HONOLULU, July 25, 2017/PRNewswire/ -- Hawaiian Holdings, Inc. (NASDAQ: HA) ('Holdings' or the 'Company'), parent company of Hawaiian Airlines, Inc. ('Hawaiian'), today reported its financial results for the second quarter of 2017.

Second Quarter 2017 - Key Financial Metrics

GAAP

YoY Change

Adjusted

YoY Change

Net Income

$80.4M

+$0.9M

$85.3M

+$20.1M

Diluted EPS

$1.49

+$0.01

$1.58

+$0.37

Pre-tax Margin

19.2%

(2.4) pts.

20.3%

+2.6 pts.

'Our string of outstanding results continued into the second quarter,' said Mark Dunkerley, Hawaiian Airlines president and CEO. 'These results have come courtesy of strong demand for the Hawai'i vacation, low fuel prices, moderate industry capacity, and an excellent job done by my colleagues in finding new ways to strengthen our performance. My thanks go to all of Hawaiian's employees who contributed to our terrific financial and operational performance.'

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

Liquidity and Capital Resources

As of June 30, 2017, the Company had:

  • Unrestricted cash, cash equivalents and short-term investments of $844 million.
  • Outstanding debt and capital lease obligations of $528 million.

In addition, the Company repurchased approximately 83 thousand shares of common stock for approximately $4.3 millionin the second quarter.

Second Quarter 2017 Highlights

People

  • Contributed approximately $8 millionto further reduce its pension obligations.
  • Began operating under the 63-month contract ratified in the prior quarter with its pilots represented by the Airline Pilots Association (ALPA).

Operational

  • Ranked #1 nationally for on-time performance for the months of April and May 2017as reported in the U.S. Department of Transportation Air Travel Consumer Report.
  • Relocated operations at Los AngelesInternational Airport (LAX) from Terminal 2 to Terminal 5.

New routes and increased frequencies

  • Extended seasonal non-stop service between Los AngelesInternational Airport (LAX) and Kaua'i'sLihu'e Airport (LIH) to year-round non-stop service.
  • Commenced summer seasonal service with daily non-stop flights from OaklandInternational Airport (OAK) to Kaua'i'sLihu'e Airport (LIH), and thrice weekly flights from Los AngelesInternational Airport (LAX) to Kona International Airport (KOA).
  • Announced expanded service for 2018 between North Americaand Hawai'i capitalizing on the introduction of the A321neo to Hawaiian's fleet, including:
    • New non-stop service between Portland International Airport (PDX) and Kahului Airport (OGG) beginning January 2018
    • Extending seasonal non-stop service between Los AngelesInternational Airport (LAX) and Kona International Airport (KOA) to year-round non-stop service beginning March 2018
    • Extending seasonal non-stop service between OaklandInternational Airport (OAK) and Kaua'i'sLihu'e Airport (LIH) to year-round non-stop service beginning April 2018

Product and loyalty

  • Continued remodeling of its A330 fleet with the addition of lie flat premium seats and expanded Extra Comfort capacity.

Fleet and financing

  • Completed a sale-leaseback transaction covering three Boeing 767 aircraft as part of the planned exit from its 767 fleet.

Third Quarter and Full Year 2017 Outlook

The table below summarizes the Company's expectations for the quarter ending September 30, 2017and full year ending December 31, 2017, expressed as an expected percentage change compared to the results for the quarter ended September 30, 2016and full year ended December 31, 2016, as applicable.

The Company is lowering its guidance range for economic fuel cost per gallon for the full year ending December 31, 2017due to lower than expected year-to-date fuel costs and the forward fuel price curve as of July 14, 2017.

Third Quarter

Third Quarter

Item

2017 Guidance

GAAP Equivalent

2017 Guidance

Cost per ASM excluding Fuel and Special Items (a)

Up 7% to up 10%

Cost per ASM (a)

Up 17.6% to up 21.1%

Operating Revenue Per ASM

Up 4.5% to up 7.5%

ASMs

Up 0.5% to up 2.5%

Gallons of jet fuel consumed

Up 3% to up 5%

Economic fuel cost per gallon (b)(c)

$1.55 to $1.65

Fuel cost per gallon (b)

$1.50 to $1.60

Full Year

Full Year

Item

2017 Guidance

GAAP Equivalent

2017 Guidance

Cost per ASM excluding Fuel and Special Items (a)

Up 4.5% to up 7.5%

Cost per ASM (a)

Up 3.8% to up 7.2%

ASMs

Up 2% to up 5%

Gallons of jet fuel consumed

Up 4.5% to up 7.5%

Economic fuel cost per gallon (b)(c)

$1.55 to $1.65

Fuel cost per gallon (b)

$1.53 to $1.63

(a)

See Table 4 for a reconciliation of operating expenses to operating expenses excluding aircraft fuel and special items.

(b)

Economic fuel cost per gallon estimates are based on the July 14, 2017 fuel forward curve.

(c)

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

Investor Conference Call

Hawaiian Holdings' quarterly earnings conference call is scheduled to begin today (July 25, 2017) 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, the world's most punctual airline as reported by OAG, has led all U.S. carriers in on-time performance for each of the past 13 years (2004-2016) as reported by the U.S. Department of Transportation. Consumer surveys by Condé Nast Traveler, Travel + Leisure and Zagat have ranked Hawaiian among the highest of all domestic airlines serving Hawai'i.

Now in its 88th year of continuous service, Hawaiian is Hawai'i's biggest and longest-serving airline. Hawaiian offers nonstop 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 Samoaand Tahiti. Hawaiian also provides approximately 170 jet flights daily between the Hawaiian Islands, with a total of more than 250 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.

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, cost per available seat mile excluding fuel and special items, available seat miles, gallons of jet fuel consumed, fuel cost per gallon, and economic fuel cost per gallon each for the quarter ending September 30, 2017and full year ending December 31, 2017; the Company's expectations regarding operating revenue per available seat mile for the quarter ending September 30, 2017; 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; macroeconomic developments; political developments; 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; labor negotiations and related developments; competitive pressures, including the potential impact of rising industry capacity between North Americaand Hawai'i; 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 1.

Hawaiian Holdings, Inc.

Consolidated Statements of Operations

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

Three Months Ended June 30,

Six Months Ended June 30,

2017

2016 (a)

% Change

2017

2016 (a)

% Change

Operating Revenue:

Passenger

$

593,210

$

518,572

14.4%

$

1,130,800

$

1,000,599

13.0%

Other

82,125

76,018

8.0%

158,720

145,171

9.3%

Total

675,335

594,590

13.6%

1,289,520

1,145,770

12.5%

Operating Expenses:

Aircraft fuel, including taxes and delivery

102,774

83,798

22.6%

206,312

153,698

34.2%

Wages and benefits

154,660

130,801

18.2%

305,713

259,362

17.9%

Aircraft rent

34,553

30,066

14.9%

67,688

59,454

13.8%

Maintenance, materials and repairs

52,566

54,585

(3.7)%

111,970

115,089

(2.7)%

Aircraft and passenger servicing

34,751

30,723

13.1%

68,209

59,274

15.1%

Commissions and other selling

32,557

31,425

3.6%

65,738

64,456

2.0%

Depreciation and amortization

27,872

26,988

3.3%

55,340

54,134

2.2%

Other rentals and landing fees

27,438

24,978

9.8%

55,774

49,412

12.9%

Purchased services

28,055

24,543

14.3%

54,692

47,275

15.7%

Special items

4,771

-

-%

23,450

-

-%

Other

32,789

32,731

0.2%

64,791

62,714

3.3%

Total

532,786

470,638

13.2%

1,079,677

924,868

16.7%

Operating Income

142,549

123,952

15.0%

209,843

220,902

(5.0)%

Nonoperating Income (Expense):

Interest expense and amortization of debt discounts and issuance costs

(7,711)

(8,910)

(15,714)

(19,914)

Interest income

1,467

1,087

2,619

1,931

Capitalized interest

2,082

463

3,842

688

Gains (losses) on fuel derivatives

(4,712)

21,087

(13,510)

19,022

Loss on extinguishment of debt

-

(6,643)

-

(9,993)

Other components of net periodic benefit cost

(4,750)

(5,082)

(9,501)

(10,164)

Other, net

433

2,686

3,261

9,272

Total

(13,191)

4,688

(29,003)

(9,158)

Income Before Income Taxes

129,358

128,640

180,840

211,744

Income tax expense

48,925

49,070

63,495

80,708

Net Income

$

80,433

$

79,570

$

117,345

$

131,036

Net Income Per Share

Basic

$

1.50

$

1.48

$

2.19

$

2.45

Diluted

$

1.49

$

1.48

$

2.18

$

2.43

Weighted Average Number of Common Stock Shares Outstanding:

Basic

53,626

53,634

53,595

53,574

Diluted

53,914

53,853

53,948

53,833

(a)

The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. Accounting Standard Update 2017-07 (ASU 2017-07) is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption only permitted for the Company in the first quarter of 2017, provided all provisions of the ASU are adopted. The Company early adopted this standard during the first quarter of 2017. The adoption of ASU 2017-07 resulted in a reclassification of $5.1 million and $10.2 million from wages and benefits to other components of net periodic benefit cost on the Company's consolidated statement of operations for the three months and six months ended June 30, 2016, respectively.

Table 2.

Hawaiian Holdings, Inc.

Selected Statistical Data (unaudited)

Three months ended June 30,

Six months ended June 30,

2017

2016

% Change

2017

2016

% Change

(in thousands, except as otherwise indicated)

(in thousands, except as otherwise indicated)

Scheduled Operations (a) :

Revenue passengers flown

2,885

2,755

4.7

%

5,588

5,401

3.5

%

Revenue passenger miles (RPM)

4,099,122

3,846,966

6.6

%

7,896,847

7,388,033

6.9

%

Available seat miles (ASM)

4,735,335

4,550,964

4.1

%

9,256,433

8,917,956

3.8

%

Passenger revenue per RPM (Yield)

14.47

¢

13.48

¢

7.3

%

14.32

¢

13.54

¢

5.8

%

Passenger load factor (RPM/ASM)

86.6

%

84.5

%

2.1

pt.

85.3

pt.

82.8

pt.

2.5

pt.

Passenger revenue per ASM (PRASM)

12.53

¢

11.39

¢

10.0

%

12.22

¢

11.22

¢

8.9

%

Total Operations (a) :

Revenue passengers flown

2,886

2,756

4.7

%

5,590

5,403

3.5

%

Revenue passenger miles (RPM)

4,099,261

3,847,065

6.6

%

7,897,754

7,389,122

6.9

%

Available seat miles (ASM)

4,735,491

4,551,094

4.1

%

9,257,844

8,919,188

3.8

%

Operating revenue per ASM (RASM)

14.26

¢

13.06

¢

9.2

%

13.93

¢

12.85

¢

8.4

%

Operating cost per ASM (CASM)

11.25

¢

10.34

¢

8.8

%

11.66

¢

10.37

¢

12.4

%

CASM excluding aircraft fuel and special items (b)

8.98

¢

8.50

¢

5.6

%

9.18

¢

8.65

¢

6.1

%

Aircraft fuel expense per ASM (c)

2.17

¢

1.84

¢

17.9

%

2.23

¢

1.72

¢

29.7

%

Revenue block hours operated

47,569

44,367

7.2

%

92,574

87,093

6.3

%

Gallons of jet fuel consumed

64,506

59,697

8.1

%

126,244

117,553

7.4

%

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

$

1.59

$

1.40

13.6

%

$

1.63

$

1.31

24.4

%

Economic fuel cost per gallon (c)(d)

$

1.62

$

1.55

4.5

%

$

1.63

$

1.54

5.8

%

(a)

Includes the operations of the Company's contract carrier under a capacity purchase agreement.

(b)

See Table 4 for a reconciliation of operating expenses to operating expenses excluding aircraft fuel and special 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 June 30,

Six months ended June 30,

2017

2016

% Change

2017

2016

% Change

(in thousands, except per-
gallon amounts)

(in thousands, except per-
gallon amounts)

Aircraft fuel expense, including taxes and delivery

$

102,774

$

83,798

22.6%

$

206,312

$

153,698

34.2%

Realized losses (gains) on settlement of fuel derivative contracts

1,902

8,799

(78.4)%

(687)

27,824

(102.5)%

Economic fuel expense

$

104,676

$

92,597

13.0%

$

205,625

$

181,522

13.3%

Fuel gallons consumed

64,506

59,697

8.1%

126,244

117,553

7.4%

Economic fuel costs per gallon

$

1.62

$

1.55

4.5%

$

1.63

$

1.54

5.8%

Estimated three months ending

September 30, 2017

Estimated full year ending

December 31, 2017

(in thousands, except per-gallon
amounts)

(in thousands, except per-gallon
amounts)

Aircraft fuel expense, including taxes and delivery

$

100,442

to

$

109,270

$

390,910

to

$

428,504

Realized losses on settlement of fuel derivative contracts

3,200

3,200

4,500

4,500

Economic fuel expense

$

103,642

to

$

112,470

$

395,410

to

$

433,004

Fuel gallons consumed

66,866

to

68,164

255,103

to

262,427

Economic fuel costs per gallon

$

1.55

to

$

1.65

$

1.55

to

$

1.65

Table 4.

Hawaiian Holdings, Inc.

Non-GAAP Financial Reconciliation

(in thousands, except per share and CASM data) (unaudited)

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. The Company believes that excluding the impact of these derivative adjustments helps investors analyze the Company's operational performance and compare its results to other airlines in the periods presented below.
  • Loss on extinguishment of debt, net of tax, is excluded to help investors analyze the Company's operational performance and compare its results to other airlines in the periods presented below.
  • The collective bargaining charge related to (1) a one-time payment to reduce the future 401K employer contribution for certain pilot groups, and (2) a one-time true up of the pilot vacation accrual at the new negotiated contract rates. The loss on sale of aircraft was a result of a sale-leaseback transaction covering three Boeing 767 aircraft as part of the planned exit from its 767 fleet. These one-time charges will have no impact on CASM excluding fuel and special items as they are considered special items by the Company and are not expected to represent ongoing expenses. The Company believes that excluding such special items helps investors analyze the Company's operational performance and compare its results to other airlines in the periods presented below.

Three months ended June 30,

Six months ended June 30,

2017

2016

2017

2016

Total

Diluted
Per Share

Total

Diluted
Per Share

Total

Diluted
Per Share

Total

Diluted
Per Share

GAAP net income, as reported

$

80,433

$

1.49

$

79,570

$

1.48

$

117,345

$

2.18

$

131,036

$

2.43

Add: changes in fair value of derivative contracts

2,810

0.05

(29,886)

(0.55)

14,197

0.26

(46,846)

(0.87)

Add: loss on extinguishment of debt

-

-

6,643

0.12

-

-

9,993

0.19

Add: special items

Loss on sale of aircraft

4,771

0.09

-

-

4,771

0.09

-

-

Collective bargaining charge

-

-

-

-

18,679

0.34

-

-

Total special items

4,771

0.09

-

-

23,450

0.43

-

-

Add tax effect of adjustments

(2,764)

(0.05)

8,832

0.16

(13,764)

(0.26)

14,004

0.26

Adjusted net income

$

85,250

$

1.58

$

65,159

$

1.21

$

141,228

$

2.61

$

108,187

$

2.01

Three months ended June 30,

Six months ended June 30,

2017

2016

2017

2016 (a)

Income Before Income Taxes, as reported

$

129,358

$

128,640

$

180,840

$

211,744

Add: changes in fair value of derivative contracts

2,810

(29,886)

14,197

(46,846)

Add: loss on extinguishment of debt

-

6,643

-

9,993

Add: special items

Loss on sale of aircraft

4,771

-

4,771

-

Collective bargaining charge

-

-

18,679

-

Total special items

4,771

-

23,450

-

Adjusted Income Before Income Taxes

136,939

105,397

218,487

174,891

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 special items. These amounts are included in CASM, but for internal purposes the Company consistently uses cost metrics that exclude fuel and special items (if applicable) to measure and monitor its costs.

Three months ended June 30,

Six months ended June 30,

2017

2016 (a)

2017

2016 (a)

GAAP operating expenses

$

532,786

$

470,638

$

1,079,677

$

924,868

Less: aircraft fuel, including taxes and delivery

(102,774)

(83,798)

(206,312)

(153,698)

Loss on sale of aircraft

$

(4,771)

$

-

$

(4,771)

$

-

Collective bargaining charge

$

-

$

-

$

(18,679)

$

-

Less: special items

$

(4,771)

$

-

$

(23,450)

$

-

Adjusted operating expenses - excluding aircraft fuel and special items

$

425,241

$

386,840

$

849,915

$

771,170

Available Seat Miles

4,735,491

4,551,094

9,257,844

8,919,188

CASM - GAAP

11.25

¢

10.34

¢

11.66

¢

10.37

¢

Less: aircraft fuel

(2.17)

(1.84)

(2.23)

(1.72)

Less: special items

Loss on sale of aircraft

(0.10)

-

(0.05)

-

Collective bargaining charge

-

-

(0.15)

-

Total special items

(0.10)

-

(0.20)

-

CASM - excluding aircraft fuel and special items

8.98

¢

8.50

¢

9.18

¢

8.65

¢

(a)

The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. Accounting Standard Update 2017-07 (ASU 2017-07) is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption only permitted for the Company in the first quarter of 2017, provided all provisions of the ASU are adopted. The Company early adopted this standard during the first quarter of 2017. The adoption of ASU 2017-07 resulted in a reclassification of $5.1 million and $10.2 million from wages and benefits to other components of net periodic benefit cost on the Company's consolidated statement of operations for the three months and six months ended June 30, 2016, respectively.

Estimated three months ending

September 30, 2017

Estimated full year ending

December 31, 2017

GAAP operating expenses

$

582,372

to

$

611,953

$

2,154,194

to

$

2,291,562

Less: aircraft fuel, including taxes and delivery

(100,442)

to

(109,270)

(390,910)

to

(428,504)

Less: special items

Loss on sale of aircraft

-

-

(4,771)

(4,771)

Collective bargaining charge

-

-

(18,679)

(18,679)

Post retirement benefits related (a)

(54,000)

(54,000)

(54,000)

(54,000)

Adjusted operating expenses - excluding aircraft fuel and special items

$

427,930

to

$

448,683

$

1,685,834

to

$

1,785,608

Available Seat Miles

4,919,242

to

5,017,137

18,752,329

to

19,303,868

CASM - GAAP

11.84

¢

to

12.20

¢

11.49

¢

to

11.87

¢

Less: aircraft fuel

(2.04)

to

(2.18)

(2.08)

to

(2.22)

Less: special items

Loss on sale of aircraft

-

to

-

(0.03)

to

(0.02)

Collective bargaining charge

-

to

-

(0.10)

to

(0.10)

Post retirement benefits related (a)

(1.10)

to

(1.08)

(0.29)

to

(0.28)

Total special items

(1.10)

¢

(1.08)

¢

(0.42)

¢

(0.40)

¢

CASM - excluding aircraft fuel and special items

8.70

¢

to

8.94

¢

8.99

¢

to

9.25

¢

(a)

The Company expects to incur charges related to the termination of its Salaried & IAM Merged Pension Plan and the settlement of a portion of its outstanding other post-retirement medical plan obligation with its pilots, which are considered special items by the Company and are not expected to represent ongoing expenses to the Company. Excluding such special items helps investors analyze the Company's core operational performance and more readily compare its results to other airlines in the periods presented above.

Pre-tax margin

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

Three months ended June 30,

Six months ended June 30,

2017

2016

2017

2016

Pre-Tax Margin, as reported

19.2

%

21.6

%

14.0

%

18.5

%

Add: changes in fair value of derivative contracts

0.4

%

(5.0)

%

1.1

%

(4.1)

%

Add: loss on extinguishment of debt

-

%

1.1

%

-

%

0.9

%

Add: special items

Loss on sale of aircraft

0.7

%

-

%

0.4

%

-

%

Collective bargaining charge

-

%

-

%

1.4

%

-

%

Total special items

0.7

%

-

%

1.8

%

-

%

Adjusted Pre-Tax Margin

20.3

%

17.7

%

16.9

%

15.3

%

Leverage ratio

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, losses on extinguishment of debt, and special items 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.

Twelve months ended

June 30, 2017

Debt and capital lease obligations

$

527,511

Plus: Aircraft leases capitalized at 7x last twelve months' aircraft rent

929,593

Adjusted debt and capital lease obligations

$

1,457,104

EBITDAR:

Income Before Income Taxes

$

362,560

Add back:

Interest and amortization of debt discounts and issuance costs

32,412

Depreciation and amortization

109,334

Aircraft rent

132,799

EBITDAR

$

637,105

Adjustments:

Add: changes in fair value of derivative contracts

13,365

Add: loss on extinguishment of debt

480

Add: special items

132,592

Adjusted EBITDAR

$

783,542

Leverage Ratio

1.9

x

View original content:https://www.prnewswire.com/news-releases/hawaiian-holdings-reports-2017-second-quarter-financial-results-300493884.html

SOURCE Hawaiian Holdings, Inc.

Hawaiian Holdings Inc. published this content on 25 July 2017 and is solely responsible for the information contained herein.
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