HONOLULU, July 30, 2024 /PRNewswire/ -- Hawaiian Holdings, Inc. (NASDAQ:HA) (the "Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported its financial results for the second quarter of 2024. "This quarter we delivered on important investments in the future of our company, including flying the first two Boeing 787-9's in our fleet, rolling out free, high-speed Starlink WiFi across our long-haul narrow body fleet, and adding three new routes to our North America network," said Hawaiian Airlines President and CEO Peter Ingram. "While delivering on those initiatives and prioritizing our return to industry-leading levels of operational performance, we continue to pursue regulatory clearance to complete our combination with Alaska Airlines. I'm grateful to our team for taking on such ambitious challenges and continuing to provide exemplary service to our guests."  Second Quarter 2024- Key Financial Metrics and Results GAAP YoY Change Adjusted (a) YoY Change Net Loss ($67.6M) ($55.3M) ($71.0M) ($46.9M) Diluted EPS ($1.30) ($1.06) ($1.37) ($0.90) Pre-tax Margin (9.2) % (7.2) pts. (9.7) % (5.5) pts. EBITDA ($17.9M) ($44.0M) ($21.3M) ($32.1M) Operating Cost per ASM 15.05¢ 5.3 % 11.50¢ 3.8 % Operating Revenue per ASM 13.99¢ (0.8) % N/A N/A (a) See Table 4 for a reconciliation of adjusted net loss, adjusted diluted EPS, adjusted pre-tax margin, adjusted EBITDA, and adjusted operating cost per ASM (CASM excluding fuel and non-recurring items) to each of their respective most directly comparable GAAP financial measure. 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, 2024, the Company had: Unrestricted cash, cash equivalents and short-term investments of $1.3 billion Liquidity of $1.5 billion, including an undrawn revolving credit facility of $235 million Outstanding debt and finance lease obligations of $2.3 billion On June 24, 2024, Hawaiian launched an offer to exchange any and all of its outstanding 5.75% Senior Secured Notes Due 2026 (Old Notes) for 11.00% Senior Secured Notes due 2029 (New Notes) and cash which closed on July 26, 2024.  In exchange for $1,193.7 million of Old Notes, representing 99.5% of Old Notes outstanding, Hawaiian issued $984.8 million in New Notes and paid $204.7 million in cash to existing holders, leaving $6.3 million in Old Notes outstanding.       Revenue Environment The Company's overall operating revenue for the second quarter of 2024 was up 3.5% from the second quarter of 2023 on 4.3% higher capacity which illustrated steady demand for travel to Hawaiʻi on the majority of its routes. Other Revenue was up 6.4% compared to the second quarter of 2023 driven primarily by an increase in cargo revenue and activity from its freighter operations. Merger Update The Company and Alaska previously entered into a timing agreement with the Department of Justice ("DOJ") in which they agreed not to consummate the merger before 90 days following the date on which both parties have certified substantial compliance with the DOJ's second request for additional information (the "Second Request") On May 7, 2024, the Company and Alaska certified substantial compliance with the Second Request. The certification of substantial compliance triggered the start of the 90-day review period On July 29, 2024, the Company and Alaska agreed to extend the expiration of the review period expiration from August 5, 2024, to 12:01 a.m., Eastern time, on August 15, 2024 The Company and Alaska continue to work cooperatively with the DOJ Second Quarter 2024 Highlights Operations Established partnership with Air France Industries KLM Engineering & Maintenance who will be the component support provider for the Company's 787-9 aircraft Routes and Network Commenced daily nonstop service between Salt Lake City (SLC) and Honolulu (HNL) Launched new non-stop service between Sacramento (SMF) and both Kona (KOA) and Lihu'e (LIH) Took delivery of its third A330-300 freighter from Amazon and commenced operations in June 2024 Guest Experience Installed Starlink inflight WiFi on the first of its 24 A330 aircraft, with full roll-out across the A330 fleet planned for the coming months following a successful deployment of Starlink on its entire A321neo aircraft fleet Awards and Recognition Awarded Cabin Concept of the Year by Onboard Hospitality Received Best Premium Class Amenities (Extra Comfort Kit) award by Onboard Hospitality Named as one of U.S. News & World Report's Best Companies to Work For in Hotels, Restaurants and Leisure and In the West categories Environmental, Social and Corporate Governance Published the 2024 Corporate Kuleana Report, highlighting Environmental, Social and Governance (ESG) initiatives to fly and grow more sustainably.  The Company continues to work toward its goal of achieving net-zero carbon emissions by 2050 through investments in sustainable aviation fuel (SAF) and fleet modernization. In April, Hawaiian inaugurated service with its first fuel-efficient Boeing 787-9 aircraft and received the second of its 12 787-9s on order Third Quarter 2024 Outlook  The table below summarizes the Company's expectations for the quarter ending September 30, 2024 expressed as an expected percentage change compared to the results for the quarter ended September 30, 2023. Figures include the expected impacts of the Company's freighter operations, which are not yet expected to be material. Item GAAP Third Quarter 2024 Guidance Non-GAAP Equivalent Non-GAAP Third Quarter 2024 Guidance Available Seat Miles (ASMs) Up 5.5% to up 8.5% Operating Revenue per ASM (RASM) Down 4.5% to down 1.5% Costs per ASM (CASM) Down 3.0% to down 0.8% CASM excluding fuel and non-recurring items (a) Down 1.5% to up 1.5% Gallons of Jet Fuel Consumed (b) Up 3.0% to up 6.0% Average fuel price per gallon, including taxes and delivery (c) $2.69 Economic Fuel Price per Gallon (a)(b)(c) $2.71 Full Year 2024 Outlook The table below summarizes the Company's updated expectations for the full year ending December 31, 2024 expressed as an expected percentage change compared to the results for the year ended December 31, 2023. Figures include the expected impacts of the Company's freighter operations as more aircraft enter service. Item Prior GAAP Full Year 2024 Guidance Updated GAAP Full Year 2024 Guidance Non-GAAP Equivalent Prior Non-GAAP Full Year 2024 Guidance Updated Non-GAAP Full Year 2024 Guidance ASMs Up 4.5% to up 7.5% Up 4.0% to 7.0% CASM Up 4.1% to up 6.3% Up 0.4% to up 2.7% CASM excluding fuel and non-recurring items (a) Up 1.0% to up 4.0% Up 0.5% to up 3.5% Gallons of Jet Fuel Consumed (b) Up 3.0% to up 6.0% Up 2.5% to up 5.5% Average fuel price per gallon, including taxes and delivery (c) $2.80 $2.68 Economic Fuel Price per Gallon (a)(b)(c) $2.83 $2.71 Capital Expenditures $500M to $550M $350M to $400M (a) See Table 3 and Table 4 for a reconciliation of CASM excluding fuel and non-recurring items and economic fuel price per gallon to each of their respective most directly comparable GAAP financial measures. (b) Gallons of jet fuel consumed do not include fuel used in the freighter operation, as those expenses are pass-through expenses not born by the Company. (c) Average fuel price per gallon and economic fuel price per gallon estimates are based on the July 12, 2024 fuel forward curve. Statistical information, as well as a reconciliation of certain non-GAAP financial measures, can be found in the accompanying tables. Investor Conference Call Hawaiian Holdings' quarterly results conference call is scheduled to begin today, July 30, 2024, at 4:30 p.m. Eastern Time (USA). The conference call will be broadcast live over the Internet. Investors may access and listen to the live audio webcast on the investor relations section of the Company's website at HawaiianAirlines.com. For those who are not available for the live webcast, a replay of the webcast will be archived for 90 days on the investor relations section of the Company's website. About Hawaiian Airlines Now in its 95th year of continuous service, Hawaiian is Hawaiʻi's biggest and longest-serving airline. Hawaiian offers approximately 150 daily flights within the Hawaiian Islands, and nonstop flights between Hawaiʻi and 16 U.S. gateway cities – more than any other airline – as well as service connecting Honolulu and American Samoa, Australia, Cook Islands, Japan, New Zealand, South Korea and Tahiti. Consumer surveys by Condé Nast Traveler and TripAdvisor have placed Hawaiian among the top of all domestic airlines serving Hawaiʻi. The carrier was named Hawaiʻi's best employer by Forbes in 2022 and has topped Travel + Leisure's World's Best list as the No. 1 U.S. airline for the past two years. Hawaiian has also led all U.S. carriers in on-time performance for 18 consecutive years (2004-2021) as reported by the U.S. Department of Transportation. The airline is committed to connecting people with aloha by offering complimentary meals for all guests on transpacific routes and the convenience of no change fees on Main Cabin and Premium Cabin seats. HawaiianMiles members also enjoy flexibility with miles that never expire. As Hawai'i's hometown airline, Hawaiian encourages guests to Travel Pono and experience the islands safely and respectfully. Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (NASDAQ:HA). Additional information is available at HawaiianAirlines.com. Follow Hawaiian's Twitter updates (@HawaiianAir), become a fan on Facebook (Hawaiian Airlines), and follow us on Instagram (hawaiianairlines). For career postings and updates, follow Hawaiian's LinkedIn page. For media inquiries, please visit Hawaiian Airlines' online newsroom. 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,  the roll-out of Starlink WiFi across the A330 fleet in the coming months; statements related to the pending merger with Alaska Air Group; the Company's outlook for the quarter ending September 30, 2024 and twelve-months ending December 31, 2024; statements regarding the Company's future performance; 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 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. The Company is subject to risks, uncertainties and assumptions that could cause the Company's results to differ materially from the results expressed or implied by such forward-looking statements, including the risks, uncertainties and assumptions discussed from time to time in the Company's public filings and public announcements, including the Company's Annual Report on Form 10-K 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 (unaudited) Three Months Ended June 30, Six months ended June 30, 2024 2023 % Change 2024 2023 % Change (in thousands, except per share data) Operating Revenue: Passenger $   666,029 $   644,992 3.3 % $  1,249,477 $  1,193,518 4.7 % Other 65,876 61,936 6.4 % 127,995 126,013 1.6 % Total 731,905 706,928 3.5 % 1,377,472 1,319,531 4.4 % Operating Expenses: Wages and benefits 265,024 237,680 11.5 % 526,959 479,613 9.9 % Aircraft fuel, including taxes and delivery 179,153 166,380 7.7 % 367,931 364,005 1.1 % Maintenance, materials and repairs 69,897 53,657 30.3 % 140,868 103,943 35.5 % Aircraft and passenger servicing 47,854 43,126 11.0 % 93,278 85,658 8.9 % Depreciation and amortization 35,068 33,348 5.2 % 68,035 66,015 3.1 % Aircraft rent 29,891 26,159 14.3 % 59,597 54,330 9.7 % Commissions and other selling 29,068 28,391 2.4 % 57,511 56,630 1.6 % Other rentals and landing fees 45,011 41,487 8.5 % 88,138 80,207 9.9 % Purchased services 39,025 37,181 5.0 % 77,500 72,254 7.3 % Special items 6,497 — 100.0 % 14,979 — 100.0 % Other 40,804 49,099 (16.9) % 86,709 83,884 3.4 % Total 787,292 716,508 9.9 % 1,581,505 1,446,539 9.3 % Operating Loss (55,387) (9,580) 478.2 % (204,033) (127,008) 60.6 % Nonoperating Income (Expense): Interest expense and amortization of debt discounts and issuance costs (28,324) (22,705) (52,393) (45,585) Interest income 11,134 13,539 21,155 30,004 Capitalized interest 2,541 1,945 5,675 3,404 Losses on fuel derivatives (1,863) (3,658) (2,445) (8,724) Other components of net periodic benefit cost (927) (1,707) (1,854) (3,201) Losses on investments, net (654) (3,549) (184) (2,852) Gains on foreign debt 6,470 12,174 14,989 14,434 Other, net (584) (920)