Hawaiian Airlines Reports February 2020 Traffic Statistics and Updates Expected First Quarter 2020 M
Hawaiian Airlines, Inc., a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA) ("Hawaiian"), today announced its system-wide traffic statistics for the month ended February 29, 2020. It also updated its expectations for certain first quarter 2020 financial metrics.
Hawaiian welcomed more than 856,000 guests in February 2020. Total traffic (revenue passenger miles) increased 6.4 percent on an increase of 13.3 percent in capacity (available seat miles) compared to February 2019. Load factor decreased 5.2 points year-over-year to 79.3 percent.
The table below summarizes February and year-to-date statistics compared to the respective prior-year periods.
SYSTEM-WIDE OPERATIONS
|
FEBRUARY |
2020 |
2019 |
% CHANGE |
|
PAX |
856,687 |
870,538 |
(1.6)% |
|
RPMs (000) |
1,335,049 |
1,255,238 |
6.4% |
|
ASMs (000) |
1,683,538 |
1,486,005 |
13.3% |
|
LF |
79.3% |
84.5% |
(5.2) pts |
|
YEAR-TO-DATE |
2020 |
2019 |
% CHANGE |
|
PAX |
1,819,740 |
1,829,086 |
(0.5)% |
|
RPMs (000) |
2,863,751 |
2,689,257 |
6.5% |
|
ASMs (000) |
3,512,755 |
3,186,855 |
10.2% |
|
LF |
81.5% |
84.4% |
(2.9) pts |
|
PAX |
Passengers transported |
|
RPM |
Revenue Passenger Mile; one paying passenger transported one mile |
|
ASM |
Available Seat Mile; one seat transported one mile |
|
LF |
Load Factor; percentage of seating capacity filled |
|
1Includes the operations of contract carriers under capacity purchase agreements. |
First Quarter 2020 Outlook
The Company has revised certain of its expectations for the quarter ending March 31, 2020 that were previously provided in its fourth quarter and full year 2019 earnings release dated January 30, 2020.
Specifically, the Company:
- withdrew its estimates for operating revenue per available seat mile (ASM) in light of demand reductions associated with the global spread of COVID-19; the Company is unable to provide an updated guidance range due to considerable uncertainty about the impact of COVID-19 on demand for the remainder of the quarter; if there are no new net bookings for March as of March 5, 2020, RASM would be down about 12 percent year-over-year for the first quarter
- affirmed its estimates for ASMs; the decrease in capacity caused by the temporary suspension of the Company's service to South Korea starting from March 2, 2020 is largely offset by an increase in capacity due to up-gauges on North America routes for operational reasons;
- affirmed its estimates for operating cost per ASM excluding fuel and non-recurring items;
- affirmed its estimates for gallons of jet fuel consumed; and
- lowered its estimates for economic fuel cost per gallon.
The table below summarizes the Company's revised expectations for the quarter ending March 31, 2020 expressed as an expected percentage change compared to the results for the quarter ended March 31, 2019.
|
Item |
Prior First
|
Revised First
|
GAAP
|
Prior GAAP
|
Revised GAAP
|
|||||
|
Available Seat Mile (ASM) |
Up 7.5 - 10.5% |
No change |
||||||||
|
Operating revenue per ASM |
Down 4.5 - 7.5% |
Withdrawn |
||||||||
|
Cost per ASM excluding fuel and non-recurring items (a) |
Down 1.5 - 4.5% |
No change |
Cost per ASM (a) |
Down 1.8 - 4.3% |
Down 2.9 - 5.3% |
|||||
|
Gallons of jet fuel consumed |
Up 4.5 - 7.5% |
No change |
||||||||
|
Economic fuel cost per gallon (b) (c) |
$1.97 |
$1.87 |
Fuel cost per gallon (b) |
$1.93 |
$1.83 |
|
(a) See Table 1 for a reconciliation of GAAP operating expenses to non-GAAP operating expenses excluding aircraft fuel and non-recurring items. |
|
(b) Economic fuel cost per gallon estimates are based on the March 6, 2020 fuel forward curve. |
|
(c) See Table 2 for a reconciliation of GAAP fuel costs to non-GAAP economic fuel costs. |
Investor Conference Call
Hawaiian Holdings is holding an investor conference call today (March 9, 2020) at 4:30 p.m. Eastern Time (USA). The conference call will be broadcast live over the Internet. Investors may 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, the call will be archived and available for 90 days on the investor relations section of the Company's website.
Non-GAAP Financial Reconciliation
|
Table 1. |
|||||||||
|
Operating Costs per Available Seat Mile (CASM) |
|||||||||
|
(in thousands, except CASM data) (unaudited) |
|||||||||
|
Estimated three months ending
|
|||||||||
|
GAAP operating expenses |
$ |
614,906 |
- |
$ |
648,132 |
||||
|
Less: aircraft fuel, including taxes and delivery |
(123,083) |
- |
(126,703) |
||||||
|
Adjusted operating expenses - excluding aircraft fuel |
$ |
491,823 |
- |
$ |
521,429 |
||||
|
Available Seat Miles |
5,215,815 |
5,361,373 |
|||||||
|
CASM - GAAP |
11.79 |
¢ |
12.09 |
¢ |
|||||
|
Less: aircraft fuel, including taxes and delivery |
(2.36) |
- |
(2.36) |
||||||
|
Adjusted CASM |
9.43 |
¢ |
- |
9.73 |
¢ |
||||
|
Table 2. |
|||||
|
Economic Fuel Expense |
|||||
|
(in thousands, except per-gallon amounts) (unaudited) |
|||||
|
Estimated three months ending
|
|||||
|
Aircraft fuel expense, including taxes and delivery |
$ |
123,083 |
- |
$ |
126,703 |
|
Realized (gains)/losses on settlement of fuel derivative contracts |
3,000 |
- |
3,000 |
||
|
Economic fuel expense |
$ |
126,083 |
- |
$ |
129,703 |
|
Fuel gallons consumed |
67,424 |
- |
69,360 |
||
|
Economic fuel cost per gallon |
$ |
1.87 |
- |
$ |
1.87 |