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Hawaiian Airlines’ Mālama Maui Effort Marks Next Phase of Support for the Maui Community

Team Kokua at Foodbank 1_mid

HONOLULU – As the unprecedented passenger and cargo airlift continues after the devastating wildfires on Maui, Hawaiian Airlines has embarked on a set of new initiatives to assist the community and address immediate needs.

Access to food is an urgent need in parts of West Maui, and Hawaiian is working with Hawaiʻi Foodbank and Maui Food Bank on food collection and distribution. Hawaiian has donated $150,000 ($50,000 each to Hawaiʻi Foodbank, Maui Food Bank and the Maui Strong Fund of the Hawaiʻi Community Foundation ) to further support the organizations’ wildfire relief work.

HawaiiFoodbank_DisasterRelief

Image credit: Hawaiʻi Foodbank
Disaster relief boxes assembled by the Hawaiʻi Foodbank.

In addition, under an expanded relationship with Hawaiʻi Foodbank, one of the airline’s longtime community partners, Hawaiian will deploy volunteers to Hawaiʻi Foodbank to sort and package donations being sent to Maui.

“Food access on Maui is an urgent issue and this work will help our nonprofit partners meet the critical need to deliver food and essential supplies to people affected by this devastating event,” said Hawaiian Airlines President and CEO Peter Ingram. “Our 7,000-strong team is committed to this important work to help our Maui ʻohana and neighbors as we continue to assist with the response on Maui.”

Team Kokua

Team Kōkua, Hawaiian's employee volunteer group, packing donation boxes.

“We’re incredibly grateful to Hawaiian Airlines for their support of both our foodbanks,” said Hawai‘i Foodbank President and CEO Amy Miller Marvin. “We are actively working together to support those impacted by the wildfires while also continuing to provide regular food assistance to meet the ongoing needs of our communities.”

Added Maui Food Bank Executive Director Rich Yust, “The compassion we are experiencing from the community is truly humbling, and it keeps us motivated to support our Maui community in every way we can during this time of need.”

Team Kokua 2

Team Kōkua, Hawaiian's employee volunteer group, packing donation boxes.

In addition, Hawaiian today established the Mālama Maui Desk to respond more efficiently to the many organizations and individuals seeking flight, cargo or volunteer support. The request form can be found at www.hawaiianairlines.com/malamamaui, a new website dedicated to Maui relief information. In addition to the Mālama Maui Desk, the page serves as a resource on ways that our community in Hawaiʻi and globally can help respond to the tragic wildfires.

Hawaiian is also supporting Maui Ola: A benefit concert for Maui, a live concert and broadcast fundraiser at 5 p.m. on Aug. 20 at Honolulu's Bernice Pauahi Bishop Museum, by flying in artists, event organizers and participants, and providing volunteers.

Since the wildfires engulfed Lāhainā Aug. 8, Hawaiian has contributed more than $600,000 in cash and in-kind support toward the relief effort.

The airline prioritized the evacuation of displaced residents and visitors and the transportation of first responders, operating hundreds of flights and carrying more than 17,000 people out of Kahului Airport within the first 72 hours and thousands more people over the weekend. Over the past six days, the carrier's interisland and transpacific flights to Maui have brought in more than 54,000 pounds of essential cargo ranging from life-saving blood and medical supplies to communications equipment and animal kennels.

Hawaiian is grateful for the overwhelming generosity of some 10,000 HawaiianMiles members who responded to a mileage drive and donated the equivalent to more than 9,500 interisland seats to the American Red Cross of Hawaii. Hawaiian has provided the equivalent of another 4,000 free seats for use by volunteers and community members in need.

About Hawaiian Airlines

Now in its 94th year of continuous service, Hawaiian is Hawaiʻi's biggest and longest-serving airline. Hawaiian offers approximately 150 daily flights within the Hawaiian Islands, and nonstop flights between Hawaiʻi and 15 U.S. gateway cities – more than any other airline – as well as service connecting Honolulu and American Samoa, Australia, Cook Islands, Japan, New Zealand, South Korea and Tahiti.

Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA). Additional information is available at HawaiianAirlines.com. Follow Hawaiian’s Twitter updates (@HawaiianAir), become a fan on Facebook  (Hawaiian Airlines), and follow us on Instagram (hawaiianairlines). For career postings and updates, follow Hawaiian’s LinkedIn page.

For media inquiries, please visit Hawaiian Airlines’ online newsroom.

About Hawaiʻi Foodbank

As Hawai‘i’s largest hunger relief organization, Hawai‘i Foodbank works with a network of 200 agency partners on O‘ahu and Kaua‘i, along with affiliate food banks on the other islands, to provide food assistance to the State of Hawai‘i. Hawai‘i Foodbank provides support to 1 in 6 Hawai‘i residents including families, seniors, children and those facing financial crises each week. Last year, Hawai‘i Foodbank distributed more than 17.4 million pounds of food, including 4.6 million pounds of fresh produce. Hawai‘i Foodbank is a certified partner of Feeding America and operates as the official food bank in the State of Hawai‘i.

For more information, visit HawaiiFoodbank.org or call 808-836-3600.

Alaska Airlines sends rescue flights & wildfire relief to help people on Maui  

Updated Sept. 29, 2023

Alaska Airlines is actively monitoring the devastating impacts of the Maui wildfires while continuing to maintain daily departures from the island.

Following Hawai‘i Governor Josh Green’s recent guidance, both residents and visitors are encouraged to visit Maui to support its businesses, restaurants, stores, attractions, and lodging facilities.

Starting Oct. 8, travel restrictions to West Maui communities north of Lahaina will be lifted. However, Lahaina itself will remain fully closed to the public until further notice out of respect to the town’s residents. County, state, and federal emergency responders continue with efforts to identify victims and the missing and conduct clean-up efforts of debris and hazardous materials resulting from the wildfires.

In the disaster’s early hours, we launched rescue flights from our Seattle Cargo facility on Wednesday, Aug. 9. These flights carried essential relief items such as water, non-perishable food, pillows, blankets, towels, wipes, baby formula, and diapers. We maintained our scheduled flights to transport guests off the island. Although we don’t typically operate interisland flights in Hawai‘i, we initiated rescue flights between Maui and Honolulu to evacuate guests from Maui and deliver vital supplies.

Since Aug. 9, Alaska Air Cargo has transported over 200,000 pounds of relief supplies for Lahaina, Maui wildfire victims.

Folasi was one of the lead ramp air freight agents who helped pack the rescue flight with relief supplies. In the two years he’s worked for Alaska, he says this is what our company is all about. 

“It felt good to be part of the team who are making sure that the supplies loaded safely so it can make it to Maui. I have family there, so seeing the plane take off made me feel good that Alaska Airlines acted quickly to help those in need and to know that the airline I work for responded so fast especially having family in Maui made me feel good,” he said.  

We’re also partnering with Airlink, which you can support here through cash donations.

Our hearts are with those on Maui, and our employees and their families, during this devastating time,” said Daniel Chun, Alaska’s Director of Sales, Community & Public Relations in Hawaii. “We hope we can help bring much-needed care and relief to those who’ve experienced catastrophic loss throughout the community.” 

Folasi is one of many remarkable employees stepping up to support the Maui community and our guests visiting the island. Pilots and flight attendants are volunteering to fly rescue flights, airport employees are showing up to lend a hand wherever needed, we’ve offered food and supplies to stranded guests at the airport, employees from Seattle have flown in to support the team on the ground on Maui, and our contact center employees have been helping guests who need assistance. 

It’s in times of crisis that our team’s values of own safety, do the right thing and be kindhearted shine through. We’re proud of the way all our employees are rallying together to help and care for the Maui community and our guests.  

Alaska employees at Maui (OGG) Kahului Airport today, along with cargo relief packages.

How you can help support Maui 

  • Support nonprofit partners, such as Airlink, who are well-versed in the proper packaging, regulations and restrictions needed to move supplies via cargo, and for safety reasons—it is important that we only accept items we know we can fly. Alaska has also donated 1.5 million miles to Airlink to transport first responders to Maui.   
  • Contribute to Kāko‘o Maui through the Council for Native Hawaiian Advancement, which works to enhance the cultural, economic, political and community development of Native Hawaiians. All proceeds will go directly to Maui organizations in support of relief efforts. The Alaska Airlines Foundation, together with Alaska employees and our company’s employee Matching Gift program, have pledged more than $150,000 to this campaign. 

We are proud of the caring community throughout our network and want to continue encouraging broad support for Maui relief. 

The best way people can help is by donating miles or supporting one of our nonprofit partners to ensure relief is making it to where it’s needed most. Non-profit partners, such as Airlink, are well-versed in the proper packaging, regulations and restrictions needed to move supplies via cargo, and we only want to accept supplies we know we can fly. 

It’s moving to see the how many people want to support, but our ask is that donations go to the non-profit organizations coordinating relief efforts instead of individual in-kind donations. 

Thank you for your support

Kanu Hawai‘i and Maui Rapid Response are leading an effort to provide travel support for Maui residents who have been impacted by the wildfires. Together with our employees and guests, Alaska has donated nearly 27 million miles towards this program.

“My heart is saddened by the wildfires on Maui, as we have lost over a century of historical and cultural landmarks in Lāhainā, local businesses and residences, but most of all, we have lost people from our lāhui, our community.  The people of Maui are strong and resilient and will rebuild, and although we may not be able to replace what was lost, we must do our part to provide relief in any form possible so that our Kānaka, our people, can once again stand tall. 
Eō e Maui Nui a Kama! #mauistrong” 

-Keoni, Alaska SFO Flight Attendant and member of our Pacific Islander Alliance employee group 

Traveling to/from Maui 

We are offering a flexible travel policy if you would like to change or cancel your flight to Maui.  

In accordance with emergency orders from the state of Hawai‘i, we’re discouraging guests vacation travel to West Maui (Lāhainā, Kā‘anapali, Kapalua).The flexible travel policy allows guests with planned travel to Maui to change their flight to another Hawaiian island.

Other areas of Maui (including Kahului, Wailuku, Kīhei, Wailea, Mākena and Hāna) remain open — as well as the other Hawaiian Islands, like Kaua‘i, O‘ahu and Hawai‘i Island — and are ready to welcome visitors who are traveling to the Islands with care and respect.

To help the Maui community, for this emergency, we are allowing guests to cancel their reservations and receive a refund to their original form of payment upon request. As always, you can choose to keep the refund in your Account wallet or receive a credit certificate for future travel, but we are doing everything we can to encourage our guests to rethink their trips to the island right now. 

If you are a member of the media interested in photos or b-roll of our relief efforts, you can find it here.

Download

This post will continue to be updated as more information becomes available. 

Hawaiian Airlines endows scholarship for IT students at University of Hawai‘i

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HONOLULU — A $100,000 gift from Hawaiian Airlines has established a scholarship for University of Hawai‘i students studying information technology, computer science, cybersecurity and related computer technology programs at one of the UH System’s three four-year universities.

The Hawaiian Airlines Information Technology Endowed Scholarship is the first UH scholarship established by the Honolulu-based airline.

The new scholarship will help students build IT careers in Hawaiʻi and beyond. It’s available to students pursuing a degree in programs including information technology from the Shidler College of Business at UH Mānoa, computer science degrees at UH Mānoa and UH Hilo, and cybersecurity at UH West Oʻahu.

”Our kuleana includes cultivating talent from within the communities we serve – especially our Hawai‘i home,” noted John Jacobi, Hawaiian Airlines senior vice president and Chief Information Officer. “We are proud to expand on our existing partnerships to provide even more opportunities for students to navigate pathways toward success.”

Hawaiian Airlines is a longtime supporter of other UH programs, including athletics and the Aircraft Mechanic Apprenticeship Program at Honolulu Community College.

Hawaiian Airlines is also one of the local employers participating in UH Mānoa’s IT/Cyber Leap Start Experience Excelerator Program, training UH students to enter the IT sector by providing real-world professional experience for students approaching graduation and for recent UH graduates seeking work experience.

“Hawaiian Airlines’ forward-thinking philanthropy will help build a pipeline of future employees through supporting students pursuing promising careers in information technology, computer science and cybersecurity,” said Tim Dolan, UH vice president of advancement and CEO of the University of Hawaii Foundation. “We’re grateful such a prominent local company has the vision to create opportunities for students to grow with well-paying careers here in Hawaiʻi.

About Hawaiian Airlines

Now in its 94th year of continuous service, Hawaiian is Hawaiʻi's biggest and longest-serving airline. Hawaiian offers approximately 150 daily flights within the Hawaiian Islands, and nonstop flights between Hawaiʻi and 15 U.S. gateway cities – more than any other airline – as well as service connecting Honolulu and American Samoa , Australia , Cook Islands , Japan , New Zealand , South Korea and Tahiti.

Consumer surveys by Condé Nast Traveler and TripAdvisor have placed Hawaiian among the top of all domestic airlines serving Hawaiʻi. The carrier was named Hawaiʻi's best employer by Forbes in 2022 and has topped Travel + Leisure's World's Best list as the No. 1 U.S. airline for the past two years. Hawaiian has also led all U.S. carriers in on-time performance for 18 consecutive years (2004-2021) as reported by the U.S. Department of Transportation.

The airline is committed to connecting people with aloha by offering complimentary meals for all guests on transpacific routes and the convenience of no change fees on Main Cabin and Premium Cabin seats. HawaiianMiles members also enjoy flexibility with miles that never expire. As Hawai'i's hometown airline, Hawaiian encourages guests to Travel Pono and experience the islands safely and respectfully.

Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA). Additional information is available at HawaiianAirlines.com. Follow Hawaiian’s Twitter updates (@HawaiianAir), become a fan on Facebook  (Hawaiian Airlines), and follow us on Instagram (hawaiianairlines). For career postings and updates, follow Hawaiian’s LinkedIn page.

About The University of Hawai‘i Foundation

The University of Hawai‘i Foundation, a nonprofit organization, raises private funds to support the University of Hawai‘i System. The mission of the University of Hawai‘i Foundation is to unite donors’ passions with the University of Hawai‘i’s aspirations by raising philanthropic support and managing private investments to benefit UH, the people of Hawai‘i and our future generations. uhfoundation.org

Alaska Airlines teams up with Mountain Collective for new ski pass partnership for our Mileage Plan members 

We’re squarely in the heat of summer, but ski season is just a few months away. With visions of hitting the slopes, Alaska Airlines is rewarding our Mileage Plan members with a new partnership with The Mountain Collective – a seasonal ski pass program that provides access to 24 ski resorts around the world. 

Our Mileage Plan members who purchase a season pass with The Mountain Collective will receive 5,000 bonus miles and a third day free at a resort of their choice. Mileage Plan elites will also earn an additional 5,000 bonus miles (that’s 10,000 bonus miles total!) when they sign up with The Mountain Collective. The limited-time offer* is available between Aug. 3-Sept. 25, 2023.

You can buy your pass here. 

Alaska and our airline partners can take you (and your skis) to any of the resorts that are part of The Mountain Collective.

We can fly you to destinations across the Western U.S. and Canada including Alta Ski Area, Big Sky Resort, Jackson Hole, Revelstoke, Snowbird, Sun Valley and Taos Ski Valley.

Our global partners can fly you to the international resorts in France and Japan, and to Australia, New Zealand and Chile for year-round skiing in the Southern Hemisphere.  

So many of our Mileage Plan members are avid skiers and snowboarders. Our new partnership with The Mountain Collective is an excellent way to experience amazing resorts this winter and save money,” said Brett Catlin, vice president of loyalty, alliances and sales at Alaska Airlines. “We also love that we can get you to all of these resorts on Alaska flights or with one of our oneworld member airlines and additional global partners.” 

By the way, ski and snowboard equipment are considered normal checked bags when flying on Alaska – only standard baggage fees and waivers apply with no additional fees tacked on. And if you’re a Mileage Plan elite flyer or you have the Alaska Airlines Visa Signature Card, you get checked bags for free – so your gear flies free. 

The Mountain Collective pass provides two days of skiing at each of the participating resorts across five continents with the option to purchase additional days at a discounted rate with no blackout dates. Through Sept. 25, the pass costs $630 for adults (13 and up), $500 for teenagers (ages 13-18) and $200 for children under 12. The more you ski at the different resorts, the lower your overall daily cost. 

Stay tuned for on-mountain events planned throughout ski season exclusively for Mileage Plan members.  

*Limited time offer terms and conditions: All Mileage Plan members who purchase a new Mountain Collective pass for the 2023-2024 season between Aug. 3, 2023, and Sept. 25, 2023 will receive 5,000 bonus miles along with a third bonus day at a location of their choice, to be selected at purchase. Members must make a qualifying purchase via the URL provided in this email. Offer not valid for customers with an existing Mountain Collective pass for the 2023-2024 season. Bonus miles will post to the member’s Mileage Plan account by Oct. 15, 2023, provided the Mountain Collective pass has not been refunded. Mileage Plan elites (MVP, MVP Gold, MVP Gold 75K, or MVP Gold 100K status) will receive an additional 5,000 bonus miles (10,000 bonus miles total). To earn these additional 5,000 bonus miles, members must hold elite status as of Oct. 1, 2023. Bonus miles do not count toward elite status qualification. All Mileage Plan terms and conditions apply. All Mountain Collective terms and conditions apply.  

What do breaking the sound barrier, Neil Armstrong and Alaska Airlines have in common?

They are all related to the NASA X aircraft program!

In partnership with NASA, Boeing and other airlines, it was announced earlier this week that Alaska will participate in the Sustainable Flight Demonstrator (SFD) program to help develop the NASA X-66A aircraft. The X-66A is designed to test the Transonic Truss-Braced Wing airframe configuration, which is estimated to reduce fuel consumption and emissions up to 30 percent relative to today’s most efficient aircraft using an airframe with long, slender wings supported by diagonal struts connected to the lower fuselage. This is the first time that an X-plane is focused on helping to achieve the goal of net-zero aviation greenhouse gas emissions.

“At Alaska, we have set an ambitious goal for our carbon emissions to be net zero by 2040, but we know we can’t get there alone,” said Diana Birkett Rakow, senior vice president of public affairs and sustainability. “Decarbonizing aviation is one of the most daunting challenges of our time and will require solutions that don’t yet exist. It’s going to take both the public and private sectors coming together to enable step change innovation. Alaska is committed to playing an active role in solving this challenge which is why we have partnered with pioneers like NASA and Boeing to further aviation sustainability.”

As a partner to NASA and Boeing, Alaska will offer feedback on how the aircraft performs, including operational efficiencies, maintenance, handling characteristics and airport compatibility. The X-planes are a series of experimental U.S. aircraft and rockets that are used to test and evaluate new technologies. The “X” designator within the US system of aircraft designations, denotes the experimental research mission. According to NASA, their history with the X-plane designation dates to the 1940s, when its predecessor agency, the National Advisory Committee for Aeronautics (NACA) jointly created an experimental aircraft program with the Air Force and the U.S. Navy.

“It is inspiring to think of the all the important innovations that have resulted from NASA X-planes – breaking the sound barrier, flying to the edge of space, varying wing sweep in flight, digitizing flight control systems – and to know we will be a part of developing the next generation of commercial aircraft,” said Pasha Saleh, corporate development director and Alaska’s representative to the SFD program, “As we have done for the last 90+ years, Alaska is well positioned to be a pragmatic innovator, designing the future of aviation for the good of the planet.”

Stay tuned for more as the program takes flight!

Hawaiian Holdings Reports 2023 Second Quarter Financial Results: Japan Strengthening Adds to Robust Leisure Travel Demand

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HONOLULU — Hawaiian Holdings, Inc. (NASDAQ: HA) (the "Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported its financial results for the second quarter of 2023.

"I want to thank our team members who have been taking care of our guests in a dynamic operating environment," said Hawaiian Airlines President and CEO Peter Ingram . "Demand remains strong throughout our network, and we have recently seen a significant increase in bookings by travelers in Japan , an important geography that has trailed in the recovery of the overall market. Against the backdrop of improving operations and robust demand, I am excited about the major initiatives we're on track to deliver in the second half of the year."

Second Quarter 2023- Key Financial Metrics and Results

   

GAAP

 

YoY Change

 

Adjusted (a)

 

YoY Change

Net Loss

 

($12.3M)

 

+$35.0M

 

($24.1M)

 

+$22.0M

Diluted EPS

 

($0.24)

 

+$0.68

 

($0.47)

 

+$0.43

Pre-tax Margin

 

(2.0) %

 

+5.8 pts.

 

(4.2) %

 

+4.1 pts.

EBITDA

 

$41.6M

 

+$36.6M

 

$26.3M

 

+$25.2M

Operating Cost per ASM

 

14.29¢

 

(10.1) %

 

11.08¢

 

1.9 %

Operating Revenue per
ASM

 

14.10¢

 

(8.0) %

 

N/A

 

N/A

 

(a) See Table 4 for a reconciliation of adjusted net loss, adjusted diluted EPS, adjusted pre-tax margin, adjusted EBITDA, and adjusted operating
cost per ASM (CASM excluding fuel and non-recurring items) to each of their respective most directly comparable GAAP financial measure.

 

Statistical data, as well as a reconciliation of the reported non-GAAP financial measures, can be found in the accompanying tables.

Liquidity and Capital Resources

As of June 30, 2023 , the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $1.3 billion
  • $1.6 billion in liquidity, including its undrawn $235 million revolving credit facility
  • Outstanding debt and finance lease obligations of $1.7 billion

Revenue Environment

Leisure demand remains historically high; Hawaiian's North America load factor of 90.4% was the highest second quarter load factor for its North America routes since 2017, and Neighbor Island load factor of 75.3% was the highest for the quarter since 2015. In addition to continuing strong US point of sale demand for International travel, Japan -originating traffic increased on Hawaiian's International routes, contributing to an overall 16.2 point increase in International load factor year over year. Operating revenue was up 2.2% from the second quarter of 2022 on 11.0% higher capacity across Hawaiian's network. International revenue increased 160.2% from the second quarter of 2022 on a 141.4% increase in capacity.

Second Quarter 2023 Highlights

Operations

  • Completed the transition of A330 aircraft maintenance from a vendor-managed services agreement to internal resources; self-managed maintenance will allow Hawaiian to exercise greater control over its day-to-day operation and control costs more effectively as the operation grows with the introduction of A330 freighter aircraft

Routes and Network

  • Resumed service between Honolulu and Fukuoka, Japan on April 28 with thrice-weekly service
  • Initiated weekly service to Rarotonga on May 20 , greatly expanding travel opportunities between Hawaiian's 15 gateways on the US Mainland and the Cook Islands

Awards and Recognition

  • Rated the #1 Domestic Airline, for the second consecutive year, in Travel+Leisure's annual reader survey
  • Ranked highest for economy travel customer satisfaction in Consumer Reports ' 2023 Airline Travel Buying Guide
  • Rated Best Domestic Airline for Food in Food & Wine 's Global Tastemaker Awards

Guest Experience

  • Unveiled the Boeing 787 Dreamliner interior cabin design and a new business class product, the Leihōkū suites.  These 34 seats feature flat beds, privacy doors and shared double suites; the aircraft, expected to enter service in 2024, will immerse all guests in cabin design elements that evoke Hawaiʻi's rich natural world through bold textures, island-inspired sunrise and sunset lighting and sinuous ocean and wind patterns

People

  • Promoted Brent Overbeek to Executive Vice President and Chief Revenue Officer and Avi Mannis to Executive Vice President and Chief Marketing Officer; they will jointly lead Hawaiian's commercial strategy
  • Appointed Lokesh Amaranayaka as Vice President of Airport Operations

Environmental, Social and Corporate Governance

  • Invested in United Airlines Ventures Sustainable Flight Fund, an investment fund which prioritizes investments in new technology, advanced fuel sources and proven producers, all in an effort to help scale the supply of sustainable aviation fuel (SAF)
  • Published the 2023 Corporate Kuleana Report, highlighting the Company's progress on Environmental, Social and Governance priorities, including the Company's plans to achieve net-zero greenhouse gas (GHG) emissions by 2050, eliminate single-use plastics from cabin service by 2029, and offer more locally sourced food onboard; the report also highlights Hawaiian's employee diversity, including the highest percentage of women pilots of any major U.S. airline
  • Donated 34 million HawaiianMiles to support Moananuiākea, the Polynesian Voyaging Society's 47-month circumnavigation of the Pacific Ocean on the voyaging canoes Hōkūleʻa and Hikianalia

Third Quarter 2023 Outlook

The table below summarizes the Company's expectations for the quarter ending September 30, 2023 expressed as an expected percentage change compared to the results for the quarter ended September 30, 2022 . Figures include the impacts of the Company's freighter operation, which are not material.

 

Item

 

Third Quarter 2023
Guidance (d)

 

GAAP Equivalent

 

GAAP Third Quarter 2023
Guidance

Available Seat Miles (ASMs)

 

Up 4.5% to up 7.5%

       

Operating Revenue per ASM

(RASM)

 

Down 2.0% to down 5.0%

       

CASM excluding fuel and non-

recurring items (a)

 

Up 7.0% to up 10%

 

Costs per ASM

 

Down 0.7% to down 2.8%

Gallons of Jet Fuel Consumed

 

Up 8.0% to up 11.0%

       

Economic Fuel Price per Gallon

(a)(b)

 

$2.67

 

Average fuel price per gallon,
including taxes and delivery

 

$2.61

Effective Tax Rate

 

~21%

       

 

Full Year 2023 Outlook

The table below summarizes the Company's updated expectations for the full year ending December 31, 2023 expressed as an expected percentage change compared to the results for the year ended December 31, 2022 . Figures include the impacts of the Company's freighter operation, which are not material.

 

Item

 

Prior Full Year 2023
Guidance

 

Updated Full Year
2023 Guidance (d)

 

GAAP Equivalent

 

GAAP Full Year
2023 Guidance

Available Seat Miles (ASMs)

 

Up 9.5% to up 12.5%

 

Up 8.5% to up
10.5%

       

CASM excluding fuel and non-

recurring items (a)

 

Up 1.0% to up 5.0%

 

Up 3.0% to up 5.0%

 

Costs per ASM

 

Down 1.1% to down
2.5%

Gallons of Jet Fuel Consumed

 

Up 12.5% to up 15.5%

 

Up 13.0% to up
15.0%

       

Economic Fuel Price per Gallon

(a)(b)

 

$2.70

 

$2.70

 

Average fuel price
per gallon, including

taxes and delivery

 

$2.66

Capital Expenditures (c)

 

$330M to $380M

 

$265M to $295M

       

 

(a) See Table 3 and Table 4 for a reconciliation of CASM excluding fuel and non-recurring items and economic fuel price per gallon to each of
their respective most directly comparable GAAP financial measures.
(b) Fuel Price per Gallon estimates are based on the July 13, 2023 fuel forward curve.
(c) The updated Capital Expenditures guidance results from the change in the Boeing 787 delivery schedule, including pre-delivery payments
and other adjustments
(d) Third Quarter and Full Year 2023 Outlook does not reflect the potential impact from today's RTX (parent company of Pratt & Whitney)
disclosure regarding accelerated inspections of their GTF engines.

 

Statistical information, as well as a reconciliation of certain non-GAAP financial measures, can be found in the accompanying tables.

Investor Conference Call

Hawaiian Holdings' quarterly results conference call is scheduled to begin today, July 25, 2023 , at 4:30 p.m. Eastern Time ( USA ). The conference call will be broadcast live over the Internet. Investors may access and listen to the live audio webcast on the investor relations section of the Company's website at HawaiianAirlines.com . For those who are not available for the live webcast, a replay of the webcast will be archived for 90 days on the investor relations section of the Company's website.

About Hawaiian Airlines

Now in its 94th year of continuous service, Hawaiian is Hawaiʻi's biggest and longest-serving airline. Hawaiian offers approximately 150 daily flights within the Hawaiian Islands, and nonstop flights between Hawaiʻi and 15 U.S. gateway cities – more than any other airline – as well as service connecting Honolulu and American Samoa , Australia , Cook Islands , Japan , New Zealand , South Korea and Tahiti.

Consumer surveys by Condé Nast Traveler and TripAdvisor have placed Hawaiian among the top of all domestic airlines serving Hawaiʻi. The carrier was named Hawaiʻi's best employer by Forbes in 2022 and has topped Travel + Leisure's World's Best list as the No. 1 U.S. airline for the past two years. Hawaiian has also led all U.S. carriers in on-time performance for 18 consecutive years (2004-2021) as reported by the U.S. Department of Transportation.

The airline is committed to connecting people with aloha by offering complimentary meals for all guests on transpacific routes and the convenience of no change fees on Main Cabin and Premium Cabin seats. HawaiianMiles members also enjoy flexibility with miles that never expire. As Hawai'i's hometown airline, Hawaiian encourages guests to Travel Pono and experience the islands safely and respectfully.

Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA). Additional information is available at HawaiianAirlines.com. Follow Hawaiian's Twitter updates (@HawaiianAir), become a fan on Facebook  (Hawaiian Airlines), and follow us on Instagram (hawaiianairlines). For career postings and updates, follow Hawaiian's LinkedIn page.

For media inquiries, please visit Hawaiian Airlines' online newsroom.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company's current views with respect to certain current and future events and financial performance.  Such forward-looking statements include, without limitation, expectations relating to major initiatives for the second half of 2023; the Company's timing and expectations related to network and route recovery; expectations relating to the impact of self-managed aircraft maintenance; expectations relating to the timing of aircraft entry into service; future domestic and international demand for air travel; the Company's environmental commitments; the Company's outlook for the quarter ending June 30, 2023 and twelve-months ending December 31, 2023 ; statements regarding the Company's future performance; and statements as to other matters that do not relate strictly to historical facts or statements of assumptions underlying any of the foregoing.  Words such as "expects," "anticipates," "projects," "intends," "plans," "believes," "estimates," variations of such words, and similar expressions are also intended to identify such forward-looking statements.  These forward-looking statements are and will be subject to many risks, uncertainties and assumptions relating to the Company's operations and business environment, all of which may cause the Company's actual results to be materially different from any future results, expressed or implied, in these forward-looking statements.

The Company is subject to risks, uncertainties and assumptions that could cause the Company's results to differ materially from the results expressed or implied by such forward-looking statements, including the risks, uncertainties and assumptions discussed from time to time in the Company's public filings and public announcements, including the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q, as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission.  All forward-looking statements included in this document are based on information available to the Company on the date hereof.  The Company does not undertake to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date hereof even if experience or future changes make it clear that any projected results expressed or implied herein will not be realized.

 

Table 1.
Hawaiian Holdings, Inc.
Consolidated Statements of Operations (unaudited)

   

Three Months Ended June 30,

 

Six months ended June 30,

   

2023

 

2022

 

% Change

 

2023

 

2022

 

% Change

   

(in thousands, except per share data)

Operating Revenue:

                       

Passenger

 

$   644,992

 

$   617,463

 

4.5 %

 

$  1,193,518

 

$  1,021,492

 

16.8 %

Other

 

61,936

 

74,402

 

(16.8) %

 

126,013

 

147,587

 

(14.6) %

Total

 

706,928

 

691,865

 

2.2 %

 

1,319,531

 

1,169,079

 

12.9 %

Operating Expenses:

                       

Wages and benefits

 

237,680

 

205,686

 

15.6 %

 

479,613

 

408,785

 

17.3 %

Aircraft fuel, including taxes and delivery

 

166,380

 

226,892

 

(26.7) %

 

364,005

 

377,874

 

(3.7) %

Maintenance, materials and repairs

 

53,657

 

55,967

 

(4.1) %

 

103,943

 

111,617

 

(6.9) %

Aircraft and passenger servicing

 

43,126

 

35,631

 

21.0 %

 

85,658

 

69,446

 

23.3 %

Depreciation and amortization

 

33,348

 

34,333

 

(2.9) %

 

66,015

 

68,088

 

(3.0) %

Commissions and other selling

 

28,391

 

28,615

 

(0.8) %

 

56,630

 

49,262

 

15.0 %

Aircraft rent

 

26,159

 

25,790

 

1.4 %

 

54,330

 

52,066

 

4.3 %

Other rentals and landing fees

 

41,487

 

37,041

 

12.0 %

 

80,207

 

71,652

 

11.9 %

Purchased services

 

37,181

 

33,757

 

10.1 %

 

72,254

 

64,444

 

12.1 %

Other

 

49,099

 

34,242

 

43.4 %

 

83,884

 

69,739

 

20.3 %

Total

 

716,508

 

717,954

 

(0.2) %

 

1,446,539

 

1,342,973

 

7.7 %

Operating Loss

 

(9,580)

 

(26,089)

 

(63.3) %

 

(127,008)

 

(173,894)

 

(27.0) %

Nonoperating Income (Expense):

                       

Interest expense and amortization of debt
discounts and issuance costs

 

(22,705)

 

(24,517)

     

(45,585)

 

(49,554)

   

Interest income

 

13,539

 

6,562

     

30,004

 

10,996

   

Capitalized interest

 

1,945

 

1,060

     

3,404

 

2,112

   

Losses on fuel derivatives

 

(3,658)

 

—

     

(8,724)

 

—

   

Loss on extinguishment of debt

 

—

 

(8,568)

     

—

 

(8,568)

   

Other components of net periodic benefit
cost

 

(1,707)

 

1,274

     

(3,201)

 

2,560

   

Losses on investments, net

 

(3,549)

 

(22,127)

     

(2,852)

 

(34,491)

   

Gains on foreign debt

 

12,174

 

20,556

     

14,434

 

32,318

   

Other, net

 

(920)

 

(2,005)

     

(764)

 

(1,631)

   

Total

 

(4,881)

 

(27,765)

     

(13,284)

 

(46,258)

   

Loss Before Income Taxes

 

(14,461)

 

(53,854)

     

(140,292)

 

(220,152)

   

Income tax benefit

 

(2,126)

 

(6,480)

     

(29,700)

 

(39,500)

   

Net Loss

 

$    (12,335)

 

$    (47,374)

     

$  (110,592)

 

$  (180,652)

   

Net Loss Per Share

                       

Basic

 

$        (0.24)

 

$        (0.92)

     

$        (2.15)

 

$        (3.52)

   

Diluted

 

$        (0.24)

 

$        (0.92)

     

$        (2.15)

 

$        (3.52)

   

Weighted Average Number of Common
Stock Shares Outstanding:

                       

Basic

 

51,587

 

51,356

     

51,547

 

51,322

   

Diluted

 

51,587

 

51,356

     

51,547

 

51,322

   

 

Hawaiian Holdings, Inc.
Consolidated Balance Sheet (unaudited)

   

June 30, 2023

(unaudited)

 

December 31, 2022

   

(in thousands, except shares)

ASSETS

       

Current Assets:

       

Cash and cash equivalents

 

$                226,951

 

$               229,122

Restricted cash

 

17,860

 

17,498

Short-term investments

 

1,083,865

 

1,147,193

Accounts receivable, net

 

94,896

 

113,862

Income taxes receivable

 

1,666

 

70,204

Spare parts and supplies, net

 

47,837

 

36,875

Prepaid expenses and other

 

72,185

 

63,553

Total

 

1,545,260

 

1,678,307

Property and equipment, less accumulated depreciation and amortization of
$1,201,101 and $1,135,262 as of June 30, 2023 and December 31, 2022,
respectively

 

1,966,777

 

1,874,352

Other Assets:

       

Assets held-for-sale

 

2,845

 

14,019

Operating lease right-of-use assets

 

425,069

 

459,128

Long-term prepayments and other

 

106,399

 

100,317

Intangible assets, net

 

13,500

 

13,500

Total Assets

 

$             4,059,850

 

$            4,139,623

LIABILITIES AND SHAREHOLDERS' EQUITY

       

Current Liabilities:

       

Accounts payable

 

$                180,287

 

$               196,009

Air traffic liability and current frequent flyer deferred revenue

 

795,530

 

590,796

Other accrued liabilities

 

177,394

 

182,036

Current maturities of long-term debt, less discount

 

44,063

 

47,836

Current maturities of finance lease obligations

 

19,828

 

25,789

Current maturities of operating leases

 

78,585

 

77,858

Total

 

1,295,687

 

1,120,324

Long-Term Debt

 

1,552,693

 

1,583,889

Other Liabilities and Deferred Credits:

       

Noncurrent finance lease obligations

 

65,393

 

75,221

Noncurrent operating leases

 

315,654

 

347,726

Accumulated pension and other post-retirement benefit obligations

 

142,291

 

135,775

Other liabilities and deferred credits

 

57,961

 

94,654

Noncurrent frequent flyer deferred revenue

 

306,046

 

318,369

Deferred tax liability, net

 

100,308

 

130,400

Total

 

987,653

 

1,102,145

Commitments and Contingencies

       

Shareholders' Equity:

       

Special preferred stock, $0.01 par value per share, three shares issued and
outstanding as of June 30, 2023 and December 31, 2022

 

—

 

—

Common stock, $0.01 par value per share, 51,629,604 and 51,450,904 shares
outstanding as of June 30, 2023 and December 31, 2022, respectively

 

516

 

514

Capital in excess of par value

 

289,828

 

287,161

Accumulated income

 

30,164

 

140,756

Accumulated other comprehensive loss, net

 

(96,691)

 

(95,166)

Total

 

223,817

 

333,265

Total Liabilities and Shareholders' Equity

 

$             4,059,850

 

$            4,139,623

 

Hawaiian Holdings, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)

   

Six months ended June 30,

   

2023

 

2022

   

(in thousands)

Net cash provided by Operating Activities

 

$                111,662

 

$                  31,665

Cash flows from Investing Activities:

       

Additions to property and equipment, including pre-delivery payments

 

(169,354)

 

(16,521)

Proceeds from the disposition of aircraft and aircraft related equipment

 

19,863

 

9,662

Purchases of investments

 

(202,037)

 

(575,191)

Proceeds from sales and maturities of investments

 

275,312

 

635,385

Net cash provided by (used in) investing activities

 

(76,216)

 

53,335

Cash flows from Financing Activities:

       

Repayments of long-term debt and finance lease obligations

 

(36,142)

 

(149,019)

Payment for taxes withheld for stock compensation

 

(1,113)

 

(1,589)

Net cash used in financing activities

 

(37,255)

 

(150,608)

Net decrease in cash and cash equivalents

 

(1,809)

 

(65,608)

Cash, cash equivalents, and restricted cash – Beginning of Period

 

246,620

 

507,828

Cash, cash equivalents, and restricted cash – End of Period

 

$                244,811

 

$                442,220

 

 

Table 2.
Hawaiian Holdings, Inc.
Selected Consolidated Statistical Data (unaudited)

   

Three months ended June 30,

 

Six months ended June 30,

   

2023

 

2022

 

% Change

 

2023

 

2022

 

% Change

   

(in thousands, except as otherwise indicated)

Scheduled Operations:

                       

Revenue passengers flown

 

2,801

 

2,576

 

8.7 %

 

5,394

 

4,606

 

17.1 %

Revenue passenger miles (RPM)

 

4,346,815

 

3,862,507

 

12.5 %

 

8,190,876

 

6,836,857

 

19.8 %

Available seat miles (ASM)

 

5,014,251

 

4,505,285

 

11.3 %

 

9,928,870

 

8,747,768

 

13.5 %

Passenger revenue per RPM (Yield)

 

14.84  ¢

 

15.99  ¢

 

(7.2) %

 

14.57  ¢

 

14.94  ¢

 

(2.5) %

Passenger load factor (RPM/ASM)

 

86.7 %

 

85.7 %

 

1.0   pts.

 

82.5 %

 

78.2 %

 

4.3   pts.

Passenger revenue per ASM (PRASM)

 

12.86  ¢

 

13.71  ¢

 

(6.2) %

 

12.02  ¢

 

11.68   ¢

 

2.9 %

Total Operations:

                       

Revenue passengers flown

 

2,802

 

2,584

 

8.4 %

 

5,395

 

4,620

 

16.8 %

Revenue passenger miles (RPM)

 

4,346,953

 

3,870,586

 

12.3 %

 

8,192,931

 

6,858,150

 

19.5 %

Available seat miles (ASM)

 

5,014,432

 

4,516,296

 

11.0 %

 

9,931,949

 

8,779,344

 

13.1 %

Operating revenue per ASM (RASM)

 

14.10  ¢

 

15.32  ¢

 

(8.0) %

 

13.29  ¢

 

13.32  ¢

 

(0.2) %

Operating cost per ASM (CASM)

 

14.29  ¢

 

15.90  ¢

 

(10.1) %

 

14.56  ¢

 

15.30  ¢

 

(4.8) %

CASM excluding aircraft fuel and non-
recurring items (a)

 

11.08   ¢

 

10.87  ¢

 

1.9 %

 

11.06   ¢

 

10.97  ¢

 

0.8 %

Aircraft fuel expense per ASM (b)

 

3.32  ¢

 

5.03  ¢

 

(34.0) %

 

3.66  ¢

 

4.31  ¢

 

(15.1) %

Revenue block hours operated

 

52,228

 

47,477

 

10.0 %

 

143,646

 

92,360

 

55.5 %

Gallons of jet fuel consumed

 

66,360

 

57,494

 

15.4 %

 

131,214

 

110,911

 

18.3 %

Average cost per gallon of jet fuel (actual)
(b)

 

$2.51

 

$3.95

 

(36.5) %

 

$2.77

 

$3.41

 

(18.8) %

 

(a) See Table 4 for a reconciliation of GAAP operating expenses to operating expenses excluding aircraft fuel and non-recurring items.
(b) Includes applicable taxes and fees.

 

Table 3.
Hawaiian Holdings, Inc.
Economic Fuel Expense (unaudited)

The Company believes that economic fuel expense is a good measure of the effect of fuel prices on its business as it most closely approximates the net cash outflow associated with the purchase of fuel for its operations in a period. The Company defines economic fuel expense as GAAP fuel expense plus losses/(gains) realized through actual cash (receipts)/payments received from or paid to hedge counterparties for fuel hedge derivative contracts settled during the period.

 

   

Three months ended June 30,

 

Six months ended June 30,

   

2023

 

2022

 

% Change

 

2023

 

2022

 

% Change

   

(in thousands, except per-gallon amounts)

Aircraft fuel expense, including taxes and
delivery

 

$   166,380

 

$   226,892

 

(26.7) %

 

$    364,005

 

$    377,874

 

(3.7) %

Realized losses on settlement of fuel
derivative contracts

 

2,795

 

—

 

100.0 %

 

4,308

 

—

 

100.0 %

Economic fuel expense

 

$   169,175

 

$   226,892

 

(25.4) %

 

$    368,313

 

$    377,874

 

(2.5) %

Fuel gallons consumed

 

66,360

 

57,494

 

15.4 %

 

131,214

 

110,911

 

18.3 %

Economic fuel price per gallon

 

$          2.55

 

$          3.95

 

(35.4) %

 

$           2.81

 

$           3.41

 

(17.6) %

 

   

Estimated three months ending
September 30, 2023

 

Estimated full year ending December
31, 2023

   

(in thousands, except per-gallon amounts)

Aircraft fuel expense, including taxes and
delivery

 

$           180,093

–

$           185,200

 

$           719,731

–

$           732,654

Realized losses on settlement of fuel
derivative contracts

 

3,759

–

3,759

 

10,432

–

10,432

Economic fuel expense

 

183,852

–

188,959

 

730,163

–

743,086

Fuel gallons consumed

 

68,941

–

70,856

 

270,331

–

275,115

Economic fuel price per gallon

 

2.67

–

2.67

 

2.70

–

2.70

 

 

Table 4.
Hawaiian Holdings, Inc.
Non-GAAP Financial Reconciliation (unaudited)

The Company evaluates its financial performance utilizing various GAAP and non-GAAP financial measures, including adjusted net loss, adjusted diluted EPS, adjusted pre-tax margin, adjusted EBITDA, and adjusted operating cost per ASM (CASM excluding fuel and non-recurring items).  Pursuant to Regulation G, the Company has included the following reconciliation of reported non-GAAP financial measures to comparable financial measures reported on a GAAP basis.  The adjustments are described below:

  • CBA related expense .
    • In February 2023 , pilots represented by the Air Line Pilots Association (ALPA) ratified a new four-year CBA, which included, amongst other things, a signing bonus, pay scale increases across all fleet types, improved health benefits and cost sharing, and enhancements to the Company's postretirement and disability plans. In connection with the ratification, the Company recorded a signing bonus and vacation liability true-up of $17.7 million which were recorded in wages and benefits during the quarter ended March 31, 2023 .
    • In February 2022 , the Company received notice from International Association of Machinists and Aerospace Workers (IAM) that the agreement was ratified by its members. The new CBA included a signing bonus of $2.1 million , which was recorded in wages and benefits. During the second quarter of 2022, the Company and the IAM also completed a separation program under the CBA and recognized an additional $2.6 million one-time expense, which was recorded in wages and benefits.
  • Contract termination amortization . In December 2022 , the Company entered into a Memorandum of Understanding (MOU) with one of its third-party service providers to early terminate its Amended and Restated Complete Fleet Services Agreement (Amended CFS) covering A330-200 aircraft. The Amended CFS was originally scheduled to run through December 2027 , and will now terminate in April 2023 . Upon execution of the MOU, the Company agreed to pay a total of $12.5 million in termination fees, which was recognized in fiscal year 2022. As of December 31, 2022 , the Company had approximately $24.1 million in deferred liabilities to be recognized into earnings over the remaining contract term as contra-maintenance materials and repairs expense. During the three and six months ended June 30, 2023 , the Company recognized approximately $6.0 million and $24.1 million , respectively, in amortization within Maintenance, materials and repairs in the Consolidated Statements of Operations.
  • Loss (gain) on sale of aircraft . During the second quarter of 2023, the Company completed the sale of one ATR-42 aircraft and recognized a loss of approximately $0 .4 million on such sale. During the three months ended June 30, 2022 , the Company sold three ATR-72 aircraft and recorded a $2.6 million gain on sale of aircraft, which was recorded in other operating expense.
  • Gain on sale of commercial real estate . In February 2023 , the Company entered into an agreement for the sale of its commercial real estate and recognized a gain on sale of $10 .2 million, which was recorded in Other operating expense in the Consolidated Statements of Operations.
  • Interest income on federal tax refund .  In March 2023 , the Company received $4.7 million in interest income related to a refund received on the Company's income tax return. The interest income received was recorded in Interest income in the Consolidated Statements of Operations.
  • Changes in fair value of fuel derivative contracts .  Changes in fair value of fuel derivative contracts, net of tax, are based on market prices for open contracts as of the end of the reporting period, and include the unrealized amounts of fuel derivatives (not designated as hedges) that will settle in future periods and the reversal of prior period unrealized amounts.
  • Loss on extinguishment of debt . During the three and six months ended June 30, 2022 , the Company recognized a $8.6 million loss on the extinguishment of its remaining outstanding Series 2020-1A and Series 2020- 1B Equipment Notes. Loss on extinguishment of debt is excluded to allow investors to better analyze the Company's core operational performance and more readily compare its results to other airlines in the periods presented below.
  • Unrealized gain on foreign debt . Unrealized gain on foreign debt is based on fluctuation in exchange rates and the measurement of foreign-denominated debt to the Company's functional currency.
  • Unrealized loss on equity securities .  Unrealized loss on equity securities is driven by changes in market prices and currency fluctuations, which is recorded in Other nonoperating expense in the Consolidated Statements of Operations.

The Company believes that adjusting for the impact of the changes in fair value of equity securities and fuel derivative contracts, fluctuations in exchange rates on debt instruments denominated in foreign currency, and non-recurring expenses and income/gains (including CBA-related, contract termination amortization, interest income on tax refund, gain or loss on sale of aircraft, gain on sale of commercial real estate, and loss on extinguishment of debt), helps investors better analyze the Company's operational performance and compare its results to other airlines in the periods presented.

   

Three months ended June 30,

 

Six months ended June 30,

   

2023

 

2022

 

2023

 

2022

   

Total

 

Diluted
Net Loss
Per Share

 

Total

 

Diluted
Net Loss
Per Share

 

Total

 

Diluted
Net Loss
Per Share

 

Total

 

Diluted
Net Loss
Per Share

   

(in thousands, except per share data)

Net Loss, as reported

 

$  (12,335)

 

$      (0.24)

 

$  (47,374)

 

$      (0.92)

 

$  (110,592)

 

$      (2.15)

 

$  (180,652)

 

$      (3.52)

Adjusted for:

                               

CBA related expense

 

—

 

—

 

2,574

 

0.05

 

17,727

 

0.34

 

4,678

 

0.09

Contract termination
amortization

 

(5,972)

 

(0.12)

 

—

 

—

 

(24,085)

 

(0.47)

 

—

 

—

Loss (gain) on sale of
aircraft

 

392

 

0.01

 

(2,578)

 

(0.05)

 

392

 

0.01

 

(2,578)

 

(0.05)

Gain on sale of
|commercial real estate

 

—

 

—

 

—

 

—

 

(10,179)

 

(0.20)

 

—

 

—

Interest income on
federal tax refund

 

—

 

—

 

—

 

—

 

(4,672)

 

(0.09)

 

—

 

—

Changes in fair value
of fuel derivative

contracts

 

864

 

0.02

 

—

 

—

 

4,416

 

0.09

 

—

 

—

Loss on
extinguishment of debt

 

—

 

—

 

8,568

 

0.17

 

—

 

—

 

8,568

 

0.17

Unrealized gain on
foreign debt

 

(12,106)

 

(0.23)

 

(20,381)

 

(0.40)

 

(14,595)

 

(0.28)

 

(31,963)

 

(0.63)

Unrealized loss on
|equity securities

 

1,486

 

0.03

 

7,920

 

0.15

 

542

 

0.01

 

19,394

 

0.38

Tax effect of
adjustments

 

3,533

 

0.06

 

5,162

 

0.10

 

5,102

 

0.10

 

6,147

 

0.12

Adjusted net loss

 

$  (24,138)

 

$      (0.47)

 

$  (46,109)

 

$      (0.90)

 

$  (135,944)

 

$      (2.64)

 

$  (176,406)

 

$      (3.44)

 

 

Adjusted EBITDA

The Company believes that adjusting earnings for interest, taxes, depreciation and amortization, non-recurring operating expenses (such as changes in unrealized gains and losses on financial instruments) and one-time charges helps investors better analyze the Company's financial performance by allowing for company-to-company and period-over-period comparisons that are unaffected by company-specific or one-time occurrences.

 

   

Three months ended June 30,

 

Six months ended June 30,

   

2023

 

2022

 

2023

 

2022

   

(in thousands)

Net Loss

 

$            (12,335)

 

$            (47,374)

 

$          (110,592)

 

(180,652)

Income tax benefit

 

(2,126)

 

(6,480)

 

(29,700)

 

(39,500)

Depreciation and amortization

 

33,348

 

34,333

 

66,015

 

68,088

Interest expense and amortization of debt discounts
and issuance costs

 

22,705

 

24,517

 

45,585

 

49,554

EBITDA, as reported

 

41,592

 

4,996

 

(28,692)

 

(102,510)

Adjusted for:

               

CBA related expense

 

—

 

2,574

 

17,727

 

4,678

Contract termination amortization

 

(5,972)

 

—

 

(24,085)

 

—

Gain on sale of commercial real estate

 

—

 

—

 

(10,179)

 

—

Interest income on tax refund

 

—

 

—

 

(4,672)

 

—

Loss on extinguishment of debt

 

—

 

8,568

 

—

 

8,568

Changes in fair value of fuel derivative instruments

 

864

 

—

 

4,416

 

—

Unrealized gain on foreign debt

 

(12,106)

 

(20,381)

 

(14,595)

 

(31,963)

Loss (gain) on sale of aircraft

 

392

 

(2,578)

 

392

 

(2,578)

Unrealized loss on equity securities

 

1,486

 

7,920

 

542

 

19,394

Adjusted EBITDA

 

$              26,256

 

$                1,099

 

$            (59,146)

 

$          (104,411)

 

Operating Costs per Available Seat Mile (CASM)

The Company has separately listed in the table below its fuel costs per ASM and non-GAAP unit costs, excluding fuel and non-recurring items.  These amounts are included in CASM, but for internal purposes the Company consistently uses cost metrics that exclude fuel and non-recurring items (if applicable) to measure and monitor its costs.

   

Three months ended June 30,

 

Six months ended June 30,

   

2023

 

2022

 

2023

 

2022

   

(in thousands, except CASM data)

GAAP Operating Expenses

 

$         716,508

 

$         717,954

 

$      1,446,539

 

$      1,342,973

Adjusted for:

               

CBA related expense

 

—

 

(2,574)

 

(17,727)

 

(4,678)

Contract termination amortization

 

5,972

 

—

 

24,085

 

—

Gain (loss) on sale of aircraft

 

(392)

 

2,578

 

(392)

 

2,578

Gain on sale of commercial real estate

 

—

 

—

 

10,179

 

—

Operating Expenses excluding non-recurring items

 

$         722,088

 

$         717,958

 

$      1,462,684

 

$      1,340,873

Aircraft fuel, including taxes and delivery

 

(166,380)

 

(226,892)

 

(364,005)

 

(377,874)

Operating Expenses excluding fuel and non-
recurring items

 

$         555,708

 

$         491,066

 

$      1,098,679

 

$         962,999

Available Seat Miles

 

5,014,432

 

4,516,296

 

9,931,949

 

8,779,344

CASM – GAAP

 

14.29 ¢

 

15.90 ¢

 

14.56 ¢

 

15.30 ¢

Aircraft fuel, including taxes and delivery

 

(3.32)

 

(5.03)

 

(3.66)

 

(4.31)

CBA related expense

 

—

 

(0.06)

 

(0.18)

 

(0.05)

Contract termination amortization

 

0.12

 

—

 

0.24

 

—

Gain (loss) on sale of aircraft

 

(0.01)

 

0.06

 

—

 

0.03

Gain on sale of commercial real estate

 

—

 

—

 

0.10

 

—

CASM excluding fuel and non-recurring items

 

11.08 ¢

 

10.87 ¢

 

11.06 ¢

 

10.97 ¢

 

   

Estimated three months ending September
30, 2023

 

Estimated year ending December 31, 2023

   

(in thousands, except CASM data)

 

(in thousands, except CASM data)

GAAP operating expenses

 

$              756,598

–

$              794,667

 

$           2,964,027

–

$           3,062,920

Aircraft fuel, including taxes and
delivery

 

(183,852)

–

(188,959)

 

(730,163)

–

(743,086)

Less: non recurring items

 

—

–

—

 

16,145

–

16,145

Adjusted operating expenses

 

$              572,746

–

$              605,708

 

$           2,250,009

–

$           2,335,979

Available seat miles

 

5,188,202

–

5,337,146

 

20,272,836

–

20,646,529

CASM – GAAP

 

14.58 ¢

–

14.89 ¢

 

14.62 ¢

–

14.84 ¢

Aircraft fuel, including taxes and
delivery

 

(3.54)

–

(3.54)

 

(3.60)

–

(3.60)

Less: non recurring items

 

—

–

—

 

0.08

–

0.08

CASM excluding fuel and non-recurring
items

 

11.04 ¢

–

11.35 ¢

 

11.10 ¢

–

11.32 ¢

 

Pre-tax margin

The Company excludes changes in fair value of equity securities and fuel derivative contracts, fluctuations and exchange rates on debt instruments denominated in foreign currency, and non-recurring items from pre-tax margin for the same reasons as described above.

   

Three months ended June 30,

 

Six months ended June 30,

   

2023

 

2022

 

2023

 

2022

Pre-Tax Margin, as reported

 

(2.0) %

 

(7.8) %

 

(10.6) %

 

(18.8) %

CBA ratification bonus

 

—

 

0.4

 

1.3

 

0.4

Contract termination amortization

 

(0.8)

 

—

 

(1.8)

 

—

Gain on sale of commercial real estate

 

—

 

—

 

(0.8)

 

(0.1)

Interest income on tax refund

 

—

 

—

 

(0.4)

 

—

Changes in fair value of fuel derivative contracts

 

0.1

 

—

 

0.3

 

—

Unrealized gain on foreign debt

 

(1.7)

 

(2.8)

 

(1.1)

 

(2.7)

Loss on extinguishment of debt

 

—

 

1.2

 

—

 

0.7

Loss (gain) on sale of aircraft

 

0.1

 

(0.4)

 

0.1

 

(0.2)

Unrealized loss on equity securities

 

0.1

 

1.1

 

0.1

 

1.7

Adjusted Pre-Tax Margin

 

(4.2) %

 

(8.3) %

 

(12.9) %

 

(19.0) %

 

 

 

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SOURCE Hawaiian Holdings, Inc.

Alaska Airlines leads the pack with fewest flight cancellations and top-ranked loyalty program

Today, we announced our financial results from the last three months, and it includes good news for guests, employees, the communities we serve and our shareholders. Dive into all the financial details here, but these are the main takeaways:

We are running a strong, reliable operation.

Our business is complex, but at the end of the day, our 23,000 employees are working together to get you safely from point A to point B.

This quarter, our team was running on all cylinders and carried that momentum into the July 4th holiday week (where we welcomed nearly 1 million guests). On June 30th, we flew the most guests in a single day ever in our history while leading the industry in completion rate (lowest rate of cancellations of any airline) with a 99.59% grade this quarter. We also worked hard to get you to your destination on time – with over 82% of flights arriving within 15 minutes of the scheduled time.

“People are hungry to travel, and our frontline employees are delivering the safe, reliable and caring experience that people expect when they fly with us,” said CEO Ben Minicucci. “I’m so proud of our team for knocking it out of the park and delivering industry-leading operational and financial outcomes. We chose to prioritize reliability, which is imperative to restoring stability, improving predictability for our guests and employees, capturing record revenue, and serving as the foundation for our long-term profitable growth.”

Our investments in new aircraft, training resources and staffing have prepared us to show up well for your important summer travel, and we couldn’t be prouder of our teams.

Our Mileage Plan program ranks above the rest.

Our Mileage Plan program was just recognized as being the best airline rewards program by U.S. News & World Report. It’s no secret to our guests who earn and redeem miles with us that you just get more with our Mileage Plan program compared to other loyalty programs.

Consider using your hard-earned miles on a dream vacation to more than 120 destinations across the United States, Belize, Canada, Costa Rica, Bahamas, Guatemala and Mexico or to more than 1,000 global destinations on our partner airline. Right now, you can fly from Seattle to Tahiti on our partner Air Tahiti Nui starting at just 30,000 miles!

We’re investing back into our business.

Even amid rising costs like fuel, our pre-tax margin (the percentage of money we made after all our expenses but before paying taxes) is likely to lead the industry this quarter. All that means is we’re managing our finances in a way that allows us to weather any future downturns and continue investing in a better guest experience. So, how are we spending the money we made?

Investing in our people

Our employees are the heart of everything we do. We invest in competitive wages and comprehensive benefits, expanded training opportunities and incentives when our team performs well. Because of their industry-leading performance over the last three months, employees earned more than $7 million in a quarterly incentive payout (which we call Operational Performance Rewards (OPR) and is split among all employees). We have also accrued roughly $100 million in the first half of the year towards our end of year Performance-Based Payout (PBP), which rewards employees for their progress on financial, operational and safety goals.

Buying new aircraft

Each month we’re taking delivery of newer, more fuel-efficient aircraft. Of the 251 new planes we’ve ordered, we already have 53 in our fleet. This fresher fleet gives guests that new airplane smell we all love and increases our fuel efficiency by 15-25% compared to previous generation aircraft, to help us reach our rigorous sustainability goals by 2040.

Enhancing the airport experience

We want every guest to enjoy their flying experience from the moment they step into an airport to when they board our aircraft, which is why we’re investing more than $2.5 billion to reimagine and modernize our largest hubs. You can see part of this investment up close in the newly renovated D Concourse Lounge in Seattle, which now has 50% more seating.

New destinations and more communities served

We’ve been on a roll announcing dozens of new routes, from international destinations (like the Bahamas and Guatemala) to increased flights to backyard Pacific Northwest gems in Bend, Yakima, Wenatchee and more. We’re thrilled to connect our guests to more of the places they want to go.

Quarterly reports might sound like they’re only relevant for Wall Street, but when we perform well, it benefits everyone who matters to us. See you next quarter!

Alaska Air Group reports second quarter 2023 results 

Delivered industry-leading adjusted pre-tax margins of 18.3% on record quarterly revenue
Adjusted pre-tax margin exceeds 2019 second quarter results despite higher fuel costs
Achieved industry’s best on-time performance and completion rate in June 

Alaska Air Group (NYSE: ALK) today reported financial results for the second quarter ending June 30, 2023, and provided outlook for the third quarter ending Sept 30, 2023. 

People are hungry to travel and our frontline employees are delivering the safe, reliable and caring experience that people expect when they fly with us,” said CEO Ben Minicucci. “I’m so proud of our team for knocking it out of the park and delivering industry-leading operational and financial outcomes. We chose to prioritize reliability, which is imperative to restoring stability, improving predictability for our guests and employees, capturing record revenue, and serving as the foundation for our long-term profitable growth.

Financial Highlights: 

  • Reported net income for the second quarter of 2023 under Generally Accepted Accounting Principles (GAAP) of $240 million, or $1.86 per share, compared to a net income of $139 million, or $1.09 per share, for the second quarter of 2022.

  • Reported net income for the second quarter of 2023, excluding special items and mark-to-market fuel hedge accounting adjustments, of $387 million, or $3.00 per share, compared to $280 million, or $2.19 per share, for the second quarter of 2022. This quarter’s adjusted results exceed the First Call analyst consensus estimate of $2.70 per share.

  • Generated adjusted pre-tax margins of 18.3%, a 250-basis point increase over the same period in 2019.

  • Recorded $2.8 billion in operating revenue for the second quarter, the highest quarterly total in company history.

  • Received $435 million in bank card partner commissions driven by increased consumer spending.

  • Repurchased 871,987 shares of common stock for approximately $39 million in the second quarter, bringing total repurchases to $57 million for the six months ended June 30, 2023. The company continues to expect share repurchases of at least $100 million in 2023.

  • Generated $610 million in operating cash flow for the second quarter.

  • Held $2.4 billion in unrestricted cash and marketable securities as of June 30, 2023.

  • Ended the quarter with a debt-to-capitalization ratio of 48%, within the target range of 40% to 50%.

Operational Updates: 

  • Received eight 737-9 aircraft and six E175 aircraft during the quarter, bringing the totals in the Alaska and Horizon fleets to 51 and 39, respectively.

  • Announced new routes to Nassau, Bahamas from Seattle and Los Angeles and Guatemala City, Guatemala from Los Angeles, marking six countries that Alaska will fly to and from its West Coast hubs.

  • Launched partnership with STARLUX Airlines, whose flights between Los Angeles and Taipei allow Mileage Plan members to connect to 16 destinations across Asia.

  • Reopened the renovated D Concourse Lounge in Seattle, offering 50% more seating and improved amenities.

  • Completed Intelsat satellite Wi-Fi installation across the Mainline fleet.

Environmental, Social and Governance Updates: 

  • Released the 2022 Care Report, sharing the company’s progress towards its environmental, social and governance goals, as well as highlighting accomplishments and ongoing initiatives.

  • Contributed a retired Q400 aircraft to ZeroAvia to support its development of a hydrogen-electric powertrain system, showcasing Alaska’s commitment to creating a sustainable future for aviation.

Awards and Recognition: 

  • Mileage Plan named Best Airline Reward program for 2023-2024 by U.S. News & World Report for the 9th consecutive year.

  • Presented with the award for “Executive Leadership – North America” at the Airline Strategy Awards in recognition of Alaska’s strong financial performance and operational excellence.

  • Named to Forbes’ Best Employers for Diversity list, receiving the highest ranking of all airlines.

  • Scored 100% for the second year in a row in Disability:IN’s Disability Equality Index, which benchmarks companies on their disability inclusion and equality.

  • Rated by KAYAK users as the #1 overall airline in North America, earning the top scores for crew, comfort, food and boarding.

Tune in:

A conference call regarding the second quarter results will be streamed online at 8:30 a.m. PDT on July 25, 2023. It can be accessed at www.alaskaair.com/investors. For those unable to listen to the live broadcast, a replay will be available after the conclusion of the call.

Full earnings financial data:

Statistical data, reconciliations of the reported non-GAAP financial measures, further details regarding results and a glossary of financial terms can be found in our Earnings Release as filed with the SEC.

View full earnings financial data

Stuck in the Passport Backlog? Plan Your World-Class Hawaiʻi Vacation with Alaska Airlines: Here’s Why! 

With extremely long wait times for a new U.S. passport, we’ve got the best vacation for you without ever having to leave the country—and the reasons why we’re the best airline to get you there.  

Looking for seismic activity? Head to the Island of Hawaiʻi. 

Are volcanoes on the brain? Hawaiʻi Volcanoes National Park offers an up close and personal look into how the archipelago was created. Guests can even visit the park after dark to see the glow of flowing lava. Just remember to be a mindful traveler and mālama (to care for) the land and nature while you’re there.  

Book a trip to Kona, Hawaiʻi now! 

Looking for waves? Surf the North Shore of O‘ahu. 

Pack your surfboard and head to O‘ahu’s famous North Shore to catch some waves. Less than an hour drive from Honolulu, the North Shore of O‘ahu offers world class surf breaks – whether you’re on the board or watching from the beach.  

Book a trip to Honolulu, O‘ahu now! 

Looking for a beach? Stroll the shores of Maui. 

No matter if you’re in the market for a romantic stroll, sandcastle building, snorkeling some reefs or exploring unique black sand beaches, Maui has dozens of beaches to choose from. Just imagine enjoying some poke while you watch whales coming and going off the shore.   

Book a trip to Kahului, Maui now! 

Looking for a forest adventure? Explore the wilds of Kaua‘i. 

Ever have the desire to feel like you’re in Jurassic Park (without the dinosaurs)? Kaua‘i isn’t called the Garden Isle for nothing – with stunning canyons and waterfalls and forests to zip through, there’s something for every adventure seeker.  

Book a trip to Līhu‘e, Kaua‘i now! 

Why you should choose Alaska to get you to Hawaiʻi: 

We’re the go-to airline for those looking for affordable flying options, premium experiences, and the best value to Hawaiʻi. Our vast network allows flyers to reach the beautiful islands of O‘ahu, Maui, Kaua‘i, and the Island of Hawaiʻi from almost anywhere along the West Coast and beyond including Anchorage, Los Angeles, Portland, San Diego, San Francisco, San Jose, and Seattle and Paine Field (Everett). 

All our aircraft serving Hawai‘i are equipped with streaming-fast satellite Wi-Fi available for the entire flight for only $8, with coverage over the Pacific Ocean — the only airline fleet that offers streaming-fast coverage to the Islands on every flight. And stay connected to those on the ground with free inflight texting. 

With power outlets at every seat on our aircraft, you can enjoy 800+ free movies and TV shows that can be streamed right to your own devices during the flight. Our extensive library also includes dedicated Hawaiʻi content with travel tips and cultural programming. 

The option to pre-order your inflight meal is available online or via our mobile app up to 20 hours prior to your flight. Reserve that cheese plate! 

Our First Class offers complimentary hot meals based on a seasonal menu with a range of fresh, bright West Coast-inspired flavors and premium beverages. Our expanded First Class menu has up to five options on every flight to Hawaiʻi, macadamia nuts and Mimosas infused with passionfruit, orange, and guava. Flyers in Premium Class can also take advantage of complimentary cocktails, hand-selected wines and local beers.   

Fresh food is available for purchase on every flight in our Main Cabin, with up to five choices, including our guest-favorite Tillamook Cheeseburger (back by popular demand) and a Bibimbab Korean Rice Bowl. Plus, picnic packs and a kids sandwich and exclusively to/from Hawaiʻi.  

First Class and Premium Class guests enjoy early boarding and the most generous legroom of all domestic carriers.  

You can save your seat reservations in advance to ensure you stay close to your loved ones the entire flight. When you fly with Alaska Airlines, we guarantee your family sits together. And we don’t charge you for it.  
 
We also understand that your plans may change for a variety of reasons, and we want you to be able to change your reservation hassle free. That’s why we have NO change fees for tickets purchased or redeemed on alaskaair.com (on any route within our network + Main Cabin and First Class fares). Please note that a fare difference may apply if the rescheduled flight exceeds the value of the original ticket price. 
 

Among the most popular benefits of the Alaska Airlines Visa Signature® card is the annual Companion Fare™. This is a discounted fare that can be used on just about any Alaska flight. Cardholders also enjoy a free checked bag for themselves and up to six other passengers (so a total of seven) in their reservation, triple miles on Alaska purchases, and one mile for every dollar spent on everyday purchases. Sign up today for special offers! 

You can bring home a box of (properly packaged) pineapples. For FREE on Alaska Airlines. But leave the lava rocks where you found them. Trust us on this one. 

You can also take a surfboard or paddleboard case with up to two boards inside for the same price as a normal piece of checked luggage + other sporting for just $30 for the first checked item, which makes flying Alaska one of the most budget-friendly ways to travel with your surfboard. 

Alaska Airlines continues expansion of California network with new nonstop service  between Burbank and San Francisco 

Alaska Airlines, the carrier with the most nonstop destinations on the West Coast, is expanding its network in California with the launch of a new year-round route from Hollywood Burbank Airport to San Francisco International Airport. 

Alaska will offer three peak-daily flights from Burbank to SFO when service begins Dec. 14.  

As the only West Coast-based airline, we’re focused on growing a stronger network for our California based guests – within California and beyond,” said Neil Thwaites, Alaska Airlines’ regional vice-president, California. “We’re excited to give people more ways to connect nonstop between Southern and Northern California with the launch of Burbank to SFO – a route we’ve never flown before. This network expansion is part of Alaska’s broader investment in enhancing the guest experience – from seamless check in, to automated bag drop, to renovated lounges and enhanced onboard offe

This summer, Alaska announced a major expansion of its network, including new international destinations to Mexico, the Bahamas and Guatemala. . More than half of the 15 newly added routes will fly from airports Alaska serves in California. All of the routes, including Burbank to San Francisco, will begin in time for the holidays. 

“Alaska already connects guests from Burbank to destinations across California and along the Pacific Northwest,” said Frank Miller, Hollywood Burbank Airport executive director. “Thanks to Alaska Airlines, they’ll soon be a short flight to Burbank where they can be at a popular amusement park minutes after they land or hop over to scenic San Francisco and go sightseeing along the coast.” 

In California, Alaska operates out of 16 airports throughout the state and offers over 320 peak day flights from our hubs in San Francisco and Los Angeles, as well as our key focus cities of San Diego and San Jose. As the only national airline based on the West Coast, we’ve proudly served our guests throughout California for more than 40 years.  

 ICYM: Here are our two major announcements of where we’re flying, including new seasonal routes from LAX and SEA to Nassau, Bahamas and year-round routes to Latin America.  

Alaska Airlines remains committed to smaller communities: Regional flying coming to several cities this fall  

Since the end of the pandemic, the entire airline industry has been affected by unprecedented pilot attrition causing an industry-wide reduction in flying by regional airlines. This has forced many airlines to make tough decisions when it comes to flight frequencies in smaller communities. While some airlines have completely exited smaller regional markets, Alaska Airlines and Horizon Air, Alaska’s long-time regional airline sister company, have maintained at least minimal service to all the communities we serve.   
 
Last fall, Alaska and Horizon temporarily reduced flight frequency in Walla Walla, Wenatchee and Yakima, Washington to single daily roundtrip service.   

This November, Alaska Airlines will add an additional flight between Seattle and all three cities, due in part to a partnership between Alaska and community leaders.   
 

“We’ve seen regional air service change over the last few years,” said Kirsten Amrine, VP of revenue management & network planning. “To ensure smaller cities remain connected, we have to think creatively. Small communities are extremely important, so working collaboratively with community leaders is key to ensure we’re able to continue providing the service for which we are known.” 

This fall, the airline is also excited to share that it will resume service between Portland and Redmond. Horizon exited the market toward the end of the pandemic due to regional capacity constraints. The regional carrier will operate the route from November 29 through April 10, when the roads between Portland and Redmond can be especially tough to travel due to winter weather.  

This route has been the top ask from both communities and will be highly impactful to the business population that commutes between the two cities,” said Kevin Lemme, general manager of airline planning & network performance. “We’re excited that we can resume service on a winter-seasonal basis.” 

WHEN: Today, July 20, Horizon Air loaded the resumption of PDX-RDM into its flight schedule. Horizon will re-start service between Portland and Redmond on a Winter-Seasonal basis starting later this year. Also, today, Alaska Airlines loaded an additional flight between SEA-YKM and get EAT/ALW/YKM back up to 2 flights daily this fall. 

Mt Bachelor, Bend, OR

How Bristol Bay sockeye salmon flies to your table with Alaska Air Cargo

More than half the world’s sockeye salmon comes from Bristol Bay, where multigenerational fishing families are deeply invested in protecting the sustainable catch

For thousands of families who fish Bristol Bay in Southwest Alaska — the world’s largest sockeye fishery — working the family boat is a rite of passage. The adrenaline of the short season, with tens of millions of fish running into the bay’s six rivers over just a few weeks in June and July, gets many rookies hooked on a lifelong love of fishing. 

Reba Temple was one of those kids who grew up begging her parents to let her fish with them in the bay. 

Her mom and dad started fishing for sockeye in the early 1990s after fishing for years with their parents in Cook Inlet. When Reba was 14, her parents finally brought her aboard the fishing vessel FV Cloud 9.

 

Reba Temple and her mom, Lynn, fishing in Bristol Bay. (Temple family photo)

“My sister and brother and I were the only deckhands, and we were so excited,” Temple said. Her dad ran the boat, and her mom showed them the ropes. ”From the get-go, it was my favorite time of the year.”

Nels Ure was a little younger when he started working on a boat with his dad, who also began fishing the bay in the early ‘90s.  

“When you first start out, it’s chaotic and jarring – and absolutely addicting,” Ure said. “The three to seven days that are the peak, the fish are charging upstream, and you’re going from hundreds of pounds to thousands of pounds in your net. You’re on a 32-foot boat and all of a sudden you’re reeling in 900 to 1,200 feet of net and having to figure out how to get all the fish out of it.”  

More than half the world’s sockeye salmon comes from Bristol Bay, where the state, scientists, fishing industry and Alaska Native tribes work together to sustainably manage the fishery.  

Last year, a record 82 million sockeye returned to the bay. About 600,000 pounds of the 60 million salmon caught were carried fresh out of the Bristol Bay community of King Salmon (AKN) on Alaska Air Cargo freighters, destined for restaurants and grocery stores — and ultimately, diners’ plates — across the country and around the world.  

“I get a little awestruck by the numbers coming in at the peak of the season,” said Shannon Stevens, Alaska Air Cargo sales manager for the state of Alaska.  

The new larger freighters will also be certified to fly long hauls over open water, including from remote communities like King Salmon to Seattle.  

And while most of the Bristol Bay catch is frozen and carried out by barge, Alaska’s cargo team is investing in more payload to feed the nation’s growing appetite for fresh salmon. By the beginning of next year, we will add two new larger freighters, essentially doubling the fleet’s capacity.  

Sustainable for the long haul 

In the ongoing effort to manage the fishery sustainably, the state Department of Fish and Game monitors the returns of each river feeding the bay. For the 2023 season, scientists forecast a total return of about 50 million salmon, well above average, with a net catch of 37 million fish. 

“The long-term goal isn’t about making the big buck just this year,” said Daniel Schindler, a fishery sciences professor at the University of Washington who has studied the salmon habitat for 27 years. “It’s really been about how do we keep the system going for a long, long time.” 

Seattle Chef Renee Erickson sources salmon from sustainable fisheries like Bristol Bay: “We love curing it because it’s so gorgeous.”  

Ure, who lives in Naknek with his wife and young daughter, said the residents of the small communities nestled around the bay are invested in its long-term health. “Fishing supports so many economies: welders, all of the gear shops, net hangers, net menders,” said Ure, noting that fishing buoys local businesses year-round. “You have the actual salmon ecosystem, which is phenomenal, but then there’s an economic ecosystem that the salmon sustain as well,” he says.  

Both Ure and Temple are looking forward to sharing the rush of the summer salmon run with the next generation.  

“It truly is one of the biggest dreams in my life to get to fish with my kids and show them Bristol Bay,” said Temple, who has 2-year-old twins named Bristol and Sam. “I had so much fun spending summers out there with my family.” 

Ure said his daughter is already toddling around the family’s fleet and setnet sites.  

“I can imagine nothing greater than getting to spend our summers together bonding on the water, solving problems, and catching beautiful salmon,” he said.  

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