Hawaiian Holdings Reports 2022 Fourth Quarter and Full Year Financial Results

January 31, 2023
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Hawaiian Airlines
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HONOLULU , Jan. 31, 2023 /PRNewswire/ — Hawaiian Holdings, Inc. (NASDAQ: HA) (the "Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported its financial results for the fourth quarter and full year 2022.

"A heartfelt mahalo to our team as they tirelessly worked through a year in which we had multiple projects in motion that make us a stronger, better airline," said Hawaiian Airlines President and CEO Peter Ingram . "I am incredibly proud of what our team members do to care for our company, our guests and each other. We saw continued strong demand in our domestic markets and recovery in our international markets illustrating that Hawaiʻi is a top destination and we are the carrier of choice. I am excited to see what we can accomplish in 2023 as we continue to build a solid foundation for our future."

Fourth Quarter 2022 – Key Financial Metrics and Results
	GAAP	Yo3Y Change	Adjusted (a)	Yo3Y Change
Net Loss	($50.2M)	($99.9M)	($24.7M)	($70.6M)
Diluted EPS	($0.98)	($2.05)	($0.49)	($1.49)
Pre-tax Margin	(8.6) %	(18.2) pts.	(4.3) %	(13.2) pts.
EBITDA	($6.1M)	($120.3M)	$25.6M	($83.4M)
Operating Cost per ASM	15.46¢	3.30¢	10.89¢	1.35¢

Full Year 2022 – Key Financial Metrics and Results
	GAAP	Yo3Y Change	Adjusted (a)	Yo3Y Change
Net Loss	($240.1M)	($464.1M)	($210.5M)	($429.3M)
Diluted EPS	($4.67)	($9.38)	($4.08)	($8.68)
Pre-tax Margin	(11.1) %	(21.9) pts.	(10.0) %	(20.5) pts.
EBITDA	($61.9M)	($553.6M)	($31.0M)	($515.8M)
Operating Cost per ASM	15.26¢	3.10¢	10.78¢	1.24¢

(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 December 31, 2022 the Company had:

Unrestricted cash, cash equivalents and short-term investments of $1.4 billion
Outstanding debt and finance lease obligations of $1.7 billion
Air traffic liability of $590.8 million
Liquidity of $1.6 billion , including an undrawn revolving credit facility of $235 million

Revenue Environment

The strength of the leisure market was evident as Hawaiian saw robust demand in its U.S. Mainland to Hawaiʻi routes and international routes excluding Japan. Demand remained strong for premium products and there was positive momentum in sales of its Extra Comfort product and newer preferred seat option. The Company's overall operating revenue for the fourth quarter 2022 was up 3.2% compared to the fourth quarter 2019 on 6% lower capacity. The Company's overall operating revenue for 2022 was down 6.7% from 2019 on 9.3% lower capacity as the impacts of Omicron were experienced industry wide in most of the first quarter.

Other revenue for fourth quarter 2022 was up 35.1% compared to the same period in 2019 and for the full year 2022 up 30.4% compared to 2019 driven by cargo revenue and sales of HawaiianMiles.

2022 Highlights

Routes and scheduled services

Operated at 91% of its 2019 capacity, comprised of 115%, 79%, and 44% capacity on its North America , Neighbor Island, and International routes, respectively
Resumed international flights, between Honolulu , Hawaiʻi and Auckland, New Zealand , and Honolulu , Hawaiʻi and Tokyo Haneda Airport
Signed agreement with Amazon to operate and maintain an initial fleet of 10 Airbus A330-300 freighters to move cargo between airports near Amazon's distribution facilities starting in the fall of 2023
Announced a new nonstop flight between Honolulu and Rarotonga, Cook Islands , which will launch in May 2023 , providing travelers from Hawaiian's 15 U.S. Mainland gateway cities convenient one-stop connection to the Cook Islands

Guest experience

Announced agreement with Starlink to provide complimentary industry leading satellite internet connectivity to every guest onboard flights between Hawaiʻi and the continental U.S., Asia , and Oceania starting in 2023
Introduced the benefit of two free checked bags for primary cardmembers who purchase their tickets directly with the Company in partnership with Barclays, its co-brand credit card issuer
Established a new interline agreement with Mokulele to facilitate travel bookings and connections for passengers connecting from Mokulele-served airports to any Hawaiian Airlines destination worldwide in a single transaction

Fleet and financing

Entered into an agreement with Boeing to purchase 2 additional Boeing 787-9 aircraft, bringing the Company's total order to 12 aircraft, the first of which is scheduled for delivery in the fourth quarter of 2023
Amended and extended $235 million revolving credit facility that matures in December 2025
Repurchased the remaining $62.4 million of outstanding Series-2020-1A and Series-2020- 1B Equipment Notes

People

Received ratification by Hawaiian's employees represented by the International Association of Machinists and Aerospace Workers for five-year contracts that provide for wage increases and important work rule changes for nearly 2,500 employees
Received ratification by Hawaiian's employees represented by the Transport Workers Union of America for a five-year contract that provides wage increases and important work rule changes for 55 employees

Awards and Recognition

Recognized by Conde Nast's 2022 Readers Choice Awards as one of The Best Airlines in the United States
Named by Forbes' 2022 America's Best Employers by State rankings as Hawai'i's Best Employer
Awarded by Travel + Leisure's World's Best Award as the Best Domestic Airline

Environmental, Social and Corporate Governance

In May 2022 , the Company issued its 2022 Corporate Kuleana (Responsibility) Report, providing updates on Environmental, Social and Governance ("ESG") initiatives, including new commitments to replace single-use plastics in cabin service by 2029 and to locally source 40% of food and beverage for its Hawai'i-based catering operations by 2025. Other accomplishments in 2022 include the following:

Engaged over 1250 volunteers comprised of almost 800 employees and over 450 of their family members who donated almost 6800 hours of community service work for almost 150 organizations throughout Hawaiʻi
Raised more than $33,000 for the Friends of Hakalau Forest National Wildlife Refuge, a group supporting the preservation, protection, and restoration of native forest lands in the Hakalau National Wildlife Refuge on Hawaiʻi island through the annual Hawaiian Airlines Holoholo Challenge
Donated $117,550 through Hawaiian Airlines Foundation including a $100,000 grant to Kāko'o 'Ōiwi, a nonprofit organization dedicated to advancing the cultural, spiritual and traditional practices of the Native Hawaiian community
Expanded decarbonization efforts through research into sustainable aviation fuel with Par Hawaii and a partnership with REGENT, a developer of all-electric seagliders

The Company continues to focus on creating long-term value and positively impacting the people, the environment and the communities it serves. The Company will publish its fourth annual Corporate Kuleana Report in the spring of 2023, highlighting its ESG commitments.

Other

Signed a tentative agreement with the Air Line Pilots Association in January 2023 subject to ratification by the Company's pilots.

First Quarter 2023 Outlook

2023 presents challenges in the core markets in which Hawaiian operates. In building a strong foundation for the future that will make the Company a better airline, it is focused on completing an extensive list of initiatives which include preparing for the launch of freighter operations for Amazon, going live with its new Passenger Service System, offering industry-leading internet connectivity service on its transpacific flights, placing mobile technology in the hands of its guest-facing employees, and flying its new Boeing 787-9 aircraft.

The table below summarizes the Company's expectations for the quarter ending March 31, 2023 expressed as an expected percentage change compared to the results for the quarter ended March 31, 2022 .

Item	First Quarter 2023 Guidance	GAAP Equivalent	GAAP First Quarter 2023 Guidance
Available Seat Miles (ASMs)	Up 14.0% to up 17.0%
Operating Revenue per ASM (RASM)	Up 7.5% to up 10.5%
CASM excluding fuel and non-recurring items (a)	Down 1.0% to up 2.0%	Costs per ASM	Up 1.4% to up 3.6%
Gallons of Jet Fuel Consumed	Up 17.0% to up 20.0%
Economic Fuel Price per Gallon (a)(b)	$3.10	Average fuel price per gallon, including taxes and delivery	$3.08
Effective Tax Rate	~21%

Full Year 2023 Outlook

The table below summarizes the Company's 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 .

The Company expects its effective tax rate for the full year ending December 31, 2023 to be approximately 21% percent.

Item	Full Year 2023 Guidance	GAAP Equivalent	GAAP Full Year 2023 Guidance
ASMs	Up 9.5% to up 12.5%
CASM excluding fuel and non-recurring items (a)	Up 1.0% to up 5.0%	Costs per ASM	Down 0.4% to up 2.6%
Gallons of Jet Fuel Consumed	Up 10.5% to up 13.5%
Economic Fuel Price per Gallon (a)(b)	$2.92	Average fuel price per gallon, including taxes and delivery	$2.89
Capital Expenditures	$330M to $380M

(a) See 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 January 17, 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

The Company's quarterly and full year earnings conference call is scheduled to begin today ( January 31, 2023 ) at 4:30 p.m. Eastern Time ( USA ). The conference call will be broadcast live over the Internet. Investors may 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, the call will be archived and available 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 94th 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 positioning for the upcoming year; plans for additional route service; expectations related to Hawaiian's agreement with Amazon; the Company's environmental commitments; the Company's outlook for the first fiscal quarter and fiscal year 2023; 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 (in thousands, except for per share data) (unaudited)

	Three Months Ended December 31,			Twelve Months Ended December 31,
	2022	2019	% Change	2022	2019	% Change
	(in thousands, except per share data)
Operating Revenue:
Passenger	$ 650,841	$ 648,782	0.3 %	$ 2,335,440	$ 2,597,772	(10.1) %
Other	80,194	59,355	35.1 %	305,827	234,456	30.4 %
Total	731,035	708,137	3.2 %	2,641,267	2,832,228	(6.7) %
Operating Expenses:
Wages and benefits	218,045	185,659	17.4 %	833,137	723,656	15.1 %
Aircraft fuel, including taxes and delivery	213,204	137,283	55.3 %	817,077	542,573	50.6 %
Aircraft rent	25,859	27,131	(4.7) %	103,846	118,904	(12.7) %
Maintenance materials and repairs	65,219	67,233	(3.0) %	236,153	249,772	(5.5) %
Aircraft and passenger servicing	42,060	43,972	(4.3) %	152,550	164,275	(7.1) %
Commissions and other selling	32,076	33,618	(4.6) %	113,843	130,216	(12.6) %
Depreciation and amortization	33,735	39,632	(14.9) %	136,169	158,906	(14.3) %
Other rentals and landing fees	37,122	33,845	9.7 %	147,143	129,622	13.5 %
Purchased services	33,637	33,261	1.1 %	129,350	131,567	(1.7) %
Special items	12,500	—	100.0 %	18,803	—	100.0 %
Other	50,365	37,219	35.3 %	163,250	155,260	5.1 %
Total	763,822	638,853	19.6 %	2,851,321	2,504,751	13.8 %
Operating Loss	(32,787)	69,284	(147.3) %	(210,054)	327,477	(164.1) %
Nonoperating Income (Expense):
Interest expense and amortization of debt discounts and issuance costs	(23,054)	(6,596)		(95,815)	(27,864)
Interest income	11,858	3,378		32,141	12,583
Capitalized interest	1,070	779		4,244	4,492
Other components of net periodic benefit cost	1,252	(920)		5,065	(3,864)
Gains (losses) on fuel derivatives	(1,978)	494		(3,041)	(6,709)
Loss on extinguishment of debt	—	—		(8,568)	—
Gains (losses) on investments, net	(4,563)	66		(43,082)	192
Gains (losses) on foreign debt	(15,629)	1,540		26,667	(540)
Other, net	913	(116)		(1,406)	(771)
Total	(30,131)	(1,375)		(83,795)	(22,481)
Loss Before Income Taxes	(62,918)	67,909		(293,849)	304,996
Income tax benefit	(12,758)	18,192		(53,768)	81,012
Net Loss	$ (50,160)	$ 49,717		$ (240,081)	$ 223,984
Net Loss Per Common Stock Share:
Basic	$ (0.98)	$ 1.07		$ (4.67)	$ 4.72
Diluted	$ (0.98)	$ 1.07		$ (4.67)	$ 4.71
Weighted Average Number of Common Stock Shares Outstanding:
Basic	51,413	46,402		51,361	47,435
Diluted	51,413	46,658		51,361	47,546
Cash Dividends Declared Per Common Share	$ —	$ 0.12		$ —	$ 0.48

Table 2. Hawaiian Holdings, Inc. Selected Statistical Data (in thousands, except as otherwise indicated) (unaudited)

	Three Months Ended December 31,			Twelve Months Ended December 31,
	2022	2019	% Change	2022	2019	% Change
	(in thousands, except as otherwise indicated)
Scheduled Operations (a) :
Revenue passengers flown	2,651	2,893	(8.4) %	9,995	11,737	(14.8) %
Revenue passenger miles (RPM)	3,982,719	4,520,090	(11.9) %	14,932,750	17,808,913	(16.2) %
Available seat miles (ASM)	4,931,687	5,242,919	(5.9) %	18,636,466	20,568,476	(9.4) %
Passenger revenue per RPM (Yield)	16.34 ¢	14.35 ¢	13.9 %	15.64 ¢	14.59 ¢	7.2 %
Passenger load factor (RPM/ASM)	80.8 %	86.2 %	(5.4) pt.	80.1 %	86.6 %	(6.5) pt.
Passenger revenue per ASM (PRASM)	13.20 ¢	12.37 ¢	6.7 %	12.53 ¢	12.63 ¢	(0.8) %
Total Operations (a) :
Revenue passengers flown	2,655	2,898	(8.4) %	10,015	11,751	(14.8) %
RPM	3,988,798	4,526,797	(11.9) %	14,964,500	17,826,887	(16.1) %
ASM	4,940,514	5,255,202	(6.0) %	18,684,642	20,596,711	(9.3) %
Passenger load factor (RPM/ASM)	80.7 %	86.1 %	(5.4) pt.	80.1 %	86.6 %	(6.5) pt.
Operating revenue per ASM (RASM)	14.80 ¢	13.47 ¢	9.9 %	14.14 ¢	13.75 ¢	2.8 %
Operating cost per ASM (CASM)	15.46 ¢	12.16 ¢	27.1 %	15.26 ¢	12.16 ¢	25.5 %
CASM excluding aircraft fuel and non-recurring items (b)	10.89 ¢	9.54 ¢	14.2 %	10.78 ¢	9.54 ¢	13.0 %
Aircraft fuel expense per ASM (c)	4.32 ¢	2.62 ¢	64.9 %	4.37 ¢	2.62 ¢	66.8 %
Revenue block hours operated	51,715	56,246	(8.1) %	195,361	218,801	(10.7) %
Gallons of jet fuel consumed	64,485	68,454	(5.8) %	239,231	270,001	(11.4) %
Average cost per gallon of jet fuel (actual) (c)	$ 3.31	$ 2.01	64.7 %	$ 3.42	$ 2.01	70.1 %
Economic fuel cost per gallon (c)(d)	$ 3.31	$ 2.05	61.5 %	$ 3.42	$ 2.06	66.0 %


(a)	Includes the operations of the Company's contract carrier under a capacity purchase agreement, which was terminated in the first half of 2021. Total Operations includes both scheduled and chartered operations.
(b)	See Table 4 for a reconciliation of CASM excluding aircraft fuel and non-recurring items to its most directly comparable GAAP financial measure.
(c)	Includes applicable taxes and fees.
(d)	See Table 3 for a reconciliation of economic fuel costs per gallon to its most directly comparable GAAP financial measure.

Table 3.
Hawaiian Holdings, Inc.
Economic Fuel Expense
(in thousands, except per-gallon amounts) (unaudited)

The price and availability of aircraft fuel is volatile due to global economic and geopolitical factors that we can neither control nor accurately predict. The increase in aircraft fuel expense is illustrated in the following table:

	Three Months Ended December 31,			Twelve months ended December 31,
	2022	2019	% Change	2022	2019	% Change
	(in thousands, except per-gallon amounts)
Aircraft fuel expense, including taxes and delivery	$ 213,204	$ 137,283	55.3 %	$ 817,077	$ 542,573	50.6 %
Fuel gallons consumed	64,485	68,454	(5.8) %	239,231	270,001	(11.4) %
Average fuel price per gallon, including taxes and delivery	$ 3.31	$ 2.01	64.7 %	$ 3.42	$ 2.01	70.1 %

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 aircraft fuel expense, including taxes and delivery, plus realized losses on settlement of fuel derivative instruments during the period.

	Three Months Ended December 31,			Twelve Months Ended December 31,
	2022	2019	% Change	2022	2019	% Change
	(in thousands, except per-gallon amounts)
Aircraft fuel expense, including taxes and delivery	$ 213,204	$ 137,283	55.3 %	$ 817,077	$ 542,573	50.6 %
Realized losses on settlement of fuel derivative instruments	401	3,108	(87.1) %	401	12,403	(96.8) %
Economic fuel expense	$ 213,605	$ 140,391	52.2 %	$ 817,478	$ 554,976	47.3 %
Fuel gallons consumed	64,485	68,454	(5.8) %	239,231	270,001	(11.4) %
Economic fuel costs per gallon	$ 3.31	$ 2.05	61.5 %	$ 3.42	$ 2.06	66.0 %

	Estimated three months ending March 31, 2023			Estimated twelve months ending December 31, 2023
	(in thousands, except per-gallon amounts)
Aircraft fuel expense, including taxes and delivery	$ 192,398	–	$ 197,332	$ 764,806	–	$ 785,570
Realized (gains)/losses on settlement of fuel derivative contracts	1,133	–	1,133	7,496	–	7,496
Economic fuel expense	$ 193,531		$ 198,465	$ 772,302		$ 793,066
Fuel gallons consumed	62,498		64,101	264,350	–	271,527
Economic fuel costs per gallon	$ 3.10	–	$ 3.10	$ 2.92	–	$ 2.92

Table 4.
Hawaiian Holdings, Inc.
Non-GAAP Financial Measures 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, Passenger Revenue per ASM, adjusted EBITDA, and adjusted pre-tax margin. 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 January 2022 , we reached a tentative agreement with our IAM-M and IAM-C employees. In February 2022 , employees represented by the IAM-M and IAM-C ratified a new CBA, which included a one-time signing bonus of $2.1 million , which was recorded in wages and benefits during the first quarter of 2022. During the second quarter of 2022, we and the IAM completed a separation program under the CBA and recognized a $2.6 million one-time expense, which was recorded in wages and benefits.
Special items . The Company recorded the following as special items:
- During the third quarter of 2022, the Company estimated the fair value of our 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 Company's Consolidated Statements of Operations.
- During the fourth quarter of 2022, the Company entered into a Memorandum of Understanding (MOU) with its third-party service provider to early terminate its Amended and Restated Complete Fleet Services (CFS) Agreement (Amended CFS). The Amended CFS was originally scheduled to run through December 2027 , and will now terminate in April 2023 . In connection with the MOU, the Company agreed to pay a total of $12.5 million in termination fees, which was recognized at execution as a Special item in the Company's Consolidated Statements of Operations.
Gain on sale of aircraft . During the second quarter of 2022, the Company sold three ATR-72 aircraft and recognized a $2.6 million gain on the transactions, which was recorded in Other operating expense in the Company's Consolidated Statements of Operations. During the twelve months ended December 31, 2019 , the Company recorded a gain on disposal for Boeing 767-300 aircraft equipment of $1.9 million in conjunction with the retirement of its Boeing 767-300 fleet.
Changes in fair value of fuel derivative instruments . Changes in fair value of fuel derivative contracts, net of tax, are based on market prices for open contracts as of the end of the reporting period, and include the unrealized amounts of fuel derivatives (not designated as hedges) that will settle in future periods and the reversal of prior period unrealized amounts.
Loss on extinguishment of debt . Loss on extinguishment of debt is excluded to allow investors to better analyze our core operational performance and more readily compare our results to other airlines in the periods presented below.
Unrealized loss (gain) on foreign debt . Unrealized loss (gain) on foreign debt is based on fluctuation in exchange rates and the measurement of foreign-denominated debt to our functional currency.
Unrealized loss on investment securities . Unrealized losses on equity securities and gains on derivative instruments in our investment portfolio are driven by changes in market prices and currency fluctuations, which are recorded in Other nonoperating expense in the consolidated statements of operations.

The Company believes that adjusting for the impact of an effective tax rate differential, the receipt of grant proceeds, changes in fair value of fuel derivative contracts and foreign currency derivative contracts, fluctuations in foreign exchange rates, special items, and the sale of aircraft and aircraft equipment helps investors better analyze the Company's operational performance and compare its results to other airlines in the periods presented.

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2022		2019		2022		2019
	Total	Diluted Per Share	Total	Diluted Per Share	Total	Diluted Per Share	Total	Diluted Per Share
	(in thousands, except per share data)
GAAP net income (loss), as reported	$ (50,160)	$ (0.98)	$ 49,717	$ 1.07	$(240,081)	$ (4.67)	$ 223,984	$ 4.71
Adjusted for:
CBA related expense	—	—	—	—	4,678	0.09	—	—
Special items	12,500	0.24	—	—	18,803	0.37	—	—
Gain on sale of aircraft	—	—	—	—	(2,578)	(0.05)	(1,948)	(0.04)
Changes in fair value of fuel derivative instruments	1,577	0.03	(3,602)	(0.08)	2,640	0.05	(5,694)	(0.13)
Loss on extinguishment of debt	—	—	—	—	8,568	0.17	—	—
Unrealized loss (gain) on foreign debt	15,501	0.30	(1,558)	(0.03)	(26,196)	(0.51)	696	0.02
Unrealized loss on investment securities	2,110	0.04	—	—	24,949	0.49	—	—
Tax effect of adjustments	(6,211)	(0.12)	1,370	0.03	(1,242)	(0.02)	1,845	0.04
Adjusted Net Income (Loss)	$ (24,683)	$ (0.49)	$ 45,927	$ 0.99	$(210,459)	$ (4.08)	$ 218,883	$ 4.60

	Three months ended December 31,		Twelve months ended December 31,
	2022	2019	2022	2019
	(in thousands)
Income (Loss) Before Income Taxes	$ (62,918)	$ 67,909	$ (293,849)	$ 304,996
Adjusted for:
CBA related expense	—	—	4,678	—
Special items	12,500	—	18,803	—
Gain on sale of aircraft	—	—	(2,578)	(1,948)
Changes in fair value of fuel derivative instruments	1,577	(3,602)	2,640	(5,694)
Loss on extinguishment of debt	—	—	8,568	—
Unrealized loss (gain) on foreign debt	15,501	(1,558)	(26,196)	696
Unrealized loss on investment securities	2,110	—	24,949	—
Adjusted Income (Loss) Before Income Taxes	$ (31,230)	$ 62,749	$ (262,985)	$ 298,050

	Three months ended December 31,		Twelve months ended December 31,
	2022	2019	2022	2019
	(in thousands)
Net Income (Loss) before Taxes	$ (62,918)	$ 67,909	$ (293,849)	$ 304,996
Depreciation & Amortization	33,735	39,632	136,169	158,906
Interest and amortization of debt	(23,054)	(6,596)	(95,815)	(27,864)
EBITDA, as reported	(6,129)	114,137	(61,865)	491,766
Adjusted for:
CBA related expense	—	—	4,678	—
Special items	12,500	—	18,803	—
Gain on sale of aircraft	—	—	(2,578)	(1,948)
Changes in fair value of fuel derivative instruments	1,577	(3,602)	2,640	(5,694)
Loss on extinguishment of debt	—	—	8,568	—
Unrealized loss (gain) on foreign debt	15,501	(1,558)	(26,196)	696
Unrealized loss on investment securities	2,110	—	24,949	—
Adjusted EBITDA	$ 25,559	$ 108,977	$ (31,001)	$ 484,820

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 December 31,		Twelve Months Ended December 31,
	2022	2019	2022	2019
	(in thousands, except CASM data)
GAAP operating expenses	$ 763,822	$ 638,853	$ 2,851,321	$ 2,504,751
Aircraft fuel, including taxes and delivery	(213,204)	(137,283)	(817,077)	(542,573)
CBA related expense	—	—	(4,678)	—
Special items	(12,500)	—	(18,803)	—
Gain on sale of aircraft	—	—	2,578	1,948
Adjusted operating expenses	$ 538,118	$ 501,570	$ 2,013,341	$ 1,964,126
Available Seat Miles	4,940,514	5,255,202	18,684,642	20,596,711
CASM—GAAP	15.46 ¢	12.16 ¢	15.26 ¢	12.16 ¢
Aircraft fuel, including taxes and delivery	(4.32)	(2.62)	(4.37)	(2.62)
CBA related expense	—	—	(0.02)	—
Special items	(0.25)	—	(0.10)	—
Gain on sale of aircraft	—	—	0.01	—
CASM excluding fuel and non-recurring items	10.89 ¢	9.54 ¢	10.78 ¢	9.54 ¢

	Estimated three months ending March 31, 2023			Estimated twelve months ending December 31, 2023
	(in thousands, except CASM data)
GAAP operating expenses	$ 722,288	–	$ 757,837	$ 2,988,528	–	$ 3,161,089
Aircraft fuel, including taxes and delivery	(193,744)	–	(198,712)	(771,902)	–	(792,859)
Non-recurring items	4,078		4,078	10,028		10,028
Adjusted operating expenses	$ 532,622	–	$ 563,203	$ 2,226,654	–	$ 2,378,258
Available seat miles	4,859,875	–	4,987,766	20,459,683	–	21,020,222
CASM – GAAP	14.86 ¢	–	15.19 ¢	14.61 ¢	–	15.04 ¢
Aircraft fuel, including taxes and delivery	(3.99)	–	(3.99)	(3.77)	–	(3.77)
Non-recurring items	0.08		0.08	0.05		0.05
CASM excluding fuel and non-recurring items	10.95 ¢	–	11.28 ¢	10.89 ¢	–	11.32 ¢

Pre-tax margin

The Company excludes unrealized (gains) losses from fuel derivative instruments, foreign debt, and equity securities, gain on the sale of aircraft, and non-recurring items from pre-tax margin for the same reasons as described above.

	Three months ended December 31,		Twelve months ended December 31,
	2022	2019	2022	2019
Pre-Tax Margin, as reported	(8.6) %	9.6 %	(11.1) %	10.8 %
Adjusted for:
CBA related expense	—	—	0.2	—
Special items	1.7	—	0.7	—
Gain on sale of aircraft	—	—	(0.1)	(0.1)
Changes in fair value of fuel derivative instruments	0.2	(0.5)	0.1	(0.2)
Loss on extinguishment of debt	—	—	0.3	—
Unrealized loss (gain) on foreign debt	2.1	(0.2)	(1.0)	—
Unrealized loss on equity securities	0.3	—	0.9	—
Adjusted Pre-Tax Margin	(4.3) %	8.9 %	(10.0) %	10.5 %

View original content to download multimedia: https://www.prnewswire.com/news-releases/hawaiian-holdings-reports-2022-fourth-quarter-and-full-year-financial-results-301735303.html

SOURCE Hawaiian Holdings, Inc.

Hawaiian Airlines Appoints Tom Zheng as Vice President of Technical Operations Business Planning and Services

January 31, 2023
releases
Hawaiian Airlines
3 min read

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HONOLULU – Hawaiian Airlines today announced the appointment of Tom Zheng as vice president of technical operations business planning and services. In his new role, Zheng will lead a growing portfolio of technical operations initiatives, including expanded aircraft maintenance, dedicated freighter service for Amazon and a new fleet of Boeing 787-9s.

“Tom has offered invaluable leadership to advance significant initiatives within our growing technical operations team,” said Jim Landers, senior vice president for technical operations at Hawaiian Airlines. “His trusted voice and guidance will continue to make us a better, stronger airline as we diversify and grow our business.”

Zheng joined Hawaiian in 2009 as a senior project manager before becoming a director of strategic initiatives. He previously served as managing director of business planning and initiatives in technical operations. Prior to Hawaiian, Zheng was a management consultant for Deloitte, and also worked for American Savings Bank and AT&T where he was a distinguished member of the technical staff and principal engineer.

He holds a Master of Business Administration degree with honors from The Wharton School at the University of Pennsylvania, a Master of Science degree from the New York University Tandon School of Engineering, and a Bachelor of Science degree from the State University of New York at Stony Brook.

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 94th 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 .

Alaska Airlines expands our San Diego network with new coast-to-coast nonstops

January 30, 2023
Destinations
Alaska Airlines
3 min read

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We’re adding nonstops to Washington, D.C. (IAD) and Tampa (TPA); guests can upgrade their cross-country flights with travel in our award-winning First Class and Premium Class cabins

We know keeping California connected is important. That includes offering our guests more convenient options to fly nonstop from coast-to-coast. As part of Alaska Airlines’ continuing commitment to Southern California, we’re adding new, daily nonstop flights between San Diego and both Washington, D.C. (IAD) and Tampa (TPA). Service to Washington, D.C. starts June 15, and service to Tampa begins on Oct. 5. We’re also adding new daily nonstop service between San Diego and Eugene, Oregon (EUG) on June 15.

Our guests in San Diego asked for more nonstops to the East Coast and we’re excited to add service to both the nation’s capital and to Florida’s vibrant Gulf Coast,” said Neil Thwaites, regional vice president of California for Alaska Airlines. “With convenient daytime schedules, award-winning service and a premium product offering, guests will arrive refreshed and ready-to-go.”

With the new routes to our network, we’ll serve 35 nonstop destinations from San Diego with the most nonstops of any airline. This includes flights to the Northeast, Northwest, throughout California, Mexico, Florida and to all four major islands in Hawaii, along with other locations.

All flights from San Diego offer a three-class cabin. Our guests in First Class and Premium Class enjoy early boarding and the most generous legroom of all domestic carriers. With our award-winning service, our First Class offers complimentary hot meals based on a seasonal menu with a range of fresh, bright West Coast-inspired flavors along with a variety of beverages. Flyers in Premium Class can also take advantage of complimentary cocktails, hand-selected wines and local beers.

Tickets for all flights can be purchased now at alaskaair.com. If you need to make alternate travel plans with us, there are no change fees to do that.

“The announcement of new destinations on Alaska Airlines is a great way to start the year,” said Kimberly Becker, San Diego County Regional Airport Authority President & CEO. “Our community benefits from the addition of flights to the East Coast and Pacific Northwest. We thank Alaska Airlines for the addition of these routes and their continued partnership at SAN.”

New routes schedule for San Diego

Start Date	City Pair	Departs	Arrives	Frequency	Aircraft
June 15, 2023	San Diego-Washington, D.C.	8:00 a.m.	4:10 p.m.	Daily	737-9
June 15, 2023	Washington, D.C.- San Diego	10:15 a.m.	12:30 p.m.	Daily	737-9
Oct. 5, 2023	San Diego- Tampa	8:40 a.m.	4:25 p.m.	Daily	737-9
Oct. 5, 2023	Tampa- San Diego	5:30 p.m.	7:40 p.m.	Daily	737-9
June 15, 2023	San Diego- Eugene, Oregon	2:30 p.m.	4:50 p.m.	Daily	E175
June 15, 2023	Eugene, Oregon- San Diego	11:30 a.m.	1:50 p.m.	Daily	E175

All times local.

In California, Alaska operates over 330 peak day flights, including from our hubs in San Francisco and Los Angeles, as well as other cities across the state including our key focus cities of San Diego and San Jose. As the only national airline based on the West Coast, we’ve proudly served our guests throughout California for more than 40 years. We also offer residents of California something unique: Flight Pass, our pay-by-month subscription service for flights throughout the state and to Las Vegas, Salt Lake City and Phoenix.

With the E175 flying Horizon’s future, we bid farewell to the Q400

January 27, 2023
Company
Alaska Airlines
3 min read

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For Horizon Air Capt. Perry Solmonson, saying goodbye to the Q400 is bittersweet. The turboprop aircraft has played a pivotal role in his career since he joined the airline in 1989.

Solmonson says his favorite part of flying the Q400 comes from his role as a check pilot – an experienced pilot who evaluates and certifies the knowledge and skills of other pilots.

Over the years, I witnessed so many extraordinary pilots who truly have the ‘touch’ with this airplane,” said Solmonson. “Horizon has some amazing aviators here. It’s a privilege to serve in an organization that attracts and retains such gifted pilots, a legacy I know we’re continuing on the E175.”  

The Embraer 175 jet or E175 is now the sole aircraft flown at Horizon Air, Alaska Airlines’ long time regional airline sister company, as we continue to modernize our fleet. The last commercial flight of the Q400 was on Jan. 26 between Spokane and Seattle – exactly 22 years after its first revenue flight for Horizon on Jan. 26, 2001.

“We’re at a unique moment in time,” said Joe Sprague, president of Horizon Air. “With our shift to a single fleet of E175 jets, we’re laying a major new cornerstone of the foundation for our future.”  

Flying two smaller fleets of aircraft wasn’t sustainable or cost effective for Horizon. Two of everything was required: parts, tools, training programs and more. Aside from pilots, every workgroup needed to know two aircraft types. Moving to one fleet type allows us to better focus all of our resources, which is important during a time of unprecedented pilot attrition throughout the regional airline industry.  

*Yesterday, the Q400 took its last commercial flight between Spokane and Seattle.*

The E175 jet is efficient and much quieter than the turboprop, plus it flies faster. It’s well suited for small and developing markets in our network across the Pacific Northwest and beyond. 

Our guests tell us again and again they enjoy flying the E175.

If you haven’t flown it yet, its benefits might surprise you:

The jet aircraft has three classes of service, just like our 737s
Our elite members can enjoy upgrades to First Class and Premium Class
All seats are window or aisle – there are no middle seats

There are larger overhead bins than the Q400 for stowing carry-ons
There’s inflight entertainment with more than 800 free movies and TV shows to watch on your personal devices
There’s Wi-Fi connectivity on board, and we’ll begin upgrading to streaming-fast satellite Wi-Fi on the jets starting in early 2024

Horizon currently flies 33 E175s with more on the way. By the end of 2023, we’ll have 41 jets and by the close of 2026 we’re scheduled to have 50 of them.

“We’re nimble and we respond to changes quickly,” he said. “Horizon has succeeded at this for 41 years and I know we’ll continue that going forward.” 

With the transition from the Q400 to the E175, Solmonson says Horizon just keeps getting better.  

Alaska Air Group delivers strong fourth quarter 2022 and full-year results

January 26, 2023
Other News
Alaska Airlines
5 min read

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Delivered industry-leading full-year adjusted pretax margin of 7.6%;
Record annual revenue of $9.6 billion, up 10% versus 2019;
Employees hard work recognized with performance-based bonuses totaling 10.5% of annual pay

Alaska Air Group Inc. (NYSE: ALK) today reported financial results for the fourth quarter and full year ended Dec. 31, 2022, and provided an outlook for the first quarter ending March 31, 2023.

2022 was a year of significant recovery and accomplishment for Alaska Airlines,” said Alaska Airlines CEO Ben Minicucci. “Despite many challenges during the year, we ran one of the best operations, signed five new labor deals, and executed the majority of our single fleet transition. The results we posted today signal how well our teams are navigating this recovery. I want to thank our employees for their commitment to our success, and for the work they do every day to take great care of our guests. I am confident that we are well positioned to grow, compete and out-perform in 2023.”

Financial Results:

Reported net income for the fourth quarter and full year 2022 under Generally Accepted Accounting Principles (GAAP) of$22 million, or $0.17 per diluted share, and $58 million, or $0.45 per diluted share. These results compare to net income for the fourth quarter and full year 2021 of $18 million, or $0.14 per diluted share, and $478 million, or $3.77 per diluted share.
Reported net income for the fourth quarter and full year 2022, excluding special items and mark-to-market fuel hedge accounting adjustments, of $118 million, or $0.92 per diluted share, and $556 million, or $4.35 per diluted share. These results compare to net income for the fourth quarter and net loss for the full year 2021, excluding special items and mark-to-market fuel hedge accounting adjustments, of $31 million, or $0.24 per diluted share, and $256 million, or $2.03 per share.
Recorded $257 million of incentive pay in 2022 earned by employees for meeting or exceeding profitability, safety and emissions targets. The payout is the richest in the 20-year history of the plan, representing nearly six weeks of pay for most employees.
Recorded $2.5 billion in operating revenue for the fourth quarter, resulting in $9.6 billion in operating revenue for the full year 2022, the highest annual total in company history.
Received nearly $1.5 billion in annual cash remuneration under the renewed co-brand credit card arrangement with Bank of America, the highest level in the program’s history.

Balance Sheet and Liquidity:

Announced plans to resume share repurchases in early 2023 to offset annual dilution. Repurchases are expected to range from $75 million to $100 million in 2023.
Ended the quarter with a debt-to-capitalization ratio of 49%, within our target range of 40% to 50%.
Repaid $52 million in debt in the fourth quarter, bringing total debt payments to $385 million for the full year 2022.
Held $2.4 billion in unrestricted cash and marketable securities as of Dec. 31, 2022.

Fleet Updates:

Retired ten Airbus A320 aircraft and nine Q400 aircraft during the fourth quarter. All remaining A320 aircraft have since been retired and all remaining Q400 aircraft will be retired by the end of January 2023.
Amended a previously existing aircraft purchase agreement with Boeing to convert 52 737 MAX aircraft options to firm purchases for delivery between 2024 and 2027. Alaska also added an incremental 105 delivery positions to purchase 737 MAX aircraft between 2026 and 2030.
Received four 737-9 aircraft during the quarter, bringing the total 737-9 fleet to 37.
Received three E175 aircraft during the quarter, bringing Horizon’s total E175 fleet to 33.

Other Operational Updates:

Partnered with Lyft to offer Mileage Plan members one mile for every $1 spent on all Lyft rides in the U.S. and Canada.
Added a new Mileage Plan partner, Mokulele Airlines, to offer guests more convenient connections within the Hawaiian Islands, starting in early 2023.
Launched the first U.S. electronic bag tag program, enabling guests to tag their luggage through the airline’s mobile app before they reach the airport.
Opened the renovated C Concourse Lounge in Seattle, the first of several investments that will improve the lounge experience with more seating and food and beverage choices for guests in Seattle, Portland, San Francisco and Los Angeles.

Donated a retired Q400 to the Portland Community College Foundation, providing students of the Aviation Maintenance Technology and Aviation Science programs the opportunity to gain hands-on experience working on a commercial aircraft.
Completed the transition to paper cups for inflight beverages, which will replace more than 55 million plastic cups each year with a more sustainable alternative.
Donated 55 million miles to 20 different charities through Alaska’s Care Miles program in 2022.
Created a new Diversity, Equity and Inclusion Disability Office dedicated to ensuring Alaska becomes a leader in disability inclusion.

Tune in:

A conference call regarding the fourth quarter results will be streamed online at 8:30 a.m. PDT on January 26, 2022. It can be accessed at www.alaskaair.com/investors. For those unable to listen to the live broadcast, a replay will be available after the conclusion of the call.

Full earnings financial data:

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

View full earnings financial data

Alaska Air Group announces webcast of fourth-quarter 2022 financial results

January 26, 2023
Other News
Alaska Airlines
1 min read

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Alaska Air Group Inc., the parent company of Alaska Airlines Inc. and Horizon Air Industries Inc., will hold its quarterly conference call to discuss 2022 fourth quarter financial results at 11:30 a.m. EDT/ 8:30 a.m. PDT, Thursday, Jan. 26, 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.

Hawaiian Airlines to Resume Honolulu-Fukuoka Service

January 25, 2023
releases
Hawaiian Airlines
3 min read

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HONOLULU – Hawaiian Airlines today announced it will restart three-times-weekly service between Honolulu (HNL) and Fukuoka (FUK) beginning April 28.

“We’re delighted to be returning to Fukuoka as we lead the way in reconnecting travel between Hawaiʻi and Japan,” said Theo Panagiotoulias, senior vice president of global sales and alliances for Hawaiian Airlines. “We look forward to welcoming travelers from Fukuoka to the Hawaiian Islands and making it easy for U.S. residents to enjoy Kyushu’s famous food scene and rich culture. We remain steadfast in our commitment to Japan and want to thank our guests for choosing to fly with us.”

Hawaiian, which today offers daily service between HNL and Tokyo’s Haneda (HND) and Narita Airports (NRT) and Osaka’s Kansai Airport (KIX), will operate flight HA827 from HNL to FUK on Tuesdays, Fridays and Sundays at 1:35 p.m., arriving into FUK at 6:40 p.m. the following day. The return flight, HA828, will depart at 8:40 p.m. on Wednesdays, Saturdays and Mondays and arrive at HNL at 9:55 a.m. the same day. Japan last year reintroduced visa-free entry for foreign arrivals, but visitors should be aware of government requirements for entry into the country .

Hawaiian, Hawai’i’s largest and longest-serving airline, inaugurated FUK service in November 2019 before suspending the route in March 2020 due to the COVID-19 pandemic.

Hawaiian will continue to operate its Japan routes with its 278-seat, spacious wide-body Airbus A330 aircraft, which feature 18 Premium Cabin lie-flat leather seats, 68 of its popular Extra Comfort seats, and 192 Main Cabin seats.

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 94th 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.

Alaska Airlines becomes first U.S. airline to eliminate plastic cups on board

January 25, 2023
Sustainability
Alaska Airlines
2 min read

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Plastic cups? We sent ‘em packing. Today, we’re excited to announce the completion of our transition to paper cups for inflight beverages, a move which eliminates more than 55 million plastic cups annually and replaces them with a more planet-friendly alternative.

By partnering with Boxed Water™ and serving beverages in responsibly-sourced paper cups, we’re saving more than **2.2 million pounds of plastic** from landfills a year, the equivalent weight of 24 Boeing 737s.

Here are some of the ways we’re eliminating our top sources of plastic waste on board to reduce our impact on the environment and help keep the places we live & fly beautiful:

Eliminating plastic cups on board with responsibly-sourced paper cups.

Replacing plastic water bottles with Boxed Water™.

Learn more

Encouraging guests to #FillBeforeYouFly to plant more trees.

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Ditching plastic straws & stir sticks in 2018.

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All inflight beverages on Alaska flights are now served in Forest Stewardship Council (FSC) certified paper cups or reusable glassware for most First-Class services. We began the process of eliminating our five largest sources of plastic waste in 2018 by removing plastic straws and stir sticks from inflight service – a first for any airline at the time.

As part of our broader sustainability efforts, Alaska continues to pursue product innovations and supply chain advancements to achieve our 2025 goal of replacing the top five waste-producing items from onboard service and continuing to recycle. In 2021, Alaska established climate goals for its impacts in carbon, waste, and water while defining a five-part pathway to achieve net zero carbon emissions by 2040 to keep the places we live and fly beautiful and viable for generations to come.

Alaska Airlines plans streaming-fast satellite Wi-Fi upgrades to our E175 regional jets

January 24, 2023
Guest Experience
Alaska Airlines
4 min read

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In partnership with Intelsat, we intend to be the first global airline to outfit regional jets with high-speed connectivity to create a consistent experience across our fleet

As Alaska Airlines elevates its regional flying experience with an all-jet fleet, we’re excited to become the first major airline to announce plans to offer streaming-fast satellite Wi-Fi on a regional jet aircraft. We have selected Intelsat’s newest satellite Wi-Fi technology to make that happen.

Intelsat’s new system closely aligns with Alaska’s needs for our regional fleet. The new, faster service will utilize an electronically steered array (ESA) which is a small, lighter weight antenna with no moving parts – making it easier to maintain in the unique regional environment. In an industry first, Intelsat’s new system will communicate with both traditional geostationary (GEO) satellites and new low Earth orbit (LEO) satellites. With an additional $25 million investment, this upgrade represents a major step forward in the travel experience for our guests, enabling higher speeds and more coverage in the air, particularly across areas in the state of Alaska.

The new system will debut on Horizon Air, our sister airline, in early 2024 and roll out across our regional jet fleet, including on our partner SkyWest, over a two-year period. With nearly all our mainline fleet set to feature satellite Wi-Fi by this April – also installed by Intelsat – we’re on track to provide consistent streaming-fast Wi-Fi across our entire fleet by 2026.

Bringing a streaming-fast satellite Wi-Fi solution to our regional jets is another key investment in modernizing our fleet, emphasizing innovation and taking care of our guests changing needs,” said Sangita Woerner, senior vice president of marketing and guest experience for Alaska Airlines. “With the growth in remote work, we know staying connected at 34,000 feet is more important than ever. Intelsat’s new system will give our guests the peace of mind that no matter whether it’s a short flight or longer journey, there will be reliable, affordable and convenient Wi-Fi. It’s just another way we show care in the air.”

Intelsat’s state-of-the-art satellite Wi-Fi equipment will be the first commercial application of an electronically steered antenna that communicates with both low Earth orbit and geostationary satellites located 22,000 miles from Earth. With LEO at just 300 miles from the Earth’s surface, thousands of small satellites circling the planet ensure stronger connectivity with lower latency, or delay in telecommunications. Being closer to Earth provides a benefit of a shorter delay time as data moves from the ground to satellites to aircraft and back. This unique combination of using both LEO and GEO satellites enables higher speeds and more coverage, particularly across remote areas in the state of Alaska.

With satellite Wi-Fi, you can stream, browse and chat on board using the internet much like you’re used to when you’re on the ground. You can enjoy content on your personal devices from your favorite services such as Netflix, Hulu, YouTube and TikTok. Or jump online if you need connectivity to get some work done. Another bonus: On our aircraft enabled with satellite Wi-Fi, you can connect from the moment you board instead of waiting for the connection to kick in after the boarding door closes – it’s seamless connectivity from gate to gate.

When you’re airborne, staying entertained is important – and that doesn’t mean you need to connect to the internet to do that. We continue to invest in our massive library of entertainment for free streaming to personal computers, tablets and phones. We offer more than 800 movies and TV shows with more to come. And don’t forget about free texting on board.

Ahead of San Francisco’s Chinese New Year Parade & Festival, Alaska employees share their cherished traditions

January 22, 2023
Community
Marianne Lindsey
4 min read

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As the title sponsor of San Francisco’s Chinese New Year Parade & Festival, we’re proud to celebrate not only the year of the Rabbit but also the year of the Cat—and all the communities this holiday touches.

For MyHoa Tran and Esther Chan, the New Year means more than turning the page in a calendar. For their families, celebrating the first moon of the Lunar New Year can be a multi-day-long event that goes back generations. It means families getting together, renewal, fortune and delicious dishes steeped in tradition.

Tran and Chan, members of our Air Group Pan Asians (AGPA) business resource group (BRG), share what makes this time of year special for them and how even the name of the holiday differs based on where you are from.

Learn more about the Chinese New Year Parade in San Francisco on Feb 4, 2023.

While Lunar New Year is the general term for the start of the traditional lunisolar calendar, the holiday also has different names in specific cultures. People from Chinese culture call it Spring Festival, or Chūnjié, Koreans call the New Year Seollal, and Vietnamese refer to it as Tết.

In most Asian cultures that celebrate Lunar New Year, 2023 is the year of the Water Rabbit. However, Vietnam does not have the rabbit as part of their zodiac animals and instead celebrates the Year of the Cat.

San Francisco’s Chinese New Year Parade will be held on Feb 4, 2023. Learn more

Celebrating Vietnamese Tết

Records analyst MyHoa Tran celebrates Tết from the first day of the first month of the Vietnamese lunar calendar until at least the third day.

It’s about family: “It’s important to me because it’s the only occasion for all family members to get together,” Tran said. “We set aside all the troubles and worries of the past year and hope for a better and happier upcoming year.” In addition to gathering to eat, people wear their best clothes and visit their relatives and neighbors, sharing gifts and special wishes. “The elderly receive wishes for health, the adults are wished fortune and success, and the young and children receive money envelopes,” Tran said.

MyHoa wears an áo dài, a traditional Vietnamese dress

Cleaning the house: Tết starts the month before with a ceremonial cleaning of the house from top to bottom, followed by decorating. “In the South, where I’m from, we use yellow apricot blossoms, which represent the spirit of Tết,” Tran said. “We also use marigolds-symbolizing longevity, chrysanthemums, cockscombs and paperwhites.”

Oh, the food! Food preparation begins a week before the holiday. “We prepare roasted watermelon seeds, pickled onion, cabbage, and small leeks, dried candies, fruit trays, coconut candy, peanut brittle and a big pot of meat stew cooked in coconut juice,” she said.

On New Year’s Eve Day, the whole family gathers to prepare the traditional bánh tét, a savory-sweet rice cake, which takes about 24 hours to cook. “Everyone in the house has a job to do–be it the banana leaves, rice, cooking the meat (pork belly) or rolling and packing the cakes.

A photo of MyHoa’s family celebrating Tết

Ringing in Lunar New Year with loved ones

For software engineer Esther Chan, who hails from Mainland China and Hong Kong, being with family and friends is important.

Red Pockets: At Lunar New Year, it’s tradition to give the gift of a bright red pocket (envelope). They are filled with money and symbolize good wishes and fortune for the year ahead. “When I was a kid, I was most excited about getting red pockets from grandparents, parents, uncles and aunties,” Chan said. Other symbols are the New Year’s Eve firecrackers and red New Year scroll.

Why it’s special: “To me, spending time with family and friends is the most important thing during the Lunar New Year holidays,” Chan said. “I have many great memories during the breaks and miss celebrating it with my family back in Hong Kong.”

What not to do: “Certain things are taboo during Lunar New Year—such as swearing or quarreling, getting your hair cut (because hair means ‘become rich’ and you don’t want to cut that), wearing white or black clothing (red or gold is lucky), and saying the number four (which can mean death),” said Chan.

Chan’s daughter visiting Hong Kong for the first time

Leading our South Korea Operations with Heart and Seoul

January 20, 2023
blog
Hawaiian Airlines
4 min read

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As Hawaiian marks its 12th anniversary of Honolulu-Incheon service, South Korea Country Director Soojin Yu reflects on the highlights of her career.

The rich history between Hawai‘i and South Korea dates back 120 years to Jan. 13, 1903, when the first Korean immigrants entered the United States by steamship on the shores of Honolulu.

Today, more than 50,000 Hawai‘i residents identify as Korean, and it's because of this deep-rooted relationship that Soojin Yu, Hawaiian’s South Korea country director, was determined to keep Hawaiian's Honolulu-Incheon service operating throughout the COVID-19 pandemic.

"We thought it would be easy to resume passenger service since we had maintained cargo service throughout the pandemic and we were the only carrier connecting Hawai‘i and Korea at the time," Yu said. "I knew how important it was to provide essential connectivity for travelers, but it took tremendous effort and teamwork to welcome guests back onboard.”

Yu with Theo Panagiotoulias, Hawaiian's senior vice president of global alliances and sales, at the airline's 12th anniversary of Honolulu-Incheon service on Jan. 11, 2023

Yu's persistence and strong relationships with government officials paid off, and Hawaiian was eventually able to add passengers to its cargo flights under a special non-scheduled flight agreement similar to charter operations. This meant submitting approval for every flight for nearly six months.

"This was the only option, and sometimes we wouldn't get approval until the day of the flight," Yu said. "It was the biggest challenge of my career with Hawaiian."

Yu’s career began more than seven years ago when – after only 10 days on the job – she was tasked with representing Hawaiian at its five-year Incheon anniversary celebration.

"I didn't know much about Hawaiian Airlines at that time because I had only just started, and I had to give a speech and talk with media – I was so nervous," she recalled. "But this event really helped me to understand what Hawaiian represented. I could see how the culture was shared through celebration and how everyone worked together like family. Like ʻohana. Our [route] anniversary is in January, and it was so cold outside," Yu continued. "But inside, I could really feel the warmth and knew then what the term 'aloha spirit' meant."

Hawaiian Airlines ʻohana celebrates Incheon's five-year route anniversary in January 2016

Now, Yu leads her all-female sales and marketing team – a rare occurrence in Korea's airline industry – with that same warmth and aloha.

"This is how we can be strong in Korea," Yu explains. "If we can live by Hawaiian's core values of mālama (to care for), hoʻokipa (hospitality), lōkahi (unity) and po'okela (excellence) at the office, then my team can go out and share that with our external partners too. We are far from Koapaka (Hawaiian's headquarters), so it's extremely important that we continue to share these values here. It helps us feel connected."

Yu's team surprised her with a birthday celebration and homemade cake by country administrator Caroline Hwang

She feels a responsibility to set an example for her team as a woman leader.

"I try to show them that success for women in this industry is possible, and I want them to feel comfortable being able to talk to me about anything. We have a small team, but we are extremely close, and I'm proud of that," Yu said.

It's undeniable that Yu is, in fact, leading by example. There was also a silver lining from all the challenges Yu faced during the pandemic: she was now well-positioned among top Korean delegates and government officials. This led to one of her most memorable experiences to date – an invitation by the U.S. Embassy to represent Hawaiian at a state dinner hosted last May by South Korea President Yoon Suk Yeol. It was there she had a chance to meet and speak with U.S. President Joe Biden.

Yu and U.S. President Joe Biden at the South Korea state dinner in May 2022

"As I was waiting to speak with him, I was thinking 'how can I show him that I'm from Hawaiian Airlines?'" Yu explained. "So when I finally walked up to him, I said 'aloha!' He smiled so big and replied back with 'aloha.' It was such an honor to represent Hawaiian and I'll never forget that day."

Alaska Airlines Foundation helps young people discover new skills in Hawai‘i and beyond

January 20, 2023
Community
Alaska Airlines
5 min read

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Saige Adaro, 18, felt lost in 2020 when the pandemic brought an abrupt end to 10 years of studying dance – until an invitation to join a video class propelled her onto a new creative path. Holden Aniya, also 18, discovered a love for digital storytelling, which has helped her stay closer to her family while she pursues her dream of becoming an airline pilot. For both young women, an innovative digital media program serving elementary through high school students that is supported by the Alaska Airlines Foundation gave them new tools to express themselves and dream bigger.

Adaro and Aniya were among more than 3,300 students in Hawai‘i who participated last year in HIKI NŌ, a PBS Hawai‘i program that teaches students how to create PBS-quality videos telling the stories of their communities. HIKI NŌ, which received a 2022 grant from the Alaska Airlines Foundation, also cultivates professional skills that help students succeed in college and their future careers.

Students’ projects are released on a weekly PBS Hawai‘i broadcast, as well as the PBS Hawai‘i YouTube channel, and 90 schools across four islands participate. “It’s a huge thing for Hawai‘i kids, who are in sort of a little bubble,” said Aniya, who is now a freshman at Embry-Riddle Aeronautical University. “HIKI NŌ is a great way for kids to get out there, speak to different people and share their stories with everyone.”

Adaro loved her work with HIKI NŌ so much that it changed her entire career path. She’s now majoring in screenwriting at Chapman University in California.

“Like dance, this was telling stories through movement, but I found that I like telling stories through writing and video because it was a way to highlight people in my community,” said Adaro, who produced a half-dozen videos during her junior and senior years at Pearl City High School – including one reflecting on how the pandemic altered her creative journey. “In our projects, I always loved being the one to craft the script, and this helped lead me to where I am.”

Aniya, who has known since she was in eighth grade that she wants to be a commercial airline pilot, says the program also taught her how to handle criticism and overcome obstacles. And now that she’s far from home studying aviation, she loves making videos to share with family. “It’s amazing to think about how that invitation to focus on telling a story can give you something that you can carry on forever,” she said.

The Alaska Airlines Foundation is committed to creating opportunities for young people to inspire the next generation

The Alaska Airlines Foundation, a nonprofit grant-making organization, is dedicated to supporting programs for the next generation of leaders in aviation and beyond, particularly in the West Coast states we call home. HIKI NŌ is among 68 organizations in Hawai‘i, Alaska, California, Oregon and Washington that received grants from the Foundation in 2022 to equip and enable young people to pursue their career dreams.

Over the past 23 years, we have invested more than $4 million in grants for communities where Alaska Airlines flies. HIKI NŌ received past support from Alaska Airlines, and the 2022 Foundation grant came in the same year we celebrated 15 years of service to the Hawaiian Islands.

“Programs like HIKI NŌ enable equity and opportunity for students who may otherwise be overlooked and put them on a path to achieve future success,” said Diana Birkett Rakow, Foundation chair and senior vice president of public affairs and sustainability at Alaska Airlines. “The Alaska Airlines Foundation helps great organizations like PBS Hawai‘i do this important and powerful work to inspire young people in our communities and equip them with the tools to dream big.”

Cultivating skills for future careers

Adaro began to realize that filmmaking could be a viable career as she produced HIKI NŌ projects like “Sewing a New Normal,” which told the story of her school’s fashion program. “I loved being able to do a video about how that program has survived COVID and how it’s continuing to grow,” she said. “Just shining a light on something that often goes overlooked, that contributes a lot to students’ lives, was really gratifying and I loved doing it.”

Ryan Kawamoto, a director and vice president for Kinetic Productions in Honolulu, remembers getting his start in a high school video production class. Now, he’s mentored dozens of HIKI NŌ students. “Not all of them will go into the industry and that’s OK,” he said. “But they’re learning valuable soft skills like teamwork, communication, creative problem-solving, speaking skills and writing skills. The list goes on and on.”

Kawamoto offered Adaro a summer internship after her experience with HIKI NŌ. “It definitely opened so many doors for me,” said Adaro, who plans to pay it forward by becoming a future HIKI NŌ mentor. “For students all over the state, it allows them to explore an artistic side of the media industry, and it allows them to explore their passions. I owe a lot to it.”

The Alaska Airlines Foundation is now accepting new grant requests for 2023. More information on applying for a Foundation grant can be found here.

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