Hawaiian Airlines has reported a $48.7 million loss on an adjusted basis for the third quarter of 2021. The company reported total revenue of $508.8 million, down 33% compared to the third quarter of 2019, on 21% lower capacity. Hawaiian’s total operating expenses of $465.4 million, and operating expenses excluding non-recurring items of $543.6 million, down 15% compared to the third quarter of 2019.
Hawaiian achieved positive adjusted EBITDA for the first time since the beginning of the COVID-19 pandemic, with EBITDA of $83.0 million, and adjusted EBITDA of $2.8 million.
"While our third quarter results were affected by the resurgence of COVID-19 cases associated with the Delta variant, momentum had moved in a positive direction by the end of the quarter, and we remain absolutely confident in our long-term prospects as leisure travel recovers globally," said Peter Ingram, Hawaiian Airlines President and CEO. "Throughout this year of recovery the outstanding contributions of my colleagues have remained constant, and I am honored to be a part of this resilient team."
In September 2021, the airline resumed scheduled service between Hawaiʻi and American Samoa.
In December 2021, Hawaiian will resume service between Hawaiʻi and Sydney, Australia.
During the third quarter of 2021, the Company operated 79% of its 2019 third quarter system capacity, comprised of 114%, 76% and 13% capacity on its North America, Neighbor Island and International routes, respectively.
As of September 30, 2021, Hawaiian Airlines had unrestricted cash, cash equivalents and short-term investments of $2.0 billion, down $187 million from June 30, 2021. The company’s outstanding debt and finance lease obligations of $2.1 billion, down $63 million from June 30, 2021.
As of September 30, 2021, the Company had $2.2 billion in liquidity, including its undrawn $235 million revolving credit facility.
In August 2021, Hawaiian extended leases for two A330-200 aircraft. In September 2021, the company commenced a cash tender offer for all of its 7.375% Series 2020-1A pass through certificates due 2027 and 11.250% Series 2020-1B pass through certificates due 2025. The tender offer currently expires on November 1, 2021 and settlement is expected to occur on November 4, 2021.
For the fourth quarter, Hawaiian stated that it expects its network to remain largely consistent with the third quarter of 2021, with some incremental recovery of its International network in the latter half of December. The company expects a decline in total revenue compared to the third quarter of 2021, driven by seasonal factors and the impact the Delta variant has had on advance bookings. An increase in operating expenses, excluding fuel and non-recurring items, is also expected for the fourth quarter, compared to the third quarter of 2021, primarily driven by expenses related to capacity readiness.
Hawaiian expects its capital expenditures for the full year of 2021 to be between $40 and $45 million.