Hawaiian Airlines posted a $36.8 million loss in the second quarter but boosted revenue 68.4% as it continued to benefit from strong demand throughout its domestic business and saw a solid recovery in its international network.
Still, the company said overall capacity for the current third quarter will be down approximately 5% to 8% compared with the third quarter of 2019, mostly driven by the delay of the full restoration of its Japan network.
The state’s largest carrier has been trying to restore parts of its international schedule after it was hurt by COVID-19 restrictions. In July it resumed three-times-a-week nonstop service
between Auckland, New
Zealand, and Honolulu, and has increased frequency between Seoul and Honolulu for the summer.
Separately, Hawaiian said earlier this month it will be ending service between Honolulu and Orlando, Fla., after more than a year of operations to realign its network to better meet strong demand in North America and the resurgence of international
flying.
“Travel restrictions in
Japan prevented us from resuming a full pre-pandemic schedule, but these restrictions are incrementally easing,” Hawaiian Airlines President and CEO Peter Ingram said Tuesday on the company’s conference call with analysts. “And next month we are resuming service to Haneda at the same time as we increase frequency from Narita and Osaka. As we saw when restrictions are loosened in North America, consumers in international markets are showing strong interest in
visiting Hawaii.”
Hawaiian Chief Revenue Officer Brent Overbeek said a full recovery in Japan is dependent on the easing of government restrictions on arrivals and the current yen-dollar exchange rate, which is down about 22% compared with 2019.
“(That) will increase the cost of a Hawaii vacation for these travelers,” he said. “However, consistent with our other international geographies as restrictions ease, we do anticipate demand to pick up materially.”
Ingram said he’s encouraged by positive trends that are occurring during the summer travel season.
“We anticipate strong demand continuing into the third quarter as we increase our international schedule,” Ingram said. “And importantly, with stability returning to the demand environment, we continue to reduce our debt levels while maintaining a healthy liquidity position. In North America, yields improved throughout the quarter, compared to the corresponding months in 2019, with the premium (seat) demand leading the way. Every indication suggests a continuation of these trends as we enter the third quarter. Internationally, the recovery in demand has taken root in Australia, South Korea,
New Zealand, Tahiti and American Samoa.”
Last quarter, Hawaiian operated at 87% of its 2019 second-quarter system capacity, with 115% for North America flights, 80% for neighbor island routes
and 31% for international operations.
Hawaiian Holdings Inc., the parent company of the airline, reported a net loss that was nearly six times its loss of $6.2 million in the year-earlier period. The company’s net loss per share was 72 cents, versus a loss of 12 cents a share in the second quarter of 2021.
The company’s loss, adjusted for one-time gains and losses, was $46.1 million, or an adjusted loss of 90 cents a share. That was
1 cent worse than analysts’ forecasts. That compares with an adjusted net loss of $73.8 million, or an adjusted loss of $1.44 a share.
Revenue jumped to
$617.5 million from
$356.3 million in the year-earlier quarter.
Hawaii’s expense for aircraft fuel, including taxes and delivery, was $226.9 million in the second quarter, compared with $83.8 million in the year-earlier period.
“High and volatile fuel prices will continue to be a challenge going forward,
especially on our more
fuel-intensive, long-haul operations,” Ingram said. “The gyrations of the fuel in the global jet fuel market are beyond our control. We will focus on managing what
we can, including cost management, elsewhere in the business and revenue
generation.”
Hawaiian’s stock ticked down 12 cents to $15 before the earnings were announced after the market closed.