Hawaiian Holdings Reports First Quarter Net Loss of $144.4 Million on Revenues of $559.1 Million
Hawaiian Holdings reported on Tuesday a first quarter net loss of $144.4 million or ($3.14) per diluted share. Quarterly revenues declined 14.9 percent year-over year to $559.1 million and the carrier ended the quarter with unrestricted cash and equivalents of $815 million.
Yesterday (May 5, 2020), Hawaiian Holdings, Inc. (NASDAQ: HA) reported a first quarter net loss of $144.4 million or ($3.14) per diluted share. Operating revenues declined 14.9 percent to $559.144 million compared to the first quarter of 2019. The carrier ended the quarter with $815 million in unrestricted cash, cash equivalents and short-term investments. Hawaiian Airlines has outstanding debt and finance lease obligations of $976 million and an air traffic liability of $624 million. In Tuesday’s announcement, Hawaiian Airlines President and CEO, Peter Ingram said,
The first quarter of 2020 brought dramatic change to the global aviation industry as COVID-19 spread across the globe. Our first quarter results reflect a sharp drop in demand experienced initially in our South Korea and Japan routes in February, and across our entire network in March. With such profound changes to our business, our focus has pivoted to sustaining a limited operation, enhancing liquidity, preserving cash and preparing for a new reality as we begin to emerge from the pandemic in the weeks ahead. Through all of these challenges I have never been prouder of my 7,500 colleagues who reflect our values everyday as they care for our guests and the communities we serve and live in.”
Hawaiian Airlines reduced its schedule by 95 percent in the last week of March due to the State of Hawaii’s mandatory 14 day quarantine for all incoming and neighbor travelers. To preserve liquidity, the company has suspended dividend payments and share buybacks (temporarily prohibited by the U.S. CARES Act Payroll Support Program recipients), instituted a company-wide hiring freeze and deferred all non-critical CAPEX for 2020. Additionally, the carrier has instituted a voluntary unpaid leave program, cut executive compensation 10%-50% and reduced discretionary contractor and vendor spending. Hawaiian is also negotiating payment deferrals with key vendors and has drawn down $235 million from its revolving credit facility. In April, the company received their initial tranche of $146.2 million under the U.S. CARES Act Payroll Support Program (PSP) and Hawaiian continues to pursue additional financing secured by unencumbered assets.
In trading Wednesday morning, shares in Hawaiian Holdings, Inc. (NASDAQ: HA) were down 7.01 percent to $11.68/share (10:14 AM EDT).
Source: Hawaiian Airlines