Hawaiian Holdings Inc

Luaus, leis, and laying in the sun -- Hawaiian Holdings knows how to get you there. The company's main subsidiary, Hawaiian Airlines, transports passengers and cargo between Honolulu and about a dozen major cities in the western US. Transpacific routes account for most of the carrier's revenue. Hawaiian Airlines also serves four of the six main Hawaiian Islands and destinations in the South Pacific such as American Samoa, Australia, the Philippines, and Tahiti. It operates a fleet of about 45 aircraft (most are Boeing 717s for flights between the Hawaiian Islands and Boeing 767s for transpacific flights). In addition to its scheduled passenger and cargo operations, Hawaiian Airlines provides charter services.

Operations

To supplement its own inter-island offerings, Hawaiian Airlines serves other destinations within Hawaii via a code-sharing deal with Island Air. In addition, Hawaiian Airlines maintains code-sharing arrangements with carriers such as American AirlinesContinental AirlinesDelta Air LinesUnited, and US Airways. Code-sharing allows airlines to extend their networks by selling tickets on other carriers' flights.

Sales and Marketing

Hawaiian Airlines uses various distribution channels including its website (mostly for North America and regional island routes) and travel agencies and wholesale distributors for international flights.

Financial Performance

Hawaiian Airlines has enjoyed four straight years of steady growth. Revenues spiked 10% from $1.96 billion in 2012 to reach a historical milestone of $2.2 billion in 2013. After suffering a net loss of nearly $3 million in 2011, the airline posted $53 million in net income for 2012 and $52 million in 2013.

The growth in 2013 was driven by an increase in passenger revenue due to an uptick in capacity across its network. It was also attributed to a $16 million increase in cargo revenue, due to the additional cargo capacity provided by the Airbus A330-200 aircraft; this was the result of the expansion of its network and improved production on its existing routes.

The positive net income for 2012 and 2013 was primarily due to the absence of a $70 million litigation charge it incurred in 2011 related to the purchase of aircraft. The company's cash flow decreased by $84 million in 2013 due to more cash it was forced to use for its operating activities as it experienced a smaller increase in air traffic liability due to fewer new routes introduced in 2013 compared to 2012.

Strategy

Hawaiian Airlines is counting on continued growth in its transpacific and South Pacific operations through expanded service to Tahiti, Australia, Japan, and the Philippines. It has instituted a code-sharing agreement with Korean Air Lines and now offers nonstop flights to that country. Hawaiian Airlines is currently the only airline to offer nonstop service from Honolulu to Pago Pago and American Samoa. To support its expansion plans, the company has ordered 16 wide-body and extra-wide-body aircraft from Airbus for delivery between 2017 and 2020.

In mid-2013 the airline announced plans to launch a non-stop service between Honolulu and Beijing beginning in April 2014. This flight represents the airlines' tenth international destination and makes China one of Hawaiian Airlines' most important visitor destinations. Shortly after it also signed a code-share agreement with Air China, China's exclusive national flag carrier.

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Hawaiian Holdings Inc


3375 Koapaka St Ste G350
Honolulu, HI 96819-1804
Phone: 1 (808) 835-3700
www.hawaiianair.com

STATS


  • Employer Type: Public
  • Stock Symbol: HA
  • Stock Exchange: NASDAQ
  • President and CEO, Hawaiian Holdings and Hawaiian Airlines: Mark Dunkerley
  • Chairman: Lawrence Hershfield
  • EVP and CFO: Scott Topping

Major Office Locations

  • Honolulu, HI

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