HAWAIIAN HOLDINGS INC (HA)·Q1 2024 Earnings Summary

Executive Summary

• Q1 2024 revenue grew 5.4% year over year to $645.6M, but GAAP net loss widened to $137.6M (EPS -$2.65) as unit costs rose and special merger-related items hit results .
• Adjusted metrics also deteriorated: adjusted net loss -$143.5M (adj. EPS -$2.77) and adjusted EBITDA -$116.0M; pre-tax margin was -23.7% GAAP and -24.8% adjusted .
• Guidance was mixed: Q2 2024 RASM guided -1.5% to +1.5% YoY; FY 2024 ASMs reduced to up 4.5–7.5% (from up 6–9%) and FY CASM now up 4.1–6.3% (from up 0.7–3.0%), reflecting higher fuel and cost assumptions; capex unchanged at $500–$550M .
• Strategic catalysts: 787-9 revenue service began April 15; free Starlink Wi‑Fi rolled out fleetwide on A321neos; shareholders approved the Alaska Air merger and the company entered a DOJ timing agreement, extending the path to close .
• Note: Wall Street consensus (S&P Global) estimates were unavailable via our data interface for HA this quarter; as a result, we cannot quantify beats/misses versus Street expectations.

What Went Well and What Went Wrong

What Went Well

• 5.4% YoY revenue growth on 2.7% capacity growth; load factor improved 240 bps YoY to 80.6% and PRASM rose 3.5% YoY, showing demand resilience on core routes .
• Operational reliability improved through the quarter, with on-time arrivals reaching ~87% in March according to management; “running a smooth, reliable operation has a positive impact on costs,” CEO Peter Ingram noted .
• Strategic execution: 787-9 entered revenue service Apr 15; second A330-300 freighter for Amazon deployed JFK–SBD; Starlink now free on all 18 A321neos; expanded North America flying for summer and announced SLC–HNL, SMF–LIH/KOA additions .

What Went Wrong

• Costs elevated: CASM excluding fuel and non-recurring items rose 7.1% YoY; maintenance materials and repairs +41.1% YoY; wages and benefits +8.3% YoY .
• Profitability remained pressured: GAAP pre-tax margin -23.7% and adjusted -24.8%; adjusted EBITDA -$116.0M, reflecting lingering unit cost headwinds and limited freighter profit contribution .
• International recovery is uneven; management cited the weak yen (~¥154–155/$) as a headwind to Japan-origin demand; premium and U.S. point-of-sale demand remains solid, but full benefits from the 787 ramp are more 2025-weighted .

Financial Results

Sequential Trend (Quarterly)

Year-over-Year Comparison

Segment/Revenue Mix

KPIs and Operating Statistics

Balance Sheet and Liquidity Highlights

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Mahalo to our team for remaining focused on delivering strong operational performance and unparalleled guest experience… 2024 is off to a positive start… rolling out high-speed Starlink WIFI and taking delivery of our first Boeing 787.” — Peter Ingram, President & CEO .
• “We saw tangible results… reliability improved… hitting 87% on-time arrivals in March… running a smooth, reliable operation has a positive impact on costs.” — CEO Prepared Remarks .
• “Significantly affecting our first quarter results… is the reduction in our effective tax rate from 21% to 10%… since 2020, we’ve generated significant federal and state net operating losses… lowering the effective tax rate and decreasing our book tax benefit.” — CFO Shannon Okinaka .
• “For the second quarter, we expect RASM to be about flat year-over-year… ASMs now expected to be up about 6% for the full year.” — CRO Brent Overbeek .

Q&A Highlights

• Delivery cadence and deployment of 787-9 fleet: 2 aircraft active, third expected before year-end; risk of delivery slides amid Boeing supply chain; benefits scale in 2025 as long-haul deployment increases .
• Demand outlook: summer North America bookings solid; international U.S. point-of-sale strong; Japan-origin demand constrained by weak yen .
• Costs and tax: unit costs ex fuel guided +~6.5% YoY in Q2; effective tax rate ~10% in 2024 due to valuation allowance on NOLs .
• Merger commentary: limited new details; DOJ timing agreement precludes closing until 90 days post substantial compliance .

Estimates Context

• S&P Global consensus estimates could not be retrieved for HA due to a CIQ mapping issue in our interface; therefore, we cannot provide an authoritative comparison to Street expectations this quarter. Where third-party transcripts reference “flat RASM” or outlook commentary, we cite them qualitatively, but we do not substitute non-SPGI consensus figures for beats/misses.

Key Takeaways for Investors

• Revenue resilience with improving load factor and PRASM, but elevated CASM ex fuel and maintenance costs keep profitability under pressure; adjusted EBITDA still negative .
• FY 2024 guidance reset: ASMs lowered and fuel assumptions raised; expect higher GAAP and ex-fuel unit costs vs prior plan—watch cost execution and operational reliability progress .
• 787-9 ramp is a medium-term margin lever; near-term benefits modest, with larger impact as fleet builds and long-haul deployment expands in 2025 .
• Japan-origin demand likely constrained until yen strengthens; U.S. point-of-sale demand supports international performance, but mix differs vs historical norms .
• Merger timeline remains extended; DOJ timing agreement introduces additional lag—headline risk persists around regulatory process .
• Liquidity remains solid at $1.15B with $897M unrestricted cash/ST investments; debt at $1.75B—monitor leverage trajectory as capex continues and 787 deliveries proceed .
• Near-term trading: stock likely sensitive to Q2 RASM trajectory (guided -1.5% to +1.5%), summer demand cadence, and any updates on 787 delivery timing or DOJ process .

Document citations used:
- [5:x] = HA Form 8-K with Exhibit 99.1 – Q1 2024 press release and financials (Apr 23, 2024)
- [8:x] = HA Form 8-K – Q4 2023 results and outlook (Jan 30, 2024)
- [10:x] = HA Form 8-K – Q3 2023 results and outlook (Oct 24, 2023)
Internet sources (full URLs cited inline) used for Q1 2024 call transcript quotes and operational commentary where company transcript retrieval was unavailable.