HONOLULU, April 23, 2024 /PRNewswire/ -- Hawaiian Holdings, Inc. (NASDAQ:HA) (the "Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported its financial results for the first quarter of 2024. "Mahalo to our team for remaining focused on delivering strong operational performance and unparalleled guest experience," said Hawaiian Airlines President and CEO Peter Ingram. "2024 is off to a positive start as we work to start realizing the return on significant investments we've made in our business, including rolling out high-speed Starlink WIFI and taking delivery of our first Boeing 787." First Quarter 2024- Key Financial Metrics and Results GAAP YoY Change Adjusted (a) YoY Change Net Loss ($137.6M) ($39.3M) ($143.5M) ($31.7M) Diluted EPS ($2.65) ($0.74) ($2.77) ($0.60) Pre-tax Margin (23.7) % (3.2) pts. (24.8) % (1.8) pts. EBITDA ($109.0M) ($20.8M) ($116.0M) ($12.6M) Operating Cost per ASM 15.72¢ 5.9 % 11.82¢ 7.1 % Operating Revenue per ASM 12.78¢ 2.6 % 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. The first quarter loss per share includes ($0.32) per share due to the reduction in the Company's effective tax rate from 21% to 10%. As of 3/31/2024, the Company has generated federal and state net operating losses (NOLs) of approximately $451 million and $969 million, respectively, which will be used to reduce future cash tax obligations. Analysis under GAAP required us to increase the valuation allowance related to the NOLs which resulted in a lower effective tax rate for the period, decreasing our GAAP tax benefit. Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables. First Quarter 2024 Highlights Merger Update The Company's stockholders voted in favor of the merger with Alaska Air Group, Inc. ("Alaska") The Company and Alaska 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 Liquidity and Capital Resources As of March 31, 2024, the Company had: Unrestricted cash, cash equivalents and short-term investments of $897 million Liquidity of $1.15 billion, including an undrawn revolving credit facility of $235 million Outstanding debt and finance lease obligations of $1.75 billion Routes and Network Began Boeing 787-9 Dreamliner revenue service on April 15, 2024 Announced new flying from Salt Lake City (SLC) to Honolulu (HNL) and Sacramento (SMF) to Lihu`e (LIH) and Kona (KOA) Announced increased summer flights between HNL and Austin (AUS), Boston (BOS), Las Vegas (LAS) and Pago Pago (PPG) Hawaiian will also add a fourth daily flight between HNL and Los Angeles (LAX) from May 24 through September 2 Hawaiian received its second A330-300 freighter from Amazon which will operate between New York's JFK and San Bernardino (SBD) Guest Experience Starlink inflight connectivity is now available free of charge on board all 18 A321neo aircraft Expanded Premium Airport Service product in its Honolulu hub, offering seamless curb-to-aircraft experience with access to new airport private suite, Apt. 1929 Signed a multi-year distribution agreement with Sabre that will provide Sabre-connected agencies with long-term access to the carrier's HA Connect™ NDC and traditional EDIFACT content through the Sabre travel marketplace. Workforce Development Partnered with Universal Technical Institute, the transportation, skilled trades and energy education division of UTI, Inc. to expand career opportunities for Universal Technical Institute airframe and powerplant graduates who earn their FAA certifications. Second Quarter 2024 Outlook The table below summarizes the Company's expectations for the quarter ending June 30, 2024 expressed as an expected percentage change compared to the results for the quarter ended June 30, 2023. Figures include the expected impacts of the Company's freighter operation, which are not yet expected to be material. Item GAAP Second Quarter 2024 Guidance Non-GAAP Equivalent Non-GAAP Second Quarter 2024 Guidance Available Seat Miles (ASMs) Up 3.5% to up 6.5% Operating Revenue per ASM (RASM) Down 1.5% to up 1.5% Costs per ASM (CASM) Up 8.4% to up 10.7% CASM excluding fuel and non-recurring items (a) Up 5.0% to up 8.0% Gallons of Jet Fuel Consumed (b) Up 2.5% to up 5.5% Average fuel price per gallon, including taxes and delivery (c) $2.83 Economic Fuel Price per Gallon (a)(b)(c) $2.85 Effective Tax Rate ~10%   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 operation as the Company establishes its freighter operation. 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 Available Seat Miles (ASMs) Up 6.0% to up 9.0% Up 4.5% to 7.5% Costs per ASM Up 0.7% to up 3.0% Up 4.1% to up 6.3% CASM excluding fuel and non-recurring items (a) Flat to up 3.0% Up 1.0% to up 4.0% Gallons of Jet Fuel Consumed (b) Up 4.0% to up 7.0% Up 3.0% to up 6.0% Average fuel price per gallon, including taxes and delivery (c) $2.55 $2.80 Economic Fuel Price per Gallon (a)(b)(c) $2.59 $2.83 Capital Expenditures $500M to $550M No change (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 April 10, 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, April 23, 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 15 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 Company's work to integrate and capture return on significant investments; expectations for service between Salt Lake City and Honolulu, Sacramento and Lihu`e and Kona, Honolulu and Austin, Boston, Las Vegas, Los Angeles and Pago Pago, and freighter service between New York's JFK and San Bernardino; statements regarding our multi-year distribution agreement with Sabre; the Company's outlook for the quarter ending June 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 March 31, 2024 2023 % Change (in thousands, except per share data) Operating Revenue: Passenger $         583,448 $         548,526 6.4 % Other 62,119 64,077 (3.1) % Total 645,567 612,603 5.4 % Operating Expenses: Wages and benefits 261,935 241,933 8.3 % Aircraft fuel, including taxes and delivery 188,778 197,625 (4.5) % Maintenance, materials and repairs 70,971 50,287 41.1 % Aircraft and passenger servicing 45,424 42,532 6.8 % Depreciation and amortization 32,967 32,667 0.9 % Aircraft rent 29,706 28,171 5.4 % Commissions and other selling 28,443 28,238 0.7 % Other rentals and landing fees 43,127 38,720 11.4 % Purchased services 38,475 35,072 9.7 % Special items 8,482 — 100.0 % Other 45,905 34,785 32.0 % Total 794,213 730,030 8.8 % Operating Loss (148,646) (117,427) 26.6 % Nonoperating Income (Expense): Interest expense and amortization of debt discounts and issuance costs (24,069) (22,880) Interest income