• Joe Breitfeller

Hawaiian Airlines Announces Third Quarter Net Loss of $97.1 Million or $2.11 per Diluted Share

The airline’s third quarter adjusted net loss was $172.2 million or ($3.76) per diluted share. At the close of the quarter, Hawaiian Airlines had unrestricted cash, cash equivalents and short-term investments of $979 million and outstanding debt and lease obligations of $1.3 billion.


Hawaiian Airlines Airbus A330 - Courtesy Hawaiian Airlines

Today (October 27, 2020), Hawaiian Airlines reported their third quarter 2020 financial results with a net loss of ($97.1) million or ($2.11) per diluted share and an adjusted net loss of $172.7) million or ($3.76) per share. Hawaiian’s revenue for the quarter declined year-over-year by 89.9 percent to $76 million compared to $755.2 million during Q3 2019. The airline ended the quarter with unrestricted cash, cash equivalents and short-term investments of $979 million and outstanding debt and lease finance obligations totaling $1.3 billion. Hawaiian Airlines also has an air traffic liability of $515 million. The State of Hawai’i was under a mandatory 14-day self-quarantine for incoming visitors throughout the third quarter and for inter-island travelers from August 11, 2020. Therefore, the company operated a very limited schedule throughout the period. In Tuesday’s announcement, Hawaiian Airlines’ President and CEO, Peter Ingram, said,


“The COVID-19 pandemic and State of Hawai'i quarantines continued to have a dramatic effect on our business in the third quarter. Despite these monumental challenges, my colleagues throughout the business have done an incredible job adapting to the evolving environment. We have taken action to reduce expenses, preserve cash, bolster our liquidity and care for our guests, positioning us to begin the recovery process in earnest with the introduction of the State of Hawai'i's pre-travel testing regime in the fourth quarter.”


During Q3, Hawaiian Airlines implemented permanent and extended voluntary leave programs throughout their workgroups and prepared for involuntary reductions from October 1, 2020. In total, the airline reduced their total workforce by 32 percent or a total of 2,400 employees, of which 2,100 were voluntary. The company also raised about $421 in liquidity during the quarter including $114 million via a sale-leaseback transaction on two Airbus A321neos and $262 million through the issuance of EETCs (Enhanced Equipment Trust Certificates) backed by two Airbus A330s and six A321neos. Hawaiian Airlines also drew $45 million from a total of $420 million available under the U.S. Cares Act loan program. In October, the U.S Treasury increased the airline’s borrowing capacity under the Economic Relief Program (ERP) to $622 million, of which $577 million remains undrawn.


Hawaiian Airlines, Hawai’i’s hometown airline, has been the number one U.S. carrier for on-time performance for the past 16 years (2004-2019). The carrier has been in business for 91 years and is Hawai’i’s largest and longest-serving airline. Prior to the pandemic, Hawaiian offered more nonstop connectivity between Hawai’i and the U.S. mainland, serving 13 gateways. The carrier also connects the islands with Japan, South Korea, Australia, American Samoa and Tahiti. In after-hours trading Tuesday evening, shares in Hawaiian Holdings, Inc. (NASDAQ: HA) were 2.86% lower at $14.25/share (5:01 PM EDT).


Source: Hawaiian Airlines