter ending June 30, 2013; the Company's
expectations regarding cost per available seat mile excluding fuel and
available seat miles, each for the year ending December 31, 2013; and
statements as to other matters that do not relate strictly to historical facts
or statements of assumptions underlying any of the foregoing. Words such as
"expects," "anticipates," "projects," "intends," "plans," "believes,"
"estimates," variations of such words, and similar expressions are also
intended to identify such forward-looking statements. These forward-looking
statements are and will be, as the case may be, subject to many risks,
uncertainties and assumptions relating to the Company's operations and
business environment, all of which may cause the Company's actual results to
be materially different from any future results, expressed or implied, in
these forward-looking statements. These risks and uncertainties include,
without limitation, the Company's ability to accurately forecast quarter and
year-end results; economic volatility; the price and availability of aircraft
fuel; fluctuations in demand for transportation in the markets in which the
Company operates; the Company's dependence on tourist travel; foreign currency
exchange rate fluctuations; and the Company's ability to implement its growth
strategy and related cost reduction goals.

The risks, uncertainties and assumptions referred to above that could cause
the Company's results to differ materially from the results expressed or
implied by such forward-looking statements also include the risks,
uncertainties and assumptions discussed from time to time in the Company's
other public filings and public announcements, including the Company's Annual
Report on Form 10-K for the year ended December 31, 2012 as well as other
documents that may be filed by the Company from time to time with the
Securities and Exchange Commission. All forward-looking statements included
in this document are based on information available to the Company on the date
hereof. The Company does not undertake to publicly update or revise any
forward-looking statements to reflect events or circumstances that may arise
after the date hereof even if experience or future changes make it clear that
any projected results expressed or implied herein will not be realized.



Table 1.
Hawaiian Holdings, Inc.
Consolidated Statements of Operations
(in thousands, except for per share data) (unaudited)
                                           Three Months Ended
                                           March 31,
                                           2013          2012       % Change
Operating Revenue:
Passenger                                  $ 439,939     $ 390,926  12.5     %
Other                                      50,815        44,568     14.0     %
Total                                      490,754       435,494    12.7     %
Operating Expenses:
Aircraft fuel, including taxes and oil     174,489       140,318    24.4     %
Wages and benefits                         102,735       90,124     14.0     %
Aircraft rent                              26,019        23,222     12.0     %
Maintenance materials and repairs          55,259        43,712     26.4     %
Aircraft and passenger servicing           29,059        21,346     36.1     %
Commissions and other selling              33,811        29,416     14.9     %
Depreciation and amortization              19,113        19,151     (0.2)    %
Other rentals and landing fees             19,147        19,748     (3.0)    %
Other                                      43,048        35,557     21.1     %
Total                                      502,680       422,594    19.0     %
Operating Income (Loss)                    (11,926)      12,900
Nonoperating Income (Expense):
Interest expense and amortization of debt
discounts
and issuance costs                         (11,377)      (9,048)
Interest income                            127           214
Capitalized interest                       3,440         2,573
Gains (Losses) on fuel derivatives         (6,561)       5,820
Other, net                                 (1,082)       (600)
Total                                      (15,453)      (1,041)
Income (Loss) Before Income Taxes          (27,379)      11,859
Income tax (benefit) expense               (10,234)      4,601
Net Income (Loss)                          $ (17,145)    $ 7,258
Net Income (Loss) Per Common Stock Share:
Basic                                      $   (0.33)  $  0.14
Diluted                                    $   (0.33)  $  0.14
Weighted Average Number of
Common Stock Shares Outstanding:
Basic                                      51,665        51,005
Diluted                                    51,665        52,303





Table 2.
Hawaiian Holdings, Inc.
Selected Statistical Data (unaudited)
                                       Three Months Ended
                                       March 31,
                                       2013           2012        % Change
Scheduled Operations:
Revenue passenger miles (RPM) (a)      3,205.5        2,630.3     21.9%
Available seat miles (ASM) (a)         3,960.3        3,140.0     26.1%
Passenger revenue per RPM (Yield)      13.72        ¢ 14.86     ¢ (7.7%)
Passenger load factor (RPM/ASM)        80.9%          83.8%       (2.9)    pt.
Passenger revenue per ASM (PRASM)      11.11        ¢ 12.45     ¢ (10.8%)
Total Operations:
Revenue passenger miles (RPM) (a)      3,210.6        2,631.4     22.0%
Available seat miles (ASM) (a)         3,965.8        3,141.3     26.2%
Passenger load factor (RPM/ASM)        81.0%          83.8%       (2.8)    pt.
Operating revenue per ASM (RASM)       12.37        ¢ 13.86     ¢ (10.8%)
Operating cost per ASM (CASM)          12.68        ¢ 13.45     ¢ (5.7%)
CASM excluding aircraft fuel (b)       8.28         ¢ 8.99      ¢ (7.9%)
Gallons of jet fuel consumed (a)       53.9           43.1        25.1%
Average cost per gallon of jet fuel    $    3.24   $  3.25   (0.3%)
(actual) (c)
Economic fuel cost per gallon (c)(d)   $    3.29   $  3.27   0.6%
(a) In millions.
(b) See Table 4 for reconciliations of operating expenses excluding aircraft
fuel.
(c) Includes applicable taxes and fees.
(d) See Table 3 for a reconciliation of economic fuel costs.



Table 3.
Hawaiian Holdings, Inc.
Economic Fuel Expense
(in thousands, except per-gallon amounts) (unaudited)
The Company believes that economic fuel expense is the best measure of the
effect of fuel prices on its business as it most closely approximates the net
cash outflow associated with the purchase of fuel for its operations in a
period. The Company defines economic fuel expense as GAAP fuel expense plus
(gains)/losses realized through actual cash (receipts)/payments received from
or paid to hedge counterparties for fuel hedge derivative contracts settled
during the period.
                           Three Months Ended December 31,
                           2013                  2012                Change
Aircraft fuel expense,     $ 174,489             $ 140,318           24.4%
including taxes and oil
Realized (gains) losses on
settlement of fuel         2,696                 854                 215.7%
derivative contracts
Economic fuel expense      $ 177,185             $ 141,172           25.5%
Fuel gallons consumed      53,935                43,125              25.1%
Economic fuel cost per     $    3.29          $    3.27        0.6%
gallon





Table 4.
Hawaiian Holdings, Inc.
Non-GAAP Financial Reconciliation
(in thousands, except per-share data) (unaudited)
The Company evaluates its financial performance utilizing various GAAP and
non-GAAP financial measures, including, net income (loss), diluted net income
(loss) per share, CASM, PRASM, RASM and Passenger Revenue per RPM. Pursuant to
Regulation G, the Company has included the following reconciliation of
reported non-GAAP financial measures to comparable financial measures reported
on a GAAP basis. The Company believes that excluding fuel costs from certain
measures is useful to investors because it provides an additional measure of
management's performance excluding the effects of a significant cost item over
which management has limited influence.
                        Three months ended March 31,
                        2013                            2012
                                          Diluted net              Diluted net
                        Net income        income        Net        income
                        (loss)            (loss)        income     per share
                                          per share
As reported - GAAP      $  (17,145)     $        $       $    
                                          (0.33)        7,258      0.14
Less: unrealized gains
(losses) on fuel        (2,319)           (0.04)        4,005      0.08
derivative contracts,
net of tax
Reflecting economic     $  (14,826)     $        $       $    
fuel expense                              (0.29)        3,253      0.06

                                                     Three Months Ended
                                                     March 31,
                                                     2013         2012
GAAP operating expenses                              $ 502.7     $ 422.6
Less: aircraft fuel, including taxes and oil         174.5        140.3
Adjusted operating expense - excluding aircraft fuel $ 328.2     $ 282.3
and lease termination costs
Available Seat Miles                                 3,965.8      3,141.3
CASM - GAAP                                          12.68    ¢ 13.45    ¢
Less: aircraft fuel                                  4.40         4.46
CASM - excluding aircraft fuel                       8.28     ¢ 8.99     ¢





Table 5.
Hawaiian Holdings, Inc.
Fuel Derivative Contract Summary (unaudited)
As of April 17, 2013
              Weighted Average Contract  Percentage of Projected Fuel  Fuel
              Price                      Requirements Hedged           Barrels
                                                                       Hedged
              Cap             Floor
Second
Quarter 2013
Crude Oil
(per barrel)
 Brent     $114.12         N/A        55%                           741,000
Call Options
Total                                    55%                           741,000
Third Quarter
2013
Crude Oil
(per barrel)
 Brent     $114.95         N/A        38%                           532,000
Call Options
 Brent     $110.25         $90.00     17%                           240,000
Collars
Total                                    55%                           772,000
Fourth
Quarter 2013
Crude Oil
(per barrel)
 Brent     $114.05         N/A        38%                           523,000
Call Options
 Brent     $108.64         $87.50     17%                           240,000
Collars
Total                                    55%                           763,000
First Quarter
2014
Crude Oil
(per barrel)
 Brent     $111.79         N/A        44%                           618,000
Call Options
 Brent     $116.10         $80.00     3%                            45,000
Collars
Total                                    47%                           663,000
Second
Quarter 2014
Crude Oil
(per barrel)
 Brent     $109.63         N/A        23%                           339,000
Call Options
 Brent      $111.95         $81.38     11%                           156,000
Collars
Total                                    34%                           495,000
Third Quarter
2014
Crude Oil
(per barrel)
 Brent     $109.73         N/A        8%                            120,000
Call Options
 Brent      $107.28         $82.50     8%                            120,000
Collars
Total                                    16%                           240,000





Table 6.
Hawaiian Holdings, Inc.
Foreign Exchange Forward Contract Summary (unaudited)
As of April 17, 2013
               Japanese Yen                      Australian Dollar
               Weighted      Percentage of       Weighted      Percentage of
Quarter of     Average       Projected Foreign   Average       Projected
Settlement     Forward       Denominated JPY     Forward       Foreign
               Contract      Sales Hedged        Contract      Denominated AUD
               Price                             Price         Sales Hedged
               (in USD|JPY)                      (in AUD|USD)
Second         ¥92.15        60%                 AUD 1.03      51%
Quarter 2013
Third Quarter  ¥93.01        49%                 AUD 1.02      34%
2013
Fourth         ¥93.55        35%                 AUD 1.02      21%
Quarter 2013
First Quarter  ¥91.81        22%                 AUD 1.01      21%
2014
Second         ¥97.42        20%                 AUD 1.01      19%
Quarter 2014

SOURCE Hawaiian Holdings, Inc.

Website: http://www.hawaiianair.com
Contact: Company, Scott Topping, CFO, Hawaiian Airlines, +1-808-835-3700,
scott.topping@hawaiianair.com, Investor Relations, Susan Donofrio, Sr.
Director, Hawaiian Airlines, +1-908-719-3206, susan.donofrio@hawaiianair.com,
Media, Keoni Wagner, VP, Hawaiian Airlines, +1-808-838-6778,
keoni.wagner@hawaiianair.com
 
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