Hawaiian Airlines reports $162.6 million dollar loss

Read us | Listen to us | Watch us |Events| Subscribe | Our Social Media|


Afrikaans Afrikaans Albanian Albanian Amharic Amharic Arabic Arabic Armenian Armenian Azerbaijani Azerbaijani Basque Basque Belarusian Belarusian Bengali Bengali Bosnian Bosnian Bulgarian Bulgarian Cebuano Cebuano Chichewa Chichewa Chinese (Simplified) Chinese (Simplified) Corsican Corsican Croatian Croatian Czech Czech Dutch Dutch English English Esperanto Esperanto Estonian Estonian Filipino Filipino Finnish Finnish French French Frisian Frisian Galician Galician Georgian Georgian German German Greek Greek Gujarati Gujarati Haitian Creole Haitian Creole Hausa Hausa Hawaiian Hawaiian Hebrew Hebrew Hindi Hindi Hmong Hmong Hungarian Hungarian Icelandic Icelandic Igbo Igbo Indonesian Indonesian Italian Italian Japanese Japanese Javanese Javanese Kannada Kannada Kazakh Kazakh Khmer Khmer Korean Korean Kurdish (Kurmanji) Kurdish (Kurmanji) Kyrgyz Kyrgyz Lao Lao Latin Latin Latvian Latvian Lithuanian Lithuanian Luxembourgish Luxembourgish Macedonian Macedonian Malagasy Malagasy Malay Malay Malayalam Malayalam Maltese Maltese Maori Maori Marathi Marathi Mongolian Mongolian Myanmar (Burmese) Myanmar (Burmese) Nepali Nepali Norwegian Norwegian Pashto Pashto Persian Persian Polish Polish Portuguese Portuguese Punjabi Punjabi Romanian Romanian Russian Russian Samoan Samoan Scottish Gaelic Scottish Gaelic Serbian Serbian Sesotho Sesotho Shona Shona Sindhi Sindhi Sinhala Sinhala Slovak Slovak Slovenian Slovenian Somali Somali Spanish Spanish Sudanese Sudanese Swahili Swahili Swedish Swedish Tajik Tajik Tamil Tamil Thai Thai Turkish Turkish Ukrainian Ukrainian Urdu Urdu Uzbek Uzbek Vietnamese Vietnamese Xhosa Xhosa Yiddish Yiddish Zulu Zulu
Hawaii Airlines Cuts 1,000 Jobs
Hawaiian Airlines

As is the case for all airlines around the world, Hawaiian Airlines witnessed a huge loss of close to $163 million in the final quarter of 32020.

Print Friendly, PDF & Email

For the fourth quarter of 2020, Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., today reported a net loss of US$162.6 million.

“While 2020 has been the most challenging year the airline industry has experienced, we are encouraged that the re-opening of Hawai’i to tourism through the state’s pre-travel testing program and Hawaiian’s successful testing partnerships have allowed us to begin the journey to recovery,” said Peter Ingram, president and CEO of Hawaiian Airlines. “My colleagues inspire me every day with their resolve to persevere and emerge from the pandemic strongly as they navigate through challenges and create innovative solutions to position Hawaiian for long-term success. The negative impacts of COVID-19 will create a challenging beginning of 2021, but we are confident that the structural pieces are in place for a sustained recovery.”

Liquidity and Capital Resources

As of December 31, 2020 the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $864 million .
  • Outstanding debt and finance lease obligations of $1.3 billion .
  • Air traffic liability of $534 million .

In January 2021 , the Company applied to participate in the Payroll Support Program Extension program (the “PSP Extension”), part of the Consolidated Appropriations Act of 2021, and expects to receive approximately $168 million in funds through the program.

Fourth Quarter 2020

On October 15, 2020 , the Company reached an important inflection point in its recovery from the COVID-19 pandemic with the re-opening of Hawai’i to tourism through the launch of the state of Hawai’i’s pre-travel testing program, which allows guests to avoid quarantine with evidence of a negative COVID-19 test, subject to certain island-specific requirements.

During the fourth quarter, the Company reinstated non-stop service from Honolulu to Las Vegas , Phoenix , San Jose , Oakland , New York and Boston , restoring service to all of its pre-pandemic origin points on the U.S. mainland, as well as non-stop service from Honolulu to Tokyo-Haneda, Japan ; Osaka, Japan ; and Seoul, South Korea . While the Company doubled its capacity as compared to the third quarter of 2020, its capacity was down 72 percent compared to the same period in 2019.

As testing is key to the resumption of Hawai’i travel, the Company launched an array of testing options for travelers, including access to mail-in test kits and proprietary drive-through testing labs in select U.S. mainland gateways.

To increase liquidity, the Company raised approximately $41 million in net proceeds through the sale of approximately 2.1 million shares of common stock under the Company’s at-the-market offering program (ATM Program) during the fourth quarter. The Company may sell up to 5 million shares in total under the ATM Program.

On October 1, 2020 , the Company implemented both permanent and extended voluntary leave programs with each of its workgroups. In total, the Company reduced its workforce by approximately 2,400 employees, or more than 32 percent of all employees, of which approximately 2,100 were through voluntary means. As of January 26, 2021 , all employees who were subject to an involuntary furlough between October 1, 2020 and January 15, 2021 have been sent recall notices pursuant to the PSP Extension.

In October 2020 , the Company executed an amendment with the U.S. Treasury increasing the total amount of the CARES Act Economic Relief Program (ERP) loan under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) from $420 million to $622 million , of which $577 million is undrawn. The Company has until May 28, 2021 to determine how much of the remaining ERP funds to borrow.

In October 2020 , the Company reached an agreement with Boeing to delay 787-9 deliveries under its purchase agreement for 10 aircraft.  The Company expects to take delivery of 787-9 aircraft from 2022 to 2026 with its first aircraft to be delivered in September 2022.

First Quarter 2021 Outlook

The Company announced on December 8, 2020 that it will launch four new routes in March and April 2021 ; non-stop flights from Honolulu to Austin, Texas ; Orlando, Florida , and Ontario , California as well as a new flight from Long Beach, California to Maui .

The Company expects its first quarter 2021 capacity to be down about 50 percent compared to the first quarter of 2019, with the state of Hawai’i’s pre-travel testing program anticipated to remain in place throughout the first quarter.

The Company expects its full year 2021 capital expenditures to be approximately $50 – $70 million.

#rebuildingtravel

Print Friendly, PDF & Email
>