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Alaska Airlines uplifts communities during Week of CARE, a company-wide effort to give back

Being the most caring airline means showing genuine care for our guests, each other and the places where we fly. Last week, more than 450 employees took part in our annual Week of CARE to engage with some of the communities we serve, including an event where 17-year-old Bay Area art prodigy Tyler Gordon lent a helping hand to adorn one of San Jose’s most under-resourced schools with an inspiring mural.  

Gordon painted one of his coveted murals of influential Bay Area figures at L.U.C.H.A. Elementary School, including Olympic gold medalist and U.S. figure skater Kristi Yamaguchi, American labor leader and civil rights activist Dolores Huerta, Vietnamese-American professor and Pulitzer Prize winner Viet Thanh Nguyen, as well a self-portrait. 

L.U.C.H.A. staff chose the four Bay Area native figures because they have inspired students to keep “soaring high,” which is the school’s motto. Gordon’s breathtaking portraits of celebrities, like Vice President Kamala Harris and LeBron James, have gone viral. 

It’s amazing that my alma mater asked me to be a part of the mural and stand beside such amazing people, I almost can’t believe it,” said Gordon. “I went to this school as a kid, so this is a full-circle moment for me. This is even more special for me now.”  

On Monday morning, Yamaguchi, Gordon and Nguyen joined Alaska Airlines employees to unveil the mural to L.U.C.H.A. students.  

“I’m so honored to paint this mural, and grateful for the opportunity,” Gordon said. “I’m excited to honor the legacy and hard work of some of California’s most iconic history makers.”  

Gordon’s art installation is one of more than 25 community projects employees across 13 cities spearheaded for our company-wide Week of CARE.

Week of CARE is part of an entire month dedicated to that spirit of service we hold so dearly at Alaska and Horizon Air, our regional airline partner.  

Highlights from our Week of CARE:

Our employees provided a boost throughout our network, including Anchorage, Boise, Fresno, Honolulu, Los Angeles, Palm Springs, Portland, San Jose, Santa Rosa, Spokane, the greater Seattle area and Washington, D.C., among others.

Blanchet House, Portland
Habitat for Humanity, Tukwila
Lifelong, Seattle
Lifelong, Seattle
Habitat for Humanity, Tukwila
Lifelong, Seattle
Employees helped provide meals for hungry children in Anchorage through the Children’s Lunchbox a program of Bean’s Café. Volunteers also helped repack and sort food for those in need at the Idaho Foodbank. 
Habitat for Humanity, West Seattle
Habitat for Humanity, West Seattle
Lyon Arboretum – University of Hawaii

Alaska Airlines refreshes our Lounges with new spaces and amenities

Multimillion-dollar renovations add more seating and food and beverage choices;

Seattle C Concourse Lounge expansion opens next week in time for holidays

We know our guests love our Lounges at Alaska Airlines – spaces filled with a West Coast vibe to kick back and unwind or get a little work done. Since 2018, we’ve doubled the footprint in our Lounges and invested $30 million in overall improvements, including our award-winning Flagship Lounge at the N Concourse in Seattle, our new Lounge in San Francisco and a new patio space at Concourse C Lounge in Portland.

We continue to invest in upgrades to make our Lounges better (and bigger) than ever. We’re currently focusing on remodeling and renovating our additional popular locations in Seattle, adding amenities that mean the most to our Lounge members.

Our members know our Lounge program is one of the best values in the airline industry with one of the most generous access policies,” said Sangita Woerner, senior vice president of marketing and guest experience at Alaska Airlines. “We’re investing in more space and better products as we strive to ensure our members have a terrific experience when they step inside any of our locations.”

Here’s what’s happening across our Lounges:

Just in time for the holidays, our expanded C Concourse Lounge at our hometown airport in Seattle opens next week. With an additional 3,000 square feet, we’ve doubled the seating space with enough room for 60 more seats. Great views of the tarmac remain unchanged.

When the busy holiday season wraps up, the second phase of renovations in Seattle begins on Jan. 7, 2023, after the D Concourse Lounge closes for a complete overhaul. It’s set to reopen in summer 2023. The location will have 30% more seating, a new barista station, new food and beverage offerings, and an improved layout.

We’ve invested $1.5 million for Lounge upgrades in Portland this year. Along with expanding our current Lounge by 1,000 square feet with the addition of an enclosed patio area, we’ve also added an Express Lounge at Concourse B to give our guests more options.

At our Lounges in Los Angeles and San Francisco, we’re brightening the spaces with modern furniture and other touches. At LAX, we’ve installed new artwork by local artists.

Guests at our Lounges can enjoy a wide variety of complimentary West Coast craft beers and sip featured West Coast wines. At select locations, we’re also expanding our hot food options that are served throughout the day.

We always want our Lounge members to have the best possible experience when stopping by one of our locations. We provide complimentary drinks and snacks such as West Coast wines, local brews, custom cocktails, hand-crafted espresso beverages, and fresh, seasonal food and snacks. Plus we allow entry for two guests or immediate family members when traveling together anytime they fly on Alaska or another carrier.  

The Alaska Lounge Membership Program offers two options for guests to choose from: Alaska Lounge members access all our Lounge locations, and Alaska Lounge+ members access all our Lounges and more than 90 partner lounges around the world. Alaska operates nine Lounges at six airports: Anchorage; Los Angeles; New York JFK; Portland (two locations); San Francisco; and Seattle (three locations). 

Alaska Airlines’ new holiday-themed plane is all about giving the gift of travel

This holiday season we’re inviting our guests to give the gift of travel! We are donating 1 million miles to our CARE Miles program, a unique and meaningful way Mileage Plan members can support important causes.

Traveling is truly the best gift, and this year, our holiday-inspired plane embraces the reason for the season: giving. 

In honor of the season and our festive new aircraft, we’re donating 1 million miles to our CARE Miles program! This program offers Mileage Plan™ members a unique and meaningful way to support important causes. Learn more below. 

WANT TO GIVE THE GIFT OF TRAVEL? 

DONATE MILES.

Sign into your Mileage Plan account. Select the “Donate Miles” link and choose a charity/organization.

Donate miles

UP YOUR GIFT GAME.

Alaska gift certificates can be emailed or printed—plus, they never expire!

Send someone travel

TREAT YOURSELF.

You deserve to go somewhere special this holiday or afterwards!

Book now

DONATE MILES TO GREAT CAUSES:

So far this year, our airline and Mileage Plan members have donated 39 million miles to charities such as American Red Cross, Angel Flight West, the Honor Flight Network, Make-A-Wish, Seattle Children’s Hospital and UNCF.  

Miles donated to our CARE Miles program help charities with business travel, accommodation of special organization requests and achievement of the organization’s mission. Here is a list of important causes you can support with miles:

Donate miles

Alaska Airlines Disaster Relief Pool

Contributions to the Alaska Airlines Disaster Relief Pool will be used to support charities involved with disaster relief efforts and for transportation of medical staff and volunteers.

Alaska Airlines Miles for Youth

Alaska Airlines believes all young people should have an opportunity for future success. The Alaska Airlines Miles for Youth provides miles to nonprofits who support young people to reach their full potential.

Angel Flight West

Angel Flight West provides patient transportation for those needing medical treatment in another city and who otherwise would not be able to afford the cost of getting there.

Angel Flight West - Free Flights for Those in Need

Dream Foundation

Dream Foundation is the first and largest national organization whose mission is the granting of dreams to adults, over the age of 18, who are suffering life-limiting illnesses. Donated miles are used to reunite families, bring loved ones together or to create lasting memories with one last family trip. Learn more.

Dream Foundation - Gilda's Club

Fred Hutchinson Cancer Research Foundation

Fred Hutchinson Cancer Research Center is an independent, nonprofit biomedical-research institution and is one of 39 National Cancer Institute-designated comprehensive cancer centers nationwide.

Learn more.

File:Fred Hutch logo.svg - Wikimedia Commons

Fisher House Foundation

Fisher House Foundation™ administers the Hero Miles program to provide transportation to wounded, injured, and ill military members and their loved ones. By bringing patient and family together, whether at a hospital bedside or an approved occasion, the donation of travel rewards directly promotes the continued healing process of our military heroes.

Fisher House Foundation - Wikipedia

Make-A-Wish

Grants wishes to children with serious illnesses or injuries. When Make-A-Wish® volunteers ask a child for his or her favorite wish, very often the response begins with “I wish to go to…”.

Grant the wish of critically ill children | Make-A-Wish

Medical Teams International

Medical Teams International is a disaster relief organization that provides much needed medical staff and equipment/supplies to areas stricken throughout the world.

Medical Teams International | Faith-Based International Medical Relief

National Forest Foundation

Engages America in community-based and national programs that promote the health and public enjoyment of the 193-million-acre National Forest System. NFF programs—with a strong presence in Alaska and the Pacific Northwest—utilize collaborative conservation to restore our forests, watersheds, wildlife habitat, and recreation resources.

The Nature Conservancy

The leading conservation organization working around the world to protect ecologically important lands and waters for nature and people.

Seattle Children’s Hospital

Seattle Children’s Hospital is nationally ranked and provides superior patient care, advance treatments through pediatric research and serves as the pediatric and adolescent academic medical center in Washington, Alaska, Montana and Idaho- the largest region of any children’s hospital in the country.

Seattle Children's Hospital

UNCF

UNCF’s mission is to build a robust and nationally-recognized pipeline of under-represented students who, because of UNCF support, become highly-qualified college graduates and to ensure that our network of member institutions is a respected model of best practice in moving students to and through college.

UNCF.svg

The Honor Flight Network

We’ve added a new cause to CARE Miles! You can now donate your miles to support the Honor Flight Network’s Lone Eagle Program. Learn more in the description below. While we get our system updated to accept automatic donations, you can donate to Lone Eagle Honor Flight by emailing us from the email address associated with your Mileage Plan account.

Saladino and Hand Seek Veteran Applicants for Long Island “Honor Flights” – Town of Oyster Bay

Please note: A minimum of 1,000 miles is required to donate to Alaska Airlines CARE Miles Program, and donations can be made in increments of 1,000 miles.

YOUR PASS TO ELITE STATUS

With a Flight Pass subscription, you’ll choose your own frequent flights every month to great destinations within California, between California and Nevada, and between California and Arizona. Subscribers lock in a price for 12 months worth of travel, below standard airfare rates.* With a fixed per-month price, you don’t have to worry about fares increasing, and planning/budgeting travel becomes a breeze. Plus, flying Alaska means you always land amazing care in the air.

Subscribe to Flight Pass

Aloha, partner! Alaska Airlines welcomes Mokulele Airlines to Mileage Plan

Hawaii-based carrier will connect our guests on interisland flights to 10 destinations across the state starting early next year; Mileage Plan members will earn miles on Mokulele flights

As we celebrate 15 years of serving the Hawaiian Islands, we are deepening our commitment to the state with an enhanced partnership with Mokulele Airlines, our newest Mileage Plan partner, starting in early 2023. By joining forces, we’re making it easier and more convenient for our guests to fly to additional locations throughout the islands.

Mokulele offers more interisland frequencies than any other airline in Hawaii with more than 800 flights a week—including as many as 150 peak-day departures—to 10 destinations across the Aloha State. With connecting service on Mokulele, our guests will enjoy quicker access to seven new locations and two islands not directly served by Alaska, such as Hilo, Lanai and Molokai. Mokulele is the only carrier in Hawaii with regularly scheduled service to Lanai and Molokai.

Starting early 2023, here’s how our guests will benefit from our new partnership with Mokulele Airlines: 

– Flights on Mokulele will be available for purchase directly on alaskaair.com. That addition to our website will happen early next year. 
– Mileage Plan members who purchase tickets directly on alaskaair.com will earn miles when flying on Mokulele.

Our enhanced partnership with Mokulele Airlines will provide our guests with a more streamlined way to travel to additional communities across the islands to appreciate the culture, beauty and adventure of Hawaii,” said Nat Pieper, senior vice president of fleet, finance and alliances at Alaska Airlines. “This is also a terrific way for our Mileage Plan members to earn additional miles while traveling to one of the most beautiful places in the world.”

Hawaii is easy to get to on Alaska, thanks to an average of 30 nonstop peak-daily flights from seven West Coast cities (Anchorage, Seattle, Portland, San Francisco, San Jose, Los Angeles  and San Diego) to the four largest islands – Oahu, Maui, Kauai and the Island of Hawaii.

Mokulele Airlines has operated for nearly 30 years. The company is owned by Southern Airways, which is the largest commuter airline in the U.S. In November, Southern will add a second 28-seat Saab 340 aircraft to Mokulele’s overall fleet as part of its expansion.

Mokulele serves 10 destinations in Hawaii: Honolulu on Oahu; Hana, Kahului and Kapalua on Maui; Hilo, Waimea-Kohala and Kona on Hawaii Island; Lanai City on Lanai; Kalaupapa and Hoolehua on Molokai.

Our partnership extends to all flights operated by Southern Airways Express, enabling connections in Los Angeles, Phoenix, Denver, Washington-Dulles, St. Louis, Dallas/Ft. Worth, Nashville, Atlanta and Pittsburgh.

“We are in a growth mode, bringing more aircraft and larger aircraft to Hawaii,” said Keith Sisson, chief of staff at Southern Airways. “For the upcoming year, we are looking at every possibility for offering a more diverse platform of services to the people of the islands. Enhancing our partnership with Alaska Airlines is the next step to our becoming Hawaii’s most comprehensive air service provider.”

Alaska has flown to Hawaii for 15 years. We launched our first flight between Seattle and Honolulu on Oct. 12, 2007. Service between Seattle and Lihue, Kauai, started two weeks later, followed by Anchorage-Honolulu service in December 2007. In 2008, Alaska began serving Kona on the Island of Hawaii and Kahului on Maui.

With our award-winning service, we offer onboard amenities for a terrific trip to the islands: Our planes have a three-class cabin including First Class and Premium Class; power outlets at every seat to keep devices charged; hundreds of free movies and TV shows that can streamed inflight to your own devices; most flights are enabled with streaming-fast satellite Wi-Fi available for purchase; and you can pre-order from a range of fresh meal options. Also, if you have to make different travel plans, there are no change fees to do that.

After delighting kids on Make-A-Wish flights for years, Alaska pilots never imagined one would be for them 

Captain Ryan McNelis and First Officer Bethany McNelis have each piloted Make-A-Wish flights over their careers with Alaska Airlines. Welcoming kids into the fight deck and showing them the bells and whistles brings joy to families dealing with a child’s critical illness. 

They never in a million years imagined they’d be on a Make-A-Wish flight for their own family.  

Yet, this week they were—seated not in the flight deck, but in row 21 with their daughter Maeve and her brother Rowan, thanks to Make-A-Wish of Alaska & Washington.  The smiles on their faces and excitement for their trip to Disney World in Orlando, Florida concealed what they had endured the last two years—when their lives were tipped upside down by their baby girl’s illness.  

Trusting her “mom sense” 

The McNelises first noticed that something was different with Maeve when she was learning to walk.  “She’d take a step or two and would gingerly sit down, as if in pain,” Bethany said.  

Several trips to the doctor diagnosed her with anemia, and then an ear infection. But Bethany’s ‘mom sense’ said it was something more. Ryan and Bethany persisted, and a blood test and very observant nurse practitioner finally led them to Seattle Children’s Hospital.  

There they were given the news no parent ever wants to hear. Maeve had neuroblastoma, a rare form of childhood cancer. 

Overnight, the hospital became Maeve’s new home as she braved chemotherapy, surgery, two stem cell transplants, radiation and immunotherapy. Ryan and Bethany wore down their tire treads making the trip between Gig Harbor and Seattle over the next two years. 

Taking care of our own 

As the McNelises were caring for Maeve, their Alaska Airlines family cared for them. “The company took care of us,” Bethany said.  She was able to take leave and stay with Maeve, while Ryan got a break in his schedule.  

“We are just so appreciative of the support. It eased our stress level,” she said. 

In a stroke of serendipity, one of Maeve’s nurses at Children’s happened to be the daughter of Dave Mets, Alaska VP of flight operations.  “She and Maeve had a special bond, it was so amazing,” Bethany said, noting that Maeve often talks of her nurses and plays “hospital”-caring for her stuffed animals–attaching strings as make-shift IVs for their ‘icky’ medicine. 

But on Tuesday at the airport, there wasn’t a needle or nurse to be seen.  

As the McNelis family walked to their gate, there was a party waiting—a country farm backdrop with whimsical cows and horses, pink cowboy hats and gifts for Maeve and her brother—thanks to the wish fairies of Make-A-Wish.  

But perhaps the biggest surprise came when the boarding door opened, and Maeve met the pilot—her Uncle Joey!  First Officer Joey McNelis. Ryan’s brother and a fellow pilot at Alaska, was flying their plane. 

First Officer Joey McNelis “Uncle Joey” greets Maeve.

All in the family 

Aviation runs in the McNelis family. In addition to Joey, Ryan and Bethany working for Alaska Airlines, their father Jim is a retired captain, mom Joleta is a retired flight attendant and Uncle Scott Willott is a maintenance controller.  

So, the natural question is—does Maeve want to be a pilot? “Nope,” she said as she hugged her new stuffed horse that she had already named ‘Spirit.’  “I want to be a cowgirl.” 

Behind the scenes, making sure everything was in order, was Alaska’s own Teresa Jean-Baptiste, lead customer service agent.  Jean-Baptise has been greeting Make-A-Wish families at Sea-Tac with her friendly smile and easy manner for over two decades. In fact, she trained her coworkers on the art of breezing the families through check-in, security and helping them board. 

Jean-Baptise, a mom of three, held back tears as the family boarded—“This is just the best part of my job,” she said.  

Medicine for the spirit, and not the icky kind 

Maeve’s is the 8,000th wish granted by Make-A-Wish Alaska & Washington. Alaska Airlines has been a proud Make-A-Wish partner since 1986, when we flew our first wish trip–a little girl and her family headed to Disneyland.   

Wishes fill a vital need for children facing critical illnesses,” said Make-A-Wish’s Kathryn Mueller.“They give hope and joy to families after long hospital stays and grueling treatment regimens. Wishes allow children to believe anything is possible. We can’t thank Alaska Airlines enough for helping bring dreams to life.” 

You can help support Make-A-Wish Alaska & Washington using Alaska Airlines miles. These miles are used to send wish children and their families, like Maeve, to the destinations of their dreams. Donate miles now at alaskaair.com/donatemiles. And read more at Make-A-Wish® Alaska & Washington. 

Alaska Airlines teams up with Lyft for new partnership to earn miles wherever you go 

Mileage Plan members can earn 1 mile for every $1 spent on all Lyft rides in the U.S. and Canada, plus this holiday season they can earn 2 miles for every $1 spent on Lyft rides – anytime, everywhere; guests can redeem miles for flights 

Your travels this holiday season just got more rewarding! Alaska Airlines has hitched a new partnership with Lyft – one of the largest transportation networks in the U.S. and Canada – and we’re eager for our guests to come along for the ride.  

Starting today, our Mileage Plan members can earn miles for their everyday Lyft rides – such as trips to and from the airport, heading out to a concert or across town for a holiday party. The sky’s the limit. All it takes is a simple step of linking your Mileage Plan and Lyft accounts. And we’re adding a festive bonus. Between now and Dec. 31, 2022, our members will earn double miles: two miles for every dollar* spent on rides everywhere Lyft operates in the U.S. and Canada. 

EARN MILES WITH LYFT

We always want our guests to have a terrific travel experience, even when they’re not flying with us. Our new partnership with Lyft makes sure our flyers are also cared for on the ground as they go places,” said Sangita Woerner, senior vice president of marketing and guest experience at Alaska Airlines. “Alaska and Lyft are both respected brands by millions of customers who turn to us for access to their preferred modes of transportation.” 

It’s easy to start earning miles with Lyft right away: 

  • The first thing to do is link your Mileage Plan and Lyft accounts at AlaskaLyft.com. Signing up is free.  
  • Once your accounts are linked, you’re ready to earn miles.  
  • You’ll earn one mile for every dollar* spent on all Lyft rides in the U.S. and Canada with no limit on the amount of miles you can earn. 
  • Make sure Alaska Mileage Plan is selected as your preferred travel partner in the Rewards section in the Lyft app. For additional details, visit AlaskaLyft.com.  
  • All Lyft rides are eligible for earning miles, which includes Lyft Standard, Wait & Save, Priority Pickup, Shared, Shared Saver, Preferred, Lyft XL, Lux, Lux Black and Lux Black XL rides*. 

We are thrilled to provide our riders with more benefits and opportunities to enjoy a best-in-class travel experience. At Lyft, we’re committed to hospitality and to giving our users the chance to unlock the best value for all their transportation needs – a key purpose embedded in this partnership. The Alaska team’s dedication to customer loyalty and creating a culture of belonging aligns seamlessly with many of the values that we maintain at Lyft.”

– Zach Greenberger, Vice President of Strategic Business Development and Supply Chain at Lyft.  

There’s also a way to earn even more miles. Mileage Plan members with the Alaska Airlines Visa Signature® credit card earn an additional mile for every dollar spent when they use it for payment when riding with Lyft. It’s just another way using the credit card for everyday purchases can earn miles redeemable for memorable experiences down the road. 

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 20 oneworld and partner airlines all around the globe. Elite status on Alaska automatically matches tier status in oneworld right away and all the benefits that come with it.  

*Lyft ride prices/payments that are eligible to earn miles include base fare rideshare charges but exclude taxes, fees, tolls and tips. Bike and scooter rides are not eligible for earning miles. Riders earn rewards with only one travel partner at a time with Lyft. See full offer terms for more details. There are also full terms on the bonus miles being offered between now through Dec. 31, 2022. The credit card program is issued and administered by Bank of America, N.A. Visa and Visa Signature® are registered trademarks of Visa International Service Association and are used by the issuer pursuant to license. 

  

Alaska Airlines makes biggest Boeing aircraft order in its 90-year history

We’re adding 52 Boeing aircraft with rights for an additional 105,
setting us up for long-term growth

Alaska Airlines announced today it is exercising options to purchase 52 Boeing 737 MAX aircraft for delivery between 2024 and 2027—growing the airline’s confirmed 737 MAX fleet from 94 to 146. Alaska also secured rights for 105 more planes through 2030, ensuring access to sufficient aircraft for fleet replacement and growth. This agreement represents the largest commitment for future aircraft in the airline’s history.

This investment secures aircraft to optimize our growth through the next decade, which we know will be a formidable competitive advantage,” said Alaska Airlines CEO Ben Minicucci. “We’re proud of the strong financial foundation that uniquely positions Alaska to make this commitment to our future, and of the fantastic partnership we share with our hometown aircraft manufacturer at Boeing.”

Already operating a fleet of 35 737-9 aircraft, we expect to accept delivery of another 43 MAX aircraft between now and the end of 2023—at which point we will once again operate a mainline fleet solely of Boeing aircraft. The performance of the 737-9 has exceeded expectations on economics and fuel efficiency, as well as guest satisfaction.

This order positions Alaska’s fleet as one of the most efficient, environmentally friendly, and profitable fleets in the industry. The order includes 737-8, 737-9 and 737-10 aircraft, enabling Alaska to optimally match aircraft size and capability with market characteristics. We have full flexibility to shift between 737 MAX models as appropriate.

“As Alaska Airlines sustainably grows its fleet, the 737 MAX family offers environmental performance and flexibility to expand service across its route network,” said Stan Deal, president and CEO of Boeing Commercial Airplanes. “Built in our Renton factory near Alaska’s headquarters in Washington state, these airplanes will carry passengers to destinations for years to come.”

This order gives Alaska line of sight to operating more than 250 737 MAX series of aircraft by 2030. The flexibility built into the agreement allows us to match our deliveries with economic conditions while saving our place in the production line.

Fast Facts:

  • By 2030, Alaska could operate more than 250 new aircraft from the 737 MAX series.
  • In 2023, a new 737 MAX will be delivered approximately every 10 days.
  • These new aircraft join Alaska’s fleet of 737-900ERs, 737-900s, 737-800s and 737-700s.
  • Alaska is on track to sunset Airbus aircraft by the end of 2023.

Sport your Kraken jersey, score priority boarding on Alaska Airlines all season long

Hockey is back in Seattle! And it’s time to rally & look fly doing it! All season long, if you’re flying out of Seattle, Everett or Palm Springs and wear a Seattle Kraken or Coachella Valley Firebird jersey, you’ll score priority boarding!

Now, through the end of the hockey season, Kraken fans who wear the teams’ jersey can board early on all Alaska flights departing from the Seattle-Tacoma International Airport (SEA) and Paine Field (PAE). 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.

As the official airline of the Kraken, we can’t wait to see fans flood Climate Pledge Arena in our hometown, where our community and guests will get to enjoy the Alaska Airlines Atrium, which will serve as the main entrance for all events at the Climate Pledge Arena.

Located on the south side of the arena, the Atrium spans 36,000 square-feet and feature stories and images reflecting the Pacific Northwest and the travel opportunities within our region and across the globe.

What does priority boarding mean exactly?  Guests sporting a Kraken or Firebirds hockey jersey will skate their way to the fast lane, following group B. Just be sure to listen closely to your gate agent’s announcements!

Hawaiian Holdings Reports 2022 Third Quarter Financial Results

HA High Res Logo_mid


HONOLULU — Hawaiian Holdings, Inc. (NASDAQ: HA) (the "Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported its financial results for the third quarter of 2022.

"We enjoyed strong demand for travel to Hawaiʻi this summer led by our North America routes and are encouraged to see these trends continue into the fall, while the relaxation of travel restrictions in Japan sets the stage for the full restoration of our network in the months ahead," said Peter Ingram, president and CEO at Hawaiian Airlines. "Our competitive position is strong.  And above all else we continue to have the best team in the business that has taken on every challenge over the last few years and continues to deliver outstanding service and hospitality."

Financial Results

Third Quarter 2022

The Company reported:

  • GAAP net loss of $(9.3) million , and an adjusted net loss of $(7.7) million .
  • GAAP EPS of $(0.18) , and adjusted EPS of $(0.15) .
  • EBITDA of $46.8 million , and adjusted EBITDA of $47.9 million .

Third Quarter 2022 Highlights

Revenue Environment

The Company continued to enjoy strong demand throughout its domestic network and is seeing a solid recovery in its international network. The Company's overall operating revenue was down 1.9% from third quarter 2019 as its international network is still rebuilding.

Other revenue was up 28.2% compared to the third quarter of 2019 driven by a strong quarter of cargo revenue and sales of HawaiianMiles.

Amazon Agreement

On October 21, 2022 , the Company announced an eight-year agreement with Amazon to provide flight operations and maintenance services for Amazon's air cargo operation.  Amazon will provide a minimum of 10 A330-300 freight aircraft, and the Company will provide crew and line maintenance for this fleet.  The initial aircraft are scheduled to enter service in the second half of 2023.  In support of this business, the Company will open mainland base(s) for crew and maintenance.  Under the agreement, Amazon can grow its fleet with Hawaiian above the initial 10 aircraft and extend the contract beyond the initial eight-year term.  This agreement will provide the Company with a new long-term diversified stream of revenue with no aircraft acquisition costs.  As part of the agreement, Amazon will receive warrants to acquire up to 9.4 million of the Company's common shares vesting over nine years.

Routes and Network

During the third quarter of 2022, the Company operated at 93% of its 2019 third quarter system capacity, comprised of 116%, 82% and 52% capacity on its North America , Neighbor Island and International routes, respectively.

Liquidity and Capital Resources

As of September 30, 2022, the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $1.4 billion
  • $1.7 billion in liquidity, including its undrawn $235 million revolving credit facility
  • Outstanding debt and finance lease obligations of $1.7 billion
  • Air traffic liability and current frequent flyer deferred revenue of $700 million

Operational Excellence

In August 2022 , the Company announced a partnership with Honolulu Community College to increase access to Aviation Maintenance Technician careers. The partnership will enable the college to double the number of students enrolled in the Aeronautics Maintenance Technology program by fall of 2023. One component of this program is the opportunity for students to take classes during the day while also participating in a paid part-time apprenticeship at Hawaiian Airlines.

Awards and Recognition

In August 2022 , Forbes named Hawaiian Airlines as Hawai'i's Best Employer as part of the 2022 America's Best Employers by State rankings.

Environmental, Social and Corporate Governance

In August 2022 , the Company awarded a $100,000 grant to Kākoʻo ʻŌiwi, a nonprofit organization dedicated to advancing the cultural, spiritual and traditional practices of the Native Hawaiian community. The grant will fund the construction of a wash and pack facility in Heʻeia that can be accessed by area farmers to process locally grown crops.

Fourth Quarter 2022 Outlook

The Company expects its capacity for the quarter ending December 31, 2022 to be down approximately 4% to down 7% compared to the fourth quarter of 2019, mostly driven by the delay of the full restoration of its Japan network.

The Company expects its total revenue for the quarter ending December 31, 2022 to be up 1.5% to up 5.5% compared to the fourth quarter of 2019.

The Company expects its CASM excluding fuel and non-recurring items for the quarter ending December 31, 2022 to be up approximately 13% to 16% compared to the fourth quarter of 2019.

The Company's outlook for adjusted EBITDA for the quarter ending December 31, 2022 is – $5 million to $35 million .

The table below summarizes the Company's expectations for the quarter ending December 31, 2022 expressed as an expected percentage change compared to the results for the quarter ended December 31, 2019 .

Item

 

Fourth Quarter 2022 Guidance

 

GAAP Equivalent

 

GAAP Fourth Quarter 2022 Guidance

ASMs

 

Down 4% to 7%

       

Total Revenue

 

Up 1.5% to up 5.5%

       

Costs per ASM excluding fuel and non-recurring items (a)

 

Up 13% to 16%

 

Costs per ASM (a)

 

up 24% to 27%

Gallons of Jet Fuel Consumed

 

Down 5.5% to 8.5%

       

Fuel Price per Gallon (b)

 

$3.49

       

Adjusted EBITDA (c)

 

$-5 million to $35 million

 

Net Income (c)

   
 

(a) See Table 3 for a reconciliation of GAAP operating expenses to operating expenses excluding fuel and non-recurring items.

(b) Fuel Price per Gallon estimates are based on the October 13, 2022 fuel forward curve.

(c) The Company is not providing a reconciliation of adjusted EBITDA to GAAP net income, the most directly comparable GAAP measure, as it is unable, without unreasonable efforts, to calculate special and non-recurring charges, which could have a significant impact on the GAAP measure.

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

Full Year 2022 Outlook

The table below summarizes the Company's updated expectations for the full year ending December 31, 2022 expressed as an expected percentage change compared to the results for the year ended December 31, 2019 .

Item

 

Full Year 2022 Guidance

Gallons of Jet Fuel Consumed

 

Down 10% to 13%

Fuel Price per Gallon (a)

 

$3.47

Effective Tax Rate

 

~18% to ~19%

Capital Expenditures

 

$120 million to $135 million

(a) Fuel Price per Gallon estimates are based on the October 13, 2022 fuel forward curve

Investor Conference Call

Hawaiian Holdings' quarterly results conference call is scheduled to begin today, October 25, 2022, 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
Hawaiian ® has led all U.S. carriers in on-time performance for each of the past 18 years (2004-2021) as reported by the U.S. Department of Transportation and 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.

Now in its 93rd year of continuous service, Hawaiian is Hawaiʻi's biggest and longest-serving airline. Hawaiian offers approximately 130 daily flights within the Hawaiian Islands, daily 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.

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 ability, timing and progress in recovering from the impacts of COVID-19 pandemic; the Company's timing and expectations related to network and route recovery; future domestic and international demand for air travel; expectations and outcomes related to the Company' cargo deal with Amazon; the outcomes of the Company's partnership with Honolulu Community College ; the outcomes of the Company's grant to Kākoʻo ʻŌiwi; the Company's outlook for the quarter ending December 31, 2022 and twelve-months ending December 31, 2022 ; the Company's expectations and plans related to the restatement of its financial statements for the quarters ended March 31, 2022 and June 30, 2022 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.  These risks and uncertainties include, without limitation, the continuing and developing effects of the spread of COVID-19 on the Company's business operations and financial condition; fluctuations and the extent of declining demand for air transportation in the markets in which the Company operates; the Company's dependence on the tourism industry; current macroeconomic conditions, including inflationary pressures; the Company's ability to accurately forecast economic volatility; macroeconomic developments; political developments; geopolitical conflict; the price and availability of aircraft fuel; labor negotiations; supply chain constraints; regulatory determinations and related developments; competitive pressures, including the impact of industry capacity between North America and Hawai'i and interisland; changes in the Company's future capital needs; foreign currency exchange rate fluctuations; the outcome of the Company's evaluation of its accounting with respect to previously issued financial statements, including the possibility of material adjustments thereto; the discovery of additional and unanticipated information during the procedures required to be completed before the Company is able to file its required restated reports for the quarters ended March 31, 2022 and June 30, 2022 ; and the application of accounting or tax principles in an unanticipated manner.

The risks, uncertainties and assumptions referred to above that could cause the Company's results to differ materially from the results expressed or implied by such forward-looking statements also include the risks, uncertainties and assumptions discussed from time to time in the Company's other 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 September 30,

 

Nine months ended September 30,

   

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

   

(in thousands, except per share data)

Operating Revenue:

                       

Passenger

 

$   663,107

 

$   454,044

 

46.0 %

 

$  1,684,599

 

$   947,784

 

77.7 %

Other

 

78,047

 

54,804

 

42.4 %

 

225,634

 

154,062

 

46.5 %

Total

 

741,154

 

508,848

 

45.7 %

 

1,910,233

 

1,101,846

 

73.4 %

Operating Expenses:

                       

Wages and benefits

 

206,306

 

180,405

 

14.4 %

 

615,091

 

511,342

 

20.3 %

Aircraft fuel, including taxes and delivery

 

225,999

 

108,785

 

107.7 %

 

603,873

 

240,361

 

151.2 %

Maintenance, materials and repairs

 

59,317

 

48,081

 

23.4 %

 

170,934

 

119,416

 

43.1 %

Aircraft and passenger servicing

 

41,044

 

30,915

 

32.8 %

 

110,490

 

73,896

 

49.5 %

Depreciation and amortization

 

34,347

 

33,899

 

1.3 %

 

102,435

 

104,368

 

(1.9) %

Commissions and other selling

 

32,505

 

20,964

 

55.1 %

 

81,767

 

49,643

 

64.7 %

Aircraft rent

 

25,921

 

26,680

 

(2.8) %

 

77,987

 

84,200

 

(7.4) %

Other rentals and landing fees

 

38,370

 

36,414

 

5.4 %

 

110,022

 

83,421

 

31.9 %

Purchased services

 

31,269

 

27,361

 

14.3 %

 

95,713

 

75,229

 

27.2 %

Special items

 

6,303

 

—

 

100.0 %

 

6,303

 

8,983

 

(29.8) %

Government grant recognition

 

—

 

(78,256)

 

(100.0) %

 

—

 

(320,645)

 

(100.0) %

Other

 

43,145

 

30,133

 

43.2 %

 

112,884

 

82,854

 

36.2 %

Total

 

744,526

 

465,381

 

60.0 %

 

2,087,499

 

1,113,068

 

87.5 %

Operating Income (Loss)

 

(3,372)

 

43,467

 

(107.8) %

 

(177,266)

 

(11,222)

 

1,479.6 %

Nonoperating Income (Expense):

                       

Interest expense and amortization of debt discounts and issuance costs

 

(23,206)

 

(29,897)

     

(72,760)

 

(83,905)

   

Interest income

 

9,287

 

2,067

     

20,283

 

4,661

   

Capitalized interest

 

1,061

 

880

     

3,173

 

2,340

   

Gains (losses) on fuel derivatives

 

(1,063)

 

—

     

(1,063)

 

217

   

Loss on extinguishment of debt

 

—

 

—

     

(8,568)

 

(3,994)

   

Other components of net periodic benefit cost

 

1,252

 

981

     

3,812

 

2,943

   

Gains (losses) on investments, net (1)

 

(4,028)

 

(196)

     

(38,519)

 

400

   

Gains on foreign debt

 

9,978

 

1,944

     

42,295

 

21,074

   

Other, net

 

(688)

 

(77)

     

(2,318)

 

1,537

   

Total

 

(7,407)

 

(24,298)

     

(53,665)

 

(54,727)

   

Income (Loss) Before Income Taxes

 

(10,779)

 

19,169

     

(230,931)

 

(65,949)

   

Income tax expense (benefit)

 

(1,510)

 

4,500

     

(41,010)

 

(13,750)

   

Net Income (Loss)

 

$      (9,269)

 

$      14,669

     

$  (189,921)

 

$    (52,199)

   

Net Income (Loss) Per Share

                       

Basic

 

$        (0.18)

 

$          0.29

     

$        (3.70)

 

$        (1.03)

   

Diluted

 

$         (0.18)

 

$          0.28

     

$         (3.70)

 

$         (1.03)

   

Weighted Average Number of Common Stock Shares Outstanding:

                       

Basic

 

51,388

 

51,210

     

51,344

 

50,619

   

Diluted

 

51,388

 

51,825

     

51,344

 

50,619

   
 

(1) Reflects the anticipated impact of the Company's correction of unrealized losses from equity securities, net of the tax effect of such accounting, as the Company anticipates disclosing in its restated financial statements for the quarters ended March 31, 2022 and June 30, 2022, to be filed with the SEC as soon as practicable.

 

 

Hawaiian Holdings, Inc.

Consolidated Balance Sheet (unaudited)

 
   

September 30, 2022

(unaudited)

 

December 31, 2021

   

(in thousands, except shares)

ASSETS

       

Current Assets:

       

Cash and cash equivalents

 

$                275,128

 

$               490,561

Restricted cash

 

17,352

 

17,267

Short-term investments

 

1,152,711

 

1,241,752

Accounts receivable, net

 

87,417

 

92,888

Income taxes receivable

 

70,233

 

71,201

Spare parts and supplies, net

 

37,163

 

34,109

Prepaid expenses and other

 

85,544

 

66,127

Total

 

1,725,548

 

2,013,905

Property and equipment, less accumulated depreciation and amortization of $1,102,152 and $999,966 as of September 30, 2022 and December 31, 2021, respectively

 

1,887,671

 

1,957,623

Other Assets:

       

Assets held-for-sale

 

15,897

 

29,449

Operating lease right-of-use assets

 

477,169

 

536,154

Long-term prepayments and other

 

91,333

 

80,489

Intangible assets, net

 

13,500

 

13,500

Total Assets

 

$             4,211,118

 

$            4,631,120

LIABILITIES AND SHAREHOLDERS' EQUITY

       

Current Liabilities:

       

Accounts payable

 

$                147,052

 

$               114,400

Air traffic liability and current frequent flyer deferred revenue

 

699,802

 

631,157

Other accrued liabilities

 

173,966

 

165,050

Current maturities of long-term debt, less discount

 

45,205

 

97,096

Current maturities of finance lease obligations

 

25,886

 

24,149

Current maturities of operating leases

 

76,421

 

79,158

Total

 

1,168,332

 

1,111,010

Long-Term Debt

 

1,574,660

 

1,704,298

Other Liabilities and Deferred Credits:

       

Noncurrent finance lease obligations

 

80,476

 

100,995

Noncurrent operating leases

 

366,137

 

423,293

Accumulated pension and other post-retirement benefit obligations

 

152,894

 

160,817

Other liabilities and deferred credits

 

78,574

 

78,340

Noncurrent frequent flyer deferred revenue

 

307,443

 

296,484

Deferred tax liability, net

 

135,119

 

186,797

Total

 

1,120,643

 

1,246,726

Commitments and Contingencies

       

Shareholders' Equity:

       

Special preferred stock, $0.01 par value per share, three shares issued and outstanding as of September 30, 2022 and December 31, 2021

 

—

 

—

Common stock, $0.01 par value per share, 51,411,336 and 51,233,369 shares outstanding as of September 30, 2022 and December 31, 2021, respectively

 

514

 

512

Capital in excess of par value

 

273,713

 

269,575

Accumulated income (1)

 

190,916

 

380,837

Accumulated other comprehensive loss, net (1)

 

(117,660)

 

(81,838)

Total

 

347,483

 

569,086

Total Liabilities and Shareholders' Equity

 

$             4,211,118

 

$            4,631,120

 

(1) Reflects the anticipated impact of the Company's correction of unrealized losses from equity securities, net of the tax effect of such accounting, as the Company anticipates disclosing in its restated financial statements for the quarters ended March 31, 2022 and June 30, 2022, to be filed with the SEC as soon as practicable.

 

 

Hawaiian Holdings, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)

 
   

Nine months ended September 30,

   

2022

 

2021

   

(in thousands)

Net cash provided by (used in) Operating Activities

 

$                 (24,050)

 

$                311,300

Cash flows from Investing Activities:

       

Additions to property and equipment, including pre-delivery payments

 

(29,717)

 

(34,144)

Proceeds from the disposition of aircraft and aircraft related equipment

 

10,743

 

394

Purchases of investments

 

(751,509)

 

(1,529,293)

Sales of investments

 

756,561

 

598,979

Net cash used in investing activities

 

(13,922)

 

(964,064)

Cash flows from Financing Activities:

       

Proceeds from the issuance of common stock

 

—

 

68,132

Long-term borrowings

 

—

 

1,251,705

Repayments of long-term debt and finance lease obligations

 

(173,298)

 

(405,703)

Debt issuance costs and discounts

 

(2,236)

 

(24,664)

Payment for taxes withheld for stock compensation

 

(1,842)

 

(1,763)

Other

 

—

 

1,837

Net cash provided by (used in) financing activities

 

(177,376)

 

889,544

Net increase (decrease) in cash and cash equivalents

 

(215,348)

 

236,780

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

 

507,828

 

509,639

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

 

$                292,480

 

$                746,419

 

 

Table 2.

Hawaiian Holdings, Inc.

Selected Statistical Data (unaudited)

 
   

Three months ended September 30,

 

Nine months ended September 30,

   

2022

 

2021 (a)

 

% Change

 

2022

 

2021 (a)

 

% Change

   

(in thousands, except as otherwise indicated)

Scheduled Operations:

                       

Revenue passengers flown

 

2,738

 

2,056

 

33.2 %

 

7,345

 

4,512

 

62.8 %

Revenue passenger miles (RPM)

 

4,113,172

 

3,181,165

 

29.3 %

 

10,950,031

 

7,000,012

 

56.4 %

Available seat miles (ASM)

 

4,957,011

 

4,188,971

 

18.3 %

 

13,704,779

 

10,201,330

 

34.3 %

Passenger revenue per RPM (Yield)

 

16.12  ¢

 

14.27  ¢

 

13.0 %

 

15.38  ¢

 

13.54  ¢

 

13.6 %

Passenger load factor (RPM/ASM)

 

83.0 %

 

75.9 %

 

7.1   pts.

 

79.9 %

 

68.6 %

 

11.3         pts.

Passenger revenue per ASM (PRASM)

 

13.38  ¢

 

10.84  ¢

 

23.4 %

 

12.29  ¢

 

9.29  ¢

 

32.3 %

Total Operations:

                       

Revenue passengers flown

 

2,741

 

2,066

 

32.7 %

 

7,361

 

4,533

 

62.4 %

Revenue passenger miles (RPM)

 

4,117,551

 

3,205,407

 

28.5 %

 

10,975,703

 

7,056,854

 

55.5 %

Available seat miles (ASM)

 

4,964,785

 

4,229,461

 

17.4 %

 

13,744,129

 

10,298,035

 

33.5 %

Operating revenue per ASM (RASM)

 

14.93  ¢

 

12.03  ¢

 

24.1 %

 

13.90  ¢

 

10.70  ¢

 

29.9 %

Operating cost per ASM (CASM)

 

15.00  ¢

 

11.00   ¢

 

36.4 %

 

15.19  ¢

 

10.81  ¢

 

40.5 %

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

 

10.32  ¢

 

10.28  ¢

 

0.4 %

 

10.73  ¢

 

11.50   ¢

 

(6.7) %

Aircraft fuel expense per ASM (c)

 

4.55  ¢

 

2.57  ¢

 

77.0 %

 

4.40  ¢

 

2.33  ¢

 

88.8 %

Revenue block hours operated

 

51,284

 

45,816

 

11.9 %

 

143,646

 

112,061

 

28.2 %

Gallons of jet fuel consumed

 

63,834

 

52,599

 

21.4 %

 

174,744

 

126,987

 

37.6 %

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

 

$3.54

 

$2.07

 

71.0 %

 

$3.46

 

$1.89

 

83.1 %

 

(a)     Includes the operations of the Company's contract carrier under a capacity purchase agreement, which was indefinitely suspended in the first quarter of 2021 and terminated in the second quarter of 2021.

(b)     See Table 3 for a reconciliation of GAAP operating expenses to operating expenses excluding aircraft fuel and non-recurring items.

(c)     Includes applicable taxes and fees.

 

Table 3.
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:

  • Government grant recognition . During the three and nine months ended September 30, 2021 , the Company recognized 78.3 million and 320.6 million, respectively, in contra-expense related to grant proceeds under the federal Payroll Support Programs (Government grant recognition). The grant proceeds were recognized in proportion to estimated wages and benefits expense over the period to which the Payroll Support Programs relate.
  • Loss on debt extinguishment . During the nine months ended September 30, 2022 , the Company recognized a $8.6 million loss on the extinguishment of its remaining outstanding Series 2020-1A and Series 2020- 1B Equipment Notes. Loss on extinguishment of debt is excluded to allow investors to better analyze the Company's core operational performance and more readily compare its results to other airlines in the periods presented below.
  • 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.
  • CBA related expense . 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. Negotiated as part of the new CBA, the Company offered a separation program for the IAM-M and IAM-C employees and recorded a one-time severance payment of $2.6 million , which was recorded in wages and benefits during the nine months ended September 30, 2022 .
  • Unrealized (gains) losses on foreign debt . Unrealized loss (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.
  • Gain on sale of aircraft . During the nine months ended September 30, 2022 , the Company sold three ATR-72 aircraft and recorded a $2.6 million gain on sale of aircraft, which was recorded in other operating expense.
  • Special items .
    • During the nine months ended September 30, 2021 , the Company announced the termination of our 'Ohana by Hawaiian operations, which operated under a Capacity Purchase Agreement (CPA) with a third-party carrier. The termination did not meet the requirements of discontinued operations under ASC 205; however, the asset group met the requirements for, and was reclassified as Held-for-Sale on the Consolidated Balance Sheets. We fair valued the asset group resulting in the write-down of approximately $6.4 million . Additionally, we recorded an early termination charge associated with our CPA of approximately $2.6 million .
    • During the third quarter of 2022, the Company estimated the fair value of its remaining ATR-42 and ATR-72 aircraft, which resulted in the recognition of a $6.3 million impairment charge recorded as a Special item in the consolidated statements of operations.
  • Unrealized loss on equity securities . Unrealized loss (gain) 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 recognition of grant proceeds, changes in fair value of equity securities, fuel and foreign currency derivative contracts, fluctuations in exchange rates on debt instruments denominated in foreign currency, CBA ratification bonus, the loss recognized on the extinguishment of debt, helps investors better analyze the Company's operational performance and compare its results to other airlines in the periods presented.

   

Three months ended September 30,

 

Nine months ended September 30,

   

2022

 

2021

 

2022

 

2021

   

Total

 

Diluted Net Loss Per Share

 

Total

 

Diluted Net Loss Per Share

 

Total

 

Diluted Net Loss Per Share

 

Total

 

Diluted Net Loss Per Share

   

(in thousands, except per share data)

Net Income (Loss), as reported

 

$   (9,269)

 

$     (0.18)

 

$   14,669

 

$       0.28

 

$  (189,921)

 

$     (3.70)

 

$  (52,199)

 

$     (1.03)

Adjusted for:

                               

Government grant recognition

 

—

 

—

 

(78,256)

 

(1.51)

 

—

 

—

 

(320,645)

 

(6.33)

Loss on debt extinguishment

 

—

 

—

 

—

 

—

 

8,568

 

0.17

 

3,994

 

0.08

Changes in fair value of fuel derivative contracts

 

1,063

 

0.02

 

—

 

—

 

1,063

 

0.02

 

(382)

 

(0.01)

CBA related expense

 

—

 

—

 

—

 

—

 

4,678

 

0.09

 

—

 

—

Unrealized (gains) losses on foreign debt

 

(9,734)

 

(0.19)

 

(1,945)

 

(0.04)

 

(41,697)

 

(0.81)

 

(20,896)

 

(0.41)

Unrealized (gains) losses on non-designated foreign exchange positions

 

—

 

—

 

—

 

—

 

—

 

—

 

(1,352)

 

(0.03)

Gain on sale of aircraft

 

—

 

—

 

—

 

—

 

(2,578)

 

(0.05)

 

—

 

—

Special items

 

6,303

 

0.12

 

—

 

—

 

6,303

 

0.12

 

8,983

 

0.18

Unrealized loss on equity securities (1)

 

3,445

 

0.07

 

—

 

—

 

22,839

 

0.44

 

—

 

—

Tax effect of adjustments

 

497

 

0.01

 

16,842

 

0.32

 

4,969

 

0.10

 

69,363

 

1.37

Adjusted net loss

 

$    (7,695)

 

$      (0.15)

 

$ (48,690)

 

$      (0.95)

 

$  (185,776)

 

$      (3.62)

 

$  (313,134)

 

$      (6.18)

(1) Reflects the anticipated impact of the Company's correction of unrealized losses from equity securities, net of the tax effect of such accounting, as the Company anticipates disclosing in its restated financial statements for the quarters ended March 31, 2022 and June 30, 2022, to be filed with the SEC as soon as practicable.

 

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 September 30,

 

Nine months ended September 30,

   

2022

 

2021

 

2022

 

2021

   

(in thousands)

Net Income (Loss)

 

$              (9,269)

 

14,669

 

$          (189,921)

 

(52,199)

Income tax expense (benefit)

 

(1,510)

 

4,500

 

(41,010)

 

(13,750)

Depreciation and amortization

 

34,347

 

33,899

 

102,435

 

104,368

Interest expense and amortization of debt discounts and issuance costs

 

23,206

 

29,897

 

72,760

 

83,905

EBITDA, as reported

 

46,774

 

82,965

 

(55,736)

 

122,324

Adjusted for:

               

Government grant recognition

 

—

 

(78,256)

 

—

 

(320,645)

Loss on extinguishment of debt

 

—

 

—

 

8,568

 

3,994

Changes in fair value of fuel derivative instruments

 

1,063

 

—

 

1,063

 

(382)

CBA related expense

 

—

 

—

 

4,678

 

—

Unrealized gain on non-designated foreign exchange positions

 

—

 

—

 

—

 

(1,352)

Unrealized (gains) losses on foreign debt

 

(9,734)

 

(1,945)

 

(41,697)

 

(20,896)

Gain on sale of aircraft

 

—

 

—

 

(2,578)

 

—

Special items

 

6,303

 

—

 

6,303

 

8,983

Unrealized loss on equity securities (1)

 

3,445

 

—

 

22,839

 

—

Adjusted EBITDA

 

$              47,851

 

$                2,764

 

$            (56,560)

 

$          (207,974)

(1) Reflects the anticipated impact of the Company's correction of unrealized losses from equity securities, net of the tax effect of such accounting, as the Company anticipates disclosing in its restated financial statements for the quarters ended March 31, 2022 and June 30, 2022, to be filed with the SEC as soon as practicable.

 

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 September 30,

 

Nine months ended September 30,

   

2022

 

2021

 

2022

 

2021

   

(in thousands, except CASM data)

GAAP Operating Expenses

 

$         744,526

 

$         465,381

 

$      2,087,499

 

$      1,113,068

Adjusted for:

               

Government grant recognition

 

—

 

78,256

 

—

 

320,645

CBA related expense

 

—

 

—

 

(4,678)

 

—

Gain on sale of aircraft

 

—

 

—

 

2,578

 

—

Special items

 

(6,303)

 

—

 

(6,303)

 

(8,983)

Operating Expenses excluding non-recurring items

 

$         738,223

 

$         543,637

 

$      2,079,096

 

$      1,424,730

Aircraft fuel, including taxes and delivery

 

(225,999)

 

(108,785)

 

(603,873)

 

(240,361)

Operating Expenses excluding fuel and non-recurring items

 

$         512,224

 

$         434,852

 

$      1,475,223

 

$      1,184,369

Available Seat Miles

 

4,964,785

 

4,229,461

 

13,744,129

 

10,298,035

CASM – GAAP

 

15.00 ¢

 

11.00 ¢

 

15.19 ¢

 

10.81 ¢

Aircraft fuel, including taxes and delivery

 

(4.55)

 

(2.57)

 

(4.40)

 

(2.33)

Government grant recognition

 

—

 

1.85

 

—

 

3.11

CBA related expense

 

—

 

—

 

(0.03)

 

—

Gain on sale of aircraft

 

—

 

—

 

0.02

 

—

Special items

 

(0.13)

 

—

 

(0.05)

 

(0.09)

CASM excluding fuel and non-recurring items

 

10.32 ¢

 

10.28 ¢

 

10.73 ¢

 

11.50 ¢

 

   

Estimated three months ending December 31, 2022

   

(in thousands, except CASM data)

GAAP operating expenses

 

$              736,380

–

$              774,439

Aircraft fuel, including taxes and delivery

 

(218,598)

–

(225,765)

Loss on sale of aircraft and equipment

 

—

–

—

CBA related expense

 

—

–

—

Adjusted operating expenses

 

$              517,782

–

$              548,674

Available seat miles

 

4,887,337

–

5,044,993

CASM – GAAP

 

15.07 ¢

–

15.35 ¢

Aircraft fuel, including taxes and delivery

 

(4.47)

–

(4.48)

Loss on sale of aircraft and equipment

 

—

–

—

CBA related expense

 

—

–

—

Adjusted CASM

 

10.60 ¢

–

10.87 ¢

 

 

 

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/hawaiian-holdings-reports-2022-third-quarter-financial-results-301659121.html

SOURCE Hawaiian Holdings, Inc.

Hawaiian Airlines Announces Agreement with Amazon to Operate Freighter Aircraft

Amazon Air-HA_mid

HONOLULU – Hawaiian Holdings, Inc. (NASDAQ: HA) (the "Company"), the parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today announced an agreement with Amazon.com, Inc. and its subsidiaries (NASDAQ: AMZN) (“Amazon”) to operate and maintain an initial fleet of 10 Airbus A330-300 freighters starting in the fall of 2023. Hawaiian will maintain and fly Amazon’s A330s under Hawaiian’s FAA air carrier certificate to move cargo between airports near the online retailer’s operations facilities. The initial 10 aircraft will enter into service in 2023 and 2024. The agreement also contemplates the ability to expand the fleet depending on Amazon’s future business needs.

Amazon Air-HA

“We are excited to help serve Amazon customers by providing additional air cargo capacity and logistics support. This recognizes our experience in providing safe and reliable operations, our incredible front-line team, and our shared focus on the customer,” said Peter Ingram, president and CEO at Hawaiian Airlines. “This relationship provides a catalyst to grow our business and the unique opportunity to diversify our revenue sources while capitalizing on our established strengths.”

“We’re thrilled to work with Hawaiian Airlines,” said Sarah Rhoads, Vice President, Amazon Global Air. “They will maintain and operate the next generation of aircraft in our fleet, which is a reflection of the excellence they deliver as a renowned airline with their own A330 aircraft.”

In preparation for service for Amazon, Hawaiian intends to establish a pilot base on the continental U.S., grow existing maintenance bases, and expand the hiring of pilots, mechanics, dispatchers, supply chain employees and others who will help support this new cargo operation.

In connection with the commercial agreement, the Company issued Amazon warrants to acquire up to 15 percent (post-issuance) of its common shares. The warrants are exercisable over the next 9 years.

Hawaiian – which in 1942 became the first commercial airline to transport scheduled U.S. air cargo with the nation’s first cargo certificate – today carries freight on passenger aircraft across its network of flights within Hawai‘i and between the islands and North America, Asia and Oceania.

A conference call for investors and reporters is scheduled for 4 p.m. Eastern Time today. The call will be available 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
Hawaiian® has led all U.S. carriers in on-time performance for each of the past 18 years (2004-2021) as reported by the U.S. Department of Transportation and 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. 

Now in its 93rd year of continuous service, Hawaiian is Hawaiʻi's biggest and longest-serving airline. Hawaiian offers approximately 130 daily flights within the Hawaiian Islands, daily 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.

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 and Mokulele Announce New Agreement for Interline Ticketing

Southern-HA_mid

HONOLULU – Southern Airways/Mokulele Airlines, the largest commuter airline in the country, and Hawaiian Airlines, Hawai‘i’s largest and longest serving airline, today announced a new bilateral interline agreement to facilitate travel bookings and connections for passengers. Hawaiian offers 130 flights within the islands and non-stop service connecting Hawai‘i with 24 destinations in North America, Asia, Australia, New Zealand, Tahiti, and American Samoa. Southern/Mokulele operate over 150 daily departures throughout the Hawaiian Islands.

Southern-HA

This new agreement means that passengers can purchase connections from Mokulele-served airports like Moloka‘i, Lāna‘i, and Kapalua to any Hawaiian Airlines destination worldwide in a single transaction, and upon check-in at the originating airport, receive boarding passes for their connecting flights. Interline passengers traveling from the Continental U.S. or abroad who are flying on Hawaiian Airlines will also benefit from having checked luggage transferred automatically to their Mokulele destination. 

Interline passengers also enjoy flight protections such as hotel accommodations and rebooked flights in the event of certain flight delays or cancellations by either airline.  The partnership between Hawaiian and Mokulele is bilateral, making connecting tickets available for purchase through Mokulele.com, online travel sites, travel agencies, or by calling Hawaiian Airlines.

“Mokulele is pleased to establish this partnership with Hawaiian Airlines,” said Stan Little, Chairman and CEO of Southern Airways/Mokulele Airlines. “We believe our airlines working together will advance our shared goal to benefit the people of Hawai‘i.” 

Mokulele Airlines, which was founded in Kona 28 years ago, was purchased by Southern Airways in 2019.  Since that time, Mokulele has grown to serve 10 Hawai‘i destinations.

“We are pleased to work with Mokulele to make traveling to and from Moloka‘i, Lāna‘i and Kapalua easier for guests,” said Theo Panagiotoulias, Senior Vice President, Global Sales and Alliances at Hawaiian Airlines. “We look forward to enhancing our service to residents of these communities.”

About Southern Airways/Mokulele Airlines

Founded in 2013, Palm Beach-based Southern Airways has quickly grown to become the largest commuter airline in the United States. Operating a diverse fleet of over fifty aircraft, Southern, along with its subsidiaries, Mokulele Airlines and Marianas Southern Airways, serve 52 cities with more than 275 peak-day departures from hubs at Chicago-O’Hare, Dallas/Ft. Worth, Denver, Honolulu, Kahului, Los Angeles, Memphis, Phoenix, Pittsburgh, Saipan, St. Louis, and Washington-Dulles.  For more information, go to www.iFlySouthern.com or visit us on all major social media sites.

About Hawaiian Airlines

Hawaiian® has led all U.S. carriers in on-time performance for each of the past 18 years (2004-2021) as reported by the U.S. Department of Transportation and 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. 

Now in its 93rd year of continuous service, Hawaiian is Hawaiʻi's biggest and longest-serving airline. Hawaiian offers approximately 130 daily flights within the Hawaiian Islands, daily 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.

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.

It’s official: Alaska Airlines pilots vote YES on new contract

SEATTLE — Alaska Airlines pilots, who are represented by the Air Line Pilots Association (ALPA), voted to ratify a new three-year contract. The new contract, which has been overwhelmingly supported by our pilots, includes significant improvements including: increased pay, greater flexibility, better benefits and stronger job security.

More than 96% of Alaska’s 3,300 pilots voted, and the agreement passed by 82%.

Our pilots are leaders in our operation,” said Alaska Airlines’ CEO Ben Minicucci. “While it took some time, I’m glad to have them working under a new contract that values their contributions to Alaska. I’m grateful to our colleagues at ALPA who bargained with determination and a fierce dedication to our pilots. This new contract reiterates what many of us have known for decades: Alaska is a great place to spend a pilot career.”

“Our goal was to negotiate an agreement where our pilots could make Alaska Airlines a lifelong career,” said Captain Will McQuillen, Chairman of the Alaska Airlines Master Executive Council. “This contract is good for our pilots and their families and also good for our airline.”

The new contract, which is effective immediately, includes:

  • Wage increases up to 23% depending on years of service. Top-of-scale captains will now make $306 per hour, which increases to $330 after two years. A market rate adjustment will keep pilots in line with peers at other airlines in the years ahead.
  • ALPA-designed schedules and increased flexibility for pilots to adjust their schedules.
  • Stronger job security ensuring Alaska pilot growth alongside company growth.
  • Retirement contribution increases and no increase to health care costs.

The previous contract became amendable in 2020. Contracts in the airline industry do not expire. Once they become amendable, the current contract remains in effect until a new agreement is ratified. 

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