Hawaii Airlines just announced their first quarter 2024 earnings and the result was that their losses increased since the prior period. This time, the GAAP net loss for the three month period was $137.6 million, compared with $101.2 million Hawaiian lost in the prior quarter. The current losses come to a staggering $1.515 million per day. This confirms what investment analysts had predicted: “a year-over-year decline in earnings on higher revenues.”
With regards to their financial performance, Hawaiian’s Shannon Okinaka, Executive Vice President and Chief Financial Officer said, “We are not satisfied with our current financial performance.”
In the fourth quarter of 2023, Hawaiian Airlines reported a loss rate of $1 million per day. It underscores ongoing struggles to regain profitability post-Covid. The airline’s total net loss for 2023 amounted to $260 million. Hawaiian Airlines, a much smaller carrier compared to giants like Alaska, American, Delta, Southwest, and United, faces intense market pressures that challenge its financial resilience.
On largely more positive notes, Hawaii provided this update.
Hawaiian mentioned that they have received two Dreamliners and have one already in revenue service. They are about to initiate flights between Sacramento and both Lihue and Kona as well as those from Salt Lake City. Hawaiian is also moving forward with more variability in flying, such that they can add or subtract flights as needed, instead of flying exclusively on a year-round daily service basis. Some additional services to Las Vegas and Los Angeles, for example, are being added for summer 2024. They also are optimistic that their A321 fleet will, in the weeks ahead, return to full revenue service, following engine issues across these planes.
Unfortunately, however, Japan demand remains flat for multiple reasons, including the high cost of Hawaii accommodations.
The airline’s island journey has been fraught with significant ups and downs.
Historically, Hawaiian faced similar financial distress in the early 1990s, leading to a Chapter 11 bankruptcy filing in September 1993. Despite these challenges, Hawaiian Airlines implemented effective cost-cutting measures, including reorganizing debts, negotiating employee concessions, and streamlining operations, including selling its West Maui airport operations and transitioning to an all-jet aircraft fleet.
That was also when Hawaiian moved to modernize its fleets and moved to the Sabre system for online reservations. This system lasted until a problematic and never fully resolved upgrade to the Amadeus reservation system last spring. Full functionality is still pending, partly awaiting the outcome of a merger with Alaska Airlines, as Hawaiian execs told BOH.
Historically, Hawaiian Airlines has shown unusual resilience through strategic modernization, which was sometimes problematic.
Such has been the case, for example, with their A321neo aircraft fleet, which was intended to boost efficiency and open new thin mainland routes. However, the planes faced setbacks due to Pratt & Whitney engine issues, which to this day have necessitated costly repairs and downtime. Covid also introduced new financial and operational challenges, from which the airline has yet to fully recover, including a significant drop in international traffic.
Looking forward, Hawaiian Airlines has finally launched the first plane of its Boeing 787-9 Dreamliner fleet.
The planes were originally aimed primarily at enhancing international routes. However, the lack of a premium economy class on international and long distance domestic routes, may position Hawaiian at a competitive disadvantage compared to carriers offering a more varied cabin configuration.
Internationally, decisions such as the significant reduction in service from Auckland and the challenges in other international markets, reflect broader issues impacting Hawaiian’s viability.
Hope for a successful acquisition by Alaska Airlines looms large.
The potential merger with Alaska Airlines could bring much-needed help, scaling and integration into the OneWorld Alliance, offering a hopeful prospect for the airline’s future sustainability and growth.
The current scenario underscores Hawaiian Airlines’ ongoing struggles with financial stability while illustrating both the cyclical nature of its operational and strategic challenges as well as an undaunted spirit.
Southwest just announced that they lost $231 Million in the 1st quarter.
They are planning a significant restructuring to cut expenses.
This may help HA survive awhile longer.
Hawaiian’s customer service has gone down the hole since the pandemic. I fly frequently between the islands and have recently completely switched over to using SW. My only regret is that I didn’t switch sooner. My loyalty to Hawaiian made me give them so many “second chances” to redeem themselves after being poorly treated by their CSAs. But enough is enough.
Hawaiian likes to pretend to be a local company but they definitely are not. Their financial problems are self-inflicted. $200-400 for a one-way ticket between HNL and LIH?? You can’t charge these luxury prices and give mediocre to poor service.
I know many locals who are more than ready to say aloha to them.
I do not understand why HA is so upside-down.
We always pay $600+ per ticket out of SJC (many many years)
This year we are about $800 per ticket…
180 seats (Boeing 737 800) on average at possibly $550 per seat year round $99,000 per flight.
What should the cost be per ticket to get to Maui in mid to late June?
If it is more… then let us pay more… Please don’t take another airline out of the Island service options
Check out social media posts. Looks like problems with the Dreamliner already with seatbelts breaking or not working. Yikes
After reading this article I personally won’t be purchasing a ticket to fly on Hawaiian until merger with Alaska is settled one way or another.
We’ve witnessed this before with the airline industry one day everything is fine next day they’re gone.
It’s killing me, but I’m flying SW in May to Maui. Better safe then sorry.
Hi Richard.
Happy Hawaii travels to you, in any event.
Aloha.
SW Airlines – the Walmart of the sky.
If I had it my way I would try and bring back Pan Am or even Northwest. From the moment you stepped on board one of those companies’ flights to Hawaii, you were removed from most things US. Those companies wanted you to “get tied up” and “lost” in the romance of Aloha.
Think out of the box… A trip to Hawaii is more than staying in a timeshare and going to Merryman’s and the Plantation House.
Embrace the Island differences – SW denatures the experiences of Hawaii. Sorry for the shade SW
I recently made my first trip to Hawaii. And while I was excited to finally make this happen. I have to admit it was one of the hardest trip to plan. It took me almost a year. Most of the time was spent on picking a hotel. During my research, I found a number of hotels in my opinion, were very overpriced and provided very little if any value. It was also common to find excessive resort fees and deposit requirements. This is not a common practice in other vacation hotspots. I’m no subject matter expert but I think it would be beneficial for Hawaiian Air to work closer with local hotels to provide more affordable value added, accommodations.
And also consider flying to other cities in the US, Midwest, East & South. Just a suggestion.
Yes, resort fees (hotels) and cleaning fees (AirBnBs) have reached levels where you really don‘t want to engage with the entire „hospitality sector“ in Hawaii any more. Even as a resident. They nickel-and-dime you to death. It‘s just no more fun.
That merger with Alaska better go through… The various factions fighting it may very well put the airline into history ala Aloha. Classic example of “Biting off your nose to etc”
Best Regards
You forgot to mention that Hawaiian owed the state $50 million in rent and landing fees which were subsequently forgiven when the Federal judge Told the state attorney to take stock in Hawaiian Airlines which the attorney objected to, saying that Hawaiian was a private company but the judge said he had to. The attorney reluctantly agreed and the next day Hawaiian desolved its stocks and the taxpayers of Hawaii were out $50 million dollars. How could Aloha Airlines compete with a company that didn’t pay its bills and later were forgiven it Huge debt (1993 dollars)? What did the state buy Kapalua Airport from Hawaiian for? It’s a worthless airport that the state taxpayers have to support. For what?
The long term survival of HA is totally dependent on
completing the merger with Alaska.
Hawaiian Airlines has been the only airline we’ve used to visit the islands. In fact Feb. 7, 2025 we’ll be flying into Hilo for the first time spending 10 nights. Can’t wait. The service has always been the best an look forward to experiencing the same. I only hope Alaska doesn’t change anything about Hawaiian Airlines.
You are the Best US Airline!!!!!!
Douglas M.
Why doesn’t Ingram sit down with the unions and seek concessions to reduce their losses? HA won’t be around for too long if this keeps going on.
The “antis” are killing our only locally owned airline.
Is Hawaiian Airlines locally owned?
Top shareholders are: vanguard, blackrock, morgan stanley, etc.
Institutional investors (i.e. not Hawaii) own 61% of the company.
With recent negative earnings, if something doesn’t change soon, they might not have a future.
As one of Hawaii’s largest employers, Hawaiian Airlines is uniquely positioned to advocate for a strategy that benefits the entire state. The principle “raising the water floats all boats” applies aptly here. By urging hoteliers to lower their exorbitant rates, we can stimulate a robust influx of tourists, particularly from markets like Japan, which have shown reluctance due to high accommodation costs. Frankly, politicians need to balance HA & Hoteliers.
– More reasonable hotel rates would make Hawaii a more attractive destination, reversing the declining tourist numbers & increasing overall spending across the state.
– Enhanced tourism boosts airline revenues & benefits local businesses, retail sectors, & the hospitality i
Here’s a suggested rewording:
Replace:
“ It underscores ongoing struggles to regain profitability post-Covid.”
With:
“It underscores Hawaii’s persistent, continual, and unwelcome messaging towards tourists and tourism in general”.
It’s time those with influence stopped blaming Covid, the economy, fires, etc. for withering tourism revenues, and instead recognize where the blame actually belongs.
Those who think that current tourism revenues are falling because of Covid are deluding themselves.
Another great get gentlemen. What do you think are the odds of HA surviving if merger does not go through? There is no way they can keep digging the same hole.
There is no transparency for us on the customer side of things. If it wasn’t for your reporting we would know nothing.
Can you see any reason why I should or shouldn’t use ff miles now?
If the DOJ and ultimately the courts do not approve merger that would HA ff members in a real bad spot.
Aloha from Kona.
Hi Kelly.
Thanks. It is always a good idea to use up airline miles rather than save them. They go down in value over time. We can’t say what would happen without Alaska, but the financial situation clearly hasn’t shown signs of improvement.
Aloha.