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New Washington Law Incentivizes Local Sustainable Aviation Fuel Production

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Alaska Airlines applauds Washington state Governor Jay Inslee, and bill sponsor, State Senator Andy Billig, for the signing of new legislation to help drive growth in the market for Sustainable Aviation Fuel (SAF) in Washington state.  

Investing in SAF has multilayered benefits, including the creation of family wage manufacturing jobs. Using SAF is also the most significant way we can reduce the greenhouse gas emissions of aviation over the next several decades. This legislation will help ensure that SAF is more available at a cost and scale that enables its use and continues to position Washington State as a leader on climate action.  

This is a step in the right direction, and we look forward to working with public and private partners to realize its full potential.  

Hawaiian Airlines 2023 Corporate Kuleana Report Highlights Path to Net-Zero Carbon Emissions by 2050

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HONOLULU – Hawaiian Airlines today published its 2023 Corporate Kuleana (Responsibility) Report describing the carrier’s progress on Environmental, Social and Governance (ESG) priorities. In the past year, Hawaiʻi’s hometown airline has advanced its sustainability goals to achieve net-zero greenhouse gas (GHG) emissions by 2050, reduce single-use plastics from cabin service and offer more locally sourced food onboard.

Hawaiian’s decarbonization roadmap includes interim targets to lower GHG emissions and focuses heavily on replacing petroleum jet fuel with sustainable aviation fuel (SAF). Hawaiian is purchasing 50 million gallons of SAF from biofuel company Gevo, Inc., starting in 2029. Among its near-term commitments, the airline is seeking to decrease life-cycle jet fuel emissions per revenue ton mile by 45% by 2035 and replace 10% of conventional jet fuel with SAF by 2030.

“These targets, particularly those within the next decade, are a rallying cry for our organization to act urgently to address our carbon emissions,” Hawaiian Airlines President and CEO Peter Ingram said in the Corporate Kuleana Report’s welcome note. “We must also continue to partner with fuel producers and the airline industry, as well as states and the federal government to help accelerate SAF production and distribution at commercially viable prices.”

Hawaiian, which is working to phase out single-use plastics from in-flight service by 2029, carried 7% less single-use plastic per transpacific flight last year compared to 2021. It also increased locally produced food and beverage items served on flights departing from Hawaiʻi to 32% of its budget – up from 29% in 2021 and closer to its 2025 40% spending target.

As it continues to rebuild from the pandemic, Hawaiʻi’s largest and longest-serving airline last year welcomed 1,371 new teammates – approximately 20% of its year-end workforce of 7,108 people. None of its union contracts are currently amendable after Hawaiian successfully completed negotiations with all labor groups, providing significant improvements to wages. In planning for future recruiting needs, Hawaiian has established a number of school-to-career pipeline partnerships that encourage students to pursue aviation and technology careers, and broaden the carrier’s access to talent, especially in Hawaiʻi.

“Our commitment to diversity, inclusion and belonging remains an important driver of our recruitment and retention strategy. We continue to expand our searches for qualified veterans, women and other historically underrepresented groups,” Hawaiian noted in its report, which showed that 80% of employees identify as racially or ethnically diverse, and 48% as female. “In 2022, we were proud to once again lead major U.S. airlines in having the highest percentage of women pilots at more than 9.5%, well above the 5.8% 2021 global average.”

Hawaiian continues to play an outsized role supporting the economy of its home state. In 2022, it stimulated $10.2 billion in economic activity in Hawaiʻi and generated more than $600 million in Hawaiʻi state tax revenue, according to an economic impact study commissioned by Hawaiian.

For the second consecutive year, Hawaiian’s Corporate Kuleana Report includes reporting aligned with the Task Force on Climate-Related Disclosures (TCFD), in addition to Sustainability Accounting Standards Board (SASB) metrics it has provided since 2020.

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, 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. In 2022, the carrier topped Travel + Leisure’s 2022 World’s Best list as the No. 1 U.S. airline and was named Hawaiʻi's best employer by Forbes. Hawaiian® 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.

Getaway Goals: when the Seattle Kraken score, fans can win a getaway on Alaska Airlines

To celebrate our home team’s run through the playoffs, we’re offering deals, chances to win and priority boarding

This story was updated on May 8, 2023

As the Kraken make hockey history, we couldn’t be prouder to be the team’s official airline. We’re so proud, we’re getting our guests in on all the fun.

Getaway goals

When the Kraken score, you win round trip tickets!

Starting with Round 2 Game 3, the first player to score a goal unlocks the chance to win round trip flights. How many? The number on his jersey! For example, Jordan Eberle (#7) scored the first goal in Game 3, so we gave away 7 round trip tickets to 7 lucky winners.

Who will score first in Game 4? Tell us for a chance to win the next getaway!

Fans can enter by following @alaskaair on Twitter, Instagram and Facebook, replying with the player you think will score first and using the hashtag #AlaskaAirGoals. Entry opens 24 hours before and ends at puck drop for each game, and we’ll keep playing as long as the Kraken do.*

$99 flights to away games

We’re slashing ticket prices so hockey fans can cheer on the Kraken when they’re playing in enemy territory. As we’re playing the Dallas Stars in round 2 of the Stanley Cup Playoffs, fares between Seattle and Dallas (both DAL and DFW) are only $99. Restrictions apply, see terms and conditions at alaskaair.com/sale.

Score a Deep Discount

We are so proud of everything the Kraken have accomplished so far this season, and now we want to fill the rink in Dallas with as many Kraken fans as we can,” says Alaska CEO Ben Minicucci. 

Priority boarding 

As always during hockey season, guests sporting Kraken gear can board early on all Alaska flights departing from the Seattle-Tacoma International Airport (SEA), following group B.  

American Hockey League fans of the Coachella Valley Firebirds, Palm Springs’ (PSP) new professional ice hockey expansion team of the Seattle Kraken, can also board early if they’re wearing Firebird gear. 

*Terms and Conditions apply. Read more here.

Alaska Airlines 

Alaska Airlines and our regional partners serve more than 120 destinations across the United States, Belize, Canada, Costa Rica and Mexico. We strive to be the most caring airline with award-winning customer service and an industry-leading loyalty program. As a member of the oneworld alliance, and with our additional global partners, our guests can travel to more than 1,000 destinations on more than 25 airlines while earning and redeeming miles on flights to locations around the world. Learn more about Alaska at news.alaskaair.com and follow @alaskaairnews for news and stories. Alaska Airlines and Horizon Air are subsidiaries of Alaska Air Group. 

Alaska Airlines and ZeroAvia begin developing world’s largest zero-emission aircraft 

Washington Gov. Jay Inslee, U.S. Rep. Suzan DelBene and Snohomish County Executive Dave Somers join CEOs from Alaska and ZeroAvia to launch retrofitting of aircraft

ZeroAvia unveils world’s most advanced electric motor technology for aviation, paving way for hydrogen-electric engines for Dash 8 and similar airframes

Alaska Airlines today presented a Bombardier Q400 regional turboprop to ZeroAvia that will be retrofitted with a hydrogen-electric propulsion system in an effort to expand the reach and applicability of zero emissions flight technology.

At an event, held at ZeroAvia’s Paine Field research and development site, the companies were joined by high school students from Raisbeck Aviation High School, Washington State Governor Jay Inslee, Congresswoman Suzan DelBene and Snohomish County Executive Dave Somers to participate in the formal handover of the 76-seat Q400 aircraft that will be developed by ZeroAvia, the U.S.-headquartered leader in designing and building zero-emission, hydrogen-electric aircraft propulsion systems for aircraft. 

When Alaska Airlines’ regional carrier Horizon Air retired its Q400 fleet, it reserved one of the aircraft for research and development purposes to further advance zero emissions technology for the aviation industry. The aircraft was repainted with a special livery to highlight the innovative mission of this partnership.

ZeroAvia also debuted its breakthrough multi-megawatt modular electric motor system in a 1.8MW prototype configuration at the event – demonstrated with a propeller spin aboard the ZeroAvia’s 15-ton HyperTruck ground-test rig. Combined with higher temperature PEM fuel cells and advanced power electronics – both technologies that ZeroAvia is developing in-house – the leading-edge electric motor technology is one of three key building blocks for enabling commercially-relevant hydrogen fuel cell engines for larger aircraft.  

This is a great step forward in aviation innovation, to help create a new future of flight – right here at home,” said Alaska Airlines CEO Ben Minicucci. “Alaska Airlines has defined a five-part journey to achieve net zero carbon emissions long-term, but we can’t get there alone. New technologies are required to make that future possible, and we’re thrilled to partner with industry leader ZeroAvia to make new zero emissions options a reality.”

Aligning ZeroAvia’s powertrain with the Dash 8-400 airframe will represent a commercially viable zero-emission aircraft with fuel cell engine technology around five times more powerful than what has been demonstrated anywhere to date.  

“Demonstrating this size of aircraft in flight, powered entirely by novel propulsion, would have been unthinkable a few years ago,” said Val Miftakhov, founder and CEO of ZeroAvia. “Launching this program puts us on track for a test flight next year, and accelerates our progress toward the future of zero-emission flight for Alaska Airlines and for the world at large.”

ZeroAvia’s recent advancements clear the way for a potential flight of the Q400, also recognized as the Dash 8-400, but also demonstrate rapid progress toward certification of the ZA2000 propulsion system. ZeroAvia has already demonstrated a track-record of world-first flight testing. In January, ZeroAvia flew a retrofitted 19-seat aircraft with its prototype 600kW hydrogen-electric engine (ZA600). This followed the demonstration flight of a 250kW system in 2020, which at the time of flight was the world’s largest aircraft flown using a novel zero-emission power source. 

ZeroAvia’s hydrogen-electric engine uses fuel cells to generate electricity from hydrogen fuel, before using that electricity to power electric motors which turn the aircraft propellers. The certifiable ZA2000 system will include ZeroAvia’s High Temperature PEM fuel cells and liquid hydrogen fuel storage, integral to delivering the necessary energy density for commercial operations of large regional turboprops. The company has already established an engineering partnership with De Havilland of Canada, the original manufacturer of the Dash 8 family of aircraft to enable exchange of data and expertise with the airframe.

In 2021, Alaska Airlines launched a partnership and invested in ZeroAvia to support the development of zero emissions propulsion technology for regional aircraft. As the fifth largest U.S. airline with a large regional network, Alaska has a unique opportunity to support the development of zero-emissions propulsion technology for regional aircraft. By establishing the viability of regional-sized aircraft, both companies will help advance zero-emissions technology across the industry. 

“Our state has a rich history of leadership in aerospace and we’re proud to be at the center of a technological revolution in zero-emission flight. Through innovation and partnerships like the one demonstrated today, we can help write the next chapter of aviation history right here in Washington State.”

Washington State Governor Jay Inslee

Congresswoman Suzan DelBene (WA-01) said: “As we work to meet our emissions reduction goals, we must prioritize decarbonizing the commercial transportation sector. Washington state is leading the nation in developing and deploying clean energy technologies and the Alaska Airlines-ZeroAvia partnership is a prime example. This collaboration could revolutionize the aviation industry to make our planes greener and our skies cleaner.”

Snohomish County Executive Dave Somers said: “As a leader in supporting innovative industries, and as the center of aerospace manufacturing in Washington state, Snohomish County is proud to support this partnership and the development of the next generation of aviation technology, driving both job growth and environmental sustainability.”

Click here to download images from story >>

HyperCore Motor

The 1.8MW motor configuration demonstrated today consists of two “HyperCore” motor modules, each a high-power, high-speed 900kW permanent magnet radial flux machine which operates at 20,000 rpm, matching the typical turbine engine power turbine speeds, providing an unprecedented 15kW/kg motor power density. Crucially, HyperCore’s modular design enables the technology to address applications ranging from 900kW up to 5.4MW, meeting a number of regional turbo-prop and regional jet requirements. The HyperCores were successfully integrated with the stock Dash 8-400 engine gearbox and propeller, which dramatically simplifies integration into the aircraft as a replacement for a stock turbine engine. 

The development and testing program will enable the understanding and measurement of system dynamics, calibration of physical and electrical models, and validation of thermal management systems. The company is concurrently developing world-class silicone-carbide power electronics and the matching hydrogen fuel cell systems, which convert hydrogen to electricity, powering the electric propulsion system. These systems will be brought together to create the full hydrogen-electric propulsion system, tested on the ground and then in the air.  

About ZeroAvia

ZeroAvia is a leader in zero-emission aviation, focused on hydrogen-electric aviation as the initially targeting a 300-mile range in 9–19 seat aircraft by 2025, and up to 700-mile range in 40–80 seat aircraft by 2027. Based in the US and the UK, ZeroAvia has already secured experimental certificates for its three prototype aircraft from the CAA and FAA, passed significant flight test milestones, secured a number of key partnerships with major aircraft OEMs, secured $10B in pre-orders from a number of the major global airlines, and is on track for commercial operations in 2025. The company’s expanding UK operations are supported by grants from UK’s Aerospace Technology Institute and Innovate UK, and ZeroAvia is part of the UK Government’s Jet Zero Council. For more, please visit ZeroAvia.com, follow @ZeroAvia on Twitter, Instagram, and LinkedIn.

About Alaska Airlines

Alaska Airlines and our regional partners serve more than 120 destinations across the United States, Belize, Canada, Costa Rica and Mexico. We strive to be the most caring airline with award-winning customer service and an industry-leading loyalty program. As a member of the oneworld alliance, and with our additional global partners, our guests can travel to more than 1,000 destinations on more than 25 airlines while earning and redeeming miles on flights to locations around the world. Learn more about Alaska at news.alaskaair.com and follow @alaskaairnews for news and stories. Alaska Airlines and Horizon Air are subsidiaries of Alaska Air Group.

PNW island time! Alaska Airlines partners with Kenmore Air for connecting flights through Paine Field in Everett to San Juan Islands

Don’t you love it when getting away to a getaway gets easier?  

Alaska Airlines, in partnership with Kenmore Air, is ready to take you to one of Western Washington’s iconic vacation spots: the San Juan Islands, located north of Seattle.  

You can book connecting flights now on alaskaair.com from destinations along the West Coast to the San Juans. You’ll fly on Alaska through Paine Field-Snohomish County Airport in Everett and connect on Kenmore Air’s modern fleet of Cessna Caravan aircraft to Friday Harbor on San Juan Island or Eastsound on Orcas Island.

It gets better! Mileage Plan members earn miles on the Kenmore flights when they purchase their tickets directly on alaskaair.com. 

Learn more about Kenmore Air

Investing in our operations and the community in Everett remains important to us, and this partnership with Kenmore Air allows us to take our guests to more amazing places,” said Brett Catlin, vice president of loyalty, alliances and sales for Alaska Airlines. “Our guests can fly with us from destinations across the West such as Anchorage, San Francisco and Las Vegas to Everett, and then hop on a convenient flight with Kenmore Air to enjoy all the San Juans have to offer – and earn Mileage Plan miles along the way.” 

We’ve been serving guests at Paine Field in Everett since regularly scheduled commercial service began there in March 2019. In the past four years, we’ve flown more than 1.6 million guests to and from Everett. 

“As hometown airline favorites, Kenmore Air and Alaska Airlines share a pioneering history in aviation as well as a passion for service and the celebration of the joy of aviation in everything that we do,” said Todd Banks, president/CEO of Kenmore Air. “Kenmore Air is proud to bring its 77 years of experience serving the San Juans and British Columbia to the award-winning Alaska Airlines Mileage Plan, allowing for seamless booking between Alaska Airlines’ destinations and the San Juan Islands and the opportunity to earn miles.”     

Alaska currently offers 28 daily flights in Everett — 14 arrivals and 14 departures a day — to seven destinations. 

Destination# of Departures
Anchorage1 daily flight 
Las Vegas2 daily flights 
Los Angeles1 daily flight 
Orange County2 daily flights 
Phoenix2 daily flights
San Diego1 daily flight 
San Francisco5 daily flights 

Our sister carrier Horizon Air provides most of our service at Paine Field with the Embraer 175 jet, with 737 service on select flights operated by Alaska. The E175 features First Class and Premium Class, and only window and aisle seating — there are no middle seats. Guests can enjoy hundreds of free movies and TV shows available for viewing on personal devices, free texting on most flights and Wi-Fi connectivity for purchase. 

Don’t forget: Alaska is a member of the oneworld global alliance. With oneworld and our additional airline partners, our guests can earn and redeem miles with our highly acclaimed Mileage Plan program to fly on more than 25 oneworld and partner airlines all around the globe.  

Mele and Maile: Hawaiian Celebrates Lei Day by Sharing Aloha Through Music

"Nothing feels like aloha does," sings Hawaiian actress and singer Auliʻi Cravahlo in the closing line of a new "May Day is Lei Day in Hawaiʻi" remix, written and produced exclusively for Hawaiian Airlines by Na Hoku Hanohano Award winner Paula Fuga.

Sharing aloha was the inspiration behind the catchy song – a fun, modern rendition of the 1929 original tune by Ruth and Leonard ‘Red” Hawk. In the same year of the famous track’s debut, Hawaiian Airlines launched its first scheduled flight from Honolulu to Hilo, stopping at Maui, using two Sikorsky S-38 amphibian planes that carried eight passengers and two crewmembers.

“We celebrate Lei Day in Hawaiʻi through mele (music), hula and sharing lei or acts of kindness. This melodic remake is our gift to the world that we hope will inspire our followers to spread aloha this May Day in their own special way,” explained Jeremy Althof, director of global advertising at Hawaiian Airlines.

"Auliʻi and Paula are local girls who grew up celebrating Lei Day. What they came up with is inspired by their personal memories and remixes a classic so that newer generations can pay homage, sing along, and share with others in the same way we share lei here in the islands," he added.
 

@hawaiianair If you can’t share a lei 🌺 on #LeiDay, why not share a mele? 🎵 @auliicravahloofficial and Paula Fuga are helping us spread the aloha spirit this #LeiDayRemix. #HawaiianAirlines @mastercard #DuetWithUs ♬ original sound – Hawaiian Airlines

The musical celebrations continue with the annual Lei Day concert by Robert Cazimero and Keauhou, who return to headline the Hawaiian Airlines May Day 2023 presented by Kilohana.

This year, Debbie Nakanelua-Richard, Hawaiian’s director of community and cultural relations, joins Hawaiʻi entertainer Billy V. in co-hosting the live broadcast event.

“Connecting people with aloha begins with honoring the traditions of our island home, and we’re excited to set the stage for a celebration of one of our most cherished holidays by showcasing several of Hawaii’s greatest musicians,” said Nakanelua-Richards.

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The annual May Day concert by Robert Cazimero and Keahou

The concert, a production of nonprofit Kāhuli Leo Leʻa, will feature performances of mele, hula, and moʻolelo (stories) that serve to entertain and educate. Producer and Kāhuli Leo Leʻa Executive Director Zachary Lum explains that the theme of this year’s show is centered around the ‘kilohana,’ a cultural symbol of celebrated excellence and representation.

“The show will feature three legendary ‘kilohana’: Robert Cazimero, Nina Kealiʻiwahamana and Jerry Santos. Their melodies have become the soundtracks of generations, the anthems of movements, the familiar voice that brings us together. Their songs remain at the highest standard of Hawaiʻi's music, and as such, they continue to exemplify excellence in representing Hawaiʻi,” shared Lum.

 

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The May Day concert features performances of mele, hula, and moʻolelo (stories)

Hawaiian Airlines May Day 2023 presented by Kilohana will kick off from the Great Lawn at Bishop Museum tonight at 7 p.m. HST. To stream the live event online, visit www.mele.com.

The concert will also be held for the first time in Japan on May 28, with performances by Keauhou Robert Cazimero, Nina Kealiʻiwahamana, Kuana Torres-Kahele, Miss Aloha Hula 2010 Mahealani Mika and the Hawaiian Airlines Serenaders.

Tickets for the live Japan concert can be purchased here.

Wind in the Sails for Polynesian Voyaging, Hawaiian Airlines Donates 34 Million Miles for Latest Hōkūleʻa Odyssey

Scores of well-wishers gathered at the Marine Education & Training Center on Honolulu’s Sand Island earlier this month to bid aloha to Hōkūleʻa as her crew prepared to transport the iconic Polynesian voyaging canoe to the Pacific Northwest.

Supporters brought hoʻokupu (gifts) and draped lei on the hulls of the 64-foot canoe; they talked story with crew members and took photos from the deck. It was Hōkūleʻa’s last full day in Hawaiʻi before being loaded onto a cargo ship bound for Tacoma, Washington. She’ll journey to Yukatat, Alaska, for a “Heritage Sail” before making her way to Juneau, the launch point for a 47-month journey circumnavigating the Pacific.

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This is Hōkūleʻa’s 15th major voyage in her 50-year history, and the trek is epic, not only in scope but in purpose: to ignite a movement of 10 million “plenary navigators” to pursue and lead efforts for the betterment of the planet.

“Moananuiākea: A Voyage for Earth” is an ambitious and demanding sail. From Juneau, Hōkūleʻa heads to British Columbia and Seattle, where she’ll meet sister canoe Hikianalia in August. The canoes will travel along the U.S. West Coast to Central and South America before sailing east to Aotearoa (New Zealand), Melanesia and Micronesia. The voyage is scheduled to end in Japan in the fall of 2026.

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Image credit: Polynesian Voyaging Society

 

In all, the canoes will sail 43,000 nautical miles, and visit 36 countries and archipelagoes, nearly 100 indigenous territories and 345 ports. The expansive journey is an immense undertaking for the 400 crewmembers and the Polynesian Voyaging Society (PVS) – but with the future of the planet at stake, there’s an urgency to act.

“How does the earth work? You cannot protect what you don't understand,” Nainoa Thompson, master navigator and CEO of PVS, told well-wishers at the community sendoff for Hōkūlea.

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Thompson recalled the Mālama Honua Worldwide Voyage (2013-2019), which took Hōkūlea and Hikianalia to more than 100 ports in 27 countries where crewmembers engaged with communities on ocean conservation and climate change issues. In sharing its message of environmental stewardship and sustainability, Hōkūlea raised awareness of the need for global cooperation and collective action to address environmental challenges.

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Photo credit: Polynesian Voyaging Society
Hōkūleʻa sailing alongside the Statue of Liberty in 2016 during the Mālama Honua Worldwide Voyage.

 

“We came home from the worldwide voyage and we learned so much. Infinite amounts. Every day was a story. Every day was a lesson. There were teachers across the planet that we never even knew existed,” remembered Thompson.

PVS plans to turn those lessons into action with Moananuiākea, which will tap into the power of indigenous knowledge to encourage mālama (care) and kuleana (responsibility) for the Earth.

Hawaiian Airlines understands mālama and kuleana well. Along with the pride that comes with being Hawaiʻi’s airline comes a responsibility to care for the well-being of our environment, culture and communities. The company outlines its commitments and progress in these areas in its annual Corporate Kuleana report.

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A Team Kōkua employee volunteer helping replant and restore native forests in O‘ahu’s Ko‘olau Mountains.

 

When Hawaiian was approached to support Moananuiākea, the company didn’t hesitate and signed on as the official airline sponsor, donating 34 million air miles for crew travel and committing to transporting cargo associated with the voyage around the Pacific. Hawaiian was given the title of Moa’e Kū sponsor, named for the predictable, steady and reliable wind that navigators depend on.

“Crewmembers will have the arduous task of keeping Hōkūle‘a and Hikianalia on course. We will help keep you on track from a logistical perspective, transporting your crew and cargo throughout our Asia-Pacific and North America network,” said Peter Ingram, president and CEO of Hawaiian Airlines, in announcing the donation.

Peter and Nainoa

Nainoa Thompson, master navigator and CEO of PVS (left), and Peter Ingram, president and CEO of Hawaiian Airlines, at the press conference announcing “Moananuiākea: A Voyage for Earth” and Hawaiian's donation of 34 million miles.

 

Hawaiian’s support of PVS goes back decades, and as the voyaging organization has broadened its mission, it has helped the airline better understand global efforts to protect natural resources. Hawaiian was the lead sponsor of the Mālama Honua voyage, whose lessons helped shape and inform our own thinking and actions.  

“We’ve taken steps to be kinder to the planet and to care for this beautiful place that we are so lucky to call home,” said Ingram. “The vessels we navigate are different, but we both connect people to each other and to places that hold meaning for them.” 

Alaska Airlines Updated Uniform & Grooming Policy Changes

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Alaska Airlines is committed to fostering a safe and welcoming environment where all employees and guests feel respected and valued. Alaska Airlines is a long-time national corporate partner of the Human Rights Campaign and Lambda Legal, and a sponsor of numerous events where our employees can display their LGBTQ+ pride and allyship. We are proud of the uniform and grooming policies we rolled out in 2022 in an effort to be inclusive of gender, gender identity and gender expression. We evolved these policies further after receiving a complaint from the Washington State Human Rights Commission, based on input from the Commission, the American Civil Liberties Union, ACLU of Washington, and Seattle-based flight attendant Justin Wetherell. Alaska is dedicated to creating an environment where all feel welcome and safe bringing their full selves on a flight and to work.   

Alaska Airlines launches partnership with STARLUX Airlines

Our newest global partner now flies between Los Angeles and Taipei with connections to 16 destinations across Asia; Mileage Plan members can earn miles on all STARLUX flights

With more of us looking to travel internationally this year, Alaska Airlines is celebrating our newest global airline partner: STARLUX Airlines, a Taipei-based premium carrier, which today launched its inaugural transpacific service between Taipei and Los Angeles. Alaska is STARLUX’s first airline partner. 

Our Mileage Plan members can now earn miles on all STARLUX flights, and soon they’ll be able to redeem miles on STARLUX. When redemptions become available this summer on STARLUX flights between Los Angeles and Taipei, they will start at 20,000 miles for economy, 40,000 for premium economy and 60,000 for business class for a limited time.

From Southern California, STARLUX opens a new international gateway through its main hub in Taipei for connections to 16 destinations across Asia, including Bangkok, Thailand; Hanoi, Vietnam; Penang, Malaysia; Manila, Philippines; Singapore; Macau and Sapporo, Japan. Los Angeles (LAX) is one of Alaska’s hubs along the West Coast allowing for convenient connectivity to STARLUX flights for our guests.

STARLUX is a premier global airline offering world-class service and amenities. We’re proud to be their first airline partner,” said Nat Pieper, senior vice president of fleet, finance and alliances at Alaska Airlines. “Our guests will love flying on STARLUX, connecting the West Coast, Taipei  and many more incredible places in Asia. We’re thrilled to offer our loyal Mileage Plan members another exciting way to see the world.”

“STARLUX Airlines has marked a successful three-year operation of our Asian routes, revolutionizing the aviation industry with our exceptional service and innovative cabin design that have been highly commended by passengers. In a new milestone, we launched our inaugural flight to Los Angeles today, offering convenient and comfortable long-haul premier services to passengers traveling to the city of angels,” said Glenn Chai, CEO of STARLUX Airlines. 

Chai added: “Alaska Airlines, the fifth largest airline in the United States with a wide network covering over 100 cities across the country, is partnering with STARLUX Airlines to deliver more exquisite and convenient flights for travelers journeying between North America and Asia. The partnership will enable seamless connections for STARLUX Airlines customers traveling to destinations across the U.S., making it easier and more convenient to navigate the country’s extensive domestic air network. With this partnership, we are committed to ensuring that travelers enjoy a hassle-free journey and arrive at their final destinations feeling relaxed and refreshed.”

STARLUX operates the transpacific route with its new-generation Airbus A350-900 aircraft configured in a four-class layout: First, business, premium economy and economy.

Travelers in first and business classes enjoy a private space with a sliding door and seats with full-flat and Zero G mode for full relaxation. The extra-legroom premium economy section features a 40-inch Recaro seat with a leg rest and footrest bar.

Economy class seats are equipped with leather headrests and a wide seat pitch.  

Inflight service on STARLUX includes Taiwanese signature dishes and amenities prepared for passengers in all classes. STARLUX will be offering first and business guests a selection of the best top chef’s creations and local Taiwanese delicacies. The popular STARLUX signature dish yakiniku donburi is served on board. And to bring greater individuality to their air travel experience, all passengers can pre-order meals online so they can enjoy the meal they want.

Hawaiian Holdings Reports 2023 First Quarter Financial Results

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HONOLULU , April 25, 2023 /PRNewswire/ — Hawaiian Holdings, Inc. (NASDAQ: HA) (the "Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported its financial results for the first quarter of 2023.

"A big mahalo to our team who continue to make us a stronger, better airline. The demand for leisure travel remains strong in the domestic markets we serve, and we see similar conditions in most of our international markets," said Hawaiian Airlines President and CEO Peter Ingram . "In recent days, our team completed a significant technology initiative, one of many projects underway in 2023 that position us for a bright future. We look forward to sustaining momentum on these initiatives and returning Hawaiian to profitability."

First Quarter 2023- Key Financial Metrics and Results

   

GAAP

 

YoY Change

 

Adjusted (a)

 

YoY Change

Net Loss

 

($98.3M)

 

+$35.0M

 

($111.8M)

 

+$18.5M

Diluted EPS

 

($1.91)

 

+$0.69

 

($2.17)

 

+$0.37

Pre-tax Margin

 

(20.5) %

 

+14.3 pts.

 

(23.0) %

 

+11.4 pts.

EBITDA

 

($70.3M)

 

+$37.2M

 

($85.4M)

 

+$20.1M

Operating Cost per ASM

 

14.85¢

 

0.19¢

 

11.04¢

 

(0.03)¢

Operating Revenue per ASM

 

12.46¢

 

1.27¢

 

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 March 31, 2023, the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $1.4 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

Hawaiian benefited from continued robust leisure demand from North America to Hawaiʻi and the restoration of its international network excluding Japan . International traffic was buoyed by strong U.S. point of sale activity. Demand remained strong for premium products both domestically and internationally. The Company's overall operating revenue for the first quarter 2023 was up 28.4% from the first quarter 2022 on 15.4% higher capacity as Hawaiian recovered from the effects of the Omicron variant of COVID-19, which impacted results in the first quarter 2022.

Other revenue was down 12.4% compared to the first quarter of 2022 driven by a decrease in cargo revenue.

Operational Environment

Several challenges continued to negatively affect the environment in which the Company operates.  Constraints on the availability of A321 aircraft due to Pratt & Whitney engine delays, ongoing runway construction at Daniel K. Inouye International Airport in Honolulu ("HNL"), and delays related to air traffic control protocols disrupted Hawaiian's on-time performance, impaired its scheduling, and adversely affected its financial results.

Limitations on Hawaiian's A321 fleet availability necessitated the substitution of A330 aircraft, which are less fuel efficient, on some A321 routes.  Fuel consumption for the first quarter 2023 was up 21.4% as compared to the first quarter of 2022 due to higher capacity and inefficiencies resulting from these challenges.

First Quarter 2023 Highlights

Technology Advancement

  • Transitioned its Passenger Service System to Amadeus' Altea platform marking a significant information technology ("IT") accomplishment for the Company in April; this new platform will enable the Company to be more commercially and operationally nimble

Routes and Network

  • Operated at 115% of its 2022 first quarter capacity, comprised of 98%, 119%, and 275% capacity on its North America , Neighbor Island and International routes, respectively
  • Announced an increase in summer weekly frequencies between Honolulu and Austin , Boston , Las Vegas , and Pago Pago in preparation for strong summer demand to Hawai'i as well as a fourth daily flight between Honolulu and Los Angeles twice per week
  • Announced resumption of service between Honolulu and Fukuoka beginning April 28 with thrice-weekly service

Guest Experience

  • Streamlined the Honolulu travel experience with the opening of a new TSA security checkpoint at HNL, which added 1,000 square feet for passenger queuing and 3,000 square feet of screening area; expanded screening capacity alleviates congestion and benefits all guests whether they are flying to a neighbor island or boarding a transpacific flight

People

  • Received ratification by Hawaiian's pilots represented by the Air Line Pilots Association of a four-year contract that provides for pay scale increases across all fleet types, improved health benefits, a signing bonus, and cost sharing, and enhancements to the postretirement and disability plans for more than 1,000 employees
  • Formed a partnership with Embry-Riddle Aeronautical University's Aviation Maintenance Technology SkillBridge program which provides an opportunity for veterans to bridge the transition into the civilian aviation and aerospace sector
  • Established a $100,000 scholarship fund in partnership with Arizona State University's W.P. Carey School of Business to encourage Hawai'i students to pursue careers in IT with the potential to build a career at Hawaiian

Environmental, Social and Corporate Governance

  • Committed to new milestones on the path to net-zero greenhouse gas emissions by 2050; the Company's decarbonization roadmap relies on several key drivers, including the use of sustainable aviation fuel (SAF), fleet modernization and new aircraft technologies, operational best practices to improve fuel efficiency, and advocacy for air traffic control system improvements
  • Announced an agreement with biofuel company Gevo, Inc. to purchase 50 million gallons of SAF over five years with deliveries to Hawaiian's gateway cities in California anticipated starting in 2029
  • Published the No Kākou a Pau ("interconnectedness") economic impact report which underscores the ways Hawaiian is connected to the economy of its home state including stimulating $10.2 billion in economic activity in Hawai'i and providing, directly or indirectly, for 53,500 jobs statewide in 2022

Second Quarter 2023 Outlook

The table below summarizes the Company's expectations for the quarter ending June 30, 2023 expressed as an expected percentage change compared to the results for the quarter ended June 30, 2022 .

Item

 

Second Quarter 2023 Guidance

 

GAAP Equivalent

 

GAAP Second Quarter 2023 Guidance

Available Seat Miles (ASMs)

 

Up 10.5% to up 13.5%

       

Operating Revenue per ASM (RASM)

 

Down 8.5% to down 11.5%

       

CASM excluding fuel and non-recurring items (a)

 

Flat to up 3%

 

Costs per ASM

 

Down 8.2% to down 10.2%

Gallons of Jet Fuel Consumed

 

Up 16.5% to up 19.5%

       

Economic Fuel Price per Gallon (a)(b)

 

$2.62

 

Average fuel price per gallon, including taxes and delivery

   

Effective Tax Rate

 

21.0 %

       

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 .

Item

 

Prior Full Year 2023 Guidance

 

Full Year 2023 Guidance

 

Gallons of Jet Fuel Consumed

 

Up 10.5% to up 13.5%

 

Up 12.5% to up 15.5%

 

Economic Fuel Price per Gallon (a)(b)

 

$2.92

 

$2.70

 
 

(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 April 11, 2023 fuel forward curve.

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, April 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 , 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. In 2022, the carrier topped Travel + Leisure's 2022 World's Best list as the No. 1 U.S. airline and was named Hawaiʻi's best employer by Forbes. Hawaiian ® 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, the Company's timing and expectations related to network and route recovery; future domestic and international demand for air travel; the outcomes of the Company's university partnerships; the Company's environmental commitments; expectations relating to aircraft deliveries; expectations relating to SAF deliveries; expectations related to the market for SAF and its impact on jet fuel consumption; 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 March 31,

   

2023

 

2022

 

% Change

   

(in thousands, except per share data)

Operating Revenue:

           

Passenger

 

$              548,526

 

$              404,029

 

35.8 %

Other

 

64,077

 

73,185

 

(12.4) %

Total

 

612,603

 

477,214

 

28.4 %

Operating Expenses:

           

Wages and benefits

 

241,933

 

203,099

 

19.1 %

Aircraft fuel, including taxes and delivery

 

197,625

 

150,982

 

30.9 %

Maintenance, materials and repairs

 

50,287

 

55,650

 

(9.6) %

Aircraft and passenger servicing

 

42,532

 

33,815

 

25.8 %

Depreciation and amortization

 

32,667

 

33,755

 

(3.2) %

Commissions and other selling

 

28,238

 

20,647

 

36.8 %

Aircraft rent

 

28,171

 

26,276

 

7.2 %

Other rentals and landing fees

 

38,720

 

34,611

 

11.9 %

Purchased services

 

35,072

 

30,687

 

14.3 %

Other

 

34,785

 

35,497

 

(2.0) %

Total

 

730,030

 

625,019

 

16.8 %

Operating Loss

 

(117,427)

 

(147,805)

 

(20.6) %

Nonoperating Income (Expense):

           

Interest expense and amortization of debt discounts and issuance costs

 

(22,880)

 

(25,037)

   

Interest income

 

16,465

 

4,434

   

Capitalized interest

 

1,458

 

1,052

   

Losses on fuel derivatives

 

(5,065)

 

—

   

Other components of net periodic benefit cost

 

(1,494)

 

1,286

   

Gains (losses) on investments, net

 

697

 

(12,364)

   

Gains on foreign debt

 

2,260

 

11,762

   

Other, net

 

155

 

374

   

Total

 

(8,404)

 

(18,493)

   

Loss Before Income Taxes

 

(125,831)

 

(166,298)

   

Income tax benefit

 

(27,574)

 

(33,020)

   

Net Loss

 

$              (98,257)

 

$            (133,278)

   

Net Loss Per Share

           

Basic

 

$                   (1.91)

 

$                   (2.60)

   

Diluted

 

$                   (1.91)

 

$                   (2.60)

   

Weighted Average Number of Common Stock Shares Outstanding:

           

Basic

 

51,507

 

51,288

   

Diluted

 

51,507

 

51,288

   

 

Hawaiian Holdings, Inc.

Consolidated Balance Sheet (unaudited)

 
   

March 31, 2023

(unaudited)

 

December 31, 2022

   

(in thousands, except shares)

ASSETS

       

Current Assets:

       

Cash and cash equivalents

 

$                271,855

 

$               229,122

Restricted cash

 

17,648

 

17,498

Short-term investments

 

1,111,082

 

1,147,193

Accounts receivable, net

 

99,880

 

113,862

Income taxes receivable

 

3,382

 

70,204

Spare parts and supplies, net

 

38,905

 

36,875

Prepaid expenses and other

 

83,021

 

63,553

Total

 

1,625,773

 

1,678,307

Property and equipment, less accumulated depreciation and amortization of $1,167,795 and $1,135,262 as of March 31, 2023 and December 31, 2022, respectively

 

1,937,797

 

1,874,352

Other Assets:

       

Assets held-for-sale

 

5,024

 

14,019

Operating lease right-of-use assets

 

439,228

 

459,128

Long-term prepayments and other

 

106,136

 

100,317

Intangible assets, net

 

13,500

 

13,500

Total Assets

 

$             4,127,458

 

$            4,139,623

LIABILITIES AND SHAREHOLDERS' EQUITY

       

Current Liabilities:

       

Accounts payable

 

$                202,864

 

$               196,009

Air traffic liability and current frequent flyer deferred revenue

 

746,467

 

590,796

Other accrued liabilities

 

186,911

 

182,036

Current maturities of long-term debt, less discount

 

46,176

 

47,836

Current maturities of finance lease obligations

 

24,819

 

25,789

Current maturities of operating leases

 

78,620

 

77,858

Total

 

1,285,857

 

1,120,324

Long-Term Debt

 

1,566,382

 

1,583,889

Other Liabilities and Deferred Credits:

       

Noncurrent finance lease obligations

 

69,895

 

75,221

Noncurrent operating leases

 

328,370

 

347,726

Accumulated pension and other post-retirement benefit obligations

 

141,508

 

135,775

Other liabilities and deferred credits

 

74,588

 

94,654

Noncurrent frequent flyer deferred revenue

 

325,407

 

318,369

Deferred tax liability, net

 

102,131

 

130,400

Total

 

1,041,899

 

1,102,145

Commitments and Contingencies

       

Shareholders' Equity:

       

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

 

—

 

—

Common stock, $0.01 par value per share, 51,546,972 and 51,450,904 shares outstanding as of March 31, 2023 and December 31, 2022, respectively

 

515

 

514

Capital in excess of par value

 

287,524

 

287,161

Accumulated income

 

42,499

 

140,756

Accumulated other comprehensive loss, net

 

(97,218)

 

(95,166)

Total

 

233,320

 

333,265

Total Liabilities and Shareholders' Equity

 

$             4,127,458

 

$            4,139,623

 

Hawaiian Holdings, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)

 
   

Three months ended March 31,

   

2023

 

2022

   

(in thousands)

Net cash provided by Operating Activities

 

$                118,291

 

$                  22,154

Cash flows from Investing Activities:

       

Additions to property and equipment, including pre-delivery payments

 

(106,215)

 

(9,066)

Proceeds from the disposition of aircraft and aircraft related equipment

 

9,563

 

1,124

Purchases of investments

 

(96,806)

 

(263,161)

Proceeds from sales and maturities of investments

 

144,069

 

307,780

Net cash provided by (used in) investing activities

 

(49,389)

 

36,677

Cash flows from Financing Activities:

       

Repayments of long-term debt and finance lease obligations

 

(24,953)

 

(66,704)

Payment for taxes withheld for stock compensation

 

(1,066)

 

(1,490)

Net cash used in financing activities

 

(26,019)

 

(68,194)

Net increase (decrease) in cash and cash equivalents

 

42,883

 

(9,363)

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

 

246,620

 

507,828

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

 

$                289,503

 

$                498,465

 

Table 2.

Hawaiian Holdings, Inc.

Selected Consolidated Statistical Data (unaudited)

 
   

Three months ended March 31,

   

2023

 

2022

 

% Change

   

(in thousands, except as otherwise indicated)

Scheduled Operations:

           

Revenue passengers flown

 

2,592

 

2,030

 

27.7 %

Revenue passenger miles (RPM)

 

3,844,061

 

2,974,352

 

29.2 %

Available seat miles (ASM)

 

4,914,619

 

4,242,483

 

15.8 %

Passenger revenue per RPM (Yield)

 

14.27  ¢

 

13.58  ¢

 

5.1 %

Passenger load factor (RPM/ASM)

 

78.2 %

 

70.1 %

 

8.1   pts.

Passenger revenue per ASM (PRASM)

 

11.16   ¢

 

9.52  ¢

 

17.2 %

Total Operations:

           

Revenue passengers flown

 

2,593

 

2,036

 

27.4 %

Revenue passenger miles (RPM)

 

3,845,978

 

2,987,565

 

28.7 %

Available seat miles (ASM)

 

4,917,517

 

4,263,048

 

15.4 %

Operating revenue per ASM (RASM)

 

12.46  ¢

 

11.19   ¢

 

11.3 %

Operating cost per ASM (CASM)

 

14.85  ¢

 

14.66  ¢

 

1.3 %

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

 

11.04   ¢

 

11.07   ¢

 

(0.3) %

Aircraft fuel expense per ASM (b)

 

4.02  ¢

 

3.54  ¢

 

13.6 %

Revenue block hours operated

 

52,228

 

44,883

 

16.4 %

Gallons of jet fuel consumed

 

64,853

 

53,417

 

21.4 %

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

 

$3.05

 

$2.83

 

7.8 %

   

(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 March 31,

   

2023

 

2022

 

% Change

   

(in thousands, except per-gallon amounts)

Aircraft fuel expense, including taxes and delivery

 

$         197,625

 

$         150,982

 

30.9 %

Realized losses on settlement of fuel derivative contracts

 

1,513

 

—

 

100.0 %

Economic fuel expense

 

$         199,138

 

$         150,982

 

31.9 %

Fuel gallons consumed

 

64,853

 

53,417

 

21.4 %

Economic fuel costs per gallon

 

$                3.07

 

$                2.83

 

8.5 %

 

   

Estimated three months ending June
30, 2023

 

Estimated full year ending December
31, 2023

   

(in thousands, except per-gallon amounts)

Aircraft fuel expense, including taxes and delivery

 

$           173,176

–

$           177,635

 

$           717,814

–

$           736,956

Realized losses on settlement of fuel derivative contracts

 

2,577

–

2,577

 

10,035

–

10,035

Economic fuel expense

 

175,753

–

180,212

 

727,849

–

746,991

Fuel gallons consumed

 

66,980

–

68,705

 

269,135

–

276,311

Economic fuel costs per gallon

 

2.62

–

2.62

 

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 income (loss), adjusted operating expenses, adjusted diluted net income (loss) per share (EPS), CASM, PRASM, RASM, Passenger Revenue per RPM, and Adjusted EBITDA.  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 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 January 2022 , the Company reached a tentative agreement with the representatives of its International Association of Machinists and Aerospace Workers (IAM-M) and International Association of Machinists and Aerospace Workers – Clerical Division (IAM-C) employees. In February 2022 , the Company received notice from 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.
  • 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 months ended March 31, 2023 , the Company recognized approximately $18.1 million in amortization within Maintenance, materials and repairs in the Consolidated Statements of Operation.
  • 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.
  • 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.
  • 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 (gains) losses on non-designated foreign exchange positions . Changes in fair value of foreign currency derivative contracts, net of tax, are based on market prices for open contracts as of the end of the reporting period, including the unrealized amounts of foreign currency derivatives (not designated as hedges) that will settle in future periods and the reversal of prior period unrealized amounts.
  • Unrealized (gain) loss on equity securities . Unrealized (gain) 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, and gain on sale of commercial real estate), helps investors better analyze the Company's operational performance and compare its results to other airlines in the periods presented.

   

Three months ended March 31,

   

2023

 

2022

   

Total

 

Diluted Net Loss
Per Share

 

Total

 

Diluted Net Loss
Per Share

   

(in thousands, except per share data)

Net Loss, as reported

 

$             (98,257)

 

$                   (1.91)

 

$            (133,278)

 

$                   (2.60)

Adjusted for:

               

CBA related expense

 

17,727

 

0.35

 

2,104

 

0.04

Contract termination amortization

 

(18,114)

 

(0.35)

 

—

 

—

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

 

3,552

 

0.07

 

—

 

—

Unrealized gain on foreign debt

 

(2,488)

 

(0.05)

 

(11,582)

 

(0.23)

Unrealized (gain) loss on equity securities

 

(944)

 

(0.02)

 

11,474

 

0.23

Tax effect of adjustments

 

1,568

 

0.03

 

985

 

0.02

Adjusted net loss

 

$           (111,807)

 

$                   (2.17)

 

$            (130,297)

 

$                   (2.54)

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 March 31,

   

2023

 

2022

   

(in thousands)

Net Loss

 

$                 (98,257)

 

$              (133,278)

Income tax benefit

 

(27,574)

 

(33,020)

Depreciation and amortization

 

32,667

 

33,755

Interest expense and amortization of debt discounts and issuance costs

 

22,880

 

25,037

EBITDA, as reported

 

(70,284)

 

(107,506)

Adjusted for:

       

CBA related expense

 

17,727

 

2,104

Contract termination amortization

 

(18,114)

 

—

Gain on sale of commercial real estate

 

(10,179)

 

—

Interest income on tax refund

 

(4,672)

 

—

Changes in fair value of fuel derivative instruments

 

3,552

 

—

Unrealized gain on foreign debt

 

(2,488)

 

(11,582)

Unrealized (gain) loss on equity securities

 

(944)

 

11,474

Adjusted EBITDA

 

$                 (85,402)

 

$              (105,510)

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 March 31,

   

2023

 

2022

   

(in thousands, except CASM data)

GAAP Operating Expenses

 

$              730,030

 

$              625,019

Adjusted for:

       

CBA related expense

 

(17,727)

 

(2,104)

Contract termination amortization

 

18,114

 

—

Gain on sale of commercial real estate

 

10,179

 

—

Operating Expenses excluding non-recurring items

 

$              740,596

 

$              622,915

Aircraft fuel, including taxes and delivery

 

(197,625)

 

(150,982)

Operating Expenses excluding fuel and non-recurring items

 

$              542,971

 

$              471,933

Available Seat Miles

 

4,917,517

 

4,263,048

CASM – GAAP

 

14.85 ¢

 

14.66 ¢

Aircraft fuel, including taxes and delivery

 

(4.02)

 

(3.54)

CBA related expense

 

(0.36)

 

(0.05)

Contract termination amortization

 

0.37

 

—

Gain on sale of commercial real estate

 

0.20

 

—

CASM excluding fuel and non-recurring items

 

11.04 ¢

 

11.07 ¢

 

   

Estimated three months ending June 30,
2023

   

(in thousands, except CASM data)

GAAP operating expenses

 

$              712,145

–

$              748,116

Aircraft fuel, including taxes and delivery

 

(175,488)

–

(180,007)

Less: non recurring items

 

5,972

–

5,972

Adjusted operating expenses

 

$              542,629

–

$              574,081

Available seat miles

 

4,990,507

–

5,125,996

CASM – GAAP

 

14.27 ¢

–

14.59 ¢

Aircraft fuel, including taxes and delivery

 

(3.52)

–

(3.51)

Less: non recurring items

 

0.12

–

0.12

CASM excluding fuel and non-recurring items

 

10.87 ¢

–

11.20 ¢

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 March 31,

   

2023

 

2022

Pre-Tax Margin, as reported

 

(20.5) %

 

(34.8) %

CBA ratification bonus

 

2.9

 

0.4

Contract termination amortization

 

(3.0)

 

—

Gain on sale of commercial real estate

 

(1.7)

 

—

Interest income on tax refund

 

(0.8)

 

—

Changes in fair value of fuel derivative contracts

 

0.6

 

—

Unrealized gain on foreign debt

 

(0.4)

 

(2.4)

Unrealized (gain) loss on equity securities

 

(0.1)

 

2.4

Adjusted Pre-Tax Margin

 

(23.0) %

 

(34.4) %

 

 

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/hawaiian-holdings-reports-2023-first-quarter-financial-results-301807404.html

SOURCE Hawaiian Holdings, Inc.

43 students fly to HBCUs with Alaska Airlines, taking “Our Commitment” to new heights with UNCF

Photos by Joe Nicholson and Alyssa Pointer

Two years after unveiling Our Commitment aircraft, which supports equity and education and features 14 children, grandchildren and mentees of Alaska Airlines’ employees, we boarded 43 high school juniors from Seattle and Portland school districts onto the special plane to tour five historically Black colleges and universities (HBCUs) in Atlanta.

Video by Converge Media

In collaboration with UNCF – an Alaska partner for more than 17 years – students from the Pacific Northwest spent the week learning about the history and significance of HBCUs and how these institutions provide a unique college experience for Black students that enables them to thrive. The students spoke to campus leaders, administrators and current college students and soaked up information about applying for admission and scholarships.

But don’t take our word for it, hear from some of the students about what this trip meant for them:

This trip was an eye opener. Just seeing so many Black people or people who looked like me made me feel welcomed. It also reminded me to step up my game when it comes to academics.

– Janya

Living in the Northwest, we don’t have any HBCUs. Traveling to a city with multiple HBCUs really helped me get a grasp on what the college experience is like. A moment that stood out was going to lunch at the Morehouse cafeteria because you get to see the students in their natural habitat and see what real college life is like.

– Joshua

This trip gave me an opportunity to explore and see what I am actually looking for and to see what my ‘yeahs’ and ‘nos’ are in a future college I want to attend. A moment that really stood out to me was the panel with Spelman students. One sister said, ‘you come in as a girl and leave as a woman.’ That stood out to me because I want to go to a school that helps me grow and succeed in life and come out a better person than when I went in.

– Cymone

I learned to keep going. I learned to set goals. I learned that whatever I put my mind to, I can accomplish. Even though I already had that mindset, hearing others’ stories and the history of the schools inspired me. This trip gave me the opportunity to step into my future a little bit.

– Nyilah

I’m looking most forward to seeing the acceptances I get. A lot of the schools were very welcoming and encouraging to apply, and I really want to see how many of those schools I can get into.

– Brooklyn

It meant so much I can’t even explain fully. It really made me focus on what I need out of a college, and I was able to find out what I could be flexible not having.

– Marian

To me this trip meant an opportunity to explore and understand HBCUs, which not a lot of people get to experience coming from the Northwest. It meant getting a head start preparing for college and life after high school. It meant gaining new knowledge so that I can bring it back to my Black peers at school.

– Amariyanna

Man, this trip meant everything and more to me. I’m so grateful to able to be on this trip. I loved being around people who welcomed me like I was a part of their family. I will most definitely be attending an HBCU!

– Azariyah

Support UNCF

Inspired by these students? Mileage Plan members can donate miles to important causes including UNCF, which uses the miles to fly students back and forth to HBCUs.

Learn more about UNCF.

Donate Miles

Alaska Air Group reports first quarter 2023 results

 Productivity improves 6% and pilot training throughput doubles over prior year; 
Anticipate double-digit adjusted pre-tax margin in second quarter; 
Reiterated full-year adjusted pre-tax margin guidance of 9% to 12% 


Alaska Air Group (NYSE: ALK) today reported financial results for the first quarter ending March 31, 2023, and provided outlook for the second quarter ending June 30, 2023. 

This quarter we returned to pre-pandemic levels of flying and our roadmap to profitable growth is on track,” said Alaska CEO Ben Minicucci. “As we progress through the year, we have taken deliberate steps to build momentum and we are well prepared for peak summer flying. Thank you to our 23,000 employees who are the backbone of our success – I’m proud of their work to deliver operational excellence and show care for the people who fly with us each day. We are well-positioned to deliver on our full-year financial targets, including a 9% to 12% adjusted pretax margin.” 

Financial Highlights: 

  • Reported net loss for the first quarter of 2023 under Generally Accepted Accounting Principles (GAAP) of $142 million, or $1.11 per share, compared to a net loss of $143 million, or $1.14 per share, for the first quarter of 2022. 
  • Reported net loss for the first quarter of 2023, excluding special items and mark-to-market fuel hedge accounting adjustments, of $79 million, or $0.62 per share, compared to a net loss, excluding special items and mark-to-market fuel hedge accounting adjustments, of $167 million, or $1.33 per share, for the first quarter of 2022. 
  • Resumed the share repurchase program, purchasing a total of 413,554 shares of common stock for approximately $18 million in the first quarter. The company continues to expect share repurchases of at least $100 million in 2023. 
  • Held $2.4 billion in unrestricted cash and marketable securities as of March 31, 2023. 
  • Ended the quarter with a debt-to-capitalization ratio of 48%, within the target range of 40% to 50%. 

Operational Updates: 

  • Ratified a two-year contract extension with more than 2,300 McGee Air Services employees represented by the IAM. 
  • Received six 737-9 aircraft during the quarter, bringing the 737-9 fleet count to 43. 
  • Activated new benefits for Alaska Visa Signature® cardholders, including priority boarding, lounge membership discounts, new ways to earn bonus miles and other perks. New benefits and program changes drove cash remuneration under the co-brand credit card agreement up 17% on a year-over-year basis. 
  • Announced plans to elevate guests’ regional flying experience with streaming-fast satellite Wi-Fi on E175 regional jets. 
  • Announced three new daily nonstop flights from San Diego to Washington, D.C., Tampa and Eugene, beginning service later in 2023. 
  • Doubled pilot training throughput compared to the same period in 2022, aided by a 75% increase in qualified flight instructors and an investment in two 737 full-flight simulators. Three additional 737 full-flight simulator deliveries are expected later this year. 
  • Began lobby transformation projects to provide guests a more seamless travel experience; expect to roll out new bag tag stations and bag drop technology in key airports throughout 2023 and 2024. 
  • Created a virtual reality 737 flight deck, in partnership with VRPilot, to better prepare pilots for their training experience. 

Environmental, Social and Governance Updates: 

  • Announced an agreement with Shell Aviation to advance sustainable aviation fuel (SAF) technology and infrastructure throughout the West Coast; Shell Aviation will also supply Alaska with up to 10 million gallons of SAF in Los Angeles. 
  • Launched a partnership with the Surfrider Foundation, an organization focused on protecting coastal habitats and reducing waste across the West Coast and throughout the Hawaiian Islands. 

Awards and Recognition: 

  • Alaska’s Mileage Plan named Best Airline Rewards Program by NerdWallet for its customer-friendly policies, rewards and fee structures. 
  • Alaska and Horizon earned the Diamond Award of Excellence from the Federal Aviation Administration, recognizing the airlines’ aircraft technicians for their dedication to training. 

Tune in:

A conference call regarding the first quarter results will be streamed online at 8:30 a.m. PDT on April 20, 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
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