With a narrow loss at the end of the year, the airline faces a busy year.
Hawaiian Holdings, the parent company of Honolulu-based Hawaiian Airlines, announced its financial results for the fourth quarter of 2022 and for the full year on Tuesday. According to the report, the company posted a slight loss at the end of the year.
The numbers come as the airline saw increased demand on routes between the US mainland and Hawaii, as well as some international routes. Hawaiian’s total operating income for the fourth quarter of 2022 increased more than 3% compared to operating income three years ago.
A mess of numbers
Although operating income increased, the airline lost a total of $50.2 million in the fourth quarter. However, the loss was a better performance than in the same quarter of 2021, when the company reported a $92.6 million loss due to the ongoing impact of the pandemic.
On the contrary, Hawaiian lost more than $100 million in all of 2022 compared to the previous year. The airline lost $240 million compared to $145 million in 2021. Total revenue for the fourth quarter was $731 million, compared to $495 million in the fourth quarter of 2021, according to FlightGlobal.
Hawaiian President and CEO Peter Ingram thanked the airline’s employees in a statement.
“A warm Mahalo to our team who have worked tirelessly through a year in which we have launched multiple projects that will make us a stronger and better airline. I am incredibly proud of what our team members do to take care of our business, our guests and our guests each other. We saw continued strong demand in our domestic markets and a rebound in our international markets, showing that Hawaii is a top destination and we are the airline of choice. I’m excited to see what we can accomplish in 2023 as we continue to build solid foundations for our future.” -Peter Ingram, President and CEO of Hawaiian Airlines
As of December 31, 2022, the company reported:
- $1.4 billion in unrestricted cash, cash equivalents and short-term investments
- Outstanding debt and finance lease liabilities of $1.7 billion
- A $590.8 million aviation liability
- Liquidity of $1.6 billion, including a $235 million undrawn revolving credit facility
Photo: Phillip B. Espinasse/Shutterstock
overall operating result
The airline attributed the strength of the leisure market to its success in the final quarter of 2022. Hawaiian said it is seeing robust demand on its mainland U.S. to Hawaii routes and on international routes excluding Japan. Demand for the airline’s premium products also reportedly remained strong, with positive momentum in sales of its Extra Comfort product and a newer Preferred Seating option.
According to the company, the airline’s total operating income increased by 3% in the fourth quarter of 2022 compared to the fourth quarter of 2019, on a 6% lower capacity. Total operating income for full year 2022 declined nearly 7% from 2019 due to lower capacity due to the impact of the Omicron variant seen across the industry for most of the first quarter.
Freight revenue and sales from HawaiianMiles, the airline’s frequent flyer program, were also strong in the fourth quarter of 2022. Other revenue increased by 35% compared to the fourth quarter of 2019, and for the full year 2022 the report shows an increase of 30% compared to 2019.
looking ahead
The airline said it is focused on completing an extensive list of initiatives in 2023, including preparing to launch cargo operations for Amazon Air, launching a new passenger service system and offering internet connectivity services on transpacific flights.
Photo: Hawaiian Airlines
Hawaiian also plans to put mobile technology in the hands of its guest-facing employees and add brand new Boeing 787-9 aircraft to its fleet.
Source: FlightGlobal