HONOLULU - Hawaiian Holdings, Inc. (NASDAQ: HA) ('Holdings' or the 'Company'), parent company of Hawaiian Airlines, Inc. ('Hawaiian'), today reported its financial results for the first quarter of 2016.

First Quarter 2016 - Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Income

$51.5M

+$25.6M

$43.0M

+$18.3M

Diluted EPS

$0.95

+$0.55

$0.80

+$0.42

Pre-tax Margin

15.1%

+7.3 pts.

12.6%

+5.2 pts.

'The outstanding first quarter results are a strong start to 2016,' said Mark Dunkerley, Hawaiian Airlines president and chief executive officer. 'Solid demand for travel to Hawai'i, manageable industry capacity growth, and the low cost of fuel combined with the exceptional service that our employees deliver to our guests propelled our record results this quarter. Looking ahead, our outlook is for these positive trends to continue reinforcing our confidence that 2016 will be a great year.'

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

Liquidity and Capital Resources

As of March 31, 2016 the Company had:

· Unrestricted cash, cash equivalents and short-term investments of $669 million.

· Outstanding debt and capital lease obligations of $683 million.

The Company early retired $52 million (principal balance) of existing debt in the first quarter. In addition, the Company repurchased $2.5 million of common stock in the first quarter.

First Quarter 2016 Highlights

Operational

· Ranked #1 nationally for on-time performance for the 12th consecutive year in 2015 and for the months of January and February 2016 by the U.S. Department of Transportation Air Travel Consumer Report.

. Implemented changes to insource the sales team in Australia and New Zealand and announced similar changes in Japan to provide cost savings and better enable long-term success in these markets.

· Announced the purchase of an Airbus A320 series Full Flight Simulator for on-site pilot training which is expected to return several million dollars in annual cost savings.

Product and loyalty

· Commenced the installation of fully lie-flat seats beginning the retrofit program for the entire A330 fleet.

Second Quarter and Full Year 2016 Outlook

The table below summarizes the Company's expectations for the second quarter ending June 30, 2016 and full year ending December 31, 2016, expressed as an expected percentage change compared to the results for the quarter ended June 30, 2015 and full year ended December 31, 2015, as applicable (the historical results for which are presented for reference).

Second Quarter

Item

2015

Second Quarter 2016 Guidance

Cost per ASM Excluding Fuel (cents)

8.27

Up 3.5% to up 6.5%

Operating Revenue Per ASM (cents)

12.86

Down 1.5% to up 1.5%

ASMs (millions)

4,441.6

Up 1.5% to up 3.5%

Gallons of jet fuel consumed (millions)

58.0

Up 1% to up 3%

Economic fuel cost per gallon (a)

$

2.23

$1.50 to $1.60

Full Year

Item

2015

Full Year 2016 Guidance

Cost per ASM Excluding Fuel (cents)

8.31

Up in the low single digit range

ASMs (millions)

17,726.3

Up 2.5% to up 5.5%

Gallons of jet fuel consumed (millions)

234.2

Up 1.5% to up 4.5%

Economic fuel cost per gallon (a)

$

2.04

$1.45 to $1.55

(a) Economic fuel cost per gallon estimates are based on the April 13, 2016 fuel forward curve.

Investor Conference Call

Hawaiian Holdings' quarterly earnings conference call is scheduled to begin today (April 21, 2016) 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 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 12 years (2004-2015) as reported by the U.S. Department of Transportation. Consumer surveys by Condé Nast Traveler, Travel + Leisure and Zagat have all ranked Hawaiian the highest of all domestic airlines serving Hawai'i.|

Now in its 87th year of continuous service, Hawaiian is Hawai'i's biggest and longest-serving airline, as well as the largest provider of passenger air service from its primary visitor markets on the U.S. Mainland. Hawaiian offers non-stop service to Hawai'i from more U.S. gateway cities (11) than any other airline, along with service from Japan, South Korea, China, Australia, New Zealand, American Samoa and Tahiti. Hawaiian also provides approximately 160 jet flights daily between the Hawaiian Islands, with a total of more than 200 daily flights system-wide.

Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA). Additional information is available at HawaiianAirlines.com. Follow updates on Twitter about Hawaiian (@HawaiianAir) and its special fare offers (@HawaiianFares), and become a fan on its Facebook page (Hawaiian Airlines). 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 expectations regarding cost per available seat mile excluding fuel, available seat miles, gallons of jet fuel consumed and economic fuel cost per gallon, each for the quarter ending June 30, 2016 and full year ending December 31, 2016; the Company's expectations regarding operating revenue per available seat mile for the quarter ending June 30, 2016; the Company's expectations regarding cost savings related to the Full Flight Simulator; the statement of the Company's CEO regarding expectations for 2016; 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, as the case may 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 Company's ability to accurately forecast quarterly and annual results; economic volatility; the price and availability of aircraft fuel; fluctuations in demand for transportation in the markets in which the Company operates; the Company's dependence on tourist travel; foreign currency exchange rate fluctuations; and the Company's ability to implement its growth strategy and related cost reduction goals.

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 4.

Hawaiian Holdings, Inc.

The Company evaluates its financial performance utilizing various GAAP and non-GAAP financial measures, including net income, diluted net income per share, CASM, PRASM, RASM, Passenger Revenue per RPM and EBITDAR. 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:

• Changes in fair value of derivative contracts, net of tax, are based on market prices for open contracts as of the end of the reporting period. This line item includes the unrealized amounts of fuel and interest rate derivatives (not designated as hedges) that will settle in future periods and the reversal of prior period unrealized amounts. Excluding the impact of these derivative adjustments allows investors to better analyze our operational performance and compare our results to other airlines in the periods presented below.

• Loss on extinguishment of debt, net of tax, is excluded to allow investors to better analyze the Company's core operational performance and more readily compare its results to other airlines in the periods presented below.

The Company has separately listed in the table below its fuel costs per ASM and non-GAAP unit costs, excluding fuel. 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.

The Company excludes unrealized gains from fuel derivative contracts and losses on extinguishment of debt from pre-tax margin for the same reasons as described above.

The Company uses adjusted total debt, including aircraft rent, in addition to long-term adjusted debt and capital leases, to represent long-term financial obligations. The Company excludes unrealized (gains) losses from fuel derivative contracts and losses on extinguishment of debt from earnings before interest, taxes, depreciation, amortization and rent (EBITDAR) for the reasons as described above. Management believes this metric is helpful to investors in assessing the Company's overall debt.

Hawaiian Holdings Inc. issued this content on 21 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 21 April 2016 20:58:54 UTC

Original Document: https://newsroom.hawaiianairlines.com/releases/hawaiian-holdings-reports-2016-first-quarter-financial-results