Hawaiian Airlines said it ended 2021 with strong demand and positive signs of recovery in domestic travel but that it has delayed ramping up service to Japan until the second quarter due to the lingering omicron variant.
The state’s largest airline, which released its financial results Tuesday, said its revenue tripled in the fourth quarter and that it achieved a narrower adjusted loss from a year ago. Hawaiian also said its first two Boeing 787 aircraft scheduled for delivery in 2022 have been delayed and that it now expects to receive them no earlier than the first half of 2023.
“Despite solid results from our domestic business in the second half of the year, the recovery of our international business continues to lag,” Hawaiian President and CEO Peter Ingram said during a conference call with analysts. “We remain confident that we’ll see a substantial recovery in international demand as we pass this latest wave of COVID cases. As we’ve said before, conditions are aligning to enable a full restoration of our business at a scale supported by the availability of vaccinations and therapeutics that were not part of the toolbox early in the pandemic.”
Ingram, though, said the airline has been restrained when it comes to its international business.
“For international, what continues to limit us are governmental policies regarding travel across borders,” he said. “The response to the rapidly transmissible omicron variant has likely delayed relief in this regard by a couple of months. We aren’t in control of that. But what we can control is our preparation and readiness. We are preparing for an increase in international service during the second quarter of the year and a more comprehensive operation in the summer and beyond.”
Japan is the top international market for the state and Hawaiian’s leading foreign destination, but Ingram said the airline has pushed the ramp-up for its Japan operations from the end of March to the second quarter, consistent with its expectation that cross-border travel liberalization will be delayed by a couple of months due to omicron.
Japan Prime Minister Fumio Kishida said earlier this month that the country would extend its COVID-19-related border restrictions until the end of February.
“The international travel policy changes we have seen since the identification of the omicron variant continue to remind us that the road ahead may not be smooth,” Ingram said. “But the underlying desire for travel for leisure remains profound, and we will be ready to take advantage of pent-up demand as it materializes.”
Hawaiian Holdings, the parent of Hawaiian Airlines, posted a loss of $92.6 million, or a loss of $1.81 a share, in the fourth quarter, compared with a loss of $162.6 million, or a loss of $3.50 a share, in the year- earlier quarter. Last quarter’s loss, adjusted for one-time gains and costs, was $70.3 million, or $1.37 a share, and easily beat analysts’ estimate for a loss of $1.66 a share. The company’s adjusted loss in the fourth quarter of 2020 came in at $172.8 million, or $3.71 a share.
Revenue for the quarter jumped 230.5% to $494.7 million, from $149.7 million in the year-ago period. However, the airline’s revenue was down 30% compared with the fourth quarter of 2019, on 19% lower capacity.
For the year, Hawaiian lost $144.8 million, or a loss of $2.85 a share, compared with a loss of $510.9 million, or a loss of $11.08 a share, in 2020. Revenue rose 89% to $1.6 billion from $844,813 a year earlier. Its full-year financial results, adjusted for one-time gains and costs, came in at a loss of $383.4 million, or a loss of $7.55 a share, compared with a loss of $551 million, or a loss of $11.96 a share, in 2020.
Hawaiian’s stock rose 7 cents to $18.46 before the earnings were announced.
Fourth-Quarter loss
$92.6 million
Year-earlier loss
$162.6 million
