Hawaiian Airlines Performance

Hawaiian Airlines Reports November 2017 Traffic Statistics

Hawaiian Airlines

Hawaiian Airlines, Inc., a subsidiary of Hawaiian Holdings, Inc. (NASDAQ:  HA), has announced its system-wide traffic statistics for the month of November and year to date.  It also updated its expectations for certain fourth quarter and full year financial metrics and is announcing a new share repurchase authorization.

SYSTEM-WIDE OPERATIONS1

 

NOVEMBER

2017

2016

% CHANGE

PAX

945,568

869,970

8.7%

RPMS (000)

1,327,946

1,249,075

6.3%

ASMS (000)

1,546,170

1,455,392

6.2%

LF

85.9%

85.8%

0.1 pts.

YEAR-TO-DATE

2017

2016

% CHANGE

PAX

10,504,678

10,123,319

3.8%

RPMS (000)

14,928,462

14,155,896

5.5%

ASMS (000)

17,361,329

16,795,372

3.4%

LF

86.0%

84.3%

1.7 pts.

 

PAX

Passengers transported

RPM

Revenue Passenger Miles; one paying passenger transported one mile

ASM

Available Seat Miles; one seat transported one mile

LF

Load Factor; percentage of seating capacity filled

 

1Includes the operations of contract carriers under capacity purchase agreements.

Fourth Quarter & Full Year 2017 Outlook

The Company has revised certain of its expectations for the quarter and year ending December 31, 2017 that were previously provided in its Third Quarter 2017 Earnings Release on October 19, 2017.

Specifically, the Company revised its estimates for operating revenue per ASM for the quarter and year ending December 31, 2017, due to better than expected close-in bookings and improved cargo revenue, expressed as an expected percentage change compared to the results for the quarter and year ended December 31, 2016.

 

Item

Original Fourth Quarter 2017 Guidance

Revised Fourth Quarter 2017 Guidance

Original Full Year 2017 Guidance

Revised Full Year 2017 Guidance

Operating revenue per ASM

Down 1.0% to up 2.0%

Up 1.5% to up 3.5%

Up 5.0% to up 6.0%

Up 5.5% to up 6.5%

The Company also revised its estimate for economic fuel cost per gallon for the quarter ending December 31, 2017.

 

Item

Original Fourth Quarter 2017 Guidance

Revised Fourth Quarter 2017 Guidance

GAAP Equivalent

Original GAAP Fourth Quarter 2017 Guidance

Revised GAAP Fourth Quarter 2017 Guidance

Economic fuel cost per gallon (a)(b)

$1.75 to $1.85

$1.80 to $1.90

Fuel cost per gallon

$1.72 to $1.82

$1.82 to $1.92

 

(a)    See reconciliation of actual fuel costs to economic fuel costs.

(b)    Economic fuel cost per gallon estimates are based on the November 17, 2017 fuel forward curve.

The Company believes that economic fuel expense is a good 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 losses/(gains) realized through actual cash (receipts)/payments received from or paid to hedge counterparties for fuel hedge derivative contracts settled during the period.

New Share Repurchase Authorization

The Company is also announcing a new $100 million stock repurchase program in effect through December 31, 2019, which is in addition to the current $100 million authorization under which the Company has repurchased $90.5 million, or 2.27 million shares, year to date.

Non-GAAP Financial Reconciliations

(in thousands)

 

Estimated three months ending

December 31, 2017

(in thousands, except per-gallon amounts)

Aircraft fuel expense, including taxes and delivery

$

117,713

to

$

127,700

Realized (gains)/losses on settlement of fuel derivative contracts

(1,200)

to

(1,200)

Economic fuel expense

$

116,513

to

$

126,500

Fuel gallons consumed

64,729

to

66,579

Economic fuel cost per gallon

$

1.80

to

$

1.90



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