Hawaiian Holdings Adds Two Board Members; Reports 2020 Second Quarter Financial Results
Hawaiian Holdings Adds Two Board Members; Reports 2020 Second Quarter Financial Results
Hawaiian Holdings, Inc. (NASDAQ: HA) ("we" or the "Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today announced the addition of C. Jayne Hrdlicka, former CEO of Australia-based Jetstar Group, and Michael E. McNamara, Executive Vice President and CIO of Target Corporation to its Board of Directors.
Hrdlicka, who served as CEO of New Zealand's a2 Milk Company after her time at Jetstar parent Qantas Airways, has substantial experience in the airline and retail sectors. McNamara joined Target in 2015 and in his capacity as CIO has overseen the transformation of the retailer's technology portfolio. Prior to joining Target, McNamara held positions of increasing authority with TESCO, a publicly traded international retailer headquartered in the UK.
"We welcome the additional experience and perspective both Jayne and Mike will bring to our Board of Directors, particularly as we emerge from the COVID-19 pandemic," said Larry Hershfield, Chairman of the Board of Directors of Hawaiian Holdings, Inc. "Jayne brings significant airline and international perspective to our company, while Mike adds deep expertise in technology with consumer-focused companies."
Also today, the Company reported its financial results for the second quarter of 2020.
|
Second Quarter 2020 - Key Financial Metrics |
||||||||
|
GAAP |
YoY Change |
Adjusted |
YoY Change |
|||||
|
Net Income |
($106.9M) |
($164.7M) |
($174.7M) |
($233.6M) |
||||
|
Diluted EPS |
($2.33) |
($3.54) |
($3.81) |
($5.04) |
||||
|
Pre-tax Margin |
(254.2)% |
(265.4) pts. |
(383.9)% |
(395.3) pts. |
||||
"Our second quarter results reflect the continued impact of COVID-19 and State of Hawai'i quarantines on our business," said Peter Ingram, Hawaiian Airlines President and CEO. "In the face of these unprecedented challenges, we have taken action to preserve and raise cash and are crafting plans to position us for the future even as we address the immediate adversity. With our leisure business model and relentless focus on the needs of the Hawai'i traveler, we are positioned to emerge from this crisis poised for success. I am grateful, as always, for the efforts of my extraordinary colleagues, as they take care of our guests and adapt to this ever-changing environment with passion and dedication."
Liquidity and Capital Resources
As of June 30, 2020, the Company had:
- Unrestricted cash, cash equivalents and short-term investments of $761 million
- Outstanding debt and finance lease obligations of $1,006 million
- Air traffic liability of $554 million
Second Quarter 2020
The State of Hawai'i was under the mandatory 14-day self-quarantine for both neighbor island and all incoming travelers for most of the second quarter of 2020, and as a consequence, the Company operated an extremely limited schedule. The mandatory 14-day self-quarantine restriction was lifted on June 16, 2020 for neighbor island travel only. Following this announcement, the Company increased neighbor island flight activity, but continued with its reduced schedule for longer haul flights.
In addition to service suspension and schedule reduction, the Company has taken, and will continue to take, actions to minimize cash outflow in an effort to mitigate the effects of reduced demand, including, but not limited to:
- Suspended dividend payments on, and the repurchase of, its common stock
- Instituted a hiring freeze across the Company, except for operationally critical and essential positions
- Deferred non-critical capital expenditures
- Instituted voluntary unpaid leave programs and exploring involuntary headcount reduction
- Reduced executive pay by 10% - 50%
- Reduced other discretionary spending, including contractor and vendor spend
- Negotiated payment deferrals with key vendors
As of June 30, 2020, the Company has received $214.2 million in grants and $49.0 million in loans pursuant to the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") Payroll Support Program ("PSP"). The Company expects to receive an additional $29.2 million in July 2020.
Third Quarter 2020
Due to the uncertain timing of the relaxation of travel and quarantine restrictions, the Company is unable to provide detailed guidance related to capacity expectations for the quarter ending September 30, 2020. July 2020 capacity, in terms of available seat miles (ASMs), is expected to be approximately 86% below the capacity flown in July 2019, and the Company expects August 2020 capacity to decrease 85% compared to August 2019. As a significant portion of the Company's costs are fixed, operating expenses are not expected to decline in proportion to the capacity decline.
To further increase liquidity, the Company has entered into additional financing transactions in July 2020. This includes the following:
- Raised $114 million through the sale and leaseback of two Airbus A321neo aircraft
- Signed a non-binding letter of intent with the U.S. Department of Treasury pursuant to which the Company is eligible to receive up to $364 million in Economic Relief Program ("ERP") loans offered under the CARES Act; the Company has until March 2021 to determine how much of the available ERP funds to borrow.
COVID-19 Response - Guest Experience and Community Relations
In response to the COVID-19 pandemic, the Company has enhanced cleaning procedures and revised guest-facing procedures in an effort to minimize the risk of transmission of COVID-19. These procedures are in line with current recommendations from leading public health authorities and include:
- Performing enhanced aircraft cleaning between flights and overnight, including recurring electrostatic spraying of all aircraft
- Frequent cleaning and disinfecting of counters and self-service check-in kiosks in our airports
- Ensuring hand sanitizers are readily available for guests statewide and at our mainland airports
- Requiring guests and guest-facing employees to wear face masks or coverings, with guests required to keep them on from check-in to deplaning
- Modifying boarding and deplaning processes and limiting the capacity of available seats on all aircraft to no higher than 70% to provide physical distancing
- Changing in-flight service to reduce close interactions between crew members and guests
The Company, along with its employees, has also taken measures to support the community through the COVID-19 pandemic, which include:
- Donating Main Cabin and Business Class pillowcases, blankets, mattress pads, amenity kits, and Business Class slippers to 12 local organizations serving the community during the pandemic
- Offering complimentary neighbor island transportation for medical professionals in April and May
- Providing complimentary transportation of food and household items from O'ahu to both Moloka'i and Lana'i in April and May
- Volunteering to support local non-profit organizations addressing the COVID-19 pandemic, from company-wide efforts to individual employee initiatives
Statistical information, as well as a reconciliation of the non-GAAP financial measures, can be found in the accompanying tables.
|
Table 1.
|
||||||||||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||||||||
|
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|||||||||||||||||
|
(in thousands, except per share data) |
||||||||||||||||||||||
|
Operating Revenue: |
||||||||||||||||||||||
|
Passenger |
$ |
29,762 |
$ |
653,423 |
(95.4) |
% |
$ |
533,231 |
$ |
1,254,727 |
(57.5) |
% |
||||||||||
|
Other |
30,242 |
58,766 |
(48.5) |
% |
85,917 |
114,213 |
(24.8) |
% |
||||||||||||||
|
Total |
60,004 |
712,189 |
(91.6) |
% |
619,148 |
1,368,940 |
(54.8) |
% |
||||||||||||||
|
Operating Expenses: |
||||||||||||||||||||||
|
Wages and benefits |
30,329 |
180,070 |
(83.2) |
% |
218,583 |
355,135 |
(38.5) |
% |
||||||||||||||
|
Aircraft fuel, including taxes and delivery |
7,003 |
140,600 |
(95.0) |
% |
120,481 |
266,704 |
(54.8) |
% |
||||||||||||||
|
Maintenance, materials and repairs |
13,994 |
58,131 |
(75.9) |
% |
74,403 |
121,176 |
(38.6) |
% |
||||||||||||||
|
Aircraft and passenger servicing |
3,036 |
39,641 |
(92.3) |
% |
41,319 |
78,541 |
(47.4) |
% |
||||||||||||||
|
Depreciation and amortization |
39,333 |
39,527 |
(0.5) |
% |
78,782 |
77,678 |
1.4 |
% |
||||||||||||||
|
Commissions and other selling |
2,927 |
32,471 |
(91.0) |
% |
29,643 |
63,307 |
(53.2) |
% |
||||||||||||||
|
Aircraft rent |
23,886 |
30,843 |
(22.6) |
% |
50,890 |
61,239 |
(16.9) |
% |
||||||||||||||
|
Other rentals and landing fees |
13,677 |
31,386 |
(56.4) |
% |
43,443 |
62,432 |
(30.4) |
% |
||||||||||||||
|
Purchased services |
19,887 |
32,733 |
(39.2) |
% |
54,128 |
65,186 |
(17.0) |
% |
||||||||||||||
|
Special items |
34,014 |
- |
100.0 |
% |
160,918 |
- |
100.0 |
% |
||||||||||||||
|
Other |
20,882 |
37,906 |
(44.9) |
% |
63,618 |
75,985 |
(16.3) |
% |
||||||||||||||
|
Total |
208,968 |
623,308 |
(66.5) |
% |
936,208 |
1,227,383 |
(23.7) |
% |
||||||||||||||
|
Operating Income (Loss) |
(148,964) |
88,881 |
(267.6) |
% |
(317,060) |
141,557 |
(324.0) |
% |
||||||||||||||
|
Nonoperating Income (Expense): |
||||||||||||||||||||||
|
Interest expense and amortization of debt discounts and issuance costs |
(8,221) |
(7,300) |
(15,016) |
(14,830) |
||||||||||||||||||
|
Interest income |
2,766 |
3,074 |
5,786 |
6,057 |
||||||||||||||||||
|
Capitalized interest |
921 |
1,257 |
1,752 |
2,542 |
||||||||||||||||||
|
Gains (losses) on fuel derivatives |
(184) |
(3,220) |
(6,636) |
(2,650) |
||||||||||||||||||
|
Other, net |
1,161 |
(3,083) |
3,465 |
(4,108) |
||||||||||||||||||
|
Total |
(3,557) |
(9,272) |
(10,649) |
(12,989) |
||||||||||||||||||
|
Income (Loss) Before Income Taxes |
(152,521) |
79,609 |
(327,709) |
128,568 |
||||||||||||||||||
|
Income tax expense (benefit) |
(45,617) |
21,776 |
(76,433) |
34,377 |
||||||||||||||||||
|
Net Income (Loss) |
$ |
(106,904) |
$ |
57,833 |
$ |
(251,276) |
$ |
94,191 |
||||||||||||||
|
Net Income (Loss) Per Share |
||||||||||||||||||||||
|
Basic |
$ |
(2.33) |
$ |
1.21 |
$ |
(5.47) |
$ |
1.96 |
||||||||||||||
|
Diluted |
$ |
(2.33) |
$ |
1.21 |
$ |
(5.47) |
$ |
1.96 |
||||||||||||||
|
Weighted Average Number of Common Stock Shares Outstanding: |
||||||||||||||||||||||
|
Basic |
45,971 |
47,854 |
45,969 |
48,122 |
||||||||||||||||||
|
Diluted |
45,971 |
47,889 |
45,969 |
48,158 |
||||||||||||||||||
|
Table 2.
|
||||||||||||||||||||||
|
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||||||||
|
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|||||||||||||||||
|
(in thousands, except as otherwise indicated) |
||||||||||||||||||||||
|
Scheduled Operations (a) : |
||||||||||||||||||||||
|
Revenue passengers flown |
182 |
2,957 |
(93.8) |
% |
2,542 |
5,777 |
(56.0) |
% |
||||||||||||||
|
Revenue passenger miles (RPM) |
95,084 |
4,487,362 |
(97.9) |
% |
3,806,558 |
8,615,090 |
(55.8) |
% |
||||||||||||||
|
Available seat miles (ASM) |
409,490 |
5,153,025 |
(92.1) |
% |
5,384,460 |
10,003,748 |
(46.2) |
% |
||||||||||||||
|
Passenger revenue per RPM (Yield) |
31.30 |
¢ |
14.56 |
¢ |
115.0 |
% |
14.01 |
¢ |
14.56 |
¢ |
(3.8) |
% |
||||||||||
|
Passenger load factor (RPM/ASM) |
23.2 |
% |
87.1 |
% |
(63.9) |
pts. |
70.7 |
% |
86.1 |
% |
(15.4) |
pts. |
||||||||||
|
Passenger revenue per ASM (PRASM) |
7.27 |
¢ |
12.68 |
¢ |
(42.7) |
% |
9.90 |
¢ |
12.54 |
¢ |
(21.1) |
% |
||||||||||
|
Total Operations (a) : |
||||||||||||||||||||||
|
Revenue passengers flown |
182 |
2,959 |
(93.8) |
% |
2,544 |
5,781 |
(56.0) |
% |
||||||||||||||
|
Revenue passenger miles (RPM) |
95,084 |
4,491,974 |
(97.9) |
% |
3,809,858 |
8,620,459 |
(55.8) |
% |
||||||||||||||
|
Available seat miles (ASM) |
409,490 |
5,157,677 |
(92.1) |
% |
5,389,019 |
10,009,598 |
(46.2) |
% |
||||||||||||||
|
Operating revenue per ASM (RASM) |
14.65 |
¢ |
13.81 |
¢ |
6.1 |
% |
11.49 |
¢ |
13.68 |
¢ |
(16.0) |
% |
||||||||||
|
Operating cost per ASM (CASM) |
51.03 |
¢ |
12.09 |
¢ |
322.1 |
% |
17.37 |
¢ |
12.26 |
¢ |
41.7 |
% |
||||||||||
|
CASM excluding aircraft fuel and non-recurring items (b) |
68.26 |
¢ |
9.38 |
¢ |
627.7 |
% |
14.22 |
¢ |
9.62 |
¢ |
47.8 |
% |
||||||||||
|
Aircraft fuel expense per ASM (c) |
1.70 |
¢ |
2.73 |
¢ |
(37.7) |
% |
2.23 |
¢ |
2.66 |
¢ |
(16.2) |
% |
||||||||||
|
Revenue block hours operated |
6,496 |
54,840 |
(88.2) |
% |
59,355 |
106,466 |
(44.2) |
% |
||||||||||||||
|
Gallons of jet fuel consumed |
7,759 |
67,277 |
(88.5) |
% |
71,580 |
131,798 |
(45.7) |
% |
||||||||||||||
|
Average cost per gallon of jet fuel (actual) (c) |
$ |
0.90 |
$ |
2.09 |
(56.9) |
% |
$ |
1.68 |
$ |
2.02 |
(16.8) |
% |
||||||||||
|
Economic fuel cost per gallon (c)(d) |
$ |
1.26 |
$ |
2.14 |
(41.1) |
% |
$ |
1.76 |
$ |
2.07 |
(15.0) |
% |
||||||||||
|
(a) |
Includes the operations of the Company's contract carrier under a capacity purchase agreement. |
|
(b) |
See Table 4 for a reconciliation of GAAP operating expenses to operating expenses excluding aircraft fuel and non-recurring items. |
|
(c) |
Includes applicable taxes and fees. |
|
(d) |
See Table 3 for a reconciliation of GAAP fuel costs to economic fuel costs. |
|
Table 3. |
|
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.
|
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||||||||
|
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|||||||||||||||||
|
(in thousands, except per-gallon amounts) |
||||||||||||||||||||||
|
Aircraft fuel expense, including taxes and delivery |
$ |
7,003 |
$ |
140,600 |
(95.0) |
% |
$ |
120,481 |
$ |
266,704 |
(54.8) |
% |
||||||||||
|
Realized losses on settlement of fuel derivative contracts |
2,751 |
3,051 |
(9.8) |
% |
5,837 |
5,895 |
(1.0) |
% |
||||||||||||||
|
Economic fuel expense |
$ |
9,754 |
$ |
143,651 |
(93.2) |
% |
$ |
126,318 |
$ |
272,599 |
(53.7) |
% |
||||||||||
|
Fuel gallons consumed |
7,759 |
67,277 |
(88.5) |
% |
71,580 |
131,798 |
(45.7) |
% |
||||||||||||||
|
Economic fuel costs per gallon |
$ |
1.26 |
$ |
2.14 |
(41.1) |
% |
$ |
1.76 |
$ |
2.07 |
(15.0) |
% |
||||||||||
|
Table 4. |
|
Hawaiian Holdings, Inc. |
|
Non-GAAP Financial Reconciliation (unaudited) |
The Company evaluates its financial performance utilizing various GAAP and non-GAAP financial measures, including net income, diluted net income per share, CASM, PRASM, RASM, Passenger Revenue per RPM, EBITDAR, and pre-tax margin. Pursuant to Regulation G, the Company has included the following reconciliation of reported non-GAAP financial measures to comparable financial measures reported on a GAAP basis. The adjustments are described below:
- During the three and six months ended June 30, 2020, the effective tax rate included a tax benefit of $9.2 million and $23.4 million, respectively, resulting from the rate differential between the prevailing tax rate of 21% during the years that generated net operating losses and the previous tax rate of 35% that was in effect during the years to which net operating losses were carried back as a result of the enactment of the CARES Act.
- During the three and six months ended June 30, 2020, the Company recognized $111.6 million in contra-expense related to grant proceeds from the PSP. The grant proceeds are recognized in proportion to estimated wages and benefits expense over the 6-month period the PSP covers. The Company expects to use all proceeds from the PSP by the end of 2020.
- Changes in fair value of fuel derivative contracts, net of tax, are based on market prices for open contracts as of the end of the reporting period, and include the unrealized amounts of fuel derivatives (not designated as hedges) that will settle in future periods and the reversal of prior period unrealized amounts.
- Changes in fair value of foreign currency derivative contracts, net of tax, are based on market prices for open contracts as of the end of the reporting period, including the unrealized amounts of foreign currency derivatives (not designated as hedges) that will settle in future periods and the reversal of prior period unrealized amounts.
- Unrealized loss (gain) on foreign debt is based on fluctuation in exchange rates and the measurement of foreign-denominated debt to our functional currency.
- The Company recorded the following as special items:
- During the three months ended June 30, 2020, an impairment charge of $27.5 million was recorded related to the Company's ATR-42 and ATR-72 fleets. An additional impairment charge of $3.4 million was recorded related to the Company's commercial real estate subsidiary.
- During the three months ended June 30, 2020, the Company recorded $3.1 million of charges related to write-downs of projects permanently suspended as a result of the COVID-19 pandemic.
- During the three months ended March 31, 2020, a charge of $20.2 million was recorded for the ratification of a collective bargaining agreement with the Association of Flight Attendants in April 2020 (related to service prior to January 1, 2020).
- During the three months ended March 31, 2020, a special charge of $106.7 million was recorded for goodwill impairment resulting from the decline in the market value of the Company's equity (i.e., share price), and the Company's inability to support the carrying value of goodwill on its financial statements.
- During the three and six months ended June 30, 2019, the Company recorded a gain on disposal of Boeing 767-300 aircraft equipment of $0.9 million and $1.9 million, respectively, in conjunction with the retirement of its B767 fleet.
The Company believes that adjusting for the impact of an effective tax rate differential, changes in fair value of fuel derivative contracts and foreign currency derivative contracts, fluctuations in foreign exchange rates, special items, and the sale of aircraft and aircraft equipment helps investors better analyze the Company's operational performance and compare its results to other airlines in the periods presented.
|
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||||||||||||||||||
|
2020 |
2019 |
2020 |
2019 |
|||||||||||||||||||||||||||||
|
Total |
Diluted
|
Total |
Diluted
|
Total |
Diluted
|
Total |
Diluted
|
|||||||||||||||||||||||||
|
(in thousands, except per share data) |
||||||||||||||||||||||||||||||||
|
GAAP Net Income (Loss), as reported |
$ |
(106,904) |
$ |
(2.33) |
$ |
57,833 |
$ |
1.21 |
$ |
(251,276) |
$ |
(5.47) |
$ |
94,191 |
$ |
1.96 |
||||||||||||||||
|
Add: CARES Act carryback of additional NOLs |
(9,238) |
(0.20) |
- |
- |
(23,394) |
(0.51) |
- |
- |
||||||||||||||||||||||||
|
Add: CARES Act grant recognition |
(111,560) |
(2.43) |
- |
- |
(111,560) |
(2.43) |
- |
- |
||||||||||||||||||||||||
|
Add (deduct): changes in fair value of fuel derivative contracts |
(2,567) |
(0.06) |
169 |
- |
799 |
0.02 |
(3,245) |
(0.07) |
||||||||||||||||||||||||
|
Add: unrealized loss on foreign debt |
1,679 |
0.04 |
2,167 |
0.05 |
2,422 |
0.05 |
1,537 |
0.03 |
||||||||||||||||||||||||
|
Add: gain on sale of aircraft equipment |
- |
- |
(851) |
(0.02) |
- |
- |
(1,948) |
(0.04) |
||||||||||||||||||||||||
|
Add: unrealized loss (gain) on non-designated fx positions |
612 |
0.01 |
- |
- |
(200) |
- |
- |
- |
||||||||||||||||||||||||
|
Add: special items |
34,014 |
0.74 |
- |
- |
160,918 |
3.50 |
- |
- |
||||||||||||||||||||||||
|
Deduct: tax effect of adjustments |
19,253 |
0.42 |
(386) |
(0.01) |
13,430 |
0.29 |
951 |
0.02 |
||||||||||||||||||||||||
|
Adjusted Net Income (Loss) |
$ |
(174,711) |
$ |
(3.81) |
$ |
58,932 |
$ |
1.23 |
$ |
(208,861) |
$ |
(4.55) |
$ |
91,486 |
$ |
1.90 |
||||||||||||||||
|
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
|
2020 |
2019 |
2020 |
2019 |
|||||||||||||
|
(in thousands) |
||||||||||||||||
|
Income Before Income Taxes, as reported |
$ |
(152,521) |
$ |
79,609 |
$ |
(327,709) |
$ |
128,568 |
||||||||
|
Add: CARES Act grant recognition |
(111,560) |
- |
(111,560) |
- |
||||||||||||
|
Add (deduct): changes in fair value of fuel derivative contracts |
(2,567) |
169 |
799 |
(3,245) |
||||||||||||
|
Add: unrealized loss on foreign debt |
1,679 |
2,167 |
2,422 |
1,537 |
||||||||||||
|
Add: gain on sale of aircraft and equipment |
- |
(851) |
(1,948) |
|||||||||||||
|
Add: unrealized loss (gain) on non-designated fx positions |
612 |
- |
(200) |
- |
||||||||||||
|
Add: special items |
34,014 |
- |
160,918 |
- |
||||||||||||
|
Adjusted Income Before Income Taxes |
$ |
(230,343) |
$ |
81,094 |
$ |
(275,330) |
$ |
124,912 |
||||||||
Operating Costs per Available Seat Mile (CASM)
The Company has separately listed in the table below its fuel costs per ASM and non-GAAP unit costs, excluding fuel and non-recurring items. These amounts are included in CASM, but for internal purposes the Company consistently uses cost metrics that exclude fuel and non-recurring items (if applicable) to measure and monitor its costs.
|
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
|
2020 |
2019 |
2020 |
2019 |
|||||||||||||
|
(in thousands, except CASM data) |
||||||||||||||||
|
GAAP Operating Expenses |
$ |
208,968 |
$ |
623,308 |
$ |
936,208 |
$ |
1,227,383 |
||||||||
|
Less: aircraft fuel, including taxes and delivery |
(7,003) |
(140,600) |
(120,481) |
(266,704) |
||||||||||||
|
Less: CARES Act grant recognition |
111,560 |
- |
111,560 |
- |
||||||||||||
|
Less: gain on sale of aircraft and equipment |
- |
851 |
- |
1,948 |
||||||||||||
|
Less: special items |
(34,014) |
- |
$ |
(160,918) |
- |
|||||||||||
|
Adjusted Operating Expenses |
$ |
279,511 |
$ |
483,559 |
$ |
766,369 |
$ |
962,627 |
||||||||
|
Available Seat Miles |
409,490 |
5,157,677 |
5,389,019 |
10,009,598 |
||||||||||||
|
CASM - GAAP |
51.03 |
¢ |
12.09 |
¢ |
17.37 |
¢ |
12.26 |
¢ |
||||||||
|
Less: aircraft fuel, including taxes and delivery |
(1.70) |
(2.73) |
(2.23) |
(2.66) |
||||||||||||
|
Less: CARES Act grant recognition |
27.24 |
- |
2.07 |
- |
||||||||||||
|
Less: gain on sale of aircraft and equipment |
- |
0.02 |
- |
0.02 |
||||||||||||
|
Less: special items |
(8.31) |
- |
(2.99) |
- |
||||||||||||
|
Adjusted CASM |
68.26 |
¢ |
9.38 |
¢ |
14.22 |
¢ |
9.62 |
¢ |
||||||||
Pre-tax margin
The Company excludes unrealized losses (gains) from fuel derivative contracts and foreign currency derivative contracts, and non-recurring items from pre-tax margin for the same reasons as described above.
|
Three months ended June 30, |
Six months ended June 30, |
|||||||||||
|
2020 |
2019 |
2020 |
2019 |
|||||||||
|
Pre-Tax Margin, as reported |
(254.2) |
% |
11.2 |
% |
(52.9) |
% |
9.4 |
% |
||||
|
Add: CARES Act grant recognition |
(185.9) |
- |
(18.0) |
- |
||||||||
|
Add: changes in fair value of fuel derivative contracts |
(4.3) |
- |
0.1 |
(0.2) |
||||||||
|
Add: unrealized loss on foreign debt |
2.8 |
0.3 |
0.3 |
0.1 |
||||||||
|
Add: gain on sale of aircraft and equipment |
- |
(0.1) |
- |
(0.1) |
||||||||
|
Add: unrealized loss (gain) on non-designated fx positions |
1.0 |
- |
- |
- |
||||||||
|
Add: special items |
56.7 |
- |
26.0 |
- |
||||||||
|
Adjusted Pre-Tax Margin |
(383.9) |
% |
11.4 |
% |
(44.5) |
% |
9.2 |
% |
||||
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