Hawaiian Holdings(HA) - 2024 Q2 - Quarterly Results

Financial Performance - Hawaiian Holdings reported a net loss of $67.6 million for Q2 2024, compared to a net loss of $55.3 million in Q2 2023, reflecting a year-over-year decline of 22%[4] - Operating revenue for Q2 2024 was $731,905,000, a 3.5% increase from $706,928,000 in Q2 2023[25] - Total operating expenses increased by 9.9% to $787,292,000 in Q2 2024 from $716,508,000 in Q2 2023[25] - The operating loss for Q2 2024 was $55,387,000, compared to an operating loss of $9,580,000 in Q2 2023, representing a 478.2% increase in losses[25] - Net loss for Q2 2024 was $67,594,000, compared to a net loss of $12,335,000 in Q2 2023[25] - Adjusted EBITDA for the three months ended June 30, 2024, was $(21,299) thousand, a decrease from $10,772 thousand in the prior year[41] - The adjusted net loss for the six months ended June 30, 2024, was $(214,548) thousand, compared to $(135,944) thousand in the prior year[39] Revenue and Capacity - Operating revenue for Q2 2024 increased by 3.5% year-over-year, driven by a 4.3% increase in capacity, indicating steady demand for travel to Hawaiʻi[7] - The company expects Available Seat Miles (ASMs) to increase by 5.5% to 8.5% in Q3 2024, while operating revenue per ASM is projected to decrease by 4.5% to 1.5%[16] - For the full year 2024, Hawaiian anticipates ASMs to rise by 4.0% to 7.0% and capital expenditures to be between $350 million and $400 million[18] - Revenue passengers flown for the three months ended June 2024 decreased by 0.6% to 2,785, while for the six months, it increased by 0.2% to 5,405[30] - Revenue passenger miles (RPM) for the three months ended June 2024 increased by 3.8% to 4,511,948, and for the six months, it rose by 4.8% to 8,584,421[30] - Available seat miles (ASM) for the three months ended June 2024 increased by 4.1% to 5,219,132, and for the six months, it rose by 3.4% to 10,268,730[30] Cash and Liquidity - The company had unrestricted cash and short-term investments of $1.3 billion and total liquidity of $1.5 billion as of June 30, 2024[6] - Cash and cash equivalents increased to $510,463,000 as of June 30, 2024, from $153,273,000 as of December 31, 2023[26] - The company reported a net cash increase of $357,190,000 in the six months ended June 30, 2024[28] Debt and Liabilities - Long-term debt increased to $2,068,129,000 as of June 30, 2024, from $1,537,152,000 as of December 31, 2023[26] - Total liabilities and shareholders' equity as of June 30, 2024, were $4,242,757,000, compared to $3,733,525,000 as of December 31, 2023[26] Operational Developments - Hawaiian Airlines commenced new nonstop services between Salt Lake City and Honolulu, and between Sacramento and Kona and Lihu'e[10] - The company is rolling out Starlink inflight WiFi across its A330 fleet, following successful deployment on its A321neo aircraft[11] - Hawaiian continues to pursue regulatory clearance for its merger with Alaska Airlines, with a review period extended to August 15, 2024[8] Sustainability Initiatives - The company aims to achieve net-zero carbon emissions by 2050, focusing on sustainable aviation fuel and fleet modernization initiatives[14] Cost and Expenses - Economic fuel expense for the three months ended June 2024 was $181,107, a 7.1% increase from $169,175 in the same period last year[31] - Economic fuel price per gallon for the three months ended June 2024 was $2.65, a 3.9% increase from $2.55 in the same period last year[32] - The average cost per gallon of jet fuel for the three months ended June 2024 was $2.62, a 4.4% increase from $2.51 in the same period last year[30] - The company incurred special items amounting to $6,497 thousand for the three months ended June 30, 2024[41] - The company recorded a signing bonus and vacation liability true-up of $17.7 million related to a new collective bargaining agreement ratified in February 2023[34] - The company recognized approximately $6.0 million and $24.1 million in contract termination amortization during the three and six months ended June 30, 2023, respectively[35] - The company recorded $6.5 million and $15.0 million in special items during the three and six months ended June 30, 2024, primarily related to its merger with Alaska[36] - The interest expense for the three months ended June 30, 2024, was $28,324 thousand, an increase from $22,705 thousand in the same period last year[41] - GAAP operating expenses for the three months ended June 30, 2024, were $787,292 thousand, up from $716,508 thousand in the same period last year[43] - The company reported a depreciation and amortization expense of $35,068 thousand for the three months ended June 30, 2024, compared to $33,348 thousand in the prior year[41] - The company's CASM (Cost per Available Seat Mile) was 15.05 cents for the three months ended June 30, 2024, compared to 14.29 cents in the same period last year[43] - Operating cost per ASM (CASM) for the three months ended June 2024 increased by 5.3% to 15.05¢, while for the six months, it rose by 5.7% to 15.39¢[30] - The pre-tax margin for the three months ended June 30, 2024, was reported at (9.2)%, compared to (2.0)% for the same period in 2023[45]