Published: January 31, 2012
Hawaiian Holdings Reports 2011 Fourth Quarter and Year-End Financial Results
HONOLULU, Jan. 31, 2012 /PRNewswire/ -- Hawaiian Holdings, Inc. (NASDAQ: HA) ("Holdings" or the "Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported consolidated net income for the three months ended December 31, 2011 of $20.9 million or $0.40 per diluted share, on total operating revenue of $434.0 million, compared to net income of $70.6 million, or $1.36 per diluted share, on total operating revenue of $343.8 million for the three months ended December 31, 2010.
Adjusted for economic fuel expense, the Company reported net income of $16.3 million, or $0.31 per diluted share for the three months ended December 31, 2011. This compares with adjusted net income of $11.3 million, or $0.21 per diluted share, for the three months ended December 31, 2010, reflecting economic fuel expense and excluding non-recurring beneficial tax adjustments.
For the full year 2011, the Company reported consolidated net loss of $2.6 million, or $0.05 per diluted share, on total operating revenue of $1.65 billion. This compares with net income of $110.3 million, or $2.10 per diluted share, on total operating revenue of $1.31 billion for the full year 2010. Reflecting economic fuel expense and excluding non-recurring lease termination charges related to the purchase of 15 Boeing 717-200 aircraft previously under lease agreements, the Company reported adjusted net income of $43.2 million, or $0.85 per diluted share. This compares with adjusted net income of $45.4 million, or $0.87 per diluted share, for the full year 2010. Table 4 sets forth a reconciliation of net income and diluted net income per share on a GAAP basis and non-GAAP net income and diluted net income per share reflecting economic fuel expense and excluding non-recurring lease termination charges and beneficial tax adjustments. The Company believes that the presentation of economic fuel expense most closely approximates the net cash outflow associated with the purchase of fuel for its operations in a period, and that removal of the non-recurring lease termination charges and beneficial tax adjustments provides useful information.
Mark Dunkerley, the Company's President and Chief Executive Officer, commented that "We are pleased with the fourth quarter results which continue the trend of improvement that began mid-year. Good cost control and fare increases enabled us to offset the 35% increase in the price of fuel. It is particularly noteworthy that these results were posted during a period in which our operations grew rapidly.
The hard work and dedication of all my colleagues gives us confidence in our plans for the year ahead. 2012 will be a year in which our long haul fleet transition to the Airbus A330 continues while we inaugurate new service to a number of new destinations at home and abroad."
Fourth Quarter Financial Results
The Company reported operating income of $34.5 million in the fourth quarter of 2011, compared to $22.4 million in the prior year period.
Fourth quarter 2011 operating revenue was $434.0 million, a 26.2% increase compared with the fourth quarter of 2010. Capacity for the quarter increased 16.7% year-over-year to 3.1 billion available seat miles (ASMs), resulting in operating revenue per ASM (RASM) of 13.98 cents, up 8.2% from the fourth quarter a year ago. Fourth quarter scheduled passenger load factor decreased 1.6 percentage points to 84.1% compared to the same period a year ago, while passenger yield (passenger revenue per revenue passenger mile) increased 11.9% to 14.96 cents and PRASM increased 9.8% to 12.58 cents. Selected Statistical Data is included in Table 2.
Total operating expenses for the fourth quarter of 2011 increased 24.3% year-over-year to $399.5 million, resulting in an operating cost per available seat mile (CASM) of 12.87 cents, up 6.5% versus the same period a year ago. Fourth quarter CASM excluding fuel decreased 1.3% to 8.60 cents when compared to the same period a year ago. A reconciliation of GAAP and non-GAAP financial measures is included in Tables 3, 4 and 6.
Aircraft fuel costs in the fourth quarter increased 47.8% year-over-year to $132.5 million and represented 33.2% of operating expenses. Hawaiian's average cost per gallon of jet fuel increased 28.3% year-over-year to $3.13 (including taxes and delivery). The financial impact of hedging activities is included in nonoperating income/expenses, and as such is not reflected in fuel expense. Nonoperating income in the fourth quarter reflects $4.9 million in gains from Hawaiian's fuel hedging activity.
The Company believes that economic fuel expense is the best 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 (gains)/losses realized through actual cash (receipts)/payments received from or paid to hedge counterparties for fuel hedge derivative contracts settled during the period. For the three months ended December 31, 2011, economic fuel expense was $135.2 million ($3.20 per gallon), compared with $89.7 million ($2.45 per gallon) in the prior year period. An analysis of economic fuel expense for the three months ended December 31, 2011 and 2010 and pro-forma net income and diluted net income per share reflecting economic fuel expense is included in Tables 3 and 4.
Fourth quarter 2011 nonoperating expense totaled $1.8 million, compared with nonoperating income of $1.1 million in the fourth quarter of 2010. During the fourth quarter 2011, the Company recognized nonoperating income of $4.9 million related to fuel hedging activities compared to $4.0 million in the prior year period. In the fourth quarter 2011, hedging income reflects $2.7 million of realized losses on derivative contracts settling in the quarter, the reversal of $3.5 million of previously recorded losses on these same contracts, and $4.1 million in unrealized gains related to fuel derivative contracts settling in future periods.
2011 Full Year Financial Results
For the full year 2011, the Company reported operating income of $20.3 million compared with $91.3 million for the full year 2010. Excluding lease termination charges of $70.0 million recorded during the quarter ended June 30, 2011, the Company reported operating income of $90.3 million for the full year 2011. Table 6 sets forth a reconciliation of operating income on a GAAP basis and non-GAAP operating income excluding non-recurring lease termination charges.
Full year 2011 operating revenue was $1.65 billion, a 26.0% increase compared with full year 2010. Capacity for the year increased 18.6% year-over-year to 12.0 billion ASMs, resulting in RASM of 13.71 cents, up 6.2% from 12.91 cents in 2010. Load factor decreased 1.2 percentage points to 84.3% from 85.5% in 2010, while passenger yield increased 9.5% to 14.60 cents and PRASM increased 8.1% to 12.32 cents. Selected Statistical Data is included in Table 2.
Total operating expenses for 2011 increased 33.8% year-over-year to $1.63 billion. Operating expenses, excluding non-recurring lease termination charges of $70.0 million, for the full year increased 28.0% year-over-year to $1.56 billion. Excluding fuel and the lease termination charges, full year 2011 CASM decreased to 8.70 cents, down 1.5% compared to the same period a year ago. A reconciliation of GAAP and non-GAAP financial measures is included in Tables 3, 4, and 6.
Aircraft fuel costs for 2011 increased 58.9% year-over-year to $513.3 million and represented 31.5% of operating expenses (32.9% of operating expenses excluding the lease termination charges). Hawaiian's average cost per gallon of jet fuel increased 36.7% year-over-year to $3.13 (including taxes and delivery). The financial impact of hedging activities is included in nonoperating income/expenses, and as such is not reflected in fuel expense. Nonoperating income for the full year 2011 reflects $6.9 million in losses from Hawaiian's fuel hedging activity.
For the full year 2011, economic fuel expense was $513.7 million ($3.13 per gallon), compared with $326.2 million ($2.31 per gallon) in the full year 2010. An analysis of economic fuel expense for the years ended December 31, 2011 and 2010 and pro-forma net income and diluted net income per share reflecting economic fuel expense is included in Tables 3 and 4.
For the full year of 2011, nonoperating expense totaled $21.4 million, compared with $9.3 million in full year 2010. The increase in nonoperating expense from 2010 to 2011 is primarily related to an increase in interest expense and amortization of debt discounts and issuance costs due to the additional financings entered into in 2011 and losses recognized on fuel derivatives, offset by increases in capitalized interest costs for the pre-delivery payments for the upcoming Airbus A330-200 aircraft deliveries. During 2011, the Company recognized nonoperating expense totaling $6.9 million related to fuel hedging activities compared to nonoperating income of $0.6 million related to fuel hedging activities during 2010. In full year 2011, fuel hedging expenses included $0.4 million of realized losses on derivative contracts settling in the year, the reversal of $3.9 million of previously recorded gains on these same contracts, and $2.5 million in unrealized losses related to fuel derivative contracts settling in future periods. An analysis of economic fuel expense for the years ended December 31, 2011 and 2010 and pro-forma net income and diluted net income per share reflecting economic fuel expense is included in Tables 3 and 4.
Liquidity, Capital Resources and Fuel Hedging
As of December 31, 2011, the Company had:
-- Unrestricted cash and cash equivalents of $304.1 million and $30.9
million in restricted cash.
-- Available borrowing capacity of $56.9 million under Hawaiian's Revolving
Credit Facility.
-- Outstanding debt and capital lease obligations of $462.0 million
consisting of the following:
-- $69.2 million outstanding under Convertible Senior Notes issued in
March 2011
-- $77.3 million outstanding under floating rate notes issued in
conjunction with the acquisition of three Boeing 767-300 ER aircraft
in December 2006
-- $185.7 million secured loan agreements for a portion of the purchase
price for 15 previously leased Boeing 717-200 aircraft in June 2011
-- $62.3 million secured loan agreement for the portion of the purchase
price of the Airbus A330-200 aircraft delivered in April 2011
-- $67.0 million outstanding under secured loan agreement to finance a
portion of the purchase price for the Airbus A330-200 aircraft
delivered in October 2011
-- $0.5 million of non-aircraft related capital lease obligations
A summary of the Company's fuel derivatives contracts as of January 26, 2012 is included as Table 5.
Fourth Quarter Highlights
-- Led the U.S. airline industry in October and November 2011 (last
reported month), ranking #1 nationally for on-time performance, as
reported by the U.S. Department of Transportation Air Travel Consumer
Report.
-- In October, announced a code-share agreement that allows Virgin
Australia to put its two-letter airline code on Hawaiian's flights
between Sydney and Honolulu in worldwide reservations systems.
-- In October, added a fifth Airbus A330-200 aircraft to the fleet.
-- In November, announced new daily, nonstop flights between Honolulu and
New York City's John F. Kennedy International Airport beginning in June
2012. This will be Hawaiian's first destination on the East Coast.
-- In November, amended its agreement with Airbus to purchase an additional
five A330-200 aircraft for delivery between 2013 and 2015. Pursuant to
this amendment, Hawaiian has firm aircraft orders with Airbus for
sixteen A330-200 aircraft for delivery between 2012 and 2015 and six
A350XWB-800 aircraft for delivery beginning in 2017.
-- In December, announced frequency increases providing three daily nonstop
flights between Honolulu and Los Angeles, California beginning in June
2012. Also, announced frequency increases providing daily nonstop
flights between Honolulu and Seoul, South Korea in July 2012.
-- In December, introduced a Neighbor Island Travel Plan to offer
HawaiianMiles members a range of new pricing options.
-- In January 2012, implemented code-sharing and frequent flyer agreements
between Hawaiian and All Nippon Airways (ANA).
-- In January 2012, announced the introduction of a Maui hub offering
improved connections between Maui and Neighbor Island destinations, as
well as flights to and from the West Coast.
-- In January 2012, announced a broad set of commercial agreements with
jetBlue. The agreements provide for immediate interline connections
between the carriers and in the near future encompass code-sharing and a
reciprocal frequent flyer partnership. In addition, Hawaiian's new HNL
- JFK service will operate from jetBlue's Terminal 5 in New York
beginning in June.
-- In October, announced the appointment of Scott Topping as Executive Vice
President and Chief Financial Officer of both Hawaiian Airlines and
Hawaiian Holdings effective November 1, 2011. Topping succeeds Peter
Ingram in these roles. Mr. Ingram concurrently moved to the newly
created position of Executive Vice President and Chief Commercial
Officer for Hawaiian Airlines with responsibility for all of Hawaiian's
revenue generating activities.
Third Quarter Highlights
-- Led the U.S. airline industry in July, August and September 2011,
ranking #1 nationally for on-time performance, as reported by the U.S.
Department of Transportation Air Travel Consumer Report.
-- In July, increased capacity on Hawaiian's daily non-stop route to
Tokyo's Haneda Airport with the transition from its 264-seat Boeing
767-300 aircraft to the 294-seat Airbus A330-200 aircraft. Also,
announced frequency increases to provide for daily nonstop flights
between Honolulu and Sydney, Australia, beginning December 2011.
-- In July, launched daily nonstop service between Honolulu and Osaka,
Japan to Kansai International Airport; its third new route to Asia in
eight months, underscoring the Company's optimism in the long term
opportunities in Japan.
-- In August, entered into a multi-year sponsorship agreement providing
naming rights for the Hawaiian Airlines Field at Aloha Stadium.
-- In September, announced that for the 12(th) consecutive season, Hawaiian
would provide chartered air transportation for the Oakland Raiders, and
for the second consecutive year and third of the past four years that
Hawaiian would be the Seattle Seahawks' official charter airline.
-- In September, announced new daily, nonstop flights between Honolulu and
Fukuoka, Japan, beginning in April 2012. This will be the fourth new
destination in Asia for the Company since November 2010.
-- In September, Hawaiian announced the expansion of its Bay Area service
with the introduction of nonstop flights between Maui and San Jose,
California and the addition of year-round flights between Maui and
Oakland, California beginning in January 2012.
-- In August, appointed Christian Forbes as Vice President of Financial
Planning and Analysis and Ann Botticelli as Senior Vice President for
Corporate Communications and Public Affairs. In September, appointed
Monisa Cline as Vice President of Sales and Alliances.
Second Quarter Highlights
-- Led the U.S. airline industry in April, May and June 2011, ranking #1
nationally for on-time performance and fewest cancellations, as reported
by the U.S. Department of Transportation Air Travel Consumer Report.
-- In April, added a fourth Airbus A330-200 aircraft to the fleet. In
June, purchased its existing fleet of 15 Boeing 717-200 aircraft through
a refinancing transaction.
-- In June, announced expansion of Hawaiian's Neighbor Island service
between Honolulu and Kahului, Lihue, Hilo and Kona during peak travel
periods through the addition of three Boeing 717-200 aircraft to the
fleet in fourth quarter 2011 and first quarter 2012. In April,
appointed Andrew Watterson as Vice President of Planning and Revenue
Management. In May, appointed Tom Wessner as Vice President of
Strategic Procurement and promoted Shannon Okinaka to Vice President -
Controller.
First Quarter Highlights
-- Led the U.S. airline industry in January, February and March 2011,
ranking #1 nationally for on-time performance and fewest cancellations,
as reported by the U.S. Department of Transportation Air Travel Consumer
Report.
-- In January, launched nonstop service between Honolulu and Seoul, South
Korea four days weekly.
-- In February, announced new daily, nonstop flights between Honolulu and
Osaka, Japan in July 2011, underscoring the Company's optimism in the
long term opportunities in Japan.
-- In March, announced an expansion of the marketing partnership with
Korean Airlines with a new program that allows each carrier's frequent
flyer members to earn and redeem mileage credits on either carrier.
-- In March, sold $86.25 million (aggregate principal amount) of 5.00%
Convertible Senior Notes due 2016. In connection with the offering of
the notes, the Company entered into privately-negotiated convertible
note hedge and warrant transactions.
Investor Conference Call
Hawaiian Holdings' quarterly earnings conference call is scheduled to begin today (January 31, 2012) 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 www.HawaiianAirlines.com. For those who are not available for the live webcast, the call will be archived for 90 days on Hawaiian's investor website.
About Hawaiian Airlines
Hawaiian has led all U.S. carriers in on-time performance for each of the past seven years (2004-2010) as reported by the U.S. Department of Transportation. In addition, consumer surveys by Conde Nast Traveler, Travel + Leisure and Zagat have all ranked Hawaiian the top domestic airline offering flights to Hawaii. Hawaiian was also the nation's highest-ranked carrier for service quality and performance in the prestigious Airline Quality Rating (AQR) study for 2008 and 2009.
Now in its 83rd year of continuous service in Hawaii, Hawaiian is the largest provider of passenger air service to Hawaii from the state's primary visitor markets on the U.S. mainland. Hawaiian offers nonstop service to Hawaii from more U.S. gateway cities (10) than any other airline, as well as service to Japan, South Korea, the Philippines, Australia, American Samoa, and Tahiti. Hawaiian also provides approximately 150 daily jet flights between the Hawaiian Islands.
Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA). Additional information is available at HawaiianAirlines.com.
Forward-Looking Statements
Statements in this release contain "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, statements regarding: our plans for the year; our long haul fleet transition; inauguration of service to new destinations; and statements as to other matters that do not relate strictly to historical facts of 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, as the case may be, subject to many risks, uncertainties and factors relating to the Company's operations and business environment, all of which may cause the Company's actual results to be materially different from any future results, expressed or implied, in these forward-looking statements.
The 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 for the year ended December 31, 2010 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2011. All forward-looking statements included in this document are based on information available to the Company on the date of this release. The Company does not undertake to publicly update or revise its forward-looking statements to reflect events or circumstances that may arise after the date of this release.
Table 1.
Hawaiian Holdings, Inc.
Consolidated Statements of Operations
(in thousands, except for per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2011 2010 2011 2010
---- ---- ---- ----
(unaudited) (unaudited) (audited)
Operating Revenue:
Passenger $389,213 $303,825 $1,480,663 $1,154,972
Other 44,762 39,974 169,796 155,121
------ ------ ------- -------
Total 433,975 343,799 1,650,459 1,310,093
------- ------- --------- ---------
Operating
Expenses:
Aircraft fuel,
including taxes
and oil 132,494 89,673 513,284 322,999
Wages and benefits 81,539 77,740 321,241 297,567
Aircraft rent 22,337 31,655 112,883 112,721
Maintenance
materials and
repairs 47,440 28,405 169,851 123,975
Aircraft and
passenger
servicing 21,924 17,470 82,250 62,160
Commissions and
other selling 23,380 18,267 96,264 78,197
Depreciation and
amortization 18,459 14,876 66,262 57,712
Other rentals and
landing fees 18,950 16,141 72,445 57,833
Other 32,990 27,148 125,682 105,651
Lease termination
charges - - 70,014 -
--- --- ------ ---
Total 399,513 321,375 1,630,176 1,218,815
------- ------- --------- ---------
Operating Income 34,462 22,424 20,283 91,278
------ ------ ------ ------
Nonoperating
Income (Expense):
Interest expense
and amortization
of debt discounts
and issuance
costs (8,701) (4,926) (24,521) (16,835)
Interest income 181 497 1,514 3,634
Capitalized
interest 1,964 1,357 7,771 2,665
Gains (losses) on
fuel derivatives 4,919 4,002 (6,862) 641
Gains on
investments - - - 1,168
Other, net (146) 195 733 (562)
---- --- --- ----
Total (1,783) 1,125 (21,365) (9,289)
------ ----- ------- ------
Income (Loss)
Before Income
Taxes 32,679 23,549 (1,082) 81,989
Income tax
(benefit) expense 11,758 (47,030) 1,567 (28,266)
------ ------- ----- -------
Net Income (Loss) $20,921 $70,579 $(2,649) $110,255
======= ======= ======= ========
Net Income (Loss)
Per Common Stock
Share:
Basic $0.41 $1.41 $(0.05) $2.15
===== ===== ====== =====
Diluted $0.40 $1.36 $(0.05) $2.10
===== ===== ====== =====
Weighted Average
Number of
Common Stock
Shares
Outstanding:
Basic 50,864 50,220 50,733 51,232
====== ====== ====== ======
Diluted 52,087 51,940 50,733 52,482
====== ====== ====== ======
Table 2.
Hawaiian Holdings, Inc.
Selected Statistical Data
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2011 2010 Change 2011 2010 Change
---- ---- ------ ---- ---- ------
Scheduled Operations:
Revenue passenger
miles (RPM) (a) 2,601.5 2,271.7 14.5% 10,139.9 8,665.9 17.0%
Available seat miles
(ASM) (a) 3,094.7 2,651.3 16.7% 12,022.2 10,134.6 18.6%
Passenger revenue per
RPM (Yield) 14.96 cents 13.37 cents 11.9% 14.60 cents 13.33 cents 9.5%
Passenger load factor
(RPM/ASM) 84.1% 85.7% (1.6) pt. 84.3% 85.5% (1.2) pt.
Passenger revenue per
ASM (PRASM) 12.58 cents 11.46 cents 9.8% 12.32 cents 11.40 cents 8.1%
Total Operations:
Revenue passenger
miles (RPM) (a) 2,607.5 2,276.8 14.5% 10,151.2 8,675.4 17.0%
Available seat miles
(ASM) (a) 3,104.8 2,660.4 16.7% 12,039.9 10,150.7 18.6%
Passenger load factor
(RPM/ASM) 84.0% 85.6% (1.6) pt. 84.3% 85.5% (1.2) pt.
Operating Revenue per
ASM (RASM) 13.98 cents 12.92 cents 8.2% 13.71 cents 12.91 cents 6.2%
Operating Cost per ASM
(CASM) 12.87 cents 12.08 cents 6.5% 13.54 cents 12.01 cents 12.7%
CASM excluding
aircraft fuel 8.60 cents 8.71 cents (1.3%) 9.28 cents 8.83 cents 5.1%
CASM excluding lease
termination costs and
aircraft fuel 8.60 cents 8.71 cents (1.3%) 8.70 cents 8.83 cents (1.5%)
Gallons of jet fuel
consumed (a) 42.3 36.7 15.3% 164.0 141.0 16.3%
Average cost per
gallon of jet fuel
(actual) (b) $3.13 $2.44 28.3% $3.13 $2.29 36.7%
(a) In millions.
(b) Includes applicable taxes and fees.
Table 3.
Hawaiian Holdings, Inc.
Economic Fuel Expense
(in thousands, except per-gallon amounts)
Three Months Ended December Twelve Months Ended December
31, 31,
---------------------------- -----------------------------
2011 2010 Change 2011 2010 Change
---- ---- ------ ---- ---- ------
Aircraft fuel expense,
including taxes and
oil $132,494 $89,673 47.8% $513,284 # $322,999 58.9%
Realized losses on
settlement of fuel
derivative contracts 2,722 48 5570.8% 430 3,199 (86.6%)
----- --- ------ --- ----- -------
Economic fuel expense $135,216 $89,721 50.7% $513,714 $326,198 57.5%
Fuel gallons consumed 42,285 36,673 15.3% 164,002 140,995 16.3%
------ ------ ---- ------- ------- ----
Economic fuel cost per
gallon $3.20 $2.45 30.6% $3.13 $2.31 35.5%
===== ===== ==== ===== ===== ====
Table 4.
Hawaiian Holdings, Inc.
Pro-forma Net Income and Diluted Earnings Per Share Reflecting Economic Fuel Expense and Excluding Non-
Recurring Tax Benefits and Lease Termination Charges
(in thousands, except for per share data)
Three months ended December 31, Twelve months ended December 31,
------------------------------- --------------------------------
2011 2010 2011 2010
---- ---- ---- ----
Net Net Net Net
income Diluted income Diluted income Diluted income Diluted
------- earnings ------- earnings (loss) earnings ------- earnings
per per per
share share ------ (loss) share
per
------ ------ share ------
------
(in thousands, except for per share data)
As reported - GAAP $20,921 $0.40 $70,579 $1.36 $(2,649) $(0.05) $110,255 $2.10
Add: lease termination
expenses related to Boeing
717-200 aircraft purchase,
net of tax - - - - 42,008 0.83 - -
--- --- --- --- ------ ---- --- ---
Reflecting lease termination
costs adjustment $20,921 $0.40 $70,579 $1.36 $39,359 $0.78 $110,255 $2.10
Less: unrealized (losses)
gains on fuel derivative
contracts, net of tax 4,584 0.09 2,430 0.05 (3,859) (0.07) 2,304 0.04
Less: Non-recurring tax
benefits - - 56,881 1.10 - - 62,546 1.19
--- --- ------ ---- --- --- ------ ----
Reflecting economic fuel
expense and excluding non-
recurring
tax benefits and lease
termination charges $16,337 $0.31 $11,268 $0.21 $43,218 $0.85 $45,405 $0.87
======= ===== ======= ===== ======= ===== ======= =====
Table 5.
Hawaiian Holdings, Inc.
Fuel Derivative Contract Summary
As of January 26, 2012
Weighted Average Percentage of Fuel Barrels
Contract Projected Hedged
Price Fuel Requirements -------------
----- Hedged
First Quarter 2012
------------------
Heating Oil (per gallon)
Call Options $3.06 15% 101,000
Collars Cap Floor
$3.09 $2.72 17% 175,000
Crude Oil (per barrel)
Brent Options $113.38 1% 30,000
Call Options $113.53 23% 236,000
Brent Collars Cap Floor
$109.19 $96.98 1% 9,000
Collars Cap Floor
$103.93 $89.88 5% 48,000
Total 62% 599,000
Second Quarter 2012
-------------------
Heating Oil (per gallon)
Call Options $3.31 2% 15,000
Collars Cap Floor
$3.03 $2.65 17% 194,000
Crude Oil (per barrel)
Brent Options $115.36 3% 93,000
Call Options $114.93 9% 103,000
Brent Collars Cap Floor
$111.93 $97.05 11% 42,000
Collars Cap Floor
$106.58 $89.88 4% 48,000
Total 46% 495,000
Third Quarter 2012
------------------
Heating Oil (per gallon)
Call Options
Collars Cap Floor
$3.05 $2.66 13% 168,000
Crude Oil (per barrel)
Brent Options $120.91 8% 108,000
Call Options $112.56 1% 7,000
Brent Collars Cap Floor
$111.48 $96.56 3% 42,000
Collars Cap Floor
$107.30 $90.30 2% 28,000
Total 27% 353,000
Fourth Quarter 2012
-------------------
Heating Oil (per gallon)
Call Options
Collars Cap Floor
$3.07 $2.65 6% 71,000
Crude Oil (per barrel)
Brent Options $122.20 9% 108,000
Call Options
Brent Collars Cap Floor
$111.00 $95.01 3% 42,000
Collars Cap Floor
Total 18% 221,000
First Quarter 2013
------------------
Crude Oil (per barrel)
Brent Options $123.35 1% 16,000
Table 6.
Hawaiian Holdings, Inc.
Reconciliation of Non-GAAP Financial Measures
(in millions, except for CASM data) (unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2011 2010 2011 2010
---- ---- ---- ----
GAAP operating income $34.5 $22.4 $20.3 $91.3
Add: lease termination costs
related to Boeing 717 aircraft
purchase - - 70.0 -
--- --- ---- ---
Adjusted operating income -excluding lease
termination costs related to
Boeing 717 aircraft purchase $34.5 $22.4 $90.3 $91.3
===== ===== ===== =====
GAAP operating expenses $399.5 $321.4 $1,630.2 $1,218.8
Less: lease termination costs
related to Boeing 717 aircraft
purchase - - 70.0 -
--- --- ---- ---
Adjusted operating expenses -excluding
lease termination costs related to
Boeing 717 aircraft purchase 399.5 321.4 1,560.2 1,218.8
Less: aircraft fuel, including
taxes and oil 132.5 89.7 513.3 323.0
----- ---- ----- -----
Adjusted operating expenses -excluding
lease termination costs related to
Boeing 717 aircraft purchase and
aircraft fuel $267.0 $231.7 $1,046.9 $895.8
====== ====== ======== ======
Available Seat Miles 3,104.8 2,660.4 12,039.9 10,150.7
CASM - GAAP 12.87 cents 12.08 cents 13.54 cents 12.01 cents
Less: lease termination costs
related to Boeing 717 aircraft
purchase - - 0.58 -
Less: aircraft fuel 4.27 3.37 4.26 3.18
---- ---- ---- ----
CASM -excluding aircraft fuel and lease
termination costs related to Boeing 717
aircraft purchase 8.60 cents 8.71 cents 8.70 cents 8.83 cents
==== ==== ==== ====
SOURCE Hawaiian Holdings, Inc.
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