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Hawaiian Airlines Reports May 2018 Traffic Statistics and Updates Expected Second Quarter and Full Year 2018 Metrics

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Hawaiian Airlines Reports May 2018 Traffic Statistics and Updates Expected Second Quarter and Full Year 2018 Metrics

PR Newswire

HONOLULU, June 11, 2018 /PRNewswire/ -- Hawaiian Airlines, Inc., a subsidiary of Hawaiian Holdings, Inc. (NASDAQ:HA) ("Hawaiian" or the "Company"), today announced its system-wide traffic statistics for the month ended May 31, 2018. The Company also updated its expectations for certain second quarter financial metrics and its fuel costs for the full year 2018.

 (PRNewsfoto/Hawaiian Holdings, Inc.)

Hawaiian welcomed more than 1 million guests in May 2018, a record for the month of May and an increase of 4.7% over the same period last year. Total traffic (revenue passenger miles) increased 5.6% on an increase of 6.5% in capacity (available seat miles). Load factor decreased 0.8 points to 85.9%.

The table below summarizes May and year-to-date traffic statistics compared to the respective prior-year periods.

SYSTEM-WIDE OPERATIONS1


MAY

2018

2017

% CHANGE

PAX

1,011,175

966,179

4.7%

RPMS (000)

1,445,663

1,369,417

5.6%

ASMS (000)

1,683,228

1,579,843

6.5%

LF

85.9%

86.7%

(0.8) pts.





YEAR-TO-DATE

2018

2017

% CHANGE

PAX

4,864,128

4,574,329

6.3%

RPMS (000)

6,863,068

6,462,948

6.2%

ASMS (000)

8,042,653

7,619,942

5.5%

LF

85.3%

84.8%

0.5 pts.


PAX

Passengers transported

RPM

Revenue Passenger Miles; one paying passenger transported one mile

ASM

Available Seat Miles; one seat transported one mile

LF

Load Factor; percentage of seating capacity filled


1Includes the operations of contract carriers under capacity purchase agreements.

Second Quarter Outlook

The Company has revised its expectations for the quarter ending June 30, 2018, provided in its First Quarter 2018 Earnings Release on April 24, 2018.

Specifically, the Company:

  • lowered its expectations for operating revenue per available seat mile (RASM) primarily due to a reduction in the pace of domestic bookings following an increase in volcanic activity on the Big Island of Hawai'i;
  • revised its expectations for operating cost per available seat mile (CASM) excluding fuel and special items associated primarily with two specific items: an unscheduled maintenance event for one of its A330-200 aircraft, and a one-time expense related to an interim agreement with one of its labor groups pertaining to the Company's intent to purchase Boeing 787-9 aircraft as announced on March 6, 2018;
  • revised its expectations for gallons of jet fuel consumed; and
  • revised its expectations for economic fuel cost per gallon.

The table below summarizes the Company's revised expectations for the quarter ending June 30, 2018, expressed as an expected percentage change compared to the results for the quarter ended June 30, 2017.

Item


Original
Second
Quarter 2018
Guidance


Revised
Second
Quarter 2018
Guidance


GAAP
Equivalent


Original
GAAP Second
Quarter 2018
Guidance


Revised
GAAP Second
Quarter 2018
Guidance

Operating revenue per available seat mile (ASM)


Flat to up 3.0%


Down 0.5% to up 1.5%







Cost per ASM (CASM) excluding aircraft fuel and special items (a)


Up 4.0% to up 7.0%


Up 5.0% to up 7.0%


Cost per ASM


Up 8.6% to up 12.1%


Up 10.7% to up 12.7%

Gallons of jet fuel consumed


Up 5.0% to up 7.0%


Up 6.0% to up 7.0%







Economic fuel cost per gallon (b)(c)


$2.00 to $2.10


$2.05 to $2.10


Fuel cost per gallon (b)


$2.11 to $2.21


$2.20 to $2.25



(a)

See Table 1 for a reconciliation of GAAP operating expenses to operating expenses excluding aircraft fuel and special items.  Excluded from the Company's expectations for CASM excluding aircraft fuel and special items are any assumptions related to the amendable contract with its flight attendant union.

(b)

Fuel cost per gallon estimates are based on the June 8, 2018 fuel forward curve.

(c)

See Table 2 for a reconciliation of GAAP fuel costs to economic fuel costs.

Full Year 2018 Outlook

The Company also revised its expectations for economic fuel cost per gallon for the full year ending December 31, 2018, also previously provided on April 24, 2018, as noted in the table below.

Item


Original Full
Year 2018
Guidance


Revised Full
Year 2018
Guidance


GAAP
Equivalent


Original
GAAP Ful

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