19-Oct-2016 10:28 AM

Hawaiian Holdings Reports 2016 Third Quarter Financial Results

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18-Oct-2016 Hawaiian Holdings, Inc. (NASDAQ: HA) ("Holdings" or the "Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported its financial results for the third quarter of 2016.

Third Quarter 2016 - Key Financial Metrics
	GAAP	YoY Change	Adjusted	YoY Change
Net Income	$102.5M	+$32.4M	$103.1M	+$24.7M
Diluted EPS	$1.91	+$0.76	$1.92	+$0.63
Pre-tax Margin	24.4%	+6.5 pts.	24.6%	+4.6 pts.

"It's been a great quarter in a good year so far. Low fuel prices, strong demand in our geographies and moderate industry capacity growth combined to create a positive environment for our business," said Mark Dunkerley, Hawaiian Airlines president and CEO. "Our employees have done an outstanding job producing these strong results, and they have my admiration and my thanks."

Statistical data, as well as a reconciliation of the adjusted non-GAAP financial measures to the equivalent GAAP financial measures, can be found in the accompanying tables.

Liquidity and Capital Resources

As of September 30, 2016, the Company had:

Unrestricted cash, cash equivalents and short-term investments of $694 million.
Outstanding debt and capital lease obligations of $565 million.

The Company made $16 million in pension plan contributions in the third quarter, putting year-to-date contributions at $27 million, significantly in excess of the minimum requirements.

In addition, the Company repurchased approximately 98,000 common shares for approximately $4 million in the third quarter.

Third Quarter 2016 Highlights

Operational

Ranked #1 nationally for on-time performance for the months of June and August 2016 as reported in the U.S. Department of Transportation Air Travel Consumer Report.
Ratified a five year contract with its dispatchers represented by the Transport Workers Union (TWU), which provides for meaningful wage increases.

New routes

Launched daily non-stop service between Narita and Honolulu in July.

Product and loyalty

Began sales for the newly retrofitted A330 aircraft with a new 278 passenger seat configuration featuring 18 fully lie-flat Premium Cabin seats, 68 Extra Comfort seats and 192 Main Cabin seats on four international routes with service commencing in December.

Fourth Quarter and Full Year 2016 Outlook

The table below summarizes the Company's expectations for the fourth quarter and full year ending December 31, 2016, expressed as an expected percentage change compared to the results for the quarter ended December 31, 2015 and full year ended December 31, 2015, as applicable.

Refer to full documentation in attachments box, located at the top left, below the headline.

Item	Fourth Quarter 2016 Guidance	GAAP Equivalent	Fourth Quarter 2016 Guidance
Cost per ASM Excluding Fuel (a)	Up 2.5% to up 5.5%	Cost per ASM (a)	Up 2.8% to up 6.4%
Operating Revenue Per ASM	Up 0.5% to up 3.5%
ASMs	Up 3% to up 5%
Gallons of jet fuel consumed	Up 4.5% to 6.5%
Economic fuel cost per gallon (b)(c)	$1.50 to $1.60	Fuel cost per gallon (b)	$1.56 to $1.66
Item	Full Year 2016 Guidance	GAAP Equivalent	Full Year 2016 Guidance
Cost per ASM Excluding Fuel (a)	Up 3.5% to up 4.5%	Cost per ASM (a)	Down 0.1% to down 2.2%
ASMs	Up 3% to up 4%
Gallons of jet fuel consumed	Up 3.5% to up 4.5%
Economic fuel cost per gallon (b)(c)	$1.50 to $1.60	Fuel cost per gallon (b)	$1.39 to $1.49

(a)	See Table 4 for a reconciliation of operating expenses to operating expenses excluding aircraft fuel.
(b)	Fuel estimates are based on the October 11, 2016 fuel forward curve.
(c)	See Table 3 for a reconciliation of actual fuel costs to economic fuel costs.

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