Hawaiian Airlines Carries Record 11.8 Million Passengers in 2018

Updates Expected Fourth Quarter 2018 Metrics

Hawaiian Airlines, Inc., a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA), yesterday announced its system-wide traffic statistics for the month, quarter, and full year ended December 31, 2018.  The Company also updated its expectations for certain fourth quarter 2018 financial metrics.

Hawaiian welcomed a record 11,840,178 guests in 2018, a 2.9 percent increase over the previous year.  The record number of passengers in 2018 marks 14 straight years of growth as Hawaiian continues to expand its network and fleet, providing travelers with more options to fly to, from, and within the Hawaiian Islands than any other carrier.

Hawaiian took delivery of nine A321neo aircraft in 2018, bringing the total size of its A321neo fleet to 11 aircraft.  The A321neo will help the airline build upon its already strong U.S. West Coast presence, including new daily non-stop service to Maui’s Kahului Airport from Portland, Sacramento and San Diego international airports, as well as to Honolulu’s Daniel K. Inouye International Airport from Long Beach.  The airline will also begin new five-times-a-week non-stop service to Honolulu from Boston’s Logan International Airport on April 4.

SYSTEM-WIDE OPERATIONS1

DECEMBER

2018

2017

% CHANGE

PAX

981,571

1,000,646

(1.9%)

RPMS (000)

1,458,883

1,388,279

5.1%

ASMS (000)

1,737,134

1,645,354

5.6%

LF

84.0%

84.4%

(0.4) pts.

FOURTH QUARTER

2018

2017

% CHANGE

PAX

2,891,203

2,913,591

(0.8%)

RPMS (000)

4,285,036

4,125,894

3.9%

ASMS (000)

5,067,412

4,798,039

5.6%

LF

84.6%

86.0%

(1.4) pts.

YEAR

2018

2017

% CHANGE

PAX

11,840,178

11,505,324

2.9%

RPMS (000)

17,206,703

16,316,739

5.5%

ASMS (000)

20,171,911

19,006,682

6.1%

LF

85.3%

85.8%

(0.5) 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 Outlook

The Company has revised certain of its expectations for the quarter ended December 31, 2018 that were provided previously.

Specifically, the Company:

  • is narrowing its estimates for operating revenue per ASM at the positive end of its prior guidance range due primarily to better than expected yields on its International routes and slightly better than expected holiday traffic on its North America routes;
  • is narrowing its estimates for operating costs per ASM excluding fuel and gallons of jet fuel consumed; and
  • is revising its estimate for economic fuel cost per gallon.

The table below summarizes the Company’s revised expectations for the quarter ended December 31, 2018, expressed as an expected percentage change compared to the results for the quarter ended December 31, 2017.

Item

Prior Fourth
Quarter 2018
Guidance

Revised
Fourth Quarter
2018 Guidance

GAAP
Equivalent

Prior GAAP
Fourth
Quarter 2018
Guidance

Revised
GAAP Fourth
Quarter 2018
Guidance

Operating revenue per available seat mile (ASM)

Down 3.0 – 5.0%

Down 3.0 – 4.0%

Cost per ASM (CASM) excluding aircraft fuel (a)

Down 1.0 – 3.0%

Down 1.5 – 2.5%

Cost per ASM (a)

Up 0.6 – 3.3%

Up 1.1 – 2.0%

Gallons of jet fuel consumed

Flat – Up 2.0%

Up 1.5 – 2.0%

Economic fuel cost per gallon (b)

$2.20 – $2.30

~$2.20

Fuel cost per gallon (b)

$2.31 – $2.40

~$2.21

(a)

See Table 1 for a reconciliation of GAAP operating expenses to operating expenses excluding aircraft fuel.

(b)

See Table 2 for a reconciliation of GAAP fuel costs to economic fuel costs.

Non-GAAP Financial Reconciliations

Table 1.

Operating Costs per Available Seat Mile (CASM)

(in thousands, except CASM data) (unaudited)

Estimated three months ended December 31, 2018

GAAP operating expenses

$

625,805

to

$

631,421

Less: aircraft fuel, including taxes and delivery

(149,519)

to

(150,251)

Adjusted operating expenses – excluding aircraft fuel

$

476,286

to

$

481,171

Available Seat Miles

5,067,412

to

5,067,412

CASM – GAAP

12.35¢

to

12.46¢

Less: aircraft fuel, including taxes and delivery

(2.95)

to

(2.97)

CASM – excluding aircraft fuel

9.40¢

to

9.50¢

Table 2.

Economic Fuel Expense (unaudited)

Estimated three months ended December 31, 2018

Aircraft fuel expense, including taxes and delivery

$

149,519

to

$

150,251

Realized losses on settlement of fuel derivative contracts

(1,000)

to

(1,000)

Economic fuel expense

$

148,519

to

$

149,251

Fuel gallons consumed

67,509

to

67,841

Economic fuel costs per gallon

$

2.20

to

$

2.20