On October 24, 2023, Hawaiian Holdings Inc (HA, Financial) released its financial results for the third quarter of 2023. Despite facing challenges such as the tragic wildfires in Maui and operational disruptions, the company demonstrated resilience and continued to focus on moving forward. The company reported a net loss of $48.7 million, compared to a net loss of $39.5 million year-over-year. The company's operating revenue was down 1.8% from the third quarter of 2022 on 4.1% higher capacity across its network.
Financial Performance and Challenges
According to the earnings report, Hawaiian Holdings Inc (HA, Financial) faced significant challenges in Q3 2023. The wildfires in Maui caused a sharp decrease in traffic to the island, impacting the company's revenue. Additionally, an announcement from RTX, the parent company of Pratt & Whitney, about accelerated removals and inspections of a significant portion of the PW1100G-JM engine fleet, which powers Hawaiian’s A321neo aircraft, resulted in lower-than-expected capacity growth in the quarter.
Financial Achievements and Future Investments
Despite these challenges, Hawaiian Holdings Inc (HA, Financial) made significant strides in Q3 2023. The company launched its A330-300F contract freighter business and began ticket sales for flights on the Boeing 787-9 Dreamliner. These initiatives represent major investments that are expected to create substantial value in 2024 and beyond.
Income Statement, Balance Sheet, and Cash Flow Statement Highlights
The company's diluted EPS stood at ($0.94), compared to ($0.76) year-over-year. The pre-tax margin was (8.3)%, compared to (6.8)% in the same period last year. The EBITDA was ($3.2M), a significant decrease from ($49.9M) year-over-year. As of September 30, 2023, the company had unrestricted cash, cash equivalents, and short-term investments of $1.13 billion, and outstanding debt and finance lease obligations of $1.65 billion.
Looking Ahead
Despite the challenges faced in Q3 2023, Hawaiian Holdings Inc (HA, Financial) remains optimistic about its future growth. The company's resilience, coupled with its strategic investments in freighter service and Dreamliner ticket sales, positions it well for future success. The company expects its available seat miles (ASMs) to increase by 1.5% to 4.5% in Q4 2023, and its costs per ASM (CASM) to increase by 2.0% to 4.1%.
