Liquidity and Capital Resources
As of December 31, 2022 the Company had:
- Unrestricted cash, cash equivalents and short-term investments of $1.4 billion
- Outstanding debt and finance lease obligations of $1.7 billion
- Air traffic liability of $590.8 million
- Liquidity of $1.6 billion, including an undrawn revolving credit facility of $235 million
Revenue Environment
The strength of the leisure market was evident as Hawaiian saw robust demand in its U.S. Mainland to Hawaiʻi routes and international routes excluding Japan. Demand remained strong for premium products and there was positive momentum in sales of its Extra Comfort product and newer preferred seat option. The Company's overall operating revenue for the fourth quarter 2022 was up 3.2% compared to the fourth quarter 2019 on 6% lower capacity. The Company's overall operating revenue for 2022 was down 6.7% from 2019 on 9.3% lower capacity as the impacts of Omicron were experienced industry-wide in most of the first quarter.
Other revenue for fourth quarter 2022 was up 35.1% compared to the same period in 2019 and for the full year 2022 up 30.4% compared to 2019 driven by cargo revenue and sales of HawaiianMiles.
2022 Highlights
Routes and scheduled services
- Operated at 91% of its 2019 capacity, comprised of 115%, 79%, and 44% capacity on its North America, Neighbor Island, and International routes, respectively
- Resumed international flights, between Honolulu, Hawaiʻi and Auckland, New Zealand, and Honolulu, Hawaiʻi and Tokyo Haneda Airport
- Signed agreement with Amazon to operate and maintain an initial fleet of 10 Airbus A330-300 freighters to move cargo between airports near Amazon's distribution facilities starting in the fall of 2023
- Announced a new nonstop flight between Honolulu and Rarotonga, Cook Islands, which will launch in May 2023, providing travellers from Hawaiian's 15 U.S. Mainland gateway cities convenient one-stop connection to the Cook Islands
Guest experience
- Announced agreement with Starlink to provide complimentary industry leading satellite internet connectivity to every guest onboard flights between Hawaiʻi and the continental U.S., Asia, and Oceania starting in 2023
- Introduced the benefit of two free checked bags for primary cardmembers who purchase their tickets directly with the Company in partnership with Barclays, its co-brand credit card issuer
- Established a new interline agreement with Mokulele to facilitate travel bookings and connections for passengers connecting from Mokulele-served airports to any Hawaiian Airlines destination worldwide in a single transaction
Fleet and financing
- Entered into an agreement with Boeing to purchase 2 additional Boeing 787-9 aircraft, bringing the Company's total order to 12 aircraft, the first of which is scheduled for delivery in the fourth quarter of 2023
- Amended and extended $235 million revolving credit facility that matures in December 2025
- Repurchased the remaining $62.4 million of outstanding Series-2020-1A and Series-2020- 1B Equipment Notes
People
- Received ratification by Hawaiian's employees represented by the International Association of Machinists and Aerospace Workers for five-year contracts that provide for wage increases and important work rule changes for nearly 2,500 employees
- Received ratification by Hawaiian's employees represented by the Transport Workers Union of America for a five-year contract that provides wage increases and important work rule changes for 55 employees
Awards and Recognition
- Recognized by Conde Nast's 2022 Readers Choice Awards as one of The Best Airlines in the United States
- Named by Forbes' 2022 America's Best Employers by State rankings as Hawai'i's Best Employer
- Awarded by Travel + Leisure's World's Best Award as the Best Domestic Airline
Environmental, Social and Corporate Governance
In May 2022, the Company issued its 2022 Corporate Kuleana (Responsibility) Report, providing updates on Environmental, Social and Governance ("ESG") initiatives, including new commitments to replace single-use plastics in cabin service by 2029 and to locally source 40% of food and beverage for its Hawai'i-based catering operations by 2025. Other accomplishments in 2022 include the following:
- Engaged over 1250 volunteers comprised of almost 800 employees and over 450 of their family members who donated almost 6800 hours of community service work for almost 150 organizations throughout Hawaiʻi
- Raised more than $33,000 for the Friends of Hakalau Forest National Wildlife Refuge, a group supporting the preservation, protection, and restoration of native forest lands in the Hakalau National Wildlife Refuge on Hawaiʻi island through the annual Hawaiian Airlines Holoholo Challenge
- Donated $117,550 through Hawaiian Airlines Foundation including a $100,000 grant to Kāko'o 'Ōiwi, a nonprofit organization dedicated to advancing the cultural, spiritual and traditional practices of the Native Hawaiian community
- Expanded decarbonization efforts through research into sustainable aviation fuel with Par Hawaii and a partnership with REGENT, a developer of all-electric seagliders
The Company continues to focus on creating long-term value and positively impacting the people, the environment and the communities it serves. The Company will publish its fourth annual Corporate Kuleana Report in the spring of 2023, highlighting its ESG commitments.