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.

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.

Alaska Airlines is transforming the airport lobby experience

New technology is coming that will have you flying through the lobby in no time

We’ve all been there—you’re packed and ready for your trip, the excitement is building, and you arrive at the airport only to find long lines that kill your vibe. All you want to do is get through security and stop by a favorite restaurant or grab that precious pre-flight beverage.

Thankfully, this dreaded experience will soon become a thing of the past. Why? Because we’ve reimagined a more seamless travel experience, and it’s coming to an airport near you. Over the next three years, we’re investing $2.5 billion in overall improvements to enhance the airport experience within our hubs and focus cities including Seattle, Portland, San Francisco, Los Angeles and Anchorage.

We’re working on getting you through the lobby and to security in 5 minutes or less—meaning fewer lines and more time for that pre-trip snack. Much like mobile technology widely used to access sporting events and concerts, your phone is all you need to fly through the lobby.

A sneak peek at what the future lobby will look like at Seattle-Tacoma International Airport.

Getting travel ready

The first step starts at home (or work or while you’re waiting in the school pick-up line) on the Alaska Airlines app. Guests are encouraged to check-in and secure a boarding pass before coming to the airport. Getting travel ready before coming to the airport provides peace of mind and allows you to plan your day of travel better. The Alaska Airlines app is the perfect pre-trip tool, but guests can also check-in on a desktop and send a boarding pass to their phone or print one at home.

Bonus! In addition to the time saved by our guests, this change also helps reduce the amount of paper we use—an important step toward our sustainability goals.

Tagging your bag

New bag tag stations will replace dated kiosks in lobbies where you’ll pay for and tag checked bags using iPad tablets. Because you’ve completed all other actions before arriving at the airport, it’ll only take a few quick steps. Airports have already begun changing to the new tablets and guests are adapting—with 3 out of 4 guests arriving with a boarding pass in hand to airports with the new technology. Most airports will transition to the new bag tag stations by the end of 2023.

Dropping your bags off

Beginning in spring 2024, the lobbies in our hub airports will be getting innovative technology that will allow you to drop your bags off with just a few quick scans. Popular in many international airports, we can’t wait for you to try it in Alaska’s hubs. The machine will scan your face, government-issued I.D., and bags. From there, it will take your bag(s) on a belt to be loaded onto the aircraft. The process takes less than a couple minutes and will have you on your way to security.

“As we thought about how to provide the most caring experience for our guests, it was clear the lobby was a pain point. We realized the majority of our guests were doing most of the kiosk actions on their own phones and we could reduce the congestion in our airports. Alaska was the first airline to introduce kiosks more than 20 years ago, and we’ll be the first airline to remove them. We’re looking forward to offering the new full guest experience next summer.”

– Charu Jain, Alaska Airlines senior vice president of innovation and merchandising

Need extra help?

While we know the vast majority of Americans own a smartphone, some guests may need extra assistance at the airport. For those guests, we will always have customer service agents available. We have heard from many guests that the best way we can care for them is by offering self-service options. This transformation gives you the choice between getting through the lobby quickly or receiving personalized help.

We can’t wait to welcome you into our new lobby experience soon!

Living Eddie Aikau’s Legacy: Oʻahu’s Luke Shepardson Casually Wins Surfing’s Greatest Big Wave Event

Born and raised on Oʻahu’s North Shore – a stretch of rural coastline dubbed ‘the seven-mile miracle’ for its unrivaled concentration of world-class waves – Luke Shepardson, the son of an avid surfer and bodysurfer, was inevitably drawn to the ocean early on.

“You start at Haleʻiwa, learning to ride the whitewater, then bigger whitewater on the outside (break), and then real waves … Velzyland, Rocky Point, Sunset, and Waimea,” he recalls his progression in the sport, listing surf spots of increasing difficulty as if they were compulsory school grade levels. “The peer group that I was with, we were all just pushing each other, going bigger and bigger.”

ShepardsonDad

A young Luke Shepardson with his father, Mark Shepardson

Shepardson’s surfing evolved as he participated in Hawaiʻi Amateur Surfing Association events around the island with his sights on a professional career. Along the way, he earned the nickname “Casual Luke” for his mellow, easygoing – almost non-competitive – approach to riding waves of consequence. He dropped out of Kahuku High School in ninth grade (later earning a General Education Diploma) and taught surf lessons to fund his travels.

But after years of competing and even securing sponsors, Shepardson abruptly quit.

“I gave up on my dream in my early 20s – it started getting late,” Shepardson, now 27, said pragmatically. “I also had my first son and figured I’d need a solid job.”

Ironically, once Shepardson decided to hang his contest jersey, he achieved one of his best results at Sunset Beach – one of Hawaiʻi’s most iconic and powerful surf breaks.

“My son was three months old, and I made the semifinals,” Shepardson said, smiling. “Once I gave up on trying hard, I did good. But before the contest, I knew it was my last one. I tried electrician work first, for the money, but I wasn’t happy. I wasn’t by the ocean. I missed a good Pipe(line) swell and quit the next day. I got into the next lifeguard trials a few weeks later.”

Following His Passion

A lifeguard since 2019, Shepardson never stopped surfing – especially when the waves got big.

In 2016, as a massive swell headed to Waimea Bay, organizers of The Eddie Aikau Big Wave Invitational – the world’s most prestigious event of its kind – gave the greenlight to run the contest for just the ninth time since 1985. Created in honor of the late Waimea Bay lifeguard and waterman Eddie Aikau, and sponsored in part by Hawaiian Airlines since 2019, it requires waves to be consistently in the 20-feet-plus range (or 40-feet measured from the bottom to the crest of the wave) with favorable winds. Unlike traditional competitions, surfers cannot enter the Eddie by earning points at qualifier events. Instead, they must prove their ability in large surf and be selected by the Aikau family.

Shepardson was not on the coveted list, but he paddled out to the giant surf at dawn along with dozens of recreational surfers and invitees warming up for the contest. After falling on a huge wave, he was rescued, placed on a stretcher, and taken to a trauma center an hour away in Honolulu for evaluation. He was discharged and made it back to Waimea just in time to surf again after the Eddie had ended.

The following year, Shepardson was invited. He’s been welcomed back to the Eddie every year since, although the contest went on a six-year drought due to unreliable wave conditions.

That changed on Sunday, Jan. 22, when one of the largest swells to ever hit Waimea allowed the Eddie to go. Because the event is scheduled without advance notice as wave-producing storms suddenly generate in the Pacific, Shepardson was unable to request time off work, but his captain found a solution: Shepardson would be assigned to lifeguard at Waimea and use his breaks to surf his two heats.

On the eve of the Eddie, Shepardson attended a retirement party for a co-worker and went home to prepare. Surfers rely on various forecasting models to monitor big swells, but Shepardson, a resident of Pūpūkea, a community above Waimea Valley, didn’t need the data to know the waves would be enormous.

IMG_1498

Shepardson waves to spectators after surfing a heat at the 2022-23 Eddie Aikau Big Wave Invitational

“You could hear the cracking and the thunder” of the swell building in size overnight, he recalled. “I was getting ready for bed about 10 p.m. when a buoy reading came at 23 feet, 19 seconds (reflecting the swell size and the time between each set wave). I had super gnarly butterflies. I went to bed to get ready for work. The buoy was at 27 feet, 19 seconds in the morning – the biggest I’ve ever seen for surfable conditions.”

The Eddie Goes

It is estimated that up to 40,000 people gathered at Waimea Bay to watch the 34th installment of the Eddie. On his early morning drive to Waimea, Shepardson got stuck in traffic. He asked his girlfriend to take the driver’s seat, grabbed his lifeguard fins and ran the remaining mile or so toward Waimea, where he arrived at 7 a.m. He immediately began patrolling the shore and preventing beachgoers from getting swept out to sea by the surging swell – as his fellow competitors caught practice waves in the distance.

Ironically for Shepardson, focusing on lifeguarding instead of the contest warm up was advantageous.

“I’m really glad I was working because I’m a horrible contest surfer and I get the butterflies, super anxious. I’m not myself,” he said. “I didn’t even think about the contest at all. It was work, super busy keeping everyone safe. Then OK, it’s time for my heat, I get a break from work, I get to catch a few waves and enjoy myself and be a part of this special event. It’s always been a lifelong dream of mine.”

Around 11 a.m., Shepardson walked down the steps of his lifeguard tower, waxed his 10-foot board, and paddled out for his first heat: earning a perfect 10-point ride along with an impressive nine as his backup score.

For the next several hours, Shepardson rode his ATV up and down Waimea, and even treated two competitors, Brazil’s Lucas Chianca and Kauai’s Keala Kennelly, for gashes on their leg and chin, respectively. Several spectators had to be rescued from the Waimea rivermouth as it got overwhelmed by the waves.
 

IMG_1514

Shepardson with sons Haven (on left) and Wild, and girlfriend Natalia Macias

In the late afternoon, as Shepardson prepared for his second heat and the day’s last, Clyde Aikau, the younger brother of Eddie Aikau, offered him some advice.

“He came to me and said, ‘You need one really good wave and you win,’” Shepardson said. “I tried to brush it off because I’m not the best pressure person. I was telling myself if it (the right wave) comes to me, it’s meant to happen, but I’m not going to send myself over the ledge to get a 9.5 and get hurt, because I got to finish the day at work.

“Before my heat started there was a huge closeout set,” Shepardson continued. “Everyone got over it. I was getting into position, and a beautiful wave came straight to me. I committed and just went. At one point, I thought ‘Should I jump?’ but I got the drop, and there was a nice explosion (of whitewater) behind me. That felt really good. One of my best waves ever. I claimed it and cartwheeled (wiped out) instantly.”

Shepardson would later ride another wave, this time successfully exiting it just as it folded into a mountain of whitewater wrapping across the entire bay.

“I had a feeling I had a chance. I came in and changed into my work clothes,” he said, “then I got called to the podium.”

As Clyde Aikau announced the results starting from eighth place, Shepardson was the last surfer standing. He had won the Eddie Aikau, edging out runner-up finisher John Florence, the 2016 event winner and a two-time World Surf League champion, in a field stacked with the best big wave riders.
 

Podium

Shepardson is overcome with emotion after winning the 2022-23 Eddie Aikau Big Wave Invitational

“I just started crying. The amount of emotions that went through my body, it was crazy,” he said. After a brief celebration, Shepardson returned to his tower.

“I stayed there to back up my partners,” he said. “Everybody (all the lifeguards) in the water did really well, the beach stayed mostly under control. We stayed there until 7 o'clock, everyone stayed safe. It was a good day.”

Shepardson, whose sons are one and four years old, says his life has been “turned upside down” with dozens of media interviews and events. Honolulu’s mayor surprised him at his tower and declared Jan. 25 as Luke Shepardson Day. Later this month he will be recognized with a prestigious “Meritorious Act Award” by the United States Lifesaving Association Board of Directors.

Asked how he plans to use the 350,000 HawaiianMiles he won, Shepardson intends to take his children to visit their grandparents in California, followed by a trip to Tahiti, Japan, or Fiji.

On being forever associated with Eddie Aikau and his legacy, Shepardson reflected, “He set the bar so high – to have a perfect record of over 500 saves and no lives lost under his watch…. That’s unexplainable. 

“I’ll try my best to follow in his footsteps,” he added. “It’s really cool to be a lifeguard and share the passion for lifeguarding and love for big waves. He is an idol of mine and someone I look up to. I’ll never be as good as him but it’s cool to strive for something like that.”

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Shepardson teaching his son Haven the ropes while tandem surfing at Pua'ena Point on Oahu's North Shore

 

In addition to being the exclusive airline sponsor of the Eddie Aikau Big Wave Invitational, Hawaiian Airlines is also proud to be a longstanding sponsor of the Eddie Aikau Foundation’s Eddie Would Go Essay Contest, which helps spread Eddie’s story of courage and compassion in saving lives, and his dedication to the Hawaiian people and Hawaiʻi’s culture.

Middle schoolers travel thousands of miles for weeklong giveback in Hawai‘i, discover the Aloha spirit

As Maritza Contreras jumped into the crystal-blue waters of the Pacific Ocean to snorkel for the very first time – long-forgotten was the anxiety she felt just five days prior when she was back home in Oakland, California. 

“I was sad, I cried because I was going to miss my mom,” Contreras said.  

The eighth grader at West Oakland Middle School was set to embark on a trip filled with many firsts: her first time on a plane, the first time she was thousands of miles from home and the first time she’d traveled without her mother. 

“My mom told me to have fun because it was a once-in-a-lifetime experience, she was proud I was chosen to go,” said Contreras. 

The 14-year-old was one of 12 West Oakland Middle School students who bid their parents farewell to go on a community giveback trip to the state of Hawai‘i last week at no cost to their families or school. As part of Alaska Airlines’ commitment to invest in youth and care for the communities we serve, we surprised the group with the seven-day trip to the Islands in partnership with STATE Bags. The family-focused bag brand’s co-founder, Scot Tatelman, co-created the program last year called Travel Academy when he took eight Brooklyn-based students on a transformational excursion throughout California. 

“Anyone who has traveled can speak to that feeling. When you land somewhere new and experience all that place has to offer, it feels like your world has opened up just from having seen it,” Tatelman said.  

“This partnership reflects both companies’ commitment to creating connections through travel and providing opportunities for young people to experience the world of aviation,” said Daniel Chun, Alaska’s Hawai‘i Director of Sales, Community & Public Relations.  “For over 15 years, Alaska has had the privilege of flying our guests to one of the most beautiful and amazing places on the planet, with service to four Hawaiian Islands from seven West Coast cities.  We are mindful of the impacts of travel and how important it is for both residents and visitors to mālama (to care for) this very special place so future generations are able to enjoy it.” 

While the backdrop of this year’s trip was the natural beauty of Hawai‘i, the students’ mission every day was to learn about how to become mindful visitors of the Islands by giving back to communities on O‘ahu and Maui. Soon after their arrival, the group walked knee deep into a lo‘i (taro patch) to help harvest the root vegetable at Kualoa Ranch while learning its important role in the Hawaiian culture. They worked with the Maui Ocean Center Marine Institute staff to rehabilitate a Hawaiian green sea turtle that had recently been injured out at sea. The group also learned about the importance and uses of native plants at Kipuka Olowalu, a Native Hawaiian cultural site on Maui. 

“I’ll never forget about the people, what I experienced and what I learned about with my friends while in a beautiful place,” said Maritza.

Maritza at Kualoa Ranch, where she and other students learned how to harvest kalo (taro), a root vegetable that plays an important role in Hawaii’s culture.

“It’s just beautiful, I love how the people of Hawai‘i respect their living space,” said 14-year-old Latanya Nolen. “There’s a lot more research I want to do to understand the culture here, it’s opened my eyes. I’m thankful to have this opportunity to experience something we’ve never done.” 

“We created an itinerary that allowed the students to both give back to the community while immersing themselves in the history, culture and beauty of the Islands. Whether it’s through one of their volunteer activities or simply speaking to locals about how their home is impacted, if we’re not careful while we visit—the students have told me they’ll forever have a space in their hearts for Hawai‘i thanks to this gift of travel,” said Maria Cid, communications program manager for California.   

We hope these students establish a meaningful connection with one of the most beautiful places on earth and share the message of mālama with their friends and family when they return home,” Chun said. 

The message seemed to be sticking for one of the youngest in the group. Anaya Sarfraz, who celebrated her thirteenth birthday while on the trip, now has a newfound hope that tourists do more than sightseeing while in the Aloha state.  

The students first visit at an Oahu beach was extra special. They learned about marine life etiquette, including how to have fun in the water while respecting the reef.

“If you visit, please learn about the history first, dig deeper than just visiting the beaches and you’ll find the beauty around you even more interesting,” Sarfraz said.  

For seven days, the students woke up and immediately ate breakfast together; only separating as a group when it was time for bed.  

For many, the peers among them were only faces they’d seen in passing at school or maybe connected briefly with in class. The students had applied for the Alaska Airlines and STATE Bags sponsored 2023 Travel Academy with an essay and were chosen by their principal based on their leadership skills. Now they were rooming with a classmate they’d likely never spoken a word to before heading to Hawai‘i, including Sarfraz. The seventh grader, however, quickly found her nerves dissipate.  

“I started talking and learning more about each of them, it’s been a surprising experience getting to know each other, and now I can say everyone here has become like family to me,” she said. 

Next month, the eighth graders of the group will graduate and prepare for high school, including Contreras who tried something new every day in Hawai‘i after setting aside her fears at the start of the week.  

She can now say she took part in returning an endangered sea turtle to the ocean, learned how to protect marine life while snorkeling, flown on a plane and ziplined through a tropical forest. 

All twelve students say they discovered the Aloha spirit through the people of Hawai‘i and will bring that back home with them to the Bay Area — and hopefully, wherever they travel to next.  

I’ll never forget about the people, what I experienced and what I learned about with my friends while in a beautiful place,” Contreras said. 

A Special Mahalo

Behind this incredible trip were some remarkable organizations and businesses who we are proud and grateful to partner with, including:

The Twin Fin | @thetwinfinwaikiki 

Royal Lahaina Resort | @royallahainaresort 

Kualoa Ranch | @kualoaranch 

Maui Ocean Center | @mauioceancenter 

University of Hawai‘i at Mānoa | @uhmanoanews 

Five Questions with VP Beau Tatsumura on Earning the FAA’s Top Training Award and Developing Career Pathways

For the second consecutive year, Hawaiian Airlines’ Technical Operations (Tech Ops) team earned the Federal Aviation Administration (FAA) Aircraft Maintenance Technician (AMT) Employer Diamond Award of Excellence – the agency’s top AMT honor.

Poʻokela (excellence) and innovation are core to Hawaiian’s strategy to succeed in its next growth period – which will include a new fleet of 12 Boeing 787-9s and a dedicated freighter operation for Amazon. To prepare for this phase of transformation, Hawaiian Airlines has been steadfast at building our workforce and recruiting for hundreds of positions essential to maintaining our high safety and reliability standards.

Maintenance and Engineering

 

Hawaiian’s Tech Ops team is tackling the growing need for highly specialized labor by taking its workforce training and recruitment beyond the walls of the Charles I. Elliott Maintenance Facility, including hiring instructors to augment Honolulu Community College’s (HonCC) Aeronautics Maintenance Technology (AERO) program and streamlining training processes at North America maintenance bases to improve the efficiency of our new and current mechanic training.

To learn more about how we’re taking our aviation maintenance training and partnerships to new heights, we sat down with Beau Tatsumura, vice president of maintenance and engineering at Hawaiian Airlines.


First, can you explain what the Diamond Award means to Tech Ops?

The Diamond Award of Excellence is the FAA's highest award for aviation maintenance technicians and employers. It recognizes air carriers that initiate and sustain highly effective training programs with 100% of eligible technicians receiving an individual William (Bill) O’Brien Award in a calendar year. We are proud of this accomplishment earned by our technicians, and it means that all of our workforce is rated at the highest level of maintenance and safety standards.

Maintenance and Engineering

 

In 2020, Tech Ops earned the Gold Award for 50% completion. How did you achieve 100% completion for the Diamond Award in 2021 & 2022?

We worked closely with the Tech Ops training team to ensure all our technician had the opportunity and time to complete the FAA’s prerequisite training during their required annual recurrent spotlight training. Each mechanic is tested in a series of modules according to the type of aircraft they are certified to repair during this training. Our quality assurance and training employees monitor our mechanics’ progress via programs that enable real-time tracking.

What are some other improvements made toward training efficiency for mechanics?

Hawaiian Airlines Training does a great job in providing core General Familiarization (GenFam) courses to our technicians, such as the ones covering the Airbus A330, Airbus A321neo and Boeing 717, so we didn’t have to make many adjustments. We did introduce advanced classes focusing on electrical wiring interconnection systems, fiber optics, nondestructive testing and A321 fire detection systems. These classes sharpen our mechanics’ existing skills so that they can be both preventative and better troubleshooters.

A321neo

 

How has the addition of Hawaiian instructors to HonCC’s AERO program benefited students?

Having our instructors, Jason (Jay) Anderson and Glenn Macqueen, teach classes for HonCC’s Aeronautics Maintenance Technology (AERO) program will allow the college to double enrollment to 100 students by Fall 2023. The additional faculty also gives AERO program students greater access to extensive knowledge and apprenticeship that will foster a more productive learning environment. This translates to more opportunities to have students’ questions answered, help with studying, and access to the best industry practices from experts with various aviation maintenance backgrounds and who are dedicated to fostering a more dynamic and adaptable workforce.   

What are some other forward-thinking workforce development programs being utilized by Tech Ops?

If we can encourage students to consider careers in aviation maintenance and engineering early, we can create a steadier pathway for their careers and for the future of our operations.

We’re working closely with a Hawaii-based Universal Technical Institute (UTI) recruiter to promote the aviation industry and get local high school students excited about AMT careers. Students who enroll with UTI attend Airframe and Powerplant (A&P) mechanic training on the U.S. mainland and can return home and work in Hawaiʻi after they complete A&P certification.  

Maintenance and Engineering

 

Hawaiian Airlines and Embry-Riddle recently signed an agreement to become what we call Tier II partners, which allows transitioning military members who are enrolled at Embry-Riddle and have A&P certification to intern at Hawaiian. After completing their internship, we offer them an interview, and if they are the right fit, we bring them under our wing as a Hawaiian Airlines employee. 

Hawaiian Holdings Announces 2023 First Quarter Conference Call

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HONOLULU – April 11, 2023 – Hawaiian Holdings, Inc. (NASDAQ: HA), parent company of Hawaiian Airlines, Inc. (“Hawaiian”), plans to report its first quarter 2023 financial results after the market closes on Tuesday, April 25, 2023.  An investor conference call is scheduled for 4:30 p.m. EDT (10:30 a.m. HST) that day.

The call will be open to all interested investors through a live audio webcast accessible in the Investor Relations section of Hawaiian’s website at HawaiianAirlines.com. For those who are not able to listen to the live webcast, the call will be archived for 90 days on Hawaiian’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.

Hawaiian Airlines, Awaiaulu Donate Hawaiian Language Books to Schools, Share Indigenous Knowledge with Employees

Once on the brink of extinction, ʻōlelo Hawaiʻi (the Hawaiian language) is now in an era of revitalization energized by a shared dedication to perpetuating the language and the knowledge it bears. This passing of the torch typically peaks in February, when Mahina ʻŌlelo Hawaiʻi (Hawaiian language month) is celebrated statewide, including at Hawaiian Airlines. 

But this year, the Hawaiian Airlines Community and Cultural Relations team's Mahina ʻŌlelo Hawaiʻi celebrations are living beyond February, thanks to a new partnership with local nonprofit Awaiaulu

Since 2003, Awaiaulu has developed educational resources (and people) to bridge Hawaiian knowledge from the past to the present and the future. The group of language experts is training fluent speakers to translate a massive repository of ʻōlelo Hawaiʻi texts written before the overthrow of the Hawaiian kingdom in 1893 when the use of ʻōlelo Hawaiʻi fizzled as English became the dominant language. Awaiaulu's 20 translators focus on preserving the indigenous knowledge shared in traditional Hawaiian publications, including formal letters, books, manuscripts, government documents and newspapers. The most recent product of its efforts is “Ke Kumu Aupuni: The Foundation of Hawaiian Nationhood,” a robust, bilingual translation of clever, exhaustive newspaper articles written by Samuel Mānaiakalani Kamakau, a 19th-century Hawaiian historian and scholar.

 

To recognize this Mahina ʻŌlelo Hawaiʻi, Hawaiian Airlines contributed $12,240 to Awaiaulu to fund its donation of 272 copies of the book – which the nonprofit describes as an “invaluable catalog of data about Hawai‘i, Hawaiians, and the nature of national and cultural identity in the Pacific” – to 34 Hawaiian language immersion schools throughout Hawaiʻi. And this week, workgroups across the carrier's network were gifted a copy of the text, including 30 airport stations, its Phoenix IT Center, and its Honolulu-based maintenance and cargo hangar and headquarters. 

Hawaiian language immersion school

Flight attendant Kanani Santana-Koanui and her husband reading “Ke Kumu Aupuni: The Foundation of Hawaiian Nationhood" to her two keiki, who attend one of the Hawaiian language immersion schools that were gifted copies of the book.

 

Manakō Tanaka, senior community and cultural relations specialist at Hawaiian, is proud of his team's work with Awaiaulu and believes the nonprofit is at the helm of “a huge undertaking for Hawaiian history.”

“Throughout the Hawaiian language revitalization movement, which started in the 1970s, people have worked off of the knowledge passed down from their kūpuna (elders) or what’s been shared in English versions of Hawaiian books – which weren’t always translated accurately,” he said.

“So, having ʻōlelo Hawaiʻi speakers translate and create access to the information in these newspapers and documents opens up an entirely new library of knowledge for current and future generations. Those documents give us insight into the kūpuna of our kūpuna, and they are the oldest resources that we have to look back on when we try to understand what our kūpuna were doing and thinking.”

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The cabin crew of Hawaiian's Mahina ʻŌlelo Hawaiʻi flights between Kahului, Maui, and Las Vegas, held in February

 

Aside from the book donation, Hawaiian also engaged its employees and guests with a series of special Mahina ʻŌlelo Hawaiʻi activities, including an ʻōlelo Hawaiʻi roundtrip flight between Kahului, Maui, and Las Vegas with certified ʻōlelo Hawaiʻi-speaking flight attendants. Employees also volunteered at Ola Ka ʻĪ (The Language Thrives), a series of three Hawaiian language gatherings organized by a group of local nonprofits at Oʻahu’s Windward Mall and Ka Makana Aliʻi, and the Queen Kaʻahumanu Center on Maui. The Hawaiian Airlines Serenaders performed live music and hula at the Ola Ka ʻĪ events as volunteers hosted arts and crafts, including a new coloring sheet that identifies the ʻōlelo Hawaiʻi names for the parts of the Airbus A330 aircraft — Hawaiian’s flagship aircraft.

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Click to download this coloring sheet for your keiki (children)

 

Employees also joined an ‘Imi ʻIke (to seek knowledge) session that shared ʻike (knowledge) and moʻolelo (stories) from community leaders, like Awaiaulu’s executive director, Puakea Nogelmeier. They listened to Nogelmeier’s manaʻo (thoughts) and moʻolelo (stories) behind his team’s grueling but impassioned work translating millions of pages of text, one word at a time, and with the historical context in mind. “Our work is not about language; it’s about knowledge. We are not re-writing history; we are putting the color in the black and white,” he said.

Nogelmeier elaborated, “Kamakau wrote in a language that was intentionally clear, so the Hawaiian he used was good quality Hawaiian for his time.” He held up the book to the group and teased its weight resulting from pages written in ʻōlelo Hawaiʻi and a meticulously translated English version. “This is a teaching text. It is meant to educate and create access to the Hawaiian language. You should read the book in ʻōlelo Hawaiʻi first and then use the English version to affirm your understanding.”

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Employees gathered in a pop-up Mahina ʻŌlelo Hawaiʻi room at Hawaiian's headquarters for a reading of “Ke Kumu Aupuni: The Foundation of Hawaiian Nationhood."

 

Tanaka said, “We want to proliferate Hawaiian knowledge within our ʻohana by creating opportunities for non-speakers to learn and use ʻōlelo Hawaiʻi every day. By sharing the book with schools and our employees, we can further those efforts while also helping Awaiaulu make the knowledge of our kūpuna more accessible to the masses.”

Alaska Air Group announces webcast of first-quarter 2023 financial results

Alaska Air Group Inc. (NYSE: ALK), the parent company of Alaska Airlines Inc. and Horizon Air Industries Inc., will hold its quarterly conference call to discuss 2023 first quarter financial results at 11:30 a.m. EDT/ 8:30 a.m. PDT, Thursday, April 20, 2023. A webcast of the call will be available to the public at www.alaskaair.com/investors. An archive of the call will be posted on the website later that morning.

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