Hawaiian Holdings Reports 2016 Fourth Quarter and Full Year Financial Results

HONOLULU, Jan. 24, 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 fourth quarter and full year 2016.

"2016 was a great year for us," said Mark Dunkerley, Hawaiian Airlines president and CEO. "The business environment has been characterized by strong demand, balanced industry capacity in our markets and manageable fuel prices. Our hard working team has done a good job ensuring that the investments we made in our business at the beginning of this decade continue to deliver the returns we anticipated from them. Our business is stronger and we are growing value for our shareholders, giving us great confidence for 2017 and beyond."

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

Liquidity and Capital Resources

As of December 31, 2016 the Company had:

• Unrestricted cash, cash equivalents and short-term investments of $610 million.
• Outstanding debt and capital lease obligations of $557 million.

The Company has also renewed and increased its existing revolving credit facility to $225 million.

2016 Highlights

People

• Enhanced the Company's profit sharing program electing to reward all employees in 2016.
• Contributed $31 million to its pension plans in the fourth quarter for a full year total of $58 million, significantly in excess of minimum requirements.
• Ratified a five year contract with its dispatchers represented by the Transport Workers Union.
• Ratified five year contracts with the International Association of Machinists and Aerospace Workers.

Operational

• Ranked #1 globally for on-time performance for 2016 by OAG.
• Ranked #1 nationally for on-time performance for all reported months in 2016 except for July in the U.S. Department of Transportation Air Travel Consumer Report.
• Flew a record 11.1 million passengers in 2016.
• Insourced sales teams in Australia, New Zealand, and Japan to position the Company for long-term success in these markets.
• Purchased an Airbus A320 Full Flight Simulator for on-site pilot training.

New routes

• Expanded service to Japan with additional routes and frequencies to Tokyo.

Product and loyalty

• Led the U.S. airline industry in unit revenue growth in 2016.
• Won the 2016 Skytrax World Airline Award for 'Best Airline Staff' in North America.
• Unveiled new uniforms for front line employees to debut in 2017.
• Launched Bid Up, an auction offering North America guests a chance to name their price for first class upgrades.
• Began revenue flights for the newly retrofitted A330 aircraft in December with a new 278 passenger seat configuration featuring 18 fully lie-flat Premium Cabin seats, 68 Extra Comfort seats and 192 Main Cabin seats.
• Achieved a record $50 million in Extra Comfort and Preferred Seat sales in 2016.

Fleet and financing

• Took delivery of the 23^rd A330-200 in June under a six-year lease and announced the purchase of an additional A330 for delivery in the fourth quarter of 2017.
• Took delivery of two additional 717s in the fourth quarter of 2016 under six-year leases.
• Announced the lease of two additional A321neos for delivery in the first quarter of 2018.
• Announced the planned retirement of its remaining fleet of 767s by the end of 2018.

First Quarter and Full Year 2017 Outlook

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

Investor Conference Call

Hawaiian Holdings' quarterly and full year earnings conference call is scheduled to begin today (January 24, 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 and available for 90 days on the Company's investor 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 12 years (2004-2015) as reported by the U.S. Department of Transportation. Consumer surveys by Condé Nast Traveler, Travel + Leisure and Zagat have all ranked Hawaiian 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, as well as the largest provider of passenger air service from its primary visitor markets on the U.S. mainland. 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 Samoa and Tahiti. Hawaiian also provides approximately 160 jet flights daily between the Hawaiian Islands, with a total of more than 200 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, available seat miles, gallons of jet fuel consumed, fuel cost per gallon, and economic fuel cost per gallon each for the quarter ending March 31, 2017 and for the full year ending December 31, 2017; the Company's expectations regarding operating revenue per available seat mile for the quarter ending March 31, 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; 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.