Hawaiian Airlines Reports September and Third Quarter 2019 Traffic Statistics and Updates Expected T
Hawaiian Airlines Reports September and Third Quarter 2019 Traffic Statistics and Updates Expected Third Quarter 2019 Metrics
Hawaiian Airlines, Inc., a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA) ("Hawaiian" or the "Company"), today announced its system-wide traffic statistics for the month and quarter ended September 30, 2019. The Company also updated its expectations for certain third quarter 2019 financial metrics.
Hawaiian welcomed more than 931,000 guests in September 2019. Total traffic (revenue passenger miles) increased 3.0 percent on an increase of 0.7 percent in capacity (available seat miles) compared to September 2018. Load factor increased 1.9 points to 85.5 percent.
For the third quarter ended September 30, 2019, Hawaiian welcomed more than 3 million guests. Total traffic increased 2.7 percent on a decrease of 0.4 percent in capacity. Load factor increased 2.7 points to 87.8 percent.
The table below summarizes September, third quarter, and year-to-date statistics compared to the respective prior-year periods.
SYSTEM-WIDE OPERATIONS1
|
SEPTEMBER |
2019 |
2018 |
% CHANGE |
|
PAX |
931,280 |
918,715 |
1.4% |
|
RPMs (000) |
1,490,482 |
1,446,766 |
3.0% |
|
ASMs (000) |
1,742,249 |
1,729,723 |
0.7% |
|
LF |
85.5% |
83.6% |
1.9 pts |
|
THIRD QUARTER |
2019 |
2018 |
% CHANGE |
|
PAX |
3,071,854 |
3,039,107 |
1.1% |
|
RPMS (000) |
4,679,632 |
4,557,706 |
2.7% |
|
ASMS (000) |
5,331,914 |
5,352,976 |
(0.4)% |
|
LF |
87.8% |
85.1% |
2.7 pts |
|
YEAR-TO-DATE |
2019 |
2018 |
% CHANGE |
|
PAX |
8,853,052 |
8,948,975 |
(1.1)% |
|
RPMS (000) |
13,300,090 |
12,921,666 |
2.9% |
|
ASMS (000) |
15,341,510 |
15,104,500 |
1.6% |
|
LF |
86.7% |
85.5% |
1.2 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.
Third Quarter 2019 Outlook
The Company has revised certain of its expectations for the quarter ended September 30, 2019 that were previously provided in its Second Quarter Earnings Release on July 30, 2019.
Specifically, the Company:
• raised its estimates for operating revenue per ASM due to better than expected yields in long-haul markets, particularly in its International entity;
• narrowed its estimates for operating cost per ASM excluding fuel and non-recurring items;
• narrowed 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 ended September 30, 2019 expressed as an expected percentage change compared to the results for the quarter ended September 30, 2018.
|
Item |
|
Prior Third Quarter 2019 Guidance |
|
Revised Third Quarter 2019 Guidance |
|
GAAP Equivalent |
|
Prior GAAP Third Quarter 2019 Guidance |
|
Revised GAAP Third Quarter 2019 Guidance |
|
Operating revenue per available seat mile (ASM) |
|
Down 1.5 - 4.5% |
|
Down 0.5% - up 0.5% |
|
|
|
|
|
|
|
Cost per ASM (CASM) excluding aircraft fuel and non-recurring items (a) |
|
Up 3.5 - 6.5% |
|
Up 4.5 - 5.5% |
|
Cost per ASM (a) |
|
Down 0.5% - Up 1.7% |
|
Down 0.8% - Up 0.2% |
|
Gallons of jet fuel consumed |
|
Down 2.5 - 4.5% |
|
Down 3.0 - 4.0% |
|
|
|
|
|
|
|
Economic fuel cost per gallon (b) |
|
$2.11 |
|
$2.04 |
|
Fuel cost per gallon (b) |
|
$2.07 |
|
$1.99 |
(a) See Table 1 for a reconciliation of GAAP operating expenses to operating expenses excluding aircraft fuel and non-recurring items.
(b) See Table 2 for a reconciliation of GAAP fuel costs to economic fuel costs.
Non-GAAP Financial Reconciliation
Table 1.
Operating Costs per Available Seat Mile (CASM)
(in thousands, except CASM data) (unaudited)
|
|
Estimated three months ended September 30, 2019 |
||||||||
|
GAAP operating expenses |
$ |
635,989 |
|
|
to |
$ |
642,227 |
|
|
|
Less: aircraft fuel, including taxes and delivery |
|
(137,865 |
) |
|
to |
|
(139,337 |
) |
|
|
Adjusted operating expenses - excluding aircraft fuel |
$ |
498,124 |
|
|
to |
$ |
502,890 |
|
|
|
Available Seat Miles |
|
5,331,914 |
|
|
to |
|
5,331,914 |
|
|
|
CASM - GAAP |
|
11.93 |
|
¢ |
to |
|
12.04 |
|
¢ |
|
Less: aircraft fuel, including taxes and delivery |
|
(2.59 |
) |
|
to |
|
(2.61 |
) |
|
|
CASM - excluding aircraft fuel |
|
9.34 |
|
¢ |
To |
|
9.43 |
|
¢ |
Table 2.
Hawaiian Holdings, Inc.
Economic Fuel Expense (unaudited)
The Company believes that economic fuel expense is a good measure of the effect of fuel prices on its business as it most closely approximates the net cash outflow associated with the purchase of fuel for its operations in a period. The Company defines economic fuel expense as GAAP fuel expense plus losses/(gains) realized through actual cash (receipts)/payments received from or paid to hedge counterparties for fuel hedge derivative contracts settled during the period.
|
|
|
Estimated three months ending September 30, 2019 |
||||||
|
|
|
(in thousands, except per-gallon amounts) |
||||||
|
Aircraft fuel expense, including taxes and delivery |
|
$ |
137,865 |
|
to |
$ |
139,337 |
|
|
Realized losses (gains) on settlement of fuel derivative contracts |
|
3,400 |
|
to |
3,400 |
|
||
|
Economic fuel expense |
|
$ |
141,265 |
|
to |
$ |
142,737 |
|
|
Fuel gallons consumed |
|
69,247 |
|
to |
69,969 |
|
||
|
Economic fuel costs per gallon |
|
$ |
2.04 |
|
to |
$ |
2.04 |
|