Hawaiian Airlines Reports November 2018 Traffic Statistics and Updates Expected Fourth Quarter Metrics

Hawaiian Airlines, Inc., a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA), today announced its system-wide traffic statistics for the month ended November 30, 2018. It also updated its expectations for certain fourth quarter financial metrics.

Hawaiian welcomed more than 937,000 guests in November 2018, a decrease of 0.8 percent over the same period last year. Total traffic (revenue passenger miles) increased 2.8 percent on an increase of 5.0 percent in capacity (available seat miles). Load factor decreased 1.8 points to 84.1 percent.

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

SYSTEM-WIDE OPERATIONS1

NOVEMBER

2018

2017

% CHANGE

PAX

937,815

945,568

(0.8%)

RPMS (000)

1,365,133

1,327,946

2.8%

ASMS (000)

1,622,929

1,546,170

5.0%

LF

84.1%

85.9%

(1.8) pts.

YEAR-TO-DATE

2018

2017

% CHANGE

PAX

10,858,607

10,504,678

3.4%

RPMS (000)

15,747,820

14,928,462

5.5%

ASMS (000)

18,434,777

17,361,329

6.2%

LF

85.4%

86.0%

(0.6) 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

1

Includes the operations of contract carriers under capacity purchase agreements.

Fourth Quarter 2018 Outlook

The Company has revised its expectations for the quarter ending December 31, 2018 that were previously provided on October 28, 2018.

The Company lowered its expectations for revenue per ASM (RASM) primarily due to lower than expected market pricing on its North America routes, and lower than expected demand within its Neighbor Island network, primarily to Hawai'i Island. Year-over-year visitor growth from North America to Hawai'i remains positive, but at a slower pace than industry capacity growth.

The Company also lowered its expectations for costs per ASM (CASM) excluding fuel primarily due to non-recurring offsets to maintenance costs, and lower than expected benefits expense and project-related administrative costs.

The table below summarizes the Company's revised expectations for the quarter ending December 31, 2018, expressed as an expected percentage change compared to the results for the quarter ended December 31, 2017.

Item

Original
Fourth Quarter
2018 Guidance

Revised
Fourth Quarter
2018 Guidance

GAAP
Equivalent

Original
GAAP Fourth
Quarter 2018
Guidance

Revised
GAAP Fourth
Quarter 2018
Guidance

Operating revenue per available seat mile (ASM)

Down 2.5% – Up 0.5%

Down 3.0 – 5.0%

Cost per ASM (CASM) excluding aircraft fuel (a)

Down 2.0% – Up 1.0%

Down 1.0 – 3.0%

Cost per ASM

Up 2.3 – 5.8%

Up 0.6 – 3.3%

(a)

See Non-GAAP Financial Reconciliations for a reconciliation of GAAP operating expenses to operating expenses excluding aircraft fuel

Non-GAAP Financial Reconciliations

Operating Costs per Available Seat Mile (CASM)

(in thousands, except CASM data) (unaudited)

Estimated three months ending December 31, 2018

GAAP operating expenses

$

616,369

to

644,904

Less: aircraft fuel, including taxes and delivery

(147,524)

to

(157,235)

Adjusted operating expenses – excluding aircraft fuel

468,844

to

487,669

Available Seat Miles

5,013,951

to

5,109,912

CASM – GAAP

12.29

¢

to

12.62

¢

Less: aircraft fuel

(2.94)

to

(3.08)

CASM – excluding aircraft fuel

9.35

¢

to

9.54

¢