Hawaiian Holdings Reports 2013 Second Quarter Financial Results

       Hawaiian Holdings Reports 2013 Second Quarter Financial Results

PR Newswire

HONOLULU, July 23, 2013

HONOLULU, July 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 second quarter of
2013.

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

Second Quarter 2013 Financial Results

  oAdjusted net income, reflecting economic fuel expense, of $12.6 million or
    $0.24 per diluted share.
  oGAAP net income of $11.3 million or $0.21 cents per diluted share.
  oAvailable seat miles (ASMs) increase of 20.9% year-over-year.
  oCost per available seat mile (CASM), excluding fuel, decrease of 11.2%
    year-over-year.
  oCASM decrease of 9.7% year-over-year.

Mark Dunkerley, the Company's President and Chief Executive Officer, commented
that "Our results for the quarter were better than expected thanks chiefly to
some good cost control. Demand across all of our geographies remains strong,
even overseas where the dollar has strengthened against foreign currencies.
In North America, our business is coming back as the rate of industry capacity
growth moderated in the quarter while our Neighbor Island business is now
performing well. On our international routes we are seeing the strengthening
of the dollar undermine some of the excellent results we have had in the last
couple of years but this portion of our business remains the core focus of our
expansion plans.

"Everyone in the company worked hard as we continued with the heavy pace of
new developments. We inaugurated new routes, we secured financing for future
aircraft deliveries on very favorable terms, we implemented new computer
systems and completed countless other initiatives. Throughout, my colleagues
on the ground and in the air continue to keep us ahead of the field in taking
care of our customers safely, efficiently and with the hospitality that is our
hallmark."

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 June 30, 2013 the Company had:

  oUnrestricted cash and cash equivalents of $478 million.
  oAvailable borrowing capacity of $70 million under Hawaiian's Revolving
    Credit Facility.
  oOutstanding debt and capital lease obligations of approximately $767
    million consisting of the following:

       o$369 million outstanding under secured loan agreements to finance a
         portion of the purchase price for six Airbus A330-200 aircraft.
       o$163 million outstanding under secured loan agreements to finance a
         portion of the purchase price for 15 Boeing 717-200 aircraft.
       o$103 million in capital lease obligations to finance an Airbus
         A330-200 and two Boeing 717-200 aircraft.
       o$58 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 on-time performance for the months of March,
    April and May 2013 by the U.S. Department of Transportation Air Travel
    Consumer Report.
  oRanked the #1 domestic carrier for travel to Hawai'i by Travel + Leisure.
  oExpanded our frequent flyer partnership with American Airlines.
  oAnnounced codeshare and interline agreements with China Airlines for
    connecting travel through Taipei, Taiwan.

Fleet and Financing

  oFinanced our next six Airbus A330-200 aircraft deliveries through 2014
    with Enhanced Equipment Trust Certificates (EETC).
  oAdded three new Airbus A330-200 aircraft for North America and
    International service.

New routes and increased frequencies

  oHonolulu to Sendai, Japan three-times-weekly service launched June 25,
    2013.
  oHonolulu to Taipei, Taiwan three-times-weekly service launched July 9,
    2013.

Third Quarter and Full Year 2013 Outlook

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

                                       Third
                                       Quarter
Item                                   2012      Guidance
Cost per ASM Excluding Fuel (cents)    7.62      Up 2.5% to up 5.5%
Passenger Revenue Per ASM (cents)      12.30     Down 0.5% to up 2.5%
Operating Revenue Per ASM (cents)      13.56     Down 0.5% to up 2.5%
Passenger Revenue Per RPM (cents)      14.77     Down 2.5% to up 0.5%
Passenger Load Factor                  83.3%     Up 1 pts to Up 3 pts
ASMs (millions)                        4,052.2   Up 7.5% to up 10.5%
Gallons of jet fuel consumed           54.5      Up 7% to up 10%
(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 12.5% to up 15.5%



Investor Conference Call
Hawaiian Holdings' quarterly earnings conference call is scheduled to begin
today (July 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 Hawai'i.

Now in its 84th year of continuous service, Hawaiian is Hawai'i'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 Hawai'i from more U.S. gateway cities (11) than any other
airline, along with service from Japan, South Korea, the Philippines,
Australia, New Zealand, American Samoa, and Tahiti. New nonstop service will
begin between Honolulu and Beijing, China in April 2014, subject to government
approvals. Hawaiian also provides approximately 160 jet flights daily between
the Hawaiian Islands.

Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (NASDAQ:
HA). Additional information is available at HawaiianAirlines.com. Follow
updates on Twitter about Hawaiian (@HawaiianAir) and its special fare offers
(@HawaiianFares), and become a fan on its Facebook page (Hawaiian Airlines).

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,
demand, the Company's North America, Neighbor Island and international routes,
the operating environment and the Company's expansion plans; 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 September 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             Six Months Ended
                June 30,                      June 30,
                2013       2012       %        2013        2012       %
                                      Change                          Change
Operating
Revenue:
Passenger       $ 481,461  $ 438,137  9.9    % $ 921,400  $ 829,063  11.1   %
Other           52,467     46,414     13.0   % 103,282     90,982     13.5   %
Total      533,928    484,551    10.2   % 1,024,682   920,045    11.4   %
Operating
Expenses:
Aircraft fuel,
including taxes 169,223    150,465    12.5   % 343,712     290,783    18.2   %
and delivery
Wages and       103,384    96,699     6.9    % 206,119     186,823    10.3   %
benefits
Aircraft rent   28,285     24,864     13.8   % 54,304      48,086     12.9   %
Maintenance
materials and   53,036     49,409     7.3    % 108,295     93,121     16.3   %
repairs
Aircraft and
passenger       29,228     24,654     18.6   % 58,287      46,000     26.7   %
servicing
Commissions and 32,186     28,611     12.5   % 65,997      58,027     13.7   %
other selling
Depreciation
and             19,788     21,553     (8.2)  % 38,901      40,704     (4.4)  %
amortization
Other rentals
and landing     19,630     21,218     (7.5)  % 38,777      40,966     (5.3)  %
fees
Other           41,777     37,750     10.7   % 84,825      73,307     15.7   %
Total      496,537    455,223    9.1    % 999,217     877,817    13.8   %
Operating       37,391     29,328              25,465      42,228
Income
Nonoperating
Income
(Expense):
Interest
expense and
amortization    (12,163)   (10,722)            (23,540)    (19,770)
of debt
discounts and
issuance costs
Interest income 126        167                 253         381
Capitalized     2,891      2,176               6,331       4,749
interest
Losses on fuel  (6,906)    (14,823)            (13,467)    (9,003)
derivatives
Other, net      (3,124)    183                 (4,206)     (417)
Total      (19,176)   (23,019)            (34,629)    (24,060)
Income (Loss)
Before Income   18,215     6,309               (9,164)     18,168
Taxes
Income tax
expense         6,899      2,405               (3,335)     7,006
(benefit)
Net Income      $         $                 $          $ 
(Loss)          11,316     3,904               (5,829)    11,162
Net Income
(Loss) Per
Common Stock
Share:
Basic           $       $                $         $   
                0.22       0.08                (0.11)     0.22
Diluted         $       $                $         $   
                0.21       0.07                (0.11)     0.21
Weighted
Average Number
of
Common Stock
Shares
Outstanding:
Basic           52,008     51,283              51,837      51,145
Diluted         53,071     52,457              51,837      52,380



Table 2.

Hawaiian Holdings, Inc.
Selected Statistical Data (unaudited)
                 Three Months Ended              Six Months Ended
                 June 30,                        June 30,
                 2013      2012      % Change    2013      2012      %
                                                                     Change
Scheduled
Operations:
Revenue
passenger miles  3,405.7   2,925.2   16.4%       6,611.1   5,555.5   19.0%
(RPM) (a)
Available seat   4,211.5   3,480.6   21.0%       8,171.8   6,620.6   23.4%
miles (ASM) (a)
Passenger
revenue per RPM  14.14   ¢ 14.98   ¢ (5.6%)      13.94   ¢ 14.92   ¢ (6.6%)
(Yield)
Passenger load   80.9%     84.0%     (3.1)    pt 80.9%     83.9%     (3.0)  pt
factor (RPM/ASM)
Passenger
revenue per ASM  11.43   ¢ 12.59   ¢ (9.2%)      11.28   ¢ 12.52   ¢ (9.9%)
(PRASM)
Total
Operations:
Revenue
passenger miles  3,409.0   2,930.8   16.3%       6,619.6   5,562.3   19.0%
(RPM) (a)
Available seat   4,215.9   3,487.0   20.9%       8,181.7   6,628.4   23.4%
miles (ASM) (a)
Passenger load   80.9%     84.0%     (3.1)    pt 80.9%     83.9%     (3.0)  pt
factor (RPM/ASM)
Operating
revenue per ASM  12.66   ¢ 13.90   ¢ (8.9%)      12.52   ¢ 13.88   ¢ (9.8%)
(RASM)
Operating cost   11.78   ¢ 13.05   ¢ (9.7%)      12.21   ¢ 13.24   ¢ (7.8%)
per ASM (CASM)
CASM excluding
aircraft fuel    7.76    ¢ 8.74    ¢ (11.2%)     8.01    ¢ 8.86    ¢ (9.6%)
(b)
Gallons of jet
fuel consumed    56.6      47.3      19.7%       110.6     90.5      22.2%
(a)
Average cost per
gallon of jet    $      $        (6.0%)      $      $        (3.1%)
fuel (actual)    2.99      3.18                 3.11     3.21
(c)
Economic fuel    $      $                    $      $ 
cost per gallon  3.07      3.22     (4.7%)      3.18     3.24     (1.9%)
(c)(d)

(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 June 30,   Six Months Ended June 30,
                    2013       2012       %       2013       2012       %
                                          Change                        Change
Aircraft fuel
expense, including  $ 169,223  $ 150,465  12.5%   $ 343,712  $ 290,783  18.2%
taxes and delivery
Realized losses on
settlement of fuel  4,740      1,874      152.9%  7,436      2,729      172.5%
derivative
contracts
Economic fuel       $ 173,963  $ 152,339  14.2%   $ 351,148  $ 293,512  19.6%
expense
Fuel gallons        56,625     47,346     19.6%   110,560    90,472     22.2%
consumed
Economic fuel cost  $       $       (4.7%)  $       $       (1.9%)
per gallon          3.07       3.22               3.18       3.24



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, diluted net income 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 June 30,         Six months ended June 30,
           2013              2012              2013              2012
                    Diluted           Diluted           Diluted           Diluted
           Net      net      Net      net      Net      net      Net      net
           income   income   income   income   loss     loss     income   income
                    per               per               per               per
                    share             share             share             share
As         $      $     $     $     $        $     $      $   
reported - 11,316    0.21   3,904     0.07   (5,829)  (0.11)  11,162    0.21
GAAP
Less:
unrealized
losses on
fuel       (1,300)  (0.03)   (7,769)  (0.15)   (3,619)  (0.07)   (3,764)  (0.07)
derivative
contracts,
net of tax
Reflecting
economic   $      $     $      $     $        $     $      $   
fuel       12,616    0.24   11,673    0.22   (2,210)  (0.04)  14,926    0.28
expense



                           Three Months Ended        Six Months Ended
                           June 30,                  June 30,
                           2013         2012         2013         2012
GAAP operating expenses    $ 496.5     $ 455.2     $ 999.2     $ 877.8
Less: aircraft fuel,
including taxes and        169.2        150.5        343.7        290.8
delivery
Adjusted operating expense $ 327.3     $ 304.7     $ 655.5     $ 587.0
- excluding aircraft fuel
Available Seat Miles       4,215.9      3,487.0      8,181.7      6,628.4
CASM - GAAP                11.78    ¢ 13.05    ¢ 12.21    ¢ 13.24    ¢
Less: aircraft fuel        4.02         4.31         4.20         4.38
CASM - excluding aircraft  7.76     ¢ 8.74     ¢ 8.01     ¢ 8.86     ¢
fuel



Table 5.

Hawaiian Holdings, Inc.

Fuel Derivative Contract Summary(unaudited)

As of July 19, 2013
              Weighted Average Contract  Percentage of Projected Fuel  Fuel
              Price                      Requirements Hedged           Barrels
                                                                       Hedged
              Cap             Floor
Third Quarter
2013
Crude Oil
(per barrel)
 Brent     $114.95         N/A        37%                           532,000
Call Options
 Brent     $110.25         $90.00     17%                           240,000
Collars
Total                                    54%                           772,000
Fourth
Quarter 2013
Crude Oil
(per barrel)
 Brent     $114.05         N/A        39%                           523,000
Call Options
 Brent     $108.64         $87.50     18%                           240,000
Collars
Total                                    57%                           763,000
First Quarter
2014
Crude Oil
(per barrel)
 Brent     $112.54         N/A        40%                           558,000
Call Options
 Brent     $109.64         $84.29     7%                            105,000
Collars
Total                                    47%                           663,000
Second
Quarter 2014
Crude Oil
(per barrel)
 Brent     $110.47         N/A        19%                           279,000
Call Options
 Brent      $110.23         $82.38     15%                           216,000
Collars
Total                                    34%                           495,000
Third Quarter
2014
Crude Oil
(per barrel)
 Brent     $107.80         N/A        11%                           163,000
Call Options
 Brent      $107.51         $82.78     9%                            135,000
Collars
Total                                    20%                           298,000
Fourth
Quarter 2014
Crude Oil
(per barrel)
 Brent     $104.92         N/A        9%                            135,000
Call Options
 Brent      $106.52         $82.50     4%                            65,000
Collars
Total                                    13%                           200,000



Table 6.

Hawaiian Holdings, Inc.

Foreign Exchange Forward Contract Summary (unaudited)

As of July 19, 2013
            Japanese Yen           Australian Dollar      Korean Won             New Zealand Dollar
                      Percentage             Percentage             Percentage             Percentage
            Weighted  of           Weighted  of           Weighted  of           Weighted  of
Quarter of  Average   Projected    Average   Projected    Average   Projected    Average   Projected
Settlement  Forward   Foreign      Forward   Foreign      Forward   Foreign      Forward   Foreign
            Contract  Denominated  Contract  Denominated  Contract  Denominated  Contract  Denominated
            Price     JPY Sales    Price     AUD Sales    Price     KRW Sales    Price     NZD Sales
                      Hedged                 Hedged                 Hedged                 Hedged
            (in                    (in                    (in                    (in
            USD|JPY)               AUD|USD)               USD|KRW)               NZD|USD)
Third
Quarter     ¥94.61    64%          AUD 1.00  48%          ₩1,116    55%          NZD 0.82  65%
2013
Fourth
Quarter     ¥95.78    58%          AUD 0.99  39%          ₩1,117    41%          NZD 0.81  55%
2013
First
Quarter     ¥95.85    61%          AUD 1.00  25%          ₩1,130    36%          NZD 0.80  34%
2014
Second
Quarter     ¥99.62    49%          AUD 0.96  18%          ₩1,128    20%          NZD 0.79  27%
2014
Third
Quarter     ¥99.89    29%          AUD 0.92  17%          ₩1,141    20%          NZD 0.78  13%
2014
Fourth
Quarter     ¥97.62    12%
2014



SOURCE Hawaiian Holdings, Inc.

Website: http://www.hawaiianairlines.com
Contact: COMPANY: Scott Topping, CFO - (808) 835-3700,
scott.topping@hawaiianair.com; or INVESTOR RELATIONS: Ashlee Kishimoto, Sr.
Director - (808) 838-5421, ashlee.kishimoto@hawaiianair.com; or MEDIA
RELATIONS: Ann Botticelli, SVP - (808) 838-6758,
ann.botticelli@hawaiianair.com