On July 30, 2024, Hawaiian Holdings Inc (HA, Financial) released its 8-K filing detailing its financial results for the second quarter of 2024. Hawaiian Holdings Inc, the parent company of Hawaiian Airlines, provides air transportation for passengers and cargo, primarily focusing on routes between the Hawaiian Islands, the United States, the South Pacific, Australia, New Zealand, and Asia.
Performance and Challenges
Hawaiian Holdings Inc reported a net loss of $67.6 million for Q2 2024, a significant increase from the $12.3 million loss in Q2 2023. The diluted earnings per share (EPS) stood at -$1.30, beating the analyst estimate of -$1.43. The company's operating revenue for the quarter was $731.9 million, up 3.5% from the same period last year, but below the estimated $745.68 million.
Despite the revenue growth, the company faced several challenges, including increased operating expenses and higher fuel costs. The operating loss widened to $55.4 million from $9.6 million in Q2 2023, reflecting a 478.2% increase. These challenges underscore the importance of cost management and operational efficiency in the highly competitive airline industry.
Financial Achievements
Hawaiian Holdings Inc made significant strides in its strategic initiatives, including the introduction of Boeing 787-9 aircraft to its fleet and the rollout of high-speed Starlink WiFi across its long-haul narrow-body fleet. These investments are crucial for enhancing customer experience and maintaining competitive advantage.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Net Loss | ($67.6M) | ($12.3M) | 448.2% |
| Diluted EPS | ($1.30) | ($0.24) | 441.7% |
| Operating Revenue | $731.9M | $706.9M | 3.5% |
| Operating Expenses | $787.3M | $716.5M | 9.9% |
Income Statement Highlights
The company's total operating revenue for Q2 2024 was $731.9 million, a 3.5% increase from $706.9 million in Q2 2023. Passenger revenue grew by 3.3% to $666 million, while other revenue, including cargo, increased by 6.4% to $65.9 million. However, operating expenses rose by 9.9% to $787.3 million, driven by higher wages, fuel costs, and maintenance expenses.
Balance Sheet and Cash Flow
As of June 30, 2024, Hawaiian Holdings Inc had unrestricted cash, cash equivalents, and short-term investments totaling $1.3 billion. The company's liquidity stood at $1.5 billion, including an undrawn revolving credit facility of $235 million. Outstanding debt and finance lease obligations amounted to $2.3 billion.
Commentary and Outlook
This quarter we delivered on important investments in the future of our company, including flying the first two Boeing 787-9’s in our fleet, rolling out free, high-speed Starlink WiFi across our long-haul narrow body fleet, and adding three new routes to our North America network," said Hawaiian Airlines President and CEO Peter Ingram.
Looking ahead, Hawaiian Holdings Inc expects available seat miles (ASMs) to increase by 5.5% to 8.5% in Q3 2024. However, operating revenue per ASM is projected to decline by 1.5% to 4.5%, reflecting ongoing challenges in the revenue environment.
For more detailed insights and analysis, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from Hawaiian Holdings Inc for further details.
