Hawaiian Holdings Reports 2021 Fourth Quarter and Full Year Financial Results

January 25, 2022
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Hawaiian Airlines
46 min read

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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 fourth quarter and full year 2021.

Fourth Quarter 2021 – Key Financial Metrics
	GAAP	YoY Change	Adjusted	YoY Change
Net Income (Loss)	($92.6M)	+$70.0M	($70.3M)	+$102.5M
Diluted EPS	($1.81)	+$1.69	($1.37)	+$2.34
Pre-tax Margin	(24.1)%	+128.7 pts.	(18.4)%	+126.8 pts.

Full Year 2021 – Key Financial Metrics
	GAAP	YoY Change	Adjusted	YoY Change
Net Income (Loss)	($144.8M)	+$366.2M	($383.4M)	+$167.5M
Diluted EPS	($2.85)	+$8.23	($7.55)	+$4.41
Pre-tax Margin	(11.6)%	+71.3 pts.	(30.5)%	+56.7 pts.

"Throughout 2021 the Hawaiian Airlines team has executed a remarkable recovery from the depths of the pandemic. Demand for leisure travel remains resilient as evidenced by strong domestic travel volumes to Hawaiʻi, and the building blocks continue to fall into place for a recovery of international demand in 2022,” said Peter Ingram, Hawaiian Airlines president and CEO. "I am energized every day by the outstanding contributions of my colleagues throughout Hawaiian who have positioned us for a bright future."

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

Financial Results

Fourth Quarter 2021

The Company reported total revenue of $494.7 million, down 30% compared to the fourth quarter of 2019, on 19% lower capacity.

The Company reported total operating expenses of $566.1 million, and adjusted operating expenses of $443.4 million.

The Company reported EBITDA of ($58.9) million and adjusted EBITDA of ($30.7) million.

Full Year 2021

For the full year of 2021, the Company reported total revenue of $1.6 billion, down 44% compared to the full year of 2019, on 29% lower capacity.

The Company reported total operating expenses of $1.7 billion, and adjusted operating expenses of $1.6 billion.

The Company reported EBITDA of $63.4 million and adjusted EBITDA of ($238.7) million.

Liquidity and Capital Resources

As of December 31, 2021 the Company had:

Unrestricted cash, cash equivalents and short-term investments of $1.7 billion

Outstanding debt and finance lease obligations of $1.9 billion

Air traffic liability of $631.2 million

As of December 31, 2021, the Company had $2.0 billion in liquidity, including its undrawn $235 million revolving credit facility.

2021 Highlights

Routes and scheduled services

Launched four new routes with nonstop flights from Honolulu to Austin, Orlando, and Ontario and from Maui to Long Beach

Resumed certain international flights, between Hawaiʻi and French Polynesia, American Samoa, and Sydney, Australia

Participated in the Civil Reserve Air Fleet and deployed two wide-body aircraft to transport over 3,000 Afghan refugees between U.S. military bases

Guest experience

Eliminated change fees and announced no expiration of HawaiianMiles rewards

Opened new airside concourse in Honolulu (HNL) and moved to a new terminal in Los Angeles (LAX) offering improved experiences for our guests and employees

Announced intent to implement the Amadeus Altea software suite

Participated in the State of Hawaiʻi's preclearance program to expedite guests through the State's COVID-19 arrival protocols

Fleet and financing

Extended leases for two A330-200 aircraft and amended leases for two other A330-200 aircraft, reducing monthly rent payments

Raised a total of $1.6 billion in capital through a loyalty program financing, an at-the-market equity offering of common stock and participation in federal Payroll Support Programs

Repaid approximately $440.9 million in future debt obligations

Environmental, Social and Corporate Governance

Participated in the International Air Transport Association Annual General Meeting, and furthered the Company's commitment to achieve net-zero carbon emissions by 2050

Published second annual Corporate Kuleana Report outlining progress in advancing various environmental, social and governance (ESG) initiatives

Pledged to offset emissions from international flights above 2019 levels in accordance with the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)

First Quarter 2022 Outlook

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

Item	First Quarter 2022 Guidance	GAAP Equivalent	GAAP First Quarter 2022 Guidance
ASMs	Down 10% to 13%
Total Revenue	Down 31% to 35%
Costs per ASM, excluding fuel and non-recurring items (a)	Up 10% to 13%	Costs per ASM (a)	Up 11.7% to 14.2%
Gallons of Jet Fuel Consumed	Down 18% to 21%
Fuel Price per Gallon (b)	$2.53
Adjusted EBITDA (c)	$(150) million to $(90) million	Net Income (c)
Effective Tax Rate	~21%

Full Year 2022 Outlook

The Company is providing an update to its outlook for the full year 2022 based on changes since its prior outlook filed on Form 8-K with the Securities and Exchange Commission on December 13, 2021. The table below summarizes the Company's expectations for the full year ending December 31, 2022 expressed as an expected percentage change compared to the results for the year ended December 31, 2019. Costs per ASM excludes any adjustments for labor agreements that are currently amendable or become amendable in 2022.

Item	Updated Guidance	Prior Guidance	GAAP Equivalent, Updated Guidance	GAAP Equivalent, Prior Guidance
ASMs	Down 3% to up 1%	Flat to up 4%
Costs per ASM excluding fuel and non-recurring items (a)	Up 3.5% to 7.5%	Up 2% to 6%	Cost per ASM (a) Up 5.8% to 9.0%	Cost per ASM (a) Up 1.5% to 5.5%
Gallons of Jet Fuel Consumed	Down 4.5% to 8.5%	Up 0.5% to down 3.5%
Fuel Price per Gallon (b)	$2.42	$2.09
Capital Expenditures	$105M To $125M	$365M to $385M

The Company's estimates for its costs per ASM excluding fuel and non-recurring items for the quarter ending March 31, 2022 and full year ending December 31, 2022, exclude any cost assumptions for the tentative agreements reached with the International Association of Machinists and Aerospace Workers (IAM). When the agreement with the IAM is ratified, the Company expects a 1 to 1.5 point increase in its costs per ASM excluding fuel and non-recurring for the full year ending December 31, 2022 as compared to the year ended December 31, 2019.

(a) See Table under "Non-GAAP Reconciliation" for a reconciliation of GAAP costs per ASM to costs per ASM excluding fuel and non-recurring items.

(b) Fuel Price per Gallon estimates are based on the January 20, 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.

Investor Conference Call

Hawaiian Holdings’ quarterly and full year earnings conference call is scheduled to begin today (January 25, 2022) 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 17 years (2004-2020) 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 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, Japan, South Korea, Sydney, and Tahiti. As a result of the COVID-19 pandemic, Hawaiian's Auckland flights remain suspended.

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.

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; the Company's ability, timing and progress in rebuilding its business from the impacts of COVID-19 pandemic; the timing of recovery of international demand for air travel; the Company's future emissions and other environmental commitments; the Company’s outlook for the first fiscal quarter and 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; 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

(in thousands, except for per share data) (unaudited)

	Three Months Ended December 31,			Twelve Months Ended December 31,
	2021	2020	% Change	2021	2020	% Change
	(in thousands, except per share data)
Operating Revenue:
Passenger	$ 423,118	$ 91,791	361.0 %	$ 1,370,902	$ 664,799	106.2 %
Other	71,620	57,892	23.7 %	225,682	180,014	25.4 %
Total	494,738	149,683	230.5 %	1,596,584	844,813	89.0 %
Operating Expenses:
Wages and benefits	186,759	149,833	24.6 %	698,101	628,558	11.1 %
Aircraft fuel, including taxes and delivery	122,642	26,338	365.6 %	363,003	161,363	125.0 %
Aircraft rent	25,276	26,770	(5.6) %	109,476	103,890	5.4 %
Maintenance materials and repairs	50,632	28,504	77.6 %	170,048	121,571	39.9 %
Aircraft and passenger servicing	31,779	11,557	175.0 %	105,675	58,016	82.1 %
Commissions and other selling	22,869	11,453	99.7 %	72,512	46,297	56.6 %
Depreciation and amortization	33,931	36,149	(6.1) %	138,299	151,665	(8.8) %
Other rentals and landing fees	33,351	16,209	105.8 %	116,772	73,808	58.2 %
Purchased services	27,984	22,044	26.9 %	103,213	99,050	4.2 %
Special items	—	5,704	(100.0) %	8,983	184,111	(95.1) %
Government grant recognition	—	—	— %	(320,645)	(240,648)	33.2 %
Other	30,857	24,600	25.4 %	113,711	104,743	8.6 %
Total	566,080	359,161	57.6 %	1,679,148	1,492,424	12.5 %
Operating Loss	(71,342)	(209,478)	(65.9) %	(82,564)	(647,611)	(87.3) %
Nonoperating Income (Expense):
Other nonoperating special items	—	1,329		—	(5,682)
Interest expense and amortization of debt discounts and issuance costs	(26,526)	(13,827)		(110,431)	(40,439)
Interest income	3,942	1,003		8,603	8,731
Capitalized interest	1,017	653		3,357	3,236
Other components of net periodic benefit cost	623	711		3,566	1,300
Gains (losses) on fuel derivatives	—	3		217	(6,930)
Loss on extinguishment of debt	(34,895)	—		(38,889)	—
Other, net	7,807	(9,153)		30,818	(12,657)
Total	(48,032)	(19,281)		(102,759)	(52,441)
Loss Before Income Taxes	(119,374)	(228,759)		(185,323)	(700,052)
Income tax benefit	(26,800)	(66,199)		(40,550)	(189,117)
Net Loss	$ (92,574)	$ (162,560)		$ (144,773)	$ (510,935)
Net Loss Per Common Stock Share:
Basic	$ (1.81)	$ (3.50)		$ (2.85)	$ (11.08)
Diluted	$ (1.81)	$ (3.50)		$ (2.85)	$ (11.08)
Weighted Average Number of Common Stock Shares Outstanding:
Basic	51,213	46,458		50,769	46,100
Diluted	51,213	46,458		50,769	46,100
Cash Dividends Declared Per Common Share	$ —	$ —		$ —	$ 0.12

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,
	2021	2020	% Change	2021	2020	% Change
	(in thousands, except as otherwise indicated)
Scheduled Operations (a) :
Revenue passengers flown	2,003	480	317.3 %	6,515	3,353	94.3 %
Revenue passenger miles (RPM)	2,979,836	569,608	423.1 %	9,979,848	4,558,045	119.0 %
Available seat miles (ASM)	4,210,079	1,431,771	194.0 %	14,411,410	7,527,383	91.5 %
Passenger revenue per RPM (Yield)	14.20 ¢	16.11 ¢	(11.9) %	13.74 ¢	14.59 ¢	(5.8) %
Passenger load factor (RPM/ASM)	70.8 %	39.8 %	31.0 pt.	69.2 %	60.6 %	8.6 pt.
Passenger revenue per ASM (PRASM)	10.05 ¢	6.41 ¢	56.8 %	9.51 ¢	8.83 ¢	7.7 %
Total Operations (a) :
Revenue passengers flown	2,011	485	314.6 %	6,543	3,362	94.6 %
RPM	2,997,208	580,977	415.9 %	10,054,062	4,576,623	119.7 %
ASM	4,237,388	1,453,062	191.6 %	14,535,425	7,560,486	92.3 %
Passenger load factor (RPM/ASM)	70.7 %	40.0 %	30.7 pt.	69.2 %	60.5 %	8.7 pt.
Operating revenue per ASM (RASM)	11.68 ¢	10.30 ¢	13.4 %	10.98 ¢	11.17 ¢	(1.7) %
Operating cost per ASM (CASM)	13.36 ¢	24.72 ¢	(46.0) %	11.55 ¢	19.74 ¢	(41.5) %
CASM excluding aircraft fuel and non-recurring items (b)	10.46 ¢	22.51 ¢	(53.5) %	11.20 ¢	18.35 ¢	(39.0) %
Aircraft fuel expense per ASM (c)	2.90 ¢	1.82 ¢	59.3 %	2.50 ¢	2.13 ¢	17.4 %
Revenue block hours operated	45,175	10,968	311.9 %	157,236	82,711	90.1 %
Gallons of jet fuel consumed	52,507	21,250	147.1 %	179,494	106,225	69.0 %
Average cost per gallon of jet fuel (actual) (c)	$ 2.34	$ 1.24	88.7 %	$ 2.02	$ 1.52	32.9 %
Economic fuel cost per gallon (c)(d)	$ 2.34	$ 1.29	81.4 %	$ 2.02	$ 1.60	26.3 %

(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 GAAP operating expenses to operating expenses excluding aircraft fuel and non-recurring items.

(c) Includes applicable taxes and fees.

(d) See Table 3 for a reconciliation of GAAP fuel costs to economic fuel costs.

Table 3.

Hawaiian Holdings, Inc.

Economic Fuel Expense

(in thousands, except per-gallon amounts) (unaudited)

The Company believes that economic fuel expense is a good measure of the effect of fuel prices on its business as it most closely approximates the net cash outflow associated with the purchase of fuel for its operations in a period. The Company defines economic fuel expense as GAAP fuel expense plus losses/(gains) realized through actual cash (receipts)/payments received from or paid to hedge counterparties for fuel hedge derivative contracts settled during the period.

	Three Months Ended December 31,			Twelve Months Ended December 31,
	2021	2020	% Change	2021	2020	% Change
	(in thousands, except per-gallon amounts)
Aircraft fuel expense, including taxes and delivery	$ 122,642	$ 26,338	365.6 %	$ 363,003	$ 161,363	125.0 %
Realized losses on settlement of fuel derivative instruments	—	1,137	(100.0) %	165	9,035	(98.2) %
Economic fuel expense	$ 122,642	$ 27,475	346.4 %	$ 363,168	$ 170,398	113.1 %
Fuel gallons consumed	52,507	21,250	147.1 %	179,494	106,225	69.0 %
Economic fuel costs per gallon	$ 2.34	$ 1.29	81.4 %	$ 2.02	$ 1.60	26.3 %

Table 4.

Hawaiian Holdings, Inc.

Non-GAAP Financial Reconciliation (unaudited)

The Company evaluates its financial performance utilizing various GAAP and non-GAAP financial measures, including adjusted net income (loss), adjusted operating expenses, adjusted diluted net income (loss) per share (EPS), CASM, PRASM, RASM, Passenger Revenue per RPM, Adjusted EBITDA, and 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:

During the three and twelve months ended December 31, 2020, the effective tax rate included a tax benefit of $15.9 million and $45.4 million, respectively, resulting from the rate differential between the prevailing tax rate of 21% during the years that generated net operating losses and the previous tax rate of 35% that was in effect during the years to which net operating losses were carried back as a result of the enactment of the Coronavirus Aid Relief and Economic Security (CARES) Act.

During the twelve months ended December 31, 2021 and December 31, 2020, the Company recognized $320.6 million and $240.6 million, respectively, in contra-expense related to grant proceeds under the federal Payroll Support Programs (Government grant recognition). The grant proceeds were recognized in proportion to estimated wages and benefits expense over the period to which the Payroll Support Programs relate.

Loss on 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.

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.

Changes in fair value of foreign currency derivative contracts, net of tax, are based on market prices for open contracts as of the end of the reporting period, including the unrealized amounts of foreign currency derivatives (not designated as hedges) that will settle in future periods and the reversal of prior period unrealized amounts.

Unrealized loss (gain) on foreign debt is based on fluctuation in exchange rates and the measurement of foreign-denominated debt to our functional currency.

The Company recorded the following as special items:

During the three months ended March 31, 2020, a charge of $20.2 million was recorded for the ratification of a collective bargaining agreement with the Association of Flight Attendants in April 2020 (related to service prior to January 1, 2020).

During the three months ended March 31, 2020, a special charge of $106.7 million was recorded for goodwill impairment resulting from a decline in the market value of the Company's equity (i.e., share price), and the Company's inability to support the carrying value of goodwill on its financial statements.

During the three months ended June 30, 2020, an impairment charge of $34.0 million was recorded with the impairment of certain long-lived assets, comprised of (a) an impairment charge of $27.5 million related to the Company's ATR-42 and ATR-72 fleets; (b) an additional impairment charge of $3.4 million to mark down the Company's commercial real estate assets to fair value; and (c) $3.1 million of charges related to write-downs of projects permanently suspended as a result of the COVID-19 pandemic.

During the three months ended September 30, 2020, the Company recorded $24.5 million in special items related to its voluntary and involuntary separation programs, of which $17.5 million was recorded as an operating special item related to severance and benefits and $7.0 million was recorded as a non-operating special item related to termination benefits and curtailment loss.

During the three months ended December 31, 2020, the Company recorded long-lived asset impairment of approximately $5.4 million, comprised of an additional write-down of its ATR-42 and ATR-72 fleet of approximately $4.9 million as a result of ongoing market uncertainty attributed to the COVID-19 pandemic and the write-off of approximately $0.5 million in capitalized software projects that were permanently suspended in response to the continuing impacts of the COVID-19 pandemic. Additionally, the Company recorded $0.3 million related to additional costs for the finalization of the voluntary and involuntary separation programs discussed above.

During the three months ended December 31, 2020, the Company completed its accounting for voluntary and involuntary separation programs initiated in the third quarter of 2020, resulting in the reversal of non-operating special items of approximately $1.3 million.

During the three months ended June 30, 2021, a special charge of $9.0 million was recorded for the termination of the Company's 'Ohana by Hawaiian passenger and cargo operations, which operated under a Capacity Purchase Agreement (CPA) with a third party carrier. The charge included $6.4 million related to the write-down of the asset group and $2.6 million related to the early termination of the CPA.

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,
	2021		2020		2021		2020
	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	$ (92,574)	$ (1.81)	$ (162,560)	$ (3.50)	$ (144,773)	$ (2.85)	$ (510,935)	$ (11.08)
Adjusted for:
CARES Act – carryback of additional NOLs	—	—	(15,879)	(0.34)	—	—	(45,416)	(0.99)
Government grant recognition	—	—	—	—	(320,645)	(6.32)	(240,648)	(5.22)
Loss on extinguishment of debt	34,895	0.68	—	—	38,889	0.77	—	—
Changes in fair value of fuel derivative instruments	—	—	(1,140)	(0.02)	(382)	(0.01)	(2,105)	(0.05)
Unrealized loss (gain) on non-designated foreign exchange positions	—	—	904	0.02	(1,352)	(0.03)	1,327	0.03
Unrealized loss (gain) on foreign debt	(6,697)	(0.13)	7,218	0.16	(27,593)	(0.54)	14,759	0.32
Special items	—	—	5,704	0.12	8,983	0.18	184,111	3.99
Nonoperating special items	—	—	(1,329)	(0.03)	—	—	5,682	0.12
Tax effect of adjustments	(5,922)	(0.11)	(5,765)	(0.12)	63,441	1.25	42,252	0.92
Adjusted Net Income (Loss)	$ (70,298)	$ (1.37)	$ (172,847)	$ (3.71)	$ (383,432)	$ (7.55)	$ (550,973)	$ (11.96)

	Three months ended December 31,		Twelve months ended December 31,
	2021	2020	2021	2020
	(in thousands)
Loss Before Income Taxes	$ (119,374)	$ (228,759)	$ (185,323)	$ (700,052)
Adjusted for:
Government grant recognition	—	—	(320,645)	(240,648)
Loss on extinguishment of debt	34,895	—	38,889	—
Changes in fair value of fuel derivative instruments	—	(1,140)	(382)	(2,105)
Unrealized loss (gain) on non-designated foreign exchange positions	—	904	(1,352)	1,327
Unrealized loss (gain) on foreign debt	(6,697)	7,218	(27,593)	14,759
Special items	—	5,704	8,983	184,111
Nonoperating special items	—	(1,329)	—	5,682
Adjusted Income (Loss) Before Income Taxes	$ (91,176)	$ (217,402)	$ (487,423)	$ (736,926)

	Three months ended December 31,		Twelve months ended December 31,
	2021	2020	2021	2020
Net Income (Loss) before Taxes	$ (119,374)	$ (228,759)	$ (185,323)	$ (700,052)
Depreciation & Amortization	33,931	36,149	138,299	151,665
Interest and amortization of debt	(26,526)	(13,827)	(110,431)	(40,439)
EBITDA, as reported	(58,917)	(178,783)	63,407	(507,948)
Adjusted for:
Government grant recognition	—	—	(320,645)	(240,648)
Loss on extinguishment of debt	34,895	—	38,889	—
Changes in fair value of fuel derivative instruments	—	(1,140)	(382)	(2,105)
Unrealized loss (gain) on non-designated foreign exchange positions	—	904	(1,352)	1,327
Unrealized loss (gain) on foreign debt	(6,697)	7,218	(27,593)	14,759
Special items	—	5,704	8,983	184,111
Nonoperating special items	—	(1,329)	—	5,682
Adjusted EBITDA	$ (30,719)	$ (167,426)	$ (238,693)	$ (544,822)

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,
	2021	2020	2021	2020
	(in thousands, except CASM data)
GAAP operating expenses	$ 566,080	$ 359,161	$ 1,679,148	$ 1,492,424
Aircraft fuel, including taxes and delivery	(122,642)	(26,338)	(363,003)	(161,363)
Government grant recognition	—	—	320,645	240,648
Special items	—	(5,704)	(8,983)	(184,111)
Adjusted operating expenses	$ 443,438	$ 327,119	$ 1,627,807	$ 1,387,598
Available Seat Miles	4,237,388	1,453,062	14,535,425	7,560,486
CASM—GAAP	13.36 ¢	24.72 ¢	11.55 ¢	19.74 ¢
Aircraft fuel, including taxes and delivery	(2.90)	(1.82)	(2.50)	(2.13)
Government grant recognition	—	—	2.21	3.18
Special items	—	(0.39)	(0.06)	(2.44)
Adjusted CASM	10.46 ¢	22.51 ¢	11.20 ¢	18.35 ¢

	Estimated three months ending March 31, 2022			Estimated twelve months ending December 31, 2022
	(in thousands, except CASM data)
GAAP operating expenses	$ 587,250	–	$ 620,880	$ 2,570,551	–	$ 2,757,418
Aircraft fuel, including taxes and delivery	(128,958)	–	(133,855)	(597,863)	–	(623,999)
Adjusted operating expenses	$ 458,293	–	$ 487,026	$ 1,972,688	–	$ 2,133,419
Available seat miles	4,221,171	–	4,366,729	19,978,810	–	20,802,678
CASM – GAAP	13.91 ¢	–	14.22 ¢	12.87 ¢	–	13.26 ¢
Aircraft fuel, including taxes and delivery	(3.06)	–	(3.07)	(2.99)	–	(3.00)
Adjusted CASM	10.86 ¢	–	11.15 ¢	9.87 ¢	–	10.26 ¢

Pre-tax margin

The Company excludes unrealized (gains) losses from fuel derivative contracts and foreign debt, losses 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,
	2021	2020	2021	2020
Pre-Tax Margin, as reported	(24.1) %	(152.8) %	(11.6) %	(82.9) %
Adjusted for:
Government grant recognition	—	—	(20.1)	(28.5)
Changes in fair value of fuel derivative instruments	—	(0.7)	—	(0.2)
Unrealized loss (gain) on non-designated foreign exchange positions	—	0.6	(0.1)	0.2
Unrealized loss (gain) on foreign debt	(1.4)	4.8	(1.7)	1.7
Special items	—	3.8	0.6	21.8
Nonoperating special items	—	(0.9)	—	0.7
Adjusted Pre-Tax Margin	(18.4) %	(145.2) %	(30.5) %	(87.2) %

2021 In Review: The Year of Giving and Growing

January 19, 2022
blog
Hawaiian Airlines
8 min read

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It was the beginning of 2021 and behind us was a year so uniquely challenging that we have nothing to compare it to in Hawaiian’s 92-year history. Fast forward to 2022 and we can’t help but be proud of our teams' dedication to holomua (progress) during another year of adversity

We marked our 17th consecutive year as the most punctual U.S. carrier, published our second Corporate Kuleana Report on environmental, social and governance (ESG) initiatives, and our U.S. mainland market made an unprecedented comeback, which allowed us to operate our largest July schedule ever from that geography.

“You connected people with aloha when they needed it most, and you triumphed over many difficulties with creativity and enthusiasm. Our progressive recovery is the result,” Peter Ingram, president and CEO of Hawaiian Airlines, told employees in an end-of-year message.

As we reflect on what we’ve learned and how we’ve grown, please join us in recognizing the moments worth celebrating.

Mālama for Hawai‘i nonprofits

Our loyalty members continued to prove their generosity by raising nearly 8 million miles through the HawaiianMiles Charity program, which includes 2.3 million miles raised during our special Giving Tuesday promotion. We matched 6 million miles, resulting in a total year-end donation of 14 million HawaiianMiles for 14 local nonprofits.

Restoring – and growing – our network

While the pandemic strained our operations, it has not dampened our positive outlook for the future. Restoring and growing our domestic network faster than we had expected is something that we are extremely proud of.

We expanded our U.S. West Coast service with the launch of Kahului to Long Beach and Phoenix (seasonal service), and Honolulu to Ontario, California. We also entered new cities, launching the first nonstop service between Honolulu and Austin, Texas and Orlando, Florida.

In addition, we made progress restoring our international network, resuming nonstop flights between Honolulu and South Korea, Japan, Australia, American Samoa and Tahiti.

A new era of travel (pono)

We furthered our commitment to educating our guests arriving in Hawai‘i on how to safely and responsibly enjoy the islands by debuting a new in-flight video. The five-minute Travel Pono video launched in September and airs before landing on all inbound transpacific flights.

Guests learn from five Hawaiian Airlines crewmembers – including a firefighter, volunteers for search and rescue operations and marine mammal protection, and a cultural practitioner – who share their expert advice on ocean and hiking safety, conservation of endangered species and the environment, and cultural and community best practices.

To cap off the year, we also announced a partnership with the Native Hawaiian Hospitality Association (NaHHA) and travel2change (T2C) to sponsor their first statewide cohort in the Kaiāulu Hoʻokipa Impact Studio program. “We believe that the future of the visitor industry in our home state lies in building a more sustainable and equitable tourism economy that drives economic diversification and resilience and programs like this one are an important step toward that future,” said Avi Mannis, senior vice president of marketing at Hawaiian Airlines, in a press release.

A summer of appreciation

Last summer, our employees were surprised with locally made snacks and messages of appreciation as our new Mahalo Van – a nod to Hawaiʻi’s legendary Manapua men – made its rounds across the company.

The Hawaiian Airlines Purpose and Values committee launched The Summer Appreciation Pop-Ups in early July to mahalo each workgroup – from cargo to guest service agents, mechanics, crewmembers and corporate teams, among others – who have worked tirelessly throughout the pandemic. Our maintenance team, with the help of longtime partner Pow! Wow! Hawai‘i, spent over 180 hours transforming an unused company shuttle into a colorful display of gratitude. The Mahalo Van continues to operate today and share its aloha throughout our ʻohana.

Kōkua for Afghan refugees

In September, dozens of our crew members came together to operate a series of charter flights under the Civil Reserve Air Fleet (CRAF), a U.S. Department of Defense program that enlists commercial airlines to augment airlift during emergencies that exceed the military’s capabilities, to help relocate thousands of Afghans escaping the Taliban regime

Over six days, we operated 13 charter flights with two of our wide-body Airbus A330 aircraft and welcomed more than 3,000 Afghans arriving from Europe at Philadelphia and Dulles international airports and transported them to the safety of military bases in Indiana, New Mexico, Texas and Wisconsin.

“This was the most touching and moving flight experience I have had in my 53 years of flying. I have been truly blessed, rewarded and fortunate to have been a representative of Hawaiian and Hawai‘i in this great and heartwarming movement,” reflected Maydell Morgan, a Hawaiian Airlines flight attendant in a blog post.

Inspiring health and wellness, with a Valley Isle twist

We kicked off our second annual Holoholo Challenge during a period of the pandemic when community and personal wellness was needed most.

The virtual fitness challenge inspired 8,333 participants worldwide to exercise and track their progress along new Maui-inspired routes. Together, they ran or walked close to 498,000 miles, swam nearly 8,000 miles, and cycled over 88,600 miles. Over 2,800 participants also joined the Holoholo Challenge Facebook Group, posting recipes, tips and stories, making new friends, and motivating others to stick together and finish strong.

Athletes were able to donate to their choice of two local nonprofits: Special Olympics Hawaiʻi or The Maui Farm. Together they raised $26,452 for Special Olympics Hawaiʻi's year-round sports training and competitions for athletes with intellectual disabilities, and $25,069 for The Maui Farm’s farm-based, family-centered programs that teach essential life skills for self-sufficient living.

Backing the next generation of Hawaiʻi artists

February in Hawaiʻi is Mahina ‘Ōlelo Hawai‘i (Hawaiian language month), a special celebration of the revitalization of a language once on the brink of extinction. In honoring the month, we partnered with Keola Rapozo to introduce his exclusive Ōhāhā design collection to our airline’s online logo store. Ōhāhā, meaning flourishing, fully developed and healthy, stemmed from Rapozo’s commitment to designing with a sense of place and perpetuating ʻōlelo Hawaiʻi.

"There’s a Hawaiian proverb that says, ‘I ka 'ōlelo nō ke ola, i ka 'ōlelo nō ka make,’ or ‘In language there’s life, and in language there’s death.’ Words are powerful, and we can choose how to use our language. For me, I’m using my language and layering it with my interpretation of ōhāhā to build kiʻi (imagery); to share moʻolelo (stories) through kiʻi; to leave this space better for my daughters and the next person,” Rapozo shared in a blog post on the collection.

All proceeds – a total of $10,000 – were donated Ke Kula ʻo Samuel M. Kamakau Laboratory Public Charter School, a language immersion school on Oʻahu’s windward (eastern) side that teaches and shares ʻōlelo Hawaiʻi through traditional and contemporary methods.

Aside from our Mahina ‘Ōlelo Hawai‘i partnership, Hawaiian Airlines, in partnership with the Bishop Museum, celebrated POW! WOW! Hawai‘i’s 10th anniversary by sponsoring the POW! WOW! The First Decade: From Hawai‘i to the World, which ran from May to September. To further the celebration, we worked with a selection of the collective’s artists to design and launch commemorative on Shop.HawaiianAirlines.com. A total of $10,000 in proceeds raised from merchandise sales were donated to various organizations that support arts education for Hawai‘i children.

Furthering our support of Hawaiʻi’s local entrepreneurs and tastemakers

As the state’s largest and longest-serving carrier with roots as a small air tour operator, we strive to support local businesses each year in new and creative ways – from our HawaiianMiles Marketplace to products featured inflight.

In March, we announced the husband-and-wife team Wade Ueoka and Michelle Karr-Ueoka, owners of Honolulu’s MW Restaurant and Artizen, as our first executive chef duo, and debuted a new roster of Featured Chefs to design our inflight menus.

Our efforts to share Hawaiʻi products with the world have strengthened through a partnership with local business accelerator Mana Up and Hawaiian Airlines® Bank of Hawaii World Elite Mastercard®. As the exclusive airline partner of Mana Up, we were proud to jointly present Meet the Makers, a virtual, seven-month-long event series on Hawaiian Airlines and Mana Up’s Facebook pages to celebrate nine Hawai‘i entrepreneurs and showcase their products.

To close the year, we teamed up with Local Motion Hawaii, a HawaiianMiles marketplace partner, in October to support Nā Kama Kai. Every purchase made with a Hawaiian Airlines® World Elite Mastercard® at the surf gear retailer throughout the month was matched, resulting in a total donation of $10,000. The two companies also worked closely together to make an exclusive co-branded t-shirt with a design that embodies surf, travel and ocean safety.

From our ʻohana to yours, mahalo for allowing us to continue our proud 92-year legacy as Hawaiʻi’s hometown carrier.

Take your shot in Alaska’s Seattle Kraken game

January 18, 2022
Stories
Alaska Airlines
1 min read

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As the airline sponsor of the Seattle Kraken, we’re excited to offer fans & flyers a win-win!

Play our Seattle Kraken video game and see how much you’ll save on your next flight. Plus, you’ll be entered for a chance to win two (2) roundtrip tickets to the destination of your choice when you share your email address.

Honoring Martin Luther King Jr. & beloved designer Adé Hogue

January 17, 2022
Community
Alaska Airlines
7 min read

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Martin Luther King Jr.’s quote, “The time is always right to do what is right,” on the side of Our Commitment aircraft is meaningful to us in more ways than one.

It reminds us to always live our values of doing the right thing and to be kind-hearted. It also holds a special place in our hearts for the beloved artist Broderick Adé Hogue, who was taken from the world too soon.

Known by friends and family as Adé, his memory & kind spirit will live on through his prominent lettering and prolific designs. Adé, was an incredibly talented, Chicago-based artist, letterer (someone who thoughtfully creates words and letters for design projects) and friend of the Alaska family.

He created the typography and color palette for our special ‘Our Commitment’ aircraft last spring. Adé found inspiration for the design in Civil Rights Movement-era imagery and was a champion for social justice through his work and personal passions. The aircraft represents our joint commitment to advancing racial equity and education with our long-standing partner, UNCF.

Adé made an undeniable impact on our team and will be remembered as a bright beacon of creativity, light and strength in the community. Below are remembrances from some of the people who he worked with at Alaska:

*Adé with Jonny Mack at the reveal of the Our Commitment aircraft last spring.*

“I met Adé for the first time when I attended the LetterWest type conference in Salt Lake City in 2019. I was there to represent Alaska being a sponsor of the conference, but I was more excited because I was going to get to meet a lot of very creative people that I had been following on Instagram for years. Adé was one of those artists. I remember the first night Adé and some other of the event speakers were going to dinner and he invited me to come with them. He made me feel like I was a part of the crew, not just a fan boy. We spent the evening laughing and eating and over the course of the next few days I got to know him better. He was so kind and welcoming, and I knew that we would be friends.

Fast forward a year and a half later and I am tasked with creating the design for Alaska’s Our Commitment aircraft. I instantly knew that I needed to have Adé’s talent and voice on this project. We got to work together over the next few months sharing ideas and files back and forth. It was awesome to see him put his special talents into action.

The coolest moment was when we finally walked into the hangar together and got to see the aircraft in person for the first time. We both had tears in our eyes. We got to spend a lot of time talking to each other about the design and how meaningful it was. We heard from the students represented on the plane and their families about the impact we made through our designs. It was just a very special moment that he and I got to share together and one that I will remember for the rest of my life.” – Jonny Mack, marketing design manager.

“Adé had a magical way of bringing joy into every room or on your screen. I had the pleasure of first meeting him virtually to chat about the design for our blog. He said it was probably the biggest canvas he’d ever worked on, and the hardest part was the plane windows. I’ll never forget seeing his smile when the hangar doors opened as he finally locked eyes on the plane—he stood in awe of it for a while and seemed blown away—we all were—he also liked how the windows split between the lettering he designed.

Most importantly, I’ll never forget the advice and lessons he taught me in such a short time. He was so enthusiastic about life—specifically about trying new things and focusing on what made him most happy. I assumed it was artwork, but he laughed that ‘art was his job and wasn’t something he did in his spare time’ it was actually cycling. He said he loved riding his bike around the city—as a former Chicagoan myself, who loved her beach cruiser, I couldn’t agree more. His wisdom to ‘always follow your heart and do what makes you happy’ continues to carry me through the joys and challenges in life. It’s tragic losing such a sweet soul but it gives peace knowing he was doing what made him genuinely happy.” – Ali Garbino, media & content manager.

Adé grew up in North Carolina and specialized in “lettering,” or working with words and letters in design projects. He taught at DePaul University and lectured on his craft at numerous conferences and colleges. His work has been featured with Alaska, Target, Mercedes, Facebook and more.

“I will forever remember him at the Our Commitment Plane reveal, silently taking in the crowd’s overwhelming reaction with the biggest smile and tears in his eyes. It was a powerful moment—you could feel that this was more than another art project for him. We owe an insurmountable amount of gratitude to Adé for his work and vision for this beautiful aircraft. I promise, as I have since I heard of his passing, to pause every time I see the Our Commitment and remember this brilliant light gone too soon.” – Cailee Lyngaas, media relations manager.

“I’ve never been more proud of a collaboration of such epic proportions. Adé was the most wonderful human who created the bold and impactful typography on the Our Commitment aircraft and his sudden passing reminds us all how fragile life is and to hug your loved ones tight. I’m hopeful Alaska will continue to honor what Adé’s words represent and to do the right thing for many years to come.” – Ingrid Barrentine, marketing photographer.

“Adé is an incredibly talented and beautiful soul taken from the world far too soon. What brings some peace is knowing that his memory will live on for all of us and our guests through his amazing work on the Our Commitment aircraft. Every time we see that beautiful aircraft on the ground or in the sky, we can take a moment to stop and remember him, his smile, and how he touched us all.”- Tiffany Dehaan, MD culture learning & inclusion.

Tributes to Adé and donations continue to pour in via the GoFundMe page his family and friends set up shortly after he was involved in a tragic cycling accident in Chicago. Alaska will be making a donation to the foundation his family is creating in honor of him.

In an Instagram post in April last year, Adé shared how he was proud to check off one of his biggest bucket list items and looked forward to seeing the gorgeous plane grace the skies for the next decade. We couldn’t agree more with that and are honored to fly his typography & Martin Luther King Jr.’s words for many years to come.

https://www.instagram.com/p/COJeG50hc4f/

Our deepest sympathies go out to Adé’s family and friends. May they find peace and comfort knowing he left an undeniably beautiful mark on this earth.

Fourth Quarter and Full Year 2021 Hawaiian Holdings, Inc. Earnings Conference Call

January 14, 2022
releases
Hawaiian Airlines
1 min read

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January 25, 2022 at 4:30 pm ET

Hawaiian Holdings Announces 2021 Fourth Quarter and Full Year Financial Results Conference Call

January 11, 2022
releases
Hawaiian Airlines
2 min read

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HONOLULU – Hawaiian Holdings, Inc. (NASDAQ: HA), parent company of Hawaiian Airlines, Inc. (“Hawaiian”), plans to report its fourth quarter and full year 2021 financial results after the market closes on Tuesday, Jan. 25, 2022. An investor conference call is scheduled for 4:30 p.m. Eastern Time that day.

The call will be open to all interested investors through a live audio webcast accessible in the Investor Relations section of Hawaiian’s website at HawaiianAirlines.com. For those unable to listen to the live webcast, the call will be archived for 90 days on Hawaiian’s website.

About Hawaiian Airlines

Hawaiian® has led all U.S. carriers in on-time performance for each of the past 17 years (2004-2020) 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 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, Japan, South Korea, Sydney, and Tahiti. As a result of the COVID-19 pandemic, Hawaiian’s Auckland and Brisbane flights remain suspended.

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.

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 Air Group to announce financial results

January 11, 2022
Other News
Alaska Airlines
1 min read

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SEATTLE, Jan. 11, 2022 /PRNewswire/ — Alaska Air Group, Inc., the parent company of Alaska Airlines, Inc. and Horizon Air Industries Inc., will announce its 2021 fourth quarter financial results on Thursday, January 27, 2022. A conference call is scheduled at 11:30 a.m. Eastern time/8:30 a.m. Pacific time. Interested parties may listen to the call via webcast at www.alaskaair.com/investors.

Alaska Airlines and our regional partners serve more than 120 destinations across the United States, Belize, Canada, Costa Rica and Mexico. We emphasize Next-Level Care for our guests, along with providing low fares, award-winning customer service and sustainability efforts. Alaska is a member of the oneworld global alliance. With the alliance and our additional airline partners, guests can travel to more than 1,000 destinations on more than 20 airlines while earning and redeeming miles on flights to locations around the world. Learn more about Alaska at newsroom.alaskaair.com and blog.alaskaair.com. Alaska Airlines and Horizon Air are subsidiaries of Alaska Air Group (NYSE: ALK).

SOURCE Alaska Air Group

Alaska Airlines names new regional vice president of California

January 10, 2022
Other News
Alaska Airlines
2 min read

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SEATTLE, Jan. 10, 2022 /PRNewswire/ — Alaska Airlines named Neil Thwaites as the new regional vice president of California. In this role, Thwaites will develop and deliver upon Alaska’s strategic objectives for California, a market critical to Alaska’s long-term growth plan.

Alaska Airlines names new regional vice president of California. Industry veteran Neil Thwaites will lead long-term strategic growth for the Golden State.

An innovative, results-driven leader with diverse and international experience, Thwaites joins Alaska from TripArc, where he was vice president of air procurement in charge of airline supplier strategy and negotiations. Before that, he was at British Airways (a fellow oneworld member) for a decade, where he held various positions in London, New York, and Los Angeles, most recently as the vice president of sales for the western U.S., where he was responsible for the commercial strategy, market development and revenue-generating activities.

Neil will be based in the airlines’ Burlingame office (SFO) and report to Andrew Harrison, chief commercial officer and executive vice president.

“Neil’s extensive experience working for a global airline, growing market share and driving exceptional performance, will help us accelerate our mission of making Alaska the airline of choice for Californians,” said Harrison.

“Alaska is exceptionally positioned to grow in California,” said Thwaites. “I’m excited to lead a market strategy that will deliver the very best of Alaska to our guests here as we continue to grow our presence and network in the state moving forward.”

Thwaites graduated from the University of Brighton in the U.K. with a double major in International Business & Law. He and his family currently live in Southern California.

About Alaska Airlines
Alaska Airlines and our regional partners serve more than 120 destinations across the United States, Belize, Canada, Costa Rica and Mexico. We emphasize Next-Level Care for our guests, along with providing low fares, award-winning customer service and sustainability efforts. Alaska is a member of the oneworld global alliance. With the alliance and our additional airline partners, guests can travel to more than 1,000 destinations on more than 20 airlines while earning and redeeming miles on flights to locations around the world. Learn more about Alaska at newsroom.alaskaair.com and blog.alaskaair.com. Alaska Airlines and Horizon Air are subsidiaries of Alaska Air Group (NYSE: ALK).

Resetting for the new year

January 7, 2022
Company
Alaska Airlines
3 min read

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Looking back on 2021, one thing remains certain—we’re grateful for every person who packed a bag, wore a mask and had a seat on our aircraft. And for every employee in our operation who shouldered every twist and turn along the way – thank you.

Since the pandemic began, we’ve overcome some of the greatest challenges in our 90-year history. Despite our preparation, including increasing staff and preparing for snow, this was among the most difficult holidays many of us have experienced at Alaska. Unfortunately, last week, winter weather coupled with the impact of the omicron variant on staffing levels caused significant operational challenges. We know you expect the highest standard of care when you fly Alaska. We apologize for the considerable inconvenience and are using the lessons we learned to improve.

As we look ahead to the new year, we are working hard to return to the level of service you know and expect from us while operating safely. Here are just a few things to expect from us in the coming weeks:

We’re reducing our schedule.

As we have entered 2022, the continued impacts of omicron have been disruptive in all our lives and unprecedented levels of sick calls have impacted our ability to operate our airline reliably. As a result, we are proactively thinning our schedule and reducing departures by about 10% through the end of January. This will give us the time and space we need to build back more reliability into our operation, while continued flexible travel policies will enable our guests to adjust their plans accordingly.

If your travel is impacted, we’ll make every attempt to reschedule you on the next available flight and will try to notify you with as much notice as possible before you head to the airport.

Canceling a flight is always our last resort and we understand how frustrating it can be, especially when many of us have important trips or are eager to connect with friends & family.

We’re committed to Next-Level Care.

The safety of our guests and employees always comes first, and we want you to feel great about booking a flight with us. Our commitment to Next-Level Care means we’re always maintaining the highest level of safety throughout your travels—from booking and boarding to day-of travel and beyond. Learn more.

We’re finding ways to show how much we care.

We know we are at our best when we are safe, reliable and caring. We will learn from these challenges, improve where we must and make this year as great as we possibly can for each of you, your families and for Alaska Air Group as a whole.

With gratitude to everyone who flies with us and the people who make it possible—we look forward to taking care of you on board soon.

Resetting for the new year: Alaska Airlines reduces its January schedule

January 6, 2022
Company Other News
Alaska Airlines
2 min read

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SEATTLE, Jan. 6, 2022 /PRNewswire/ — As we have entered 2022, the continued impacts of omicron have been disruptive in all our lives and unprecedented employee sick calls have impacted our ability to operate our airline reliably. We are deeply grateful for how our incredible employees have pulled together to take care of our guests and each other, operate safely and make the best of a very difficult situation. To our guests, we apologize for the considerable inconvenience and are working hard to return to the level of service they know and expect from us.

We’re at our best when we are safe, reliable and caring. And right now, we need to build more reliability back into our operation as we deal with the impacts of omicron and during a time when guests generally fly less. We’ve decided to reduce departures by about 10% through the end of January. This will give us the flexibility and capacity needed to reset while continued flexible travel policies enable guests to adjust their plans accordingly. This will also give us time and space to find our path forward together, with Covid-19 as a continued reality in our business and our world.

We will learn from these challenges, improve where we must and deliver on our promise to deliver nonstop care each and every day.

SOURCE Alaska Airlines

Guidance for travel plans as weather improves in the PNW

December 24, 2021
Company
Alaska Airlines
20 min read

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Latest Update Dec 30 Dec 29 Dec 28 Dec 27 Dec 26 Dec 24

Guidance for travel plans as weather improves in the PNW

If your travel plans to or from Seattle were interrupted over the last week, we sincerely apologize for the considerable inconvenience and understandable frustration.

Heading into the weekend, as we get airplanes and crews back into place, we’ve pre-canceled 86 flights operating on Friday, Dec. 31, 2021 and 16 flights on Saturday, Jan. 1, 2022 to/from Seattle. If your flight is affected, you will be notified via email and can check or change your flight online.

Here’s what to do if your travel has been impacted:

Re-book travel online (NOT at the airport).

Our team members are working hard to enact cancels far enough in advance, so guests are notified whenever possible before arriving at the airport. We strongly encourage guests to avoid going to or staying at the airport to rebook their travel.

The best thing to do at this moment is manage your reservation online if you’re able to do so.

We automatically reschedule canceled flights on the next best available flight(s) to your final destination. If you are unable to reschedule your flight at this time, rest assured that we will hold the value of your ticket until you are ready to travel again.

If you don’t need to travel before Jan. 2 and can extend your trip to a later date, we highly suggest adjusting your flights using our flexible travel policy.
We’ve modified our flexible travel policy to include all ticket types, even non-refundable, for travel Dec. 22, 2021 – Jan. 16, 2022.
Due to winter weather and canceled flights, we’re unable to fly animals in the cargo hold, unaccompanied minors, teen no-assists and teen assists into and out of Seattle through Jan. 3, 2022.

Flights canceled? Don’t leave your bags behind.

If your flight has been canceled and you’ve checked a bag, despite the urge to go straight to a customer service counter, please immediately claim them at the baggage carousel prior to leaving the airport.

Our baggage service teams are working around the clock to reunite unclaimed bags with their owners. It will take a couple more days to complete this work, but our agents will contact every guest to arrange for pick-up or delivery.

Transportation/lodging accommodation is available.

We encourage guests waiting for their next flight to find a cozy hotel nearby or stay with friends or family until more flights can be added to the schedule.

Dec. 30

Guidance for travel plans affected by winter weather in the PNW

Light snow fell overnight in Seattle and Portland, and a mix of snow and rain showers remain in the forecast this evening. As of 9:30 a.m. Pacific time, we’ve canceled 150 flights, as part of our plan to reduce departures by 20 percent in Seattle.

As painful as it is to cancel flights, it allows us additional time to efficiently deice aircraft, an absolute must during winter weather like we’ve been having this week. Our team is working hard to enact cancels far enough in advance, so guests are notified whenever possible before arriving at the airport.

In the days ahead, it’ll take time to reposition our flight crews and aircraft as we get our operations back to normal. Unfortunately, this has been the perfect storm of severe winter weather coupled with crew members and aircraft being displaced around the country and the continued impact of the omicron variant on staffing levels. As a result, guests may feel the effects throughout our network.

We deeply apologize for the impact all of this is having on our guests and are working hard to return to the level of service you know and expect from us, while operating safely.

Here’s what to do if your travel is impacted:

Re-book travel online (NOT at the airport).

We strongly encourage guests to avoid going to or staying at the airport to rebook their travel. The best thing to do at this moment is manage your reservation online.

We automatically reschedule canceled flights on the next best available flight(s) to your final destination. If you are unable to reschedule your flight at this time, rest assured that we will hold the value of your ticket until you are ready to travel again.

Before you head to the airport, check the status of your flight.
If you don’t need to travel before Jan. 2 and can extend your trip to a later date, we highly suggest adjusting your flights using our flexible travel policy.
We’ve modified our travel waiver to include all ticket types, even non-refundable, for travel Dec. 22, 2021 – Jan. 16, 2022.
Due to winter weather and canceled flights, we’re unable to fly animals in the cargo hold, unaccompanied minors, teen no assists and teen assists into and out of Seattle through Jan. 3, 2022.

Flights canceled? Don’t leave your bags behind.

If your flight has been canceled and you’ve checked a bag, despite the urge to go straight to a customer service counter, please immediately claim them at the baggage carousel prior to leaving the airport.

Our baggage service teams are working around the clock to reunite unclaimed bags with their owners. It will take several days to complete this work, but our agents will contact every guest to arrange for pick-up or delivery. Please make sure your contact information within your Mileage Plan account is up to date so we have the best numbers to reach you.

Transportation/lodging accommodation is available.

We encourage guests waiting for their next flight to find a cozy hotel nearby or stay with friends or family until more flights can be added to the schedule.

We greatly appreciate the patience of our guests and tireless effort from our employees during this difficult travel week and are doing everything we can to get you to your destination while operating safely!

This post will be updated with the latest information related to our operations in Seattle as it becomes available.

Dec. 29 @ 4 p.m. PT

Guidance for travel plans affected by winter weather in SEA

With the perfect storm of severe winter weather coupled with crew members and aircraft being displaced around the country and the continued impact of the omicron variant on staffing levels, more flights are being canceled this week to/from Seattle. As a result, guests may feel the effects throughout our network.

As we head into the next couple of days, we’re proactively thinning Seattle departures by about 20% to allow for the additional time it takes to deice aircraft, a requirement during winter weather.

We deeply apologize for the inconvenience and are working hard to return to the level of service you know and expect from us, while operating safely.

Tips for guests traveling this week:

1. Re-book travel online (NOT at the airport).

With more snow expected this week and staffing issues, we strongly encourage guests to avoid going to or staying at the airport to rebook their travel.

Your best option is to manage your reservation online.

We strongly urge flyers with non-essential travel scheduled before January 2, 2022, to consider changing their travel to a later date using our flexible travel policy.
We’ve modified our flexible travel policy to include guests who were scheduled to travel through Dec. 28.
Due to winter weather and canceled flights, we’re unable to fly animals in the cargo hold, unaccompanied minors, teen no assists and teen assists into and out of Seattle through Jan. 3, 2022.

2. Hotel accommodation is available.

We encourage guests waiting for their next flight to find a cozy hotel nearby or stay with friends or family until more flights can be added to the schedule.

3. Don’t leave your bags behind.

If your flight has been canceled and you’ve checked a bag, despite the urge to go straight to a customer service counter, please immediately claim your bag(s) at the baggage carousel prior to leaving the airport.

Our baggage service teams are working around the clock to reunite unclaimed bags with their owners. It will take several days to complete this work, but our agents will contact every guest to arrange for pick-up or delivery. Please make sure your contact information within your Mileage Plan account is up to date so we have the best numbers to reach you.

Looking ahead:

In the days ahead, it will take time to reposition our flight crews and aircraft as we get our operations back to normal, especially since Seattle is our largest hub. This could also require further delays and cancelations.

“We’re deeply sorry to our guests for the delay in their holiday travel plans and are working hard to reposition aircraft and crews back to the West Coast to get everyone where they need to be as quickly and safely as possible,” said Constance von Muehlen, chief operating officer and executive vice president.

We greatly appreciate the patience of our guests and tireless effort from our employees during this busy travel period and are doing everything we can to get you to your destination while operating safely!

Dec. 28 @ 2 p.m. PT

Winter weather continues: 3 things to know if you’re trying to fly to/from SEA

With the perfect storm of severe winter weather coupled with crew members and aircraft being displaced around the country and the continued impact of the omicron variant on staffing levels, more flights are being canceled this week to/from Seattle.

Today, 150 flights were canceled as a result, with more cancellations and delays expected throughout the day. We deeply apologize for the inconvenience and are working hard to return to the level of service you know and expect from us, while operating safely. Below is our advice for impacted guests on what to do next:

1. Re-book travel online (NOT at the airport).

With more snow expected this week and staffing issues, we strongly encourage guests to avoid going to or staying at the airport to rebook their travel.

Your best option is to manage your reservation online.

If you do not need to travel before Jan. 2, we recommend pushing out your travel plans using our flexible travel policy. Currently, we are unable to rebook most guests for at least three days. If you were scheduled to travel between Dec. 22, 2021 through Jan. 16, 2022 you can change your ticket online and complete your travel through Feb. 16, 2022.

If you are unable to reschedule your flight at this time, rest assured that we will hold the value of your ticket until you are ready to travel again.