Hawaiian Airlines (HA) investor relations material

Executive summary

• Q2 2024 saw steady demand across most routes, strong late-quarter domestic bookings, and ongoing international headwinds, especially from Japan due to currency weakness.

• Net loss was $67.6 million ($1.30 per diluted share) on $731.9 million revenue, driven by higher operating expenses, including wages, fuel, maintenance, and merger-related costs.

• Raised $400 million by financing 10 A321neo aircraft and exchanged $1.2 billion in loyalty bonds for $985 million in new notes due 2029, extending liquidity runway.

• Regulatory review of the Alaska Airlines merger extended to August 15, 2024; company remains optimistic but is prepared for delays.

• Operational improvements include full A321neo fleet availability, two 787s in service, ramp-up of A330 freighter operations, and Starlink Wi-Fi rollout.

Financial highlights

• Q2 2024 total revenue was $731.9 million, up 3.5% year-over-year on 4.3% higher capacity.

• Adjusted EBITDA loss was $21.3 million and adjusted loss per share was $1.37, including a $0.14 negative impact from a lower effective tax rate.

• Operating loss for Q2 2024 was $55.4 million, compared to $9.6 million in Q2 2023.

• Ancillary revenue from Extra Comfort and preferred seats up 18% year-over-year.

• Ended Q2 with $1.5 billion in liquidity, about 50% of trailing 12-month revenue.

Outlook and guidance

• Q3 2024 system RASM expected to be down 1.5%–4.5% year-over-year on 5.5%–8.5% capacity growth.

• Full-year capacity guidance revised to 4.0%–7.0% growth due to delayed 787 delivery.

• Full-year CASM-ex guidance improved to up 2% (from 2.5%) despite lower capacity.

• Q3 unit costs (excluding fuel and special items) expected to be flat year-over-year.

• CapEx for 2024 expected in the $350–$400 million range.