HONOLULU, Hawaii – Hawaiian Holdings, Inc, parent company of Hawaiian Airlines, Inc, today reported its financial results for the first quarter of 2016.
First Quarter 2016 – Key Financial Metrics
GAAP YoY Change Adjusted YoY Change
Net Income $51.5M +$25.6M $43.0M +$18.3M
Diluted EPS $0.95 +$0.55 $0.80 +$0.42
Pre-tax Margin 15.1% +7.3 pts. 12.6% +5.2 pts.
“The outstanding first quarter results are a strong start to 2016,” said Mark Dunkerley, Hawaiian Airlines president and chief executive officer. “Solid demand for travel to Hawai’i, manageable industry capacity growth, and the low cost of fuel combined with the exceptional service that our employees deliver to our guests propelled our record results this quarter. Looking ahead, our outlook is for these positive trends to continue reinforcing our confidence that 2016 will be a great year.”
Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables.
Liquidity and Capital Resources
As of March 31, 2016 the Company had:
• Unrestricted cash, cash equivalents and short-term investments of $669 million.
• Outstanding debt and capital lease obligations of $683 million.
The Company early retired $52 million (principal balance) of existing debt in the first quarter. In addition, the Company repurchased $2.5 million of common stock in the first quarter.
First Quarter 2016 Highlights
• Ranked #1 nationally for on-time performance for the 12th consecutive year in 2015 and for the months of January and February 2016 by the U.S. Department of Transportation Air Travel Consumer Report.
• Implemented changes to insource the sales team in Australia and New Zealand and announced similar changes in Japan to provide cost savings and better enable long-term success in these markets.
• Announced the purchase of an Airbus A320 series Full Flight Simulator for on-site pilot training which is expected to return several million dollars in annual cost savings.
Product and loyalty
• Commenced the installation of fully lie-flat seats beginning the retrofit program for the entire A330 fleet.
Second Quarter and Full Year 2016 Outlook
The table below summarizes the Company’s expectations for the second quarter ending June 30, 2016 and full year ending December 31, 2016, expressed as an expected percentage change compared to the results for the quarter ended June 30, 2015 and full year ended December 31, 2015, as applicable (the historical results for which are presented for reference).
Item 2015 Second Quarter 2016 Guidance
Cost per ASM Excluding Fuel (cents) 8.27 Up 3.5% to up 6.5%
Operating Revenue Per ASM (cents) 12.86 Down 1.5% to up 1.5%
ASMs (millions) 4,441.6 Up 1.5% to up 3.5%
Gallons of jet fuel consumed (millions) 58.0 Up 1% to up 3%
Economic fuel cost per gallon (a) $ 2.23 $1.50 to $1.60
Item 2015 Full Year 2016 Guidance
Cost per ASM Excluding Fuel (cents) 8.31 Up in the low single digit range
ASMs (millions) 17,726.3 Up 2.5% to up 5.5%
Gallons of jet fuel consumed (millions) 234.2 Up 1.5% to up 4.5%
Economic fuel cost per gallon (a) $ 2.04 $1.45 to $1.55
(a) Economic fuel cost per gallon estimates are based on the April 13, 2016 fuel forward curve.