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Hawaiian Holdings, Inc.: Hawaiian Holdings Reports 2013 Third Quarter Financial Results

    Hawaiian Holdings, Inc.: Hawaiian Holdings Reports 2013 Third Quarter
                              Financial Results

HONOLULU - October 22, 2013 - 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 2013. 

Third Quarter 2013 Financial Results

  *Adjusted net income, reflecting economic fuel expense, of $36.8 million or
    $0.69 per diluted share. 

  *GAAP net income of $40.6 million or $0.76 cents per diluted share.

  *Available seat miles (ASMs) increase of 9.0% year-over-year.

  *Passenger revenue per available seat mile (PRASM) increase of 0.2% and
    operating revenue per available seat per mile (RASM) increase of 0.1%.

  *Cost per available seat mile (CASM), excluding fuel, increase of 2.1%
    year-over-year.

  *CASM increase of 1.5% year-over-year.

Mark Dunkerley, the Company's President and Chief Executive Officer, commented
that "our third quarter results are a good step towards improving financial
performance. The tide of industry capacity between the US West Coast and
Hawai'i is beginning to recede and our new international routes are maturing,
both of which are helpful developments. The strengthening of the US dollar
against our major foreign currencies is pushing the other way. Indeed, were
it not for foreign exchange effects, our third quarter results would have been
the best in the company's history."

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 September 30, 2013 the Company had:

  *Unrestricted cash and cash equivalents of $441 million.

  *Available borrowing capacity of $70 million under Hawaiian's Revolving
    Credit Facility.

  *Outstanding debt and capital lease obligations of approximately $763
    million consisting of the following:

       *$361 million outstanding under secured loan agreements to finance a
         portion of the purchase price for six Airbus A330-200 aircraft.

       *$159 million outstanding under secured loan agreements to finance a
         portion of the purchase price for 15 Boeing 717-200 aircraft.

       *$112 million in capital lease obligations to finance the acquisition
         of an Airbus A330-200, two Boeing 717-200 aircraft and
         aircraft-related equipment.

       *$55 million of outstanding floating rate notes issued in conjunction
         with the acquisition of three Boeing 767-300 ER aircraft.

       *$76 million of outstanding Convertible Senior Notes.

Business Highlights

Operational

  *Ranked #1 nationally for on-time performance for the months of June and
    July 2013 by the U.S. Department of Transportation Air Travel Consumer
    Report.

  *Exceeded our internal on-time performance goals for the third quarter. 

Fleet and financing

  *Returned one Boeing 767-300 aircraft at the end of its lease term. 

  *Took delivery of one ATR42-500 twin-turboprop aircraft to inaugurate new
    service to Moloka'i and Lana'i. 

Product

  *Enhanced our inflight experience on our Boeing 767-300 aircraft by
    becoming the only U.S. carrier to offer the Apple iPad mini as a
    replacement for the prior portable entertainment system.

New routes and increased frequencies

  *Honolulu to Taipei, Taiwan three-times-weekly service launched July 9,
    2013.

  *Announced the reintroduction of daily non-stop service from Honolulu to
    Oakland beginning in January 2014, an increase from four times weekly.
    Also, announced seasonal service, during the summer of 2014, between
    Oakland and Kona, three times weekly and Oakland and Lihu'e, four times
    weekly.

  *Announced seasonal service, during the summer of 2014 between Los Angeles
    and Kona, three times weekly and Los Angeles and Lihu'e, four times
    weekly.

Fourth Quarter 2013 Outlook

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

Item                                    Fourth Quarter 2012      Guidance
Cost per ASM Excluding Fuel (cents)            7.63           Up 2% to up 5%
Passenger Revenue Per ASM (cents)              11.02        Up 2.5% to up 5.5%
Operating Revenue Per ASM (cents)              12.30        Up 2.5% to up 5.5%
ASMs (millions)                               4,006.8       Up 3.5% to up 5.5%
Gallons of jet fuel consumed (millions)        54.5           Flat to up 2%

Investor Conference Call
Hawaiian Holdings' quarterly earnings conference call is scheduled to begin
today (October 22, 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 Airlines 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 Condé Nast Traveler, Travel + Leisure and
Zagat have all ranked Hawaiian the highest of all domestic airlines serving
Hawai'i.

Now in its 84^th 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
non-stop service to Hawai'i from more U.S. gateway cities (11) than any other
airline, along with service from Japan, South Korea, Taiwan, Australia, New
Zealand, American Samoa, and Tahiti. New non-stop 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 Company's financial
performance, industry capacity between the US West Coast and Hawaii, the
Company's new international routes, the operating environment, and the
strengthening of the US dollar against major Asian currencies; statements
regarding the addition of new aircraft, new routes and increased frequencies;
the Company's expectations regarding cost per available seat mile excluding
fuel, passenger revenue per available seat mile, operating revenue per
available seat mile, available seat miles and gallons of jet fuel consumed,
each for the quarter 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 and the Company's
Quarterly Reports on Form 10-Q, 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               Nine Months Ended
                     September 30,                    September 30,
                2013       2012       %         2013         2012        %
                                    Change                             Change
Operating
Revenue:
Passenger     $543,315  $497,243    9.3 % $1,464,715  $1,326,306   10.4 %
Other            55,983     52,079    7.5 %     159,265      143,061   11.3 %
Total           599,298    549,322    9.1 %   1,623,980    1,469,367   10.5 %
Operating
Expenses:
Aircraft
fuel,
including       181,334    165,762    9.4 %     525,046      456,545   15.0 %
taxes and
delivery
Wages and       112,150     93,438   20.0 %     318,269      280,261   13.6 %
benefits
Aircraft rent    27,575     25,626    7.6 %     81,879      73,712   11.1 %
Maintenance
materials and    51,705     44,150   17.1 %     160,000      137,271    16.6 %
repairs
Aircraft and
passenger        31,080     28,859    7.7 %      89,367      74,859   19.4 %
servicing
Commissions
and other        32,288     31,028    4.1 %      98,285      89,055   10.4 %
selling
Depreciation
and              22,092     22,983  (3.9) %      60,993      63,687  (4.2) %
amortization
Other rentals
and landing      21,996     22,520  (2.3) %     60,773      63,486  (4.3) %
fees
Other            44,644     40,023   11.5 %     129,469      113,330   14.2 %
Total           524,864    474,389   10.6 %   1,524,081    1,352,206   12.7 %
Operating        74,434     74,933               99,899      117,161
Income
Nonoperating
Income
(Expense):
Interest
expense and
amortization
of debt
discounts
and issuance   (13,479)   (11,975)              (37,019)     (31,745)
costs
Interest           173        96                  426         477
income
Capitalized      3,005     2,579                9,336       7,328
interest
Gains
(Losses) on      2,536     6,508              (10,931)     (2,495)
fuel
derivatives
Other, net         749     1,662              (3,457)       1,245
Total           (7,016)    (1,130)              (41,645)     (25,190)
Income Before    67,418     73,803               58,254      91,971
Income Taxes
Income tax      26,814     28,320               23,479      35,326
expense
Net Income     $40,604   $45,483              $34,775     $56,645
Net Income
Per Common
Stock Share:
Basic            $ 0.78     $ 0.88                $ 0.67       $ 1.11
Diluted          $ 0.76     $ 0.86                $ 0.65       $ 1.08
Weighted
Average
Number of
Common Stock
Shares
Outstanding:
Basic            52,303     51,444               51,994      51,246
Diluted          53,512     52,623               53,160      52,463

Table 2.
Hawaiian Holdings, Inc.
Selected Statistical Data (unaudited)
  

                  Three Months Ended               Nine Months Ended
                     September 30,                   September 30,
               2013      2012        %         2013        2012        %
                                  Change                            Change
Scheduled
Operations:
Revenue
passenger     3,668.5   3,367.6      8.9%     10,279.7    8,923.1     15.2%
miles (RPM)
(a)
Available
seat miles    4,406.5   4,041.9      9.0%     12,578.3   10,662.5     18.0%
(ASM) (a)
Passenger
revenue per     14.81 ¢   14.77 ¢    0.3%        14.25 ¢    14.86 ¢  (4.1%)
RPM (Yield)
Passenger
load factor     83.3%     83.3%      -  pt     81.7%      83.7%    (2.0)
(RPM/ASM)                                                                   pt
Passenger
revenue per     12.33 ¢   12.30 ¢    0.2%        11.64 ¢   12.44 ¢  (6.4%)
ASM (PRASM)
Total
Operations:
Revenue
passenger     3,675.2   3,376.3      8.9%    10,294.8   8,938.5     15.2%
miles (RPM)
(a)
Available
seat miles    4,415.1   4,052.2      9.0%     12,596.8   10,680.6     17.9%
(ASM) (a)
Passenger
load factor     83.2%     83.3%    (0.1) pt     81.7%      83.7%    (2.0)
(RPM/ASM)                                                                   pt
Operating
revenue per     13.57 ¢   13.56 ¢    0.1%        12.89 ¢    13.76 ¢  (6.3%)
ASM (RASM)
Operating
cost per ASM    11.89 ¢   11.71 ¢    1.5%        12.10 ¢    12.66 ¢  (4.4%)
(CASM)
CASM
excluding        7.78 ¢    7.62 ¢    2.1%         7.93 ¢     8.39 ¢  (5.5%)
aircraft fuel
(b)
Gallons of
jet fuel        59.3     54.5      8.7%       169.8      145.0     17.1%
consumed (a)
Average cost
per gallon of  $ 3.06    $ 3.04      0.7%       $ 3.09     $ 3.15    (1.9%)
jet fuel
(actual) (c)
Economic fuel
cost per       $ 3.12    $ 3.07      1.6%       $ 3.16     $ 3.18    (0.6%)
gallon (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 September    Nine Months Ended September
                               30,                            30,
                    2013       2012        %        2013       2012       %
                                        Change                         Change
Aircraft fuel
expense,           $181,334   $165,762     9.4%    $525,046  $456,545    15.0%
including taxes
and delivery
Realized losses
on settlement of      3,790     1,589   138.5%     11,226    4,318   160.0%
fuel derivative
contracts
Economic fuel      $185,124   $167,351    10.6%   $536,272  $460,863    16.4%
expense
Fuel gallons         59,265     54,535     8.7%     169,824   145,006    17.1%
consumed
Economic fuel        $3.12      $3.07     1.6%       $3.16     $3.18   (0.6%)
cost per 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, 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 September 30,      Nine months ended September 30,
                  2013               2012               2013               2012
                      Diluted            Diluted            Diluted            Diluted
              Net       net      Net       net      Net       net      Net       net
             income   income    income   income    income   income    income   income
                        per                per                per                per
                       share              share              share              share
As reported $40,604  $0.76  $45,483   $0.86  $34,775   $0.65  $56,645   $1.08
- GAAP
Add:
unrealized
gains on
fuel
derivative
 contracts,  (3,796)   (0.07)   (4,858)   (0.09)    (177)      -    (1,094)   (0.02)
 net of tax
Reflecting
economic    $36,808   $ 0.69  $ 40,625   $ 0.77  $ 34,598   $ 0.65  $ 55,551   $ 1.06
fuel
expense

                         Three Months Ended           Nine Months Ended
                           September 30,                September 30,
                        2013           2012           2013          2012
GAAP operating          $ 524.8       $ 474.4    $ 1,524.1    $ 1,352.2
expenses
Less: aircraft fuel,
including taxes and     (181.3)       (165.8)      (525.1)      (456.5)
delivery
Adjusted operating
expense - excluding     $ 343.5       $ 308.6      $ 999.0      $ 895.7
aircraft fuel
Available Seat Miles     4,415.1        4,052.2      12,596.8      10,680.6
CASM - GAAP                11.89 ¢       11.71 ¢      12.10 ¢      12.66 ¢
Less: aircraft fuel      (4.11)        (4.09)       (4.17)       (4.27)
CASM - excluding            7.78 ¢        7.62 ¢       7.93 ¢       8.39 ¢
aircraft fuel
                                   
Notes:                            
ASM's represents                   
total operations                    

Table 5.
Hawaiian Holdings, Inc.
Fuel Derivative Contract Summary(unaudited)
As of October 11, 2013

              Weighted Average Contract                                 Fuel
                        Price              Percentage of Projected    Barrels
                                          Fuel Requirements Hedged     Hedged
                  Cap           Floor
Fourth
Quarter 2013
  (per
barrel)                   
  Brent
Call Options    $114.58          N/A                 33%              443,000
  Brent
Collars         $110.83        $87.50                18%              240,000
Total                                                51%              683,000
First Quarter
2014
  (per
barrel)
  Brent
Call Options    $112.54          N/A                 40%              558,000
  Brent
Collars         $109.64        $84.29                7%               105,000
Total                                                47%              663,000
Second
Quarter 2014
  (per
barrel)
  Brent
Call Options    $110.47          N/A                 19%              279,000
  Brent
Collars         $110.23        $82.38                15%              216,000
Total                                                34%              495,000
Third Quarter
2014
  (per
barrel)
  Brent
Call Options    $107.80          N/A                 11%              163,000
  Brent
Collars         $107.51        $82.78                9%               135,000
Total                                                20%              298,000
Fourth
Quarter 2014
  (per
barrel)
  Brent
Call Options    $104.92          N/A                 9%               135,000
  Brent
Collars         $106.52        $82.50                4%                65,000
Total                                                13%              200,000

Table 6.
Hawaiian Holdings, Inc.
Foreign Exchange Forward Contract Summary (unaudited)
As of October 11, 2013

                Japanese Yen         Australian Dollar         Korean Won         New Zealand Dollar
                      Percentage             Percentage             Percentage             Percentage
                          of                     of                     of                     of
            Weighted   Projected   Weighted   Projected   Weighted   Projected   Weighted   Projected
            Average     Foreign    Average     Foreign    Average     Foreign    Average     Foreign
            Forward   Denominated  Forward   Denominated  Forward   Denominated  Forward   Denominated
Quarter of  Contract   JPY Sales   Contract   AUD Sales   Contract   KRW Sales   Contract   NZD Sales
Settlement   Price      Hedged      Price      Hedged      Price      Hedged      Price      Hedged
              (in                    (in                    (in                    (in
            USD|JPY)               AUD|USD)               USD|KRW)               NZD|USD)
  Fourth
 Quarter                             AUD                    KRW                    NZD
   2013      ¥96.05       63%       0.9606       57%       1,124        15%       0.8075       48%
  First
 Quarter                             AUD                    KRW                    NZD
   2014      ¥95.56       56%       0.9550       47%       1,131        20%       0.8018       30%
  Second
 Quarter                             AUD                    KRW                    NZD
   2014      ¥99.46       39%       0.9322       38%       1,134        19%       0.7915       24%
  Third
 Quarter                             AUD                    KRW                    NZD
   2014      ¥99.56       29%       0.9059       31%       1,141        13%       0.7762       18%
  Fourth
 Quarter                             AUD
   2014      ¥98.20       19%       0.9016       21%
  First
 Quarter                             AUD
   2015      ¥97.56       13%       0.9012       15%

                                      
                                    - 30 -


COMPANY CONTACT:
Scott Topping
EVP, CFO and Treasurer
(808) 835-3700
scott.topping@hawaiianair.com

INVESTOR RELATIONS CONTACT:
Ashlee Kishimoto
Sr. Director - Investor Relations
(808) 838-5421
ashlee.kishimoto@hawaiianair.com

MEDIA RELATIONS CONTACT:
Ann Botticelli
SVP - Corporate Communications & Public Affairs
(808) 838-6758
ann.botticelli@hawaiianair.com
HA_3Q13 Earnings

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(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: Hawaiian Holdings, Inc. via Thomson Reuters ONE
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