Airline

Hawaiian reports Q1 loss despite revenue increase

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Hawaiian reports Q1 loss despite revenue increase

Hawaiian Airlines lost $98.3 million, or $1.192 per share in Q1 2023, while operating revenue climbed by 28.4% year-on-year to $612 million.

Fuel costs were up over 35% and the outlay on salaries went up by almost 30%. Aircraft rental costs were up 7.2% to almost $39 million.
The airline reported unrestricted cash, cash equivalents and short-term investments of $1.4bn, with $1.6bn in liquidity including its undrawn $235 million revolving credit facility. It was carrying outstanding debt and finance lease obligations of $1.7bn at the end of the period.
Hawaiian operated at 115% of its 2022 first quarter capacity and said it benefitted from continued robust leisure travel demand among passengers in North America and the restoration of most of its international network.
But several challenges continued to negatively affect operations, including availability of A321 aircraft due to Pratt & Whitney engine delays, ongoing runway construction at Daniel K  Inouye International Airport in Honolulu and delays related to air traffic control protocols.

Limitations on Hawaiian's A321 fleet availability mean it has to deploy A330 aircraft, which are less fuel efficient, which the carrier said pushed fuel consumption up by 21.4% compared to the first quarter of 2022.

Among the highlight for early 2023 were the streamlining the Honolulu travel experience with the opening of a new TSA security checkpoint, which added 1,000 square feet for passenger queuing and 3,000 square feet of screening area, and the ratification by pilots of a four-year contract that provides for pay scale increases across all fleet types, improved health benefits, a signing bonus, and cost sharing, and enhancements to the post-retirement and disability plans for more than 1,000 employees. During the period it announced an agreement with biofuel company Gevo to purchase 50 million gallons of so-called sustainable aviation (SAF) fuel, "with deliveries to Hawaiian's gateway cities in California anticipated starting in 2029".

"A big mahalo to our team who continue to make us a stronger, better airline. The demand for leisure travel remains strong in the domestic markets we serve, and we see similar conditions in most of our international markets," said chief executive Peter Ingram.