Hawaiian Airlines Posts Another Loss Despite “Encouraging Recovery”

Hawaiian Airlines has posted a US $ 36.8 million net loss for the second quarter of 2022. The figure equates to a net loss of 72 cents per share, below market expectations of an 86 cents per share net loss. The airline’s CEO says he is buoyed by strong domestic demand and an “encouraging recovery” in international markets.

Domestic recovery boosts Hawaiian Airlines

During the second quarter of 2022, Hawaiian Airlines operated at 87% of its 2019-second quarter system capacity. Across the airline’s North American network, capacity was 115% of comparable 2019 levels; capacity was 80% across Hawaiian’s neighboring islands network, and capacity was 30% on Hawaiian’s international network. Overall operating revenue was down 2.9% from the second quarter of 2019 as the international network is still rebuilding.

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As of June 30, 2022, Hawaiian Airlines had unrestricted cash, cash equivalents, and short-term investments of US $ 1.5 billion; $ 1.8 billion in liquidity, including an undrawn $ 235 million revolving credit facility; outstanding debt and finance lease obligations of $ 1.8 billion; and an air traffic liability of $ 784 million.

A strong performance in US domestic markets helped Hawaiian Airlines post a lower-than-expected quarterly loss. Photo: Airbus

“Strong demand in our domestic markets has been joined by an encouraging recovery from our international gateways in the second quarter,” said Peter Ingram, Hawaiian Airlines President and CEO. “As we move into the summer travel peak, every indication suggests a continuation of these positive trends. I am extremely proud of our team, who continue to deliver the industry’s best reliability and service as we pursue our mission to connect people with aloha.”

Hawaiian Airlines said it continued to enjoy strong demand throughout its domestic network and is seeing a solid recovery in its international network. The airline’s premium products performed exceptionally well during the quarter, with both business / first class revenue and Extra Comfort revenue exceeding 2019 levels.

Some international network growth is planned this quarter

While the international network remains the weak point in Hawaiian’s operations, the airline did make some significant route announcements in the second quarter. In April, the airline said it was resuming three-times-weekly nonstop service between Auckland (AKL), New Zealand, and Honolulu (HNL), Hawai’i, starting July 2, 2022, and a seasonal increase in frequency between Seoul ( ICN), South Korea, and Honolulu for the summer of 2022.

In May 2022, Hawaiian Airlines said it planned to resume service between Honolulu’s Daniel K. Inouye International Airport and Tokyo Haneda Airport (HND) beginning August 1. The airlines also announced an increase in weekly flights between HNL and Narita Airport (NRT) and Osaka’s Kansai Airport (KIX) starting in August.

Hawaiian Airlines expands to expand its international network this quarter. Photo: Airbus

As far as the current quarter goes, Hawaiian Airlines expects its capacity for the three months ending September 30, 2022, to be down approximately 5% to 8% compared to the third quarter of 2019, driven mainly by the delay of the full restoration of its Japan network. The airline also expects its total revenue for the quarter ending September 30, 2022, to sequentially improve from the second quarter and to be between down 3.5% to up 0.5% compared to the third quarter of 2019.

The airline’s outlook for adjusted EBITDA for the quarter ending September 30, 2022, is $ 15 million to $ 75 million.

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