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REGENT Announces a Strategic Investment from Hawaiian Airlines

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BOSTON and HONOLULU — REGENT today announced that Hawaiian Airlines has agreed to strategically invest in the company to support the initial design of its next generation 100-person capacity all-electric seaglider known as the Monarch. With this investment, Hawaiian Airlines becomes REGENT’s first U.S.-based design partner for the Monarch, which is slated for entry into commercial service by 2028.

“Innovative interisland transportation has been core to our business since 1929 when we replaced steam ships with airplanes. We are excited to be an early investor in REGENT and to be involved in developing their largest seaglider – a vehicle with great potential for Hawaiʻi',” said Avi Mannis, Chief Marketing and Communications Officer at Hawaiian Airlines. “We look forward to working with REGENT to explore the technology and infrastructure needed to fulfill our vision for convenient, comfortable and environmentally sustainable interisland transportation.”

“Seagliders will be a game-changer for sustainable regional transportation in communities such as Hawai‘i. Through close partnerships with design partners and strategic investors such as Hawaiian Airlines, we can fully understand our operators and unlock their ability to provide zero-emission transportation solutions to their customers,” said Billy Thalheimer, REGENT CEO.

REGENT is a venture-backed aerospace and maritime company building all-electric seagliders, zero emission vehicles that provide harbor-to-harbor, overwater transportation at a fraction of the cost, noise, and emissions of existing regional transportation modes like aircraft and ferries. REGENT seagliders will offer a sustainable and resilient mode of regional coastal transportation, especially for residents of coastlines and archipelagos such as the Hawaiian Islands.

About REGENT

REGENT’s mission is to drastically reduce the cost and headache of moving people and goods between coastal cities. Our vehicle, called a seaglider, is an all-electric, wing-in-ground-effect craft that operates within a wingspan of the water's surface and couples the speed of an airplane with the operating cost of a boat. Built to the same safety standards as all modern aircraft and watercraft, our vehicle will service routes up to 180 miles with existing battery technology and routes up to 500 miles with next-gen batteries, all via existing dock infrastructure. Our world-class team of aerospace and maritime engineers are leveraging maritime vehicle development pathways to bring our zero-emission, high-speed seagliders to market within five years.

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 was named No. 1 U.S. airline by Condé Nast Traveler’s 2021 Readers’ Choice Awards. Consumer surveys by Travel + Leisure and TripAdvisor have placed Hawaiian among the top of all domestic airlines serving Hawaiʻi.

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 16 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.

Want to fly? How to become a pilot with Alaska Airlines and Horizon Air

Aspiring pilots and the mentors who take them under their wing 

Austen Pyle was 13 when he knew he wanted to fly — it was his first brush with the sky in a glider. Today, less than 10 years after that first flight, he’s starting his pilot training with Horizon Air, Alaska’s regional airline in the Pacific Northwest. Within a few months, he’ll be a first officer – following in his mentor’s flight path. 

Lawrence and Austen at Aviation Day, 2015
Lawrence and Austen at Aviation Day, 2022

Like many pilots, it took just one flight to inspire a career. Lawrence Pavlinovic, then a Horizon Air captain and now an Alaska captain, was the glider flight instructor that auspicious day. He saw Pyle’s passion for flight immediately and took him under his wing – inviting him to Aviation Day, an annual event hosted by Alaska and Horizon to inspire careers in aviation. 

“Lawrence really pushed me to explore aviation as an option,” says Pyle. “He opened my eyes, and I’m so glad he did.” 

Pyle, once the mentee attending Aviation Day, became the mentor over the weekend, discussing the journey to becoming a pilot.

Now’s the best time to become a pilot  

The need for the next generation of pilots is greater than ever. Alaska and Horizon expect to hire more than 900 pilots by the end of 2022 to replace thousands of pilots who retired during the pandemic or are approaching the mandatory retirement age of 65. Across the industry, mainline airlines are hiring about 10,000 pilots this year alone. 

Alaska Airlines First Officer Mallory C

But in between the moment a love of flying is sparked and a career, aspiring pilots like Pyle face a journey that requires a daunting investment of time and money. On average, it can cost around $90,000 for education, flight training and certifications, and pilots must log hundreds of flying hours before they can fly for commercial airlines. However, the opportunities for financial and other support while navigating this journey are growing. 

Alaska has launched several pilot-development programs – including most recently True North, a partnership with two historically black colleges and universities (HBCUs), and Ascend Pilot Academy, a partnership with Hillsboro Aero Academy in Oregon – to encourage aspiring pilots from diverse backgrounds to follow their dream.  

“If you’re going to do this, do it 100 percent,” – Austen Pyle at Alaska Airlines Aviation Day May 2022

Want to fly? Here are some tips and resources to get you off the ground: 

Find your passion: Take a discovery flight  

Flight schools and many flying clubs offer an hour with a flight instructor who includes an introduction to ground school as well as time at the controls in the air. Pilots say this is the best way to determine if a curiosity about flying will transform into a passion and commitment to do the work.  

“Do one flight. That’s all it will take for you to decide if you want to become a pilot or not,” says Pyle.  

Alaska’s annual Aviation Day events in Seattle and Portland also provide an opportunity for young people to explore careers across the industry. Seattle’s event was May 7, but there’s still time to attend the event in Portland, coming up Saturday, May 21. Learn more about registering. 

Plan your pathway: Explore Alaska’s pilot-development programs 

Pyle started out at the Evergreen Soaring Club and worked toward his pilot’s license while still in high school. “I actually got my private pilot’s license before my driver’s license,” he said.  

When he started Central Washington University’s aviation program, Pyle interviewed right away for the Horizon Air Pilot Development Program, which partners with universities while providing a stipend, mentorship and a pathway to a future job at Horizon.  

“That was really special for me as a freshman in college to know that I had an airline job waiting for me when I was ready,” said Pyle. 

And Alaska’s newest pilot-development programs are designed to recruit students with diverse backgrounds, part of our commitment to increase the diversity of our workforce at all levels by 2025. 

The True North pilot-development program was launched in fall 2021 in partnership with Delaware State University and University of Maryland-Eastern Shore, two historically black colleges and universities (HBCUs). True North’s goal is to recruit and support BIPOC pilots on their journeys, and students receive guaranteed first officer positions at Horizon upon graduation, along with a confirmed path to Alaska. 

Ascend Pilot Academy launched in March in partnership with Hillsboro Aero Academy in Oregon to provide resources and a career path for aspiring pilots, including those who don’t yet have flight experience. Once accepted, cadets receive a stipend and financial assistance for training, as well as a confirmed job with Horizon once qualified. “Aviation is for everyone,” says Carlos Zendejas, vice president of flight operations for Horizon Air. “Our programs help navigate the how-to of becoming a pilot, and we know that finances are a barrier, so our programs have stipends to help with that as well.” 

We need to find the young pilots and we’ve got to grow them. That’s where True North came from.” – Captain Ron Limes, one of the founders of True North and Alaska’s director base chief pilot in Seattle. 

Captain Limes loved planes as a child, but knew as a teen he was destined to fly them when he took a discovery flight over the New York City skyline.

Seek out support through pilot associations and flying clubs 

Aerospace associations and flying clubs offer a wealth of resources – from scholarships to assistance in sorting through education options, to job opportunities. For example, Alaska Airlines Captain JP Wilson found a job at Horizon Air through a career fair sponsored by the Organization of Black Aerospace Professionals.  

Captain Wilson knew he wanted to fly planes from the time he was a kid angling for the window seat while tagging along on his dad’s business trips. 

Limes says associations provide vital guidance from mentors who have already navigated the journey to becoming a pilot, which is especially valuable for diverse students who are entering a field long dominated by white male pilots. 

“You can find a group where somebody has already broken the barrier for you. I’m so thankful for the generations ahead of me who made the way smoother for me,” says Limes. 

A few of the associations and clubs with Alaska and Horizon members: 

Find a mentor to help you stay the course 

As a young man, Pavlinovic chased his aviation dreams for years, but kept running into roadblocks – from his parents, who initially pushed him to be a doctor or lawyer instead of a pilot, to the Air Force recruiter who told him he couldn’t fly because he wore glasses (not true). He credits a naval aviator who was a flight instructor in the Civil Air Patrol for encouraging him to not give up. It took many years, along with money from the veterans’ benefits he earned through 21 years of service in the Marines and Army, to achieve his dream of becoming a commercial pilot. 

Now when he meets young people like Pyle who have a passion for flying, he’s eager to help them on their way. “Because of my experience in the military and the civilian world, which is where I did all my flying, I can tailor my mentorship to a young man or woman and talk through the different ways they can pursue this,” says Pavlinovic.  

Across Alaska and Horizon, pilots take mentorship to heart, and veteran pilots are matched with students in all our associated pilot-development programs.  

We look for pilots who want to be mentors, who want to give back. We ask about it in interviews. A lot of our pilots love to give back.” – Captain JP Wilson 

Pyle has already found ways to mentor up-and-coming pilots. While still in high school, he put together a presentation on aviation careers for a class of fifth graders – complete with metal wings donated from Alaska and Horizon. And as a flight instructor, he would tell his students: “If you’re going to do this, do it 100 percent until you are done and nothing less.” 

Now that he’s achieved one goal, Pyle has his sights set on another: “I’ve told Lawrence, ‘On your retirement flight, I want to be your first officer.’” 

Photos by Joe Nicholson

Alaska’s new Star Wars-themed aircraft celebrates adventures to “Star Wars: Galaxy’s Edge” at Disneyland Resort

Alaska Airlines joined forces with Disneyland Resort today, May the Fourth, to unveil a new, one-of-its-kind Star Wars-themed aircraft that even Chewbacca would be proud of!  The plane, painted space black with the iconic Millennium Falcon emblazoned on the tail chased by TIE fighters, celebrates Star Wars: Galaxy’s Edge, the newest land of adventure inside Disneyland park. The plane is now flying on routes across Alaska’s network for the universe to enjoy!

For this latest collaboration – Alaska’s seventh painted plane for the Disneyland Resort – no Jedi mind tricks were needed: the force was strong for a Star Wars livery to finally enter Alaska’s fleet. The aircraft’s official name is “Star Wars Transport to the Disneyland Resort” with a tail number of N538AS. After the big reveal and celebration at the gate in the Seattle-Tacoma International Airport, the plane made its inaugural flight today and ultimate arrival at John Wayne Airport in Orange County.

The unique design of the Star Wars-inspired plane is a collaboration among teams at Alaska, Disneyland Resort and Lucasfilm. Familiar spacecraft span each side of the plane with hand painted, detailed imagery: the Millennium Falcon and four TIE fighters. Designers at Disneyland Resort focused on the incredibly identifiable, widely recognized Millennium Falcon for the spotlight, in addition to the well-traveled spaceship being the focal point at Star Wars: Galaxy’s Edge, a 14-acre land in Disneyland park.

The Star Wars: Galaxy’s Edge and Disneyland Resort logos are featured in the center of the fuselage. For a lighthearted touch, porgs (the cute avian creatures that lived on Luke Skywalker’s remote island) look back at passengers from both winglets, as another porg greets guests at the boarding door. 

Download images from this post.

To bring the imagery to life, the plane’s exterior required 228 gallons of paint applied during 540 work hours over 27 days. For the painting, 23 base colors were used with numerous custom colors mixed onsite for the detailed airbrushing of the Millennium Falcon and the TIE fighters.

Watch how this Alaska Airlines plane was transformed!

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“Star Wars Transport to Disneyland Resort” is scheduled to fly in the Alaska fleet and throughout Alaska’s network. You can also spot “Friendship and Beyond at Disneyland Resort” at airports and in the skies with a whimsical tribute to Pixar Pier at Disney California Adventure Park – our last Disneyland Resort-themed aircraft that began service in October 2019.

Multimedia:

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Photos by Ingrid Barrentine (Alaska Airlines).

Video by Ken Boyer, Dylan Sullivan, Jonny Mack (Alaska Airlines).

For more multimedia from Alaska Airlines visit this page.

Hawaiian Airlines 2022 Corporate Kuleana (Responsibility) Report Outlines Goals to Eliminate Single-Use Plastics from Cabins, Increase Local Food Sourcing and Promote Sustainable Tourism

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HONOLULU – Hawaiian Airlines today issued its 2022 Corporate Kuleana (Responsibility) Report, providing updates on Environmental, Social and Governance (ESG) performance and priorities, including new commitments to replace single-use plastics in cabin service by 2029 and locally source 40% of food and beverage for its Hawai‘i-based catering operations by 2025.

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Hawai‘i’s largest and longest-serving carrier continues to advance an array of initiatives to reduce its environmental impact as it develops a roadmap to achieve net-zero carbon emissions by 2050. Hawaiian is exploring sustainable aviation fuel opportunities, preparing to induct a fuel-efficient fleet of Boeing 787-9 aircraft as soon as next year, and partnering with Conservation International to offer a carbon offset program for travelers while committing to offset emissions from all of its employee business travel on the airline’s flights. Fleet modernization and fuel efficiency practices have driven progressive reductions in the carbon intensity of Hawaiian’s flight operations each year for the last four years.

Hawai‘i’s hometown airline also reaffirmed its focus on sustainable tourism last fall by producing a Travel Pono (Responsibly) in-flight video as the state of Hawai‘i began welcoming more visitors and COVID-19-related travel restrictions have eased. The pre-arrival educational spot features airline employees who provide tips on how Hawaiian’s guests can safely enjoy the islands while respecting communities, the culture and the environment. Additionally, Hawaiian last year offered significant funding to travel2change, a Hawai‘i nonprofit helping to train and scale organizations hosting regenerative tourism experiences.

“We remain engaged with grassroots, industry and political leaders on how we can shape a greener, more beneficial and equitable tourism economy,” Hawaiian Airlines President and CEO Peter Ingram said in the Corporate Kuleana Report.

To address plastic pollution, Hawaiian is committing to replacing 50% of single-use plastics from in-flight service items with sustainable alternatives by 2025 and 100% by 2029. Hawaiian expects to replace about 142,000 plastic bottles served onboard annually in a pilot project using aluminum bottles from water company Mananalu.

“Food sustainability is another important issue for us and our home state, and we support local food production,” the report adds. “Local sourcing of food both supports Hawai‘i’s economy and reduces greenhouse gas emissions associated with the shipping of products. Over the past few years we have reached 29% of our spending on locally sourced in-flight food and beverage products at our Hawai‘i hubs. By 2025, we are committed to increasing this metric to 40%.” Hawaiian also announced it would only use cage-free eggs for catering on all flights departing from Hawai‘i by 2025, and on all domestic flights by 2027.

While COVID-19 variants and surges made 2021 another trying year for the 93-year-old airline, widespread vaccinations, relaxation of travel restrictions and the appeal of a Hawai‘i vacation helped with Hawaiian’s recovery.

Last summer, Hawaiian operated its busiest transpacific domestic schedule in history, with new flights connecting Hawai‘i with Orlando, Austin and Ontario, California, as well as nonstop Long Beach-Kahului, Maui service. Hawaiian also resumed flights between Honolulu and American Samoa, Tahiti and Sydney. By year’s end, strong pent-up demand for travel to, from and within the islands had allowed Hawaiian to recall almost all employees accounted for in workforce reductions in late 2020.

As Hawaiian rebuilds its employee ‘ohana, it is doing so “with a renewed focus on strengthening our diversity, inclusion and belonging initiatives,” the report said.

“The heart of Hawaiian will always be our people,” said Ingram, noting that nearly 1,000 employees donated 3,100 hours to community causes in 2021. “We continue to strengthen our diversity, inclusion and belonging initiatives. We are working to ensure that recruitment, retention and promotions are free of bias, and we are listening to our employees and acting on their feedback. While we have much work to do, I am encouraged by our progress in fostering a more inclusive and diverse company.”

This year’s report for the first time also includes disclosures aligned with the Task Force on Climate-Related Financial Disclosures (TCFD), in addition to Sustainability Accounting Standards Board (SASB) metrics. To learn more about Hawaiian Airlines' sustainability work, visit http://www.HawaiianAirlines.com/About-Us/Corporate-Responsibility. 

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 was named No. 1 U.S. airline by Condé Nast Traveler’s 2021 Readers Choice Awards. Consumer surveys by Travel + Leisure and TripAdvisor have placed Hawaiian among the top of all domestic airlines serving Hawaiʻi.

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 16 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.

Show your Star Wars spirit on Alaska Airlines and board early this ‘May the Fourth’ 

Guests wearing their favorite Star Wars clothing on any May 4 flight will get to enjoy priority boarding!

ATTENTION ALL STAR WARS FANS: If you have a flight on Alaska Airlines on May 4, 2022, you might want to break out your vintage Luke Skywalker T-shirt, way too cool BB-8 ballcap or even that Darth Vader cape. To celebrate the Star Wars fan day of “May the Fourth (be with you),” we’re offering guests who wear their favorite Star Wars gear the chance to board early. 

Everybody in the galaxy loves Star Wars, so we had to celebrate this epic day the Alaska way,” said Natalie Bowman, managing director of marketing and advertising for Alaska Airlines. “Whether you’re traveling near – or far, far away – on May 4th, we hope to see you at our gates ready to board early in your favorite Star Wars gear. It will truly be a star-studded event!”  

The one-day priority boarding promotion can be enjoyed by all guests on any Alaska Airlines flight throughout our network on May 4, 2022. When a guest wears any clothing item Star Wars-related, they’ll be able to board their flight just after Group B (which could stand for, say, Boba Fett). Guests should listen closely to the announcements by gate agents.  

Plant the Planes: An Employee-Driven Restoration Project Rooted in Culture

Did you know that every Hawaiian Airlines aircraft bears a name of cultural significance? Before carrying our guests to, from and within Hawaiʻi, each plane entering our fleet is adorned with a unique name that embodies the islands’ deep connection to the natural realm. Our short-range Boeing 717s are named after local birds; our long-haul Airbus A330s bear the names of stars or constellations used by Polynesian voyagers for celestial navigation, and our mid-range, fuel-efficient Airbus A321neos are named after plants endemic to the islands.

In paying homage to these aircraft names, our Team Kōkua employee volunteer group joined forces with the Koʻolau Mountain Watershed Partnership, an alliance of public and private landowners committed to protecting native forests on Oʻahu’s Koʻolau Mountains, to kickstart a new restoration project called “Plant the Planes.”

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A section of Oʻahu’s Koʻolau Mountains

 

“We started working with the Koʻolau Mountain Watershed Partnership last year to support their efforts of repopulating native forests in Oʻahu’s Koʻolau Mountain Range,” said Debbie Nakanelua-Richards, director of community and cultural development at Hawaiian Airlines. “The work they do every day is humbling, and we are grateful for their willingness to support our efforts and help us transform our ‘Plant the Planes’ idea into a reality. This project is a testament to our shared dedication to mālama ʻāina (care for the land) and restoring native habitats threatened by invasive species and climate change.”

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Team Kōkua pictured at the worksite with the Koʻolau Mountain Watershed Partnership

 

“Plant the Planes” kicked off on Hawaiʻi’s 'Ōhi'a Lehua Day (April 25) with seven Team Kōkua volunteers trekking up and hunkering down on East Honolulu's Wiliwilinui Ridge. The group cleared stubborn invasives such as strawberry guava and ironwood trees before transferring potted saplings into the ground. At the end of the event, volunteers planted the beginnings of a small forest, including 12 ʻōhi'a lehua trees, 2 maile vines and 2 aʻaliʻi shrubs, and dispersed thousands of seeds for koa tree and carex grass.

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A Team Kōkua volunteer preparing to transfer a native sapling into the ground

 

Nakanelua-Richards expects the restoration initiative to continue through 2023 with the help of the Koʻolau Mountain Watershed Partnership and our Team Kōkua volunteers, with each project phase involving a new plant species featured in our 18-aircraft A321neo fleet. 

She added, “It is always meaningful when we come together to huli ka lima I lalo (turn our hands down) to do what’s pono (right). As Hawaiʻi’s hometown carrier, we know our kuleana (responsibility) to protect our islands – including incredibly remote places that most of us may never see or even know about – is monumental. We take great pride in our role in perpetuating what is unique to Hawaiʻi, from Hawaiian culture to flora and fauna that have called these islands home long before us, for generations to come.”

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Miyasato holding an ʻōhi'a lehua sapling

 

“I've always been amazed by how much care and intention is invested in naming each plane to ensure our fleet embodies Hawaiʻi’s culture,” said Jeri Miyasato, social media specialist at Hawaiian Airlines. “It was a proud moment for me to join my colleagues and the Koʻolau Mountain Watershed Partnership to kick off the 'Plant the Planes' project and ensure that native plants continue to survive and thrive across our Islands for generations to come.”

Have a trip coming up on Hawaiian Airlines? Learn the name of your aircraft by reading the engraved informational placards near the main boarding door next time you fly with us. 

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Alaska Airlines’ sustainability report champions climate action, social impact, commitment to people and greener travel

We care a lot — about people, flying greener, investing for strong communities and making flying matter. Below are some highlights from Alaska’s 2021 Care Report.

Each year, we share the journey of our environmental and social impact in an annual report, sharing data, progress, learnings and stories. We share where we’re hitting our targets, areas of improvement, and what we’ve learned throughout the previous year. We know there will always be more work ahead – there is no “mission accomplished” when it comes to our environmental and social impact. We’ll keep pushing forward with care, innovation, pragmatism, accountability, transparency and partnership to ensure that aviation is a positive force in our world.

Last year, we announced new commitments to reduce our climate impacts with goals for carbon, waste, and water. We also committed to new diversity, equity, and inclusion goals as part of our responsibility to make Alaska a place where everyone feels like they belong. This year, we began making these a reality and today, we’re excited to share our progress with you.

Full Care Report

HIGHLIGHTS

Net zero: care for the long-term

Our most significant environmental impact comes from burning jet fuel and the resulting greenhouse gas emissions. Last year, we committed to achieving net-zero carbon emissions by 2040 through a five-part path, with near-term 2025 targets to help us get there.

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In 2021, we’ve focused on improving our operational efficiency with procedures and technology that enables us to minimize the amount of fuel we actually burn. These include implementing route optimization software Flyways, taking delivery of new Boeing 737 MAX aircraft, improving use of electric ground power and air and continuing to evolve our ground fleet toward lower-emissions options. We also focused on jump-starting the market for sustainable aviation fuels, which have the greatest power to decarbonize aviation in the next several decades.

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Transforming the future of flight

Reducing aviation’s impact requires new technologies that don’t yet exist or aren’t available with enough supply and at a viable cost, which is why airline travel is one of the most difficult sectors to decarbonize. To tap into the innovation needed to make aviation sustainable, we launched an investment arm, Alaska Star Ventures.

Alaska Star Ventures is dedicated to identifying and enabling technology to accelerate our path to net zero. To kick things off, we dove in with UP.Partners, The Westly Group and ZeroAvia:

  • UP.Partners is focused on accelerating operational efficiency and advanced air mobility.
  • The Westly Group is focused on green energy, carbon offsetting and removal technologies and enabling a low-carbon circular economy.
  • With ZeroAvia, we are partnering to develop technology to retrofit regional aircraft as zero emissions planes with their innovative design for hybrid hydrogen-electric powertrain technology.

Diversity, equity & inclusion

At Alaska, we believe every person deserves respect regardless of race, ethnicity, capability, age, gender or sexual orientation; we believe that aviation can enable opportunity; and we’re committed to advancing equity in all forms, with an initial focus on racial equity. Recognizing that we have more work to do to advance diversity, equity and inclusion (DEI) for our company and industry, in 2021, we set specific and measurable goals to deliver on our commitments to racial equity.

  • Increase racial diversity at all levels of the company to at least 30%, so that leadership at least reflects the diversity of our full employee group;
  • Increase our company’s “Inclusion Index Score” in our employee engagement survey by 10 points; and
  • Engage 175,000 young people around education, opportunity, and career pathways, focusing on developing BIPOC talent.

In 2021, we reported a modest initial increase in leadership representation while putting in place the talent pipeline to recruit and advance more diverse leaders. Already in 2022, we’ve made more progress—currently 18.3% of our leaders are BIPOC. There is more work to do, but we’re on track to achieve our goals by 2025. These goals are supported by a strong culture of inclusion which is measured by our “Inclusion Index Score,” which increased by 9 points in 2021.

This past year, we’ve established new programs to enable more young people to reach aviation and other career goals, working with local schools and establishing our own pilot academies.  Learn more.

Holding ourselves accountable

Our commitment to people and the planet is not just an aspiration; it is something we live by every day. Beginning in 2021, we included a carbon intensity metric into the goals-based program that guides bonus pay for all employees. Also, starting in 2021, a portion of long-term executive compensation depends on progress in diversifying our leadership ranks.

We believe how we hold ourselves accountable should play a critical role in our company’s culture of care. It is not enough to say we want to do good. We must measure our impact and integrate those metrics in our systems. This accountability enables and creates lasting change.

The next 90 years

This month, we celebrate our 90th anniversary as an airline. While we enjoy this remarkable achievement, our eyes are on the horizon, looking toward our next 90 years and what it will take to care for people and the planet for the long term.

Hawaiian Holdings Reports 2022 First Quarter Financial Results

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

“Strong demand for leisure travel to Hawai‘i is poised to propel our domestic revenue to record levels as the effects of the pandemic are more muted now than at any point in the past two years. Based on these trends, we anticipate a resurgence of international demand as restrictive travel policies continue to loosen,” said Hawaiian Airlines President and CEO Peter Ingram. "I am extremely proud of our wonderful team who are committed to connecting people with aloha."

Financial Results

First Quarter 2022

  • The Company reported a GAAP net loss of $(122.8) million, and an adjusted net loss of $(130.3) million. 
  • The Company reported a GAAP EPS of $(2.39), and an adjusted EPS of $(2.54).
  • The Company reported EBITDA of $(96.0) million, and adjusted EBITDA of $(105.5) million.

 

First Quarter 2022 Highlights

Revenue Environment

The Company experienced strengthening demand throughout its domestic network as the impacts of Omicron eased through the quarter and COVID-19 restrictions for travel to the State of Hawai‘i were lifted at the end of March.  The Company's domestic premium products performed exceptionally well during the quarter, with both business/first class revenue and Extra Comfort revenue exceeding 2019 levels.  The Company's overall operating revenue is down 27% from first quarter 2019 as its international network is still rebuilding.

Other revenue was up 32% compared to the first quarter of 2019 driven by a record quarter of cargo revenue and the highest first quarter revenue from HawaiianMiles sales.

 

Routes and Network 

In March 2022, the Company announced the return of daily nonstop service between Oakland, California and Kona, Hawai‘i from June 15, 2022 to September 6, 2022. The Company will also be adding a second daily flight between San Francisco, California and Honolulu, Hawai‘i from May 15, 2022 to August 1, 2022. 

In April 2022, the Company announced the resumption of three-times-weekly nonstop service between Auckland, New Zealand and Honolulu, Hawai‘i starting July 2, 2022 and a seasonal increase in frequency between Seoul, South Korea and Honolulu for the summer of 2022.

During the first quarter of 2022, the Company operated at 88% of its 2019 first quarter system capacity, comprised of 118%, 75% and 25% capacity on its North America, Neighbor Island and International routes, respectively.

The State of Hawai‘i ended its Safe Travels Hawai‘i restrictions on March 25, 2022, removing the requirement that domestic travelers complete a Safe Travels application, which included providing either proof of COVID-19 vaccination or a pre-travel negative COVID-19 test result, in order to avoid a required quarantine period upon entering Hawai‘i.

Countries in the Company's international network made several positive changes to their respective travel restrictions including the following:

  • Australia lifted its remaining travel restrictions for visitors in February 2022 (restrictions were previously lifted for Australian citizens in December 2021);
  • South Korea lifted quarantine restrictions with proof of vaccination, requiring only a negative COVID-19 test within 48 hours of travel beginning April 1, 2022;
  • Japan ceased government required quarantine and increased allowable daily visitor arrivals to 10,000 beginning April 10, 2022; and
  • Starting May 1, 2022, New Zealand's borders will reopen to vaccinated visitors from visa waiver countries, including the United States.

 

Liquidity and Capital Resources

As of March 31, 2022, the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $1.6 billion
  • $1.9 billion in liquidity, including its undrawn $235 million revolving credit facility
  • Outstanding debt and finance lease obligations of $1.9 billion
  • Air traffic liability of $761 million

 

Operational Excellence

The Company maintained its #1 national ranking for On-Time Performance for the 18th consecutive year in 2021, as reported in the U.S. Department of Transportation (DOT) Air Travel Consumer Report.

In March 2022, the Company opened a 3,000 square-foot line maintenance facility at Long Beach Airport in California to expand space for its aircraft mechanics to perform maintenance on its A321neo fleet which will enable greater operational flexibility.

In April 2022, the Company announced an agreement with SpaceX to deploy its Starlink satellite internet service on its long haul aircraft. The Company expects to launch complimentary inflight connectivity in 2023.

 

People

In February 2022, the Company's employees represented by the International Association of Machinists and Aerospace Workers ratified five-year contracts that provide for wage increases and important work rule changes for nearly 2,500 employees.

In April 2022, the Company's employees represented by the Transport Workers Union of America ratified a five-year contract that provides wage increases and important work rule changes for 55 employees.

In March 2022, the Company launched a statewide hiring campaign to recruit for hundreds of airport and operational positions, as well as administrative roles, to support the Company as it rebuilds its network back to 2019 levels.

 

Environmental, Social and Corporate Governance

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 third annual Corporate Kuleana report in May 2022, highlighting its Environmental, Social, and Governance commitments.

In April 2022, the Company announced a new partnership with Conservation International, which provides guests with the opportunity to purchase certified carbon offsets to offset their Hawaiian Airlines flight's carbon emissions. The Company has also committed to offsetting all future business travel by its employees on Hawaiian’s flights.        

 

Second Quarter 2022 Outlook

The Company expects its capacity for the quarter ending June 30, 2022 to be down approximately 11.5% to 14.5% compared to the second 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 June 30, 2022 to sequentially improve from the first quarter and be down approximately 8% to 12% compared to the second quarter of 2019 due to strong demand throughout its network. 

The Company expects its CASM excluding fuel and non-recurring items for the quarter ending June 30, 2022 to be consistent with the first quarter at up approximately 16.5% to 19.5% compared to the second quarter of 2019.

The Company's outlook of adjusted EBITDA for the quarter ending June 30, 2022 is $(50) million to $10 million, which reflects the resilient demand for Hawai‘i travel as the Company continues to rebuild its network.

The table below summarizes the Company's expectations for the quarter ending June 30, 2022 expressed as an expected percentage change compared to the results for the quarter ended June 30, 2019.

 

Item

 

Second Quarter 2022 Guidance

 

GAAP Equivalent

 

GAAP Second Quarter 2022 Guidance

ASMs

 

Down 11.5% to 14.5%

 

 

 

 

Total Revenue

 

Down 8% to 12%

 

 

 

 

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

 

Up 16.5% to 19.5%

 

Costs per ASM (a)

 

Up 27.8% to 30.2%

Gallons of Jet Fuel Consumed

 

Down 14.5% to 17.5%

 

 

 

 

Fuel Price per Gallon (b)

 

$3.59

 

 

 

 

Adjusted EBITDA (c)

 

$(50) million to $10 million

 

Net Income (c)

 

 

Effective Tax Rate

 

~21%

 

 

 

 

 

(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 April 21, 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 certain 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 Company is suspending guidance for the year ending December 31, 2022 due to the continuing uncertainty surrounding the timing of the full resumption of its international network due to foreign government travel restrictions. The Company intends to resume providing full-year guidance when there is greater clarity related to its international markets.

 

Investor Conference Call

Hawaiian Holdings’ quarterly results conference call is scheduled to begin today, April 26, 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) reported by the U.S. Department of Transportation and was named the #1 U.S. airline by Condé Nast Traveler's 2021 Readers Choice Awards. Consumer surveys by Travel + Leisure and TripAdvisor have placed Hawaiian among the top of all domestic airlines serving Hawai‘i.

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 16 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; future domestic and international demand for air travel; the Company's future routes and network changes; changes to COVID-19 related travel restrictions in various jurisdictions; operational flexibility generated from the Company's line maintenance base in Long Beach Station; the Company's in-flight connectivity partnership with SpaceX; the Company's statewide hiring campaign; the Company's environmental commitments, including related to emissions and offsets; the Company's timing for publishing its Kuleana report; the Company’s outlook for the first fiscal quarter and resumption of the Company's fiscal year 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; whether the Company's cost-cutting plans related to the COVID-19 pandemic will be effective or sufficient; the duration of government-mandated and other restrictions on travel; the full effect that the quarantine, restrictions on travel and other measures to limit the spread of COVID-19 will have on demand for air travel in the markets in which the Company operates; 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; the Company's ability to generate sufficient cash and manage its available cash; 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; and foreign currency exchange rate fluctuations.

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 March 31,

 

 

2022

 

2021

 

% Change

 

 

(in thousands, except per share data)

Operating Revenue:

 

 

 

 

 

 

Passenger

 

$          404,029

 

$          137,469

 

193.9 %

Other

 

              73,185

 

              44,748

 

63.5 %

Total

 

            477,214

 

            182,217

 

161.9 %

Operating Expenses:

 

 

 

 

 

 

Wages and benefits

 

            203,099

 

            160,079

 

26.9 %

Aircraft fuel, including taxes and delivery

 

            150,982

 

              47,736

 

216.3 %

Maintenance, materials and repairs

 

              55,650

 

              34,252

 

62.5 %

Aircraft and passenger servicing

 

              33,815

 

              17,251

 

96.0 %

Depreciation and amortization

 

              33,755

 

              35,356

 

(4.5) %

Commissions and other selling

 

              20,647

 

              11,409

 

81.0 %

Aircraft rent

 

              26,276

 

              29,841

 

(11.9) %

Other rentals and landing fees

 

              34,611

 

              19,668

 

76.0 %

Purchased services

 

              30,687

 

              24,097

 

27.3 %

Government grant recognition

 

                     —

 

           (147,270)

 

(100.0) %

Other

 

              35,497

 

              22,962

 

54.6 %

Total

 

            625,019

 

            255,381

 

144.7 %

Operating Loss

 

           (147,805)

 

             (73,164)

 

102.0 %

Nonoperating Income (Expense):

 

 

 

 

 

 

Interest expense and amortization of debt discounts and issuance costs

 

             (25,037)

 

             (23,693)

 

 

Interest income

 

                4,434

 

                1,249

 

 

Capitalized interest

 

                1,052

 

                   684

 

 

Gains on fuel derivatives

 

                     —

 

                   217

 

 

Loss on extinguishment of debt

 

                     —

 

               (3,994)

 

 

Other components of net periodic benefit cost

 

                1,286

 

                   981

 

 

Other, net

 

              11,246

 

              20,896

 

 

Total

 

               (7,019)

 

               (3,660)

 

 

Loss Before Income Taxes

 

           (154,824)

 

             (76,824)

 

 

Income tax benefit

 

             (32,015)

 

             (16,133)

 

 

Net Loss

 

$         (122,809)

 

$           (60,691)

 

 

Net Loss Per Share

 

 

 

 

 

 

Basic

 

$               (2.39)

 

$               (1.23)

 

 

Diluted

 

$               (2.39)

 

$               (1.23)

 

 

Weighted Average Number of Common Stock Shares Outstanding:

 

 

 

 

 

 

Basic

 

              51,288

 

              49,472

 

 

Diluted

 

              51,288

 

              49,472

 

 

 

Hawaiian Holdings, Inc.

Consolidated Balance Sheet (unaudited)

 

 

March 31, 2022

(unaudited)

 

December 31, 2021

 

 

(in thousands, except shares)

ASSETS

 

 

 

 

Current Assets:

 

 

 

 

Cash and cash equivalents

 

$               481,212

 

$              490,561

Restricted cash

 

                   17,253

 

                  17,267

Short-term investments

 

              1,162,895

 

             1,241,752

Accounts receivable, net

 

                   91,135

 

                  92,888

Income taxes receivable

 

                   72,792

 

                  71,201

Spare parts and supplies, net

 

                   35,923

 

                  34,109

Prepaid expenses and other

 

                   60,305

 

                  66,127

Total

 

              1,921,515

 

             2,013,905

Property and equipment, less accumulated depreciation and amortization of $1,033,614 and $999,966 as of March 31, 2022 and December 31, 2021, respectively

 

              1,931,596

 

             1,957,623

Other Assets:

 

 

 

 

Assets held for sale

 

                   28,443

 

                  29,449

Operating lease right-of-use assets

 

                 516,355

 

                536,154

Long-term prepayments and other

 

                   76,753

 

                  80,489

Intangible assets, net

 

                   13,500

 

                  13,500

Total Assets

 

$            4,488,162

 

$           4,631,120

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current Liabilities:

 

 

 

 

Accounts payable

 

$               129,832

 

$              114,400

Air traffic liability and current frequent flyer deferred revenue

 

                 760,783

 

                631,157

Other accrued liabilities

 

                 157,687

 

                165,050

Current maturities of long-term debt, less discount

 

                   60,431

 

                  97,096

Current maturities of finance lease obligations

 

                   23,607

 

                  24,149

Current maturities of operating leases

 

                   77,200

 

                  79,158

Total

 

              1,209,540

 

             1,111,010 

Long-Term Debt

 

              1,671,092

 

             1,704,298

Other Liabilities and Deferred Credits:

 

 

 

 

Noncurrent finance lease obligations

 

                   95,173

 

                100,995

Noncurrent operating leases

 

                 404,378

 

                423,293

Accumulated pension and other post-retirement benefit obligations

 

                 155,457

 

                160,817

Other liabilities and deferred credits

 

                   77,450

 

                  78,340

Noncurrent frequent flyer deferred revenue

 

                 305,575

 

                296,484

Deferred tax liability, net

 

                 147,404

 

                186,797

Total

 

              1,185,437

 

             1,246,726

Commitments and Contingencies

 

 

 

 

Shareholders’ Equity:

 

 

 

 

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

 

                          —

 

                         —

Common stock, $0.01 par value per share, 51,327,070 and 51,233,369 shares outstanding as of March 31, 2022 and December 31, 2021, respectively

 

                        513

 

                       512

Capital in excess of par value

 

                 270,028

 

                269,575

Accumulated income

 

                 258,028

 

                380,837

Accumulated other comprehensive loss, net

 

               (106,476)

 

                (81,838)

Total

 

                 422,093

 

                569,086

Total Liabilities and Shareholders’ Equity

 

$            4,488,162

 

$           4,631,120

 

Hawaiian Holdings, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)

 

 

Three months ended March 31,

 

 

2022

 

2021

 

 

(in thousands)

Net cash provided by Operating Activities

 

$                 22,154

 

$               122,009

Cash flows from Investing Activities:

 

 

 

 

Additions to property and equipment, including pre-delivery payments

 

                   (9,066)

 

                 (10,417)

Proceeds from the disposition of aircraft related equipment

 

                     1,124

 

                        117

Purchases of investments

 

               (263,161)

 

               (655,266)

Sales of investments

 

                 307,780

 

                 117,857

Net cash provided by (used in) investing activities

 

                   36,677

 

               (547,709)

Cash flows from Financing Activities:

 

 

 

 

Proceeds from the issuance of common stock

 

                          —

 

                   68,132

Long-term borrowings

 

                          —

 

              1,220,259

Repayments of long-term debt and finance lease obligations

 

                 (66,704)

 

               (328,256)

Debt issuance costs and discounts

 

                          —

 

                 (24,664)

Payment for taxes withheld for stock compensation

 

                   (1,490)

 

                   (1,565)

Other

 

                          —

 

                     1,837

Net cash provided by (used in) financing activities

 

                 (68,194)

 

                 935,743

Net increase (decrease) in cash and cash equivalents

 

                   (9,363)

 

                 510,043

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

 

                 507,828

 

                 509,639

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

 

$               498,465

 

$            1,019,682

 

Table 2.

Hawaiian Holdings, Inc.

Selected Statistical Data (unaudited)

 

 

Three months ended March 31,

 

 

2022

 

2021

 

% Change

 

 

(in thousands, except as otherwise indicated)

Scheduled Operations (a) :

 

 

 

 

 

 

Revenue passengers flown

 

             2,030   

 

               733   

 

176.9     %

Revenue passenger miles (RPM)

 

      2,974,352   

 

     1,054,128   

 

182.2     %

Available seat miles (ASM)

 

      4,242,483   

 

     2,466,043   

 

72.0     %

Passenger revenue per RPM (Yield)

 

             13.58  ¢

 

            13.04   ¢

 

4.1     %

Passenger load factor (RPM/ASM)

 

70.1 %

 

42.7 %

 

27.4 pts.

Passenger revenue per ASM (PRASM)

 

               9.52  ¢

 

              5.57   ¢

 

70.9     %

Total Operations (a) :

 

 

 

 

 

 

Revenue passengers flown

 

             2,036   

 

               737   

 

176.3     %

Revenue passenger miles (RPM)

 

      2,987,565   

 

     1,062,317   

 

181.2     %

Available seat miles (ASM)

 

      4,263,048   

 

     2,481,647   

 

71.8     %

Operating revenue per ASM (RASM)

 

             11.19   ¢

 

              7.34   ¢

 

52.5     %

Operating cost per ASM (CASM)

 

             14.66  ¢

 

            10.29   ¢

 

42.5     %

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

 

             11.07   ¢

 

            14.30   ¢

 

(22.6)    %

Aircraft fuel expense per ASM (c)

 

               3.54  ¢

 

              1.92   ¢

 

84.4     %

Revenue block hours operated

 

           44,883   

 

          26,995   

 

66.3     %

Gallons of jet fuel consumed

 

           53,417   

 

          29,945   

 

78.4     %

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

 

$             2.83   

 

$            1.59   

 

78.0     %

(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:

  • During the three months ended March 31, 2021 the Company recognized $147.3 million 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 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, 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.
  • During the three months ended March 31, 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.
  • 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.
  • 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.

The Company believes that adjusting for the impact of the recognition of grant proceeds, changes in fair value of fuel and foreign currency derivative contracts, fluctuations in exchange rates on debt instruments denominated in foreign currency, CBA ratification bonus, and 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 March 31,

 

 

2022

 

2021

 

 

Total

 

Diluted Net Loss Per Share

 

Total

 

Diluted Net Loss Per Share

 

 

(in thousands, except per share data)

Net Loss, as reported

 

$    (122,809)

 

$          (2.39)

 

$      (60,691)

 

$          (1.23)

Adjusted for:

 

 

 

 

 

 

 

 

Government grant recognition

 

                —

 

                —

 

      (147,270)

 

            (2.98)

Loss on debt extinguishment

 

                —

 

                —

 

           3,994

 

             0.08

Changes in fair value of fuel derivative contracts

 

                —

 

                —

 

             (382)

 

            (0.01)

CBA ratification bonus

 

           2,104

 

             0.04

 

                —

 

                —

Unrealized gains on foreign debt

 

        (11,582)

 

            (0.23)

 

        (19,043)

 

            (0.38)

Unrealized gains on non-designated foreign exchange positions

 

                —

 

                —

 

          (1,749)

 

            (0.03)

Tax effect of adjustments

 

           1,990

 

             0.04

 

         34,534

 

             0.70

Adjusted net loss

 

$    (130,297)

 

$          (2.54)

 

$    (190,607)

 

$          (3.85)

 

Adjusted EBITDA

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

 

 

Three months ended March 31,

 

 

2022

 

2021

 

 

(in thousands)

Net Loss

 

$             (122,809)

 

                 (60,691)

Income tax benefit

 

                 (32,015)

 

                 (16,133)

Depreciation and amortization

 

                   33,755

 

                   35,356

Interest expense and amortization of debt discounts and issuance costs

 

                   25,037

 

                   23,693

EBITDA, as reported

 

                 (96,032)

 

                 (17,775)

Adjusted for:

 

 

 

 

Government grant recognition

 

                          —

 

               (147,270)

Loss on extinguishment of debt

 

                          —

 

                     3,994

Changes in fair value of fuel derivative instruments

 

                          —

 

                      (382)

CBA ratification bonus

 

                     2,104

 

                          —

Unrealized gain on non-designated foreign exchange positions

 

                          —

 

                   (1,749)

Unrealized gains on foreign debt

 

                 (11,582)

 

                 (19,043)

Adjusted EBITDA

 

$             (105,510)

 

$             (182,225)

 

Operating Costs per Available Seat Mile (CASM)

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

 

 

Three months ended March 31,

 

 

2022

 

2021

 

 

(in thousands, except CASM data)

GAAP Operating Expenses

 

$             625,019  

 

$             255,381  

Adjusted for:

 

 

 

 

Government grant recognition

 

                        —  

 

               147,270  

CBA ratification bonus

 

                 (2,104) 

 

                        —  

Operating Expenses excluding non-recurring items

 

$             622,915  

 

$             402,651  

Aircraft fuel, including taxes and delivery

 

             (150,982) 

 

               (47,736) 

Operating Expenses excluding fuel and non-recurring items

 

$             471,933  

 

$             354,915  

Available Seat Miles

 

            4,263,048  

 

            2,481,647  

CASM – GAAP

 

                   14.66 ¢

 

                   10.29 ¢

Aircraft fuel, including taxes and delivery

 

                   (3.54) 

 

                   (1.92) 

Government grant recognition

 

                        —  

 

                     5.93  

CBA ratification bonus

 

                   (0.05) 

 

                        —  

CASM excluding fuel and non-recurring items

 

                   11.07 ¢

 

                   14.30 ¢

 

 

 

Estimated three months ending June 30, 2022

 

 

(in thousands, except CASM data)

GAAP operating expenses

 

$           680,920  

–

$           717,905  

 Aircraft fuel, including taxes and delivery

 

            (199,259) 

–

            (206,504) 

Adjusted operating expenses

 

$           481,661  

–

$           511,400  

Available seat miles

 

          4,409,814  

–

          4,564,544  

CASM – GAAP

 

                 15.45 ¢

–

                 15.74 ¢

 Aircraft fuel, including taxes and delivery

 

                  (4.52) 

–

                  (4.53) 

Adjusted CASM

 

                 10.93 ¢

–

                 11.21 ¢

 

Alaska Airlines pilot pulls some strings to delight guests ​

During long stretches at work, Buddy, an Alaska Airlines First Officer, will bring his acoustic guitar as his trusted travel companion. 

 “Music is a big thing for me,” said Buddy, who has played the guitar for over 20 years. “I think that everybody should have their own soundtrack going on in their mind all the time.” 

Little did the San Francisco-based pilot know his musical gift would bring joy to guests on his next flight. 

Music to airport ears  

Buddy, an Alaska Airlines First Officer

Earlier this month, while Buddy was flying from Austin to Seattle, the flight was delayed. Luckily, Buddy and his instrument were at the “right place, right time.” 

“I was standing close to the gate and noticed one of our guests with two small children,” said Buddy. “The mother looked at me and said, ‘So, are you going to serenade us while we’re waiting?’” 

Without hesitation, he pulled out his guitar to play for the kiddos. 

“I got down on the ground right there with the little kids,” he said. “I started playing for one of the boys at first because he was all over the place and I was just trying to help distract him for a little bit.” 

It’s not every day you see a pilot waiting alongside you at the gate; much less one with a guitar case.  Video shot by Alaska customer service agent Elisa.

“We were delayed, which wasn’t the greatest news for parents traveling with a three-year-old and a one-year-old,” said Seattle resident and KING5 Reporter Steve Soliz. It was his wife who had jokingly asked Buddy whether “a serenade came with the price of a ticket.” 

Other parents, whose children had also grown restless while waiting at the gate, gratefully watched as their kids were intrigued by the simple melody that suddenly filled the air. At one point, about a half dozen children surrounded Buddy. 

https://twitter.com/SteveSoliz/status/1511130631824154627?s=20&t=E99saxVrMTuxRzl9lXVo-w

“Buddy even let my toddler touch his guitar,” he said. “My three-year-old son and I walked up on the impromptu concert. Buddy happily played for my little ones and the others near the gate, who also enjoyed this musical moment. To be honest, this is one of the many reasons we enjoy flying Alaska.” 

The pilot, who was concerned about being too loud and bothering the guests waiting at the gate, had no idea the group of kids weren’t the only ones paying attention to him. 

Customer Service Agent Elisa, who captured Buddy’s musical gift on cell phone video, said watching him serenade the crowd was such a touching moment.  

I felt proud to work for a company who has employees that care, and Buddy needs this recognition,” Elisa said. “Buddy created a genuine connection that is off-script to what our job demands.” 

Buddy was surprised to learn his small gesture had such a big impact. 

“Every now and then you can do something that just seems so little to you that actually becomes a big deal to somebody else,” said Buddy. “If I can inspire anybody to do something, it would be — to be nice to other people. I think we all have the ability to do that.” 

Pilot pathways and career development at Alaska Airlines and Horizon Air 

This past year, we’ve established new programs to enable more young people to reach aviation and other career goals, working with local schools and establishing our own pilot academies.  

ASCEND PILOT ACADEMY 

As we plan for Alaska and Horizon’s future, we’re actively working to train the next generation of pilots through a variety of programs. In March 2022, we launched the Ascend Pilot Academy in partnership with Hillsboro Aero Academy, a premier flight school in the Pacific Northwest. The Ascend Pilot Academy provides aspiring airline pilots with a streamlined, more financially accessible path to becoming a commercial pilot at Horizon and eventually Alaska. At launch, 180 prospective pilots signed up for the program—more than double our goal! 

For Horizon Air pilots seeking to become pilots for Alaska Airlines, the Pilot Pathways Program provides the most direct route. Horizon Air and Alaska Airlines share a goal of creating a rewarding career at the Air Group family of airlines and making the move from regional to a major airline, if desired, as simple as possible.  

Each year, a minimum of 30% of Alaska new-hire pilots will come from the Alaska Pilot Pathways Program. In 2021, 32% (51 pilots total) of our overall pilot new hires at Alaska were Horizon transfers through the Pathways program. 

Learn more

TRUE NORTH PILOT PROGRAM 

Over the past year, a group of Black Alaska pilots got together to find creative ways to make aviation careers more attainable for aspiring pilots.  

Led by Ron Limes, an Alaska captain since 1999, the group worked in partnership with their colleagues, peers and leaders from across our company to develop a program called True North.  

The program will increase the diversity of our industry by directly funding students’ flight instruction, providing internship and mentorship opportunities and ultimately moving graduates to first officer positions at Horizon Air, with a confirmed path to Alaska.    

The program kicked off in 2021 with four students from two Historically Black Colleges and Universities (HBCUs), Delaware State University and University of Maryland-Eastern Shore. In the future, we plan to expand the program to other schools as well as broaden its scope of career opportunities within Alaska. 

Learn more

Hawaiian Airlines Dispatchers Ratify 5-Year Contract

HA High Res Logo_mid

HONOLULU – Hawaiian Airlines dispatchers, represented by the Transport Workers Union (TWU) Local 592, have ratified a 5-year contract providing significant wage increases and other work benefits, the company announced today.

“Our dispatchers continue to play an essential role behind our success navigating operational challenges posed by the pandemic while helping us maintain our schedule reliability and industry-leading punctuality,” said Jon Snook, executive vice president and chief operating officer of Hawaiian Airlines. “We are pleased to ratify an agreement that recognizes their many contributions to our company as we restore more of our services and move toward a full recovery.”

The TWU represents more than 65,000 U.S. aviation workers, including 55 at Hawaiian Airlines.

 

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 was named No. 1 U.S. airline by Condé Nast Traveler’s 2021 Readers Choice Awards. Consumer surveys by Travel + Leisure and TripAdvisor have placed Hawaiian among the top of all domestic airlines serving Hawaiʻi.

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 16 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.

Pledge To Our Keiki to help leave Hawai‘i better than you found it 

As part of Volunteer Week Hawai‘i, Alaska signed the Pledge To Our Keiki, giving back to Hawai‘i in partnership with travel2change and the Hawai‘i Department of Land and Natural Resources (DLNR). 

In Hawai‘i, mālama means to care for, or to nurture. For Auli‘i, 14, it is a way of life and all she’s known. 

“Since we were little, we’ve been taught about taking care of the environment and ecosystem in school, from our grandparents and basically everyone—mālama is about respecting our cultural roots, nature and leaving places better than when you found them,” she said.  

Auli‘i is one of several students on Moloka‘i, a small island within Maui County, who helped create Hawai‘i’s Pledge To Our Keiki to encourage visitors to respect and care for the places she and other youth call home. The Pledge, stewarded by Kanu Hawai‘i, translates into Hawaiian “the pledge to our children.” 

Mālama Hawai‘i with us by signing onto the pledge

In honor of Earth Month and our efforts to care for the planet, Alaska Airlines signed the Pledge and is inviting our guests to do the same, in support of their goal to get 50,000 signatures in 2022.  

Photos by Ingrid Barrentine

Guests on this special trip also experienced our infamous Delight Flight, which meant everyone onboard was surprised with a roundtrip ticket on Alaska Airlines for future travel and a free annual membership from travel2change. They were also treated to a special performance by Native Hawaiian, Grammy-Nominated Producer and Singer-Songwriter, Kimié Miner, along with hula performances by Alaska Airlines employees.

 As part of Volunteer Week Hawai‘i, a group of employees and volunteers in partnership with travel2change and the Hawai‘i Department of Land and Natural Resources (DLNR) recently ventured to O‘ahu to get a better understanding of what it means to mālama and leave behind a positive impact where you fly. 

Understanding that the impact we have now will be the reality for the next generation.  It’s our responsibility to preserve our lands and ensure our future children have the same opportunities we did.” – Michelle, network planning & green team (our environmental business group).

Before walking along the shoreline and planting native plants near Ka‘ena Point, Kekai Mar, DLNR’s Park Interpretive Program Specialist, took a moment to share the importance of asking the land to welcome us in, “it’s like knocking on someone’s door before entering.” He says should always ask the land for permission and wait for a sign that it’s okay to enter — whether it be starting a hike or walking down the beach. The sign could be a light breeze, the sound of crashing waves, a bird chirping or an insect buzzing by.

“Our elders have taught us that we are part of the environment, not above it, which means that the life, lands and waters are more than just our surroundings, it’s our home, we must treat it like family and with the utmost respect,” said Kekai. 

For Jacqueline, who works in revenue management and leads Alaska’s Green Team, the concept of taking the time to appreciate a place and culture before letting yourself in was remarkable and something she hopes to incorporate in future travel experiences. 

“I thought about all the things we do these days without ‘thinking’ about it or appreciating ‘why’ we’re doing what we’re doing. Kekai took the time to introduce the science, culture and land to us before we even picked up a shovel. His stories rooted the work to meaning and purpose. I now feel a relationship to the land we visited and an obligation to take care of it,” she said. 

Michelle (left), Jacqueline (right).

I took the Pledge because it’s the right thing to do. We should tread lightly wherever we go, striving to leave a place better than we found it. Flying is a wonderful way to see the world! What better way to appreciate a place than learning about and giving back to it? I promise the trip will be much more meaningful!” – Jacqueline

“The experience instilled a sense of responsibility and stewardship to honor and respect the environment around me. I viewed all my hikes, beach, park walks, etc. after with an enriched appreciation for the beautiful places I am fortunate to travel to and live in,” said Michelle.

While smaller than a grain of rice, the endangered Hawaiian, yellow-faced bee is extremely important to many native Hawaiian plants and lives inside tiny objects like sticks, coral and man-made posts such as these. The decline of these bees could lead to the extinction of the plants that rely upon them. Alaska’s efforts to help restore native plants, helps the bees pollinate, which helps the plants and surrounding habitat thrive.

We know even the smallest thing can have the biggest impact, which is why it’s important for travelers to be mindful of where they step, what they take and how they give back,” said Auli‘i.  

Taking the Pledge is one thing we all can do to be more mindful travelers but turning the Pledge into action is the next important step. Alaska is proud of our most recent commitments and actions to help care for Hawai‘i, as well as all of the places we fly. This includes our goal of becoming the most fuel-efficient airline by 2025 and achieving Net Zero by 2040. We’ve also made commitments to reduce our waste impact and took action in 2021 by switching to Boxed Water, which saves 1.8M pounds of plastic from ending up in our oceans. Last year, we announced a partnership with travel2change, a Hawai‘i-based social and environmental impact organization that connects travelers with volunteer experiences in the Hawaiian Islands. 

Air Group employees Samantha, Hope and Paul planting native plants near Ka‘ena Point.

For Alaska, this marks 15 years of flying to Hawai‘i, and we want to help keep the islands strong and beautiful for many future generations to enjoy.

Mālama Hawai‘i with us by signing onto the pledge

Alaska Air Group reports first quarter 2022 results

Alaska Air Group (NYSE: ALK) today reported financial results for its first quarter ending March 31, 2022 and provided outlook for the second quarter ending June 30, 2022.

“Alaska has a proven track record and a resilient business model that delivers in good times and through challenging ones. We are on course to deliver 6% to 9% adjusted pre-tax margins in 2022, as we recently announced at our investor day,” said CEO Ben Minicucci. “March results were particularly strong, marked by our highest cash sales month in history and revenues that exceeded 2019 levels for the first time since the pandemic began. Our people are working hard to get our airline back to its pre- COVID size and to return to growth from there, all while delivering the operational excellence that we’re known for. It’s an honor to have our company’s hard work recognized by Air Transport World as the 2022 Global Airline of the Year.”

Financial results:

  • Reported net loss for the first quarter of 2022 under Generally Accepted Accounting Principles (GAAP) of $143 million, or $1.14 per share, compared to a net loss of $131 million, or $1.05 per share in the first quarter of 2021.
  • Reported net loss for the first quarter of 2022, excluding special items and mark-to-market fuel hedge accounting adjustments, of $167 million, or $1.33 per share, compared to a net loss, excluding special items and mark-to-market fuel hedge accounting adjustments, of $436 million or $3.51 per share, in the first quarter of 2021.
  • Generated $287 million in operating cash flow for the first quarter, driven by increased advance bookings as both leisure and business demand for air travel continue to recover.
  • Held $2.9 billion in unrestricted cash and marketable securities as of March 31, 2022.
  • Ended the quarter with a debt-to-capitalization ratio of 50%, within our target range of 40% to 50%.

Operational updates:

  • Announced plans to accelerate the transition of Alaska’s mainline fleet to all-Boeing and introduced new plans to transition Horizon’s regional fleet to all-Embraer jets by the end of 2023. This transition is expected to drive significant economic benefits through cost savings, operational simplicity and better fuel efficiency.
  • Extended the co-branded Mileage Plan credit card agreement with Bank of America through 2030, providing expanded guest benefits and accelerating Alaska’s strategic growth plans in the West Coast.
  • Modified the Boeing aircraft order to include six firm and 41 option 737-10 aircraft and 10 firm 737-8 aircraft. The new mix of aircraft types provides an optimal fleet for our network and anticipated growth.
  • Announced plans to renovate and expand Alaska lounges in Seattle and Portland to provide additional capacity and enhanced amenities, with both expected to open by 2026.
  • Received nine Boeing 737-9 aircraft, bringing the total number of 737-9s in our fleet to 20.
  • Added Air Tahiti Nui as a new global Mileage Plan partner, allowing our guests to earn miles flying nonstop between Seattle or Los Angeles and French Polynesia.
  • Expanded codeshare agreement with Finnair, bringing total codeshare growth to more than 250 routes since Alaska’s entrance into the oneworld alliance in 2021.

Recognition and awards:

  • Awarded the 2022 Airline of the Year by Air Transport World, given to an airline each year in recognition of outstanding performance, innovation and superior service.
  • Named to the TIME100 Most Influential Companies list, highlighting Alaska’s commitment to make meaningful changes in the climate impact of aviation.

Environmental, social and governance updates:

  • Announced Patricia Bedient as the next chair of Alaska Air Group’s Board of Directors, replacing Brad Tilden effective May 5, 2022.
  • Launched the Ascend Pilot Academy in partnership with Hillsboro Aero Academy, providing aspiring pilots a simpler and more financially accessible path to become a commercial pilot at Horizon and Alaska.
  • Alongside other oneworld partners, signed two offtake agreements to procure sustainable aviation fuel for California operations, beginning in 2024.

Tune in:

A conference call regarding the first quarter results will be streamed online at 8:30 a.m. PDT on April 21, 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
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