Hawaiian Airlines reports first quarter 2017 statistics
Hawaiian Airlines has announced its system-wide traffic statistics for the month and quarter ended March 31, 2017. It also updated its expectations for certain first quarter financial metrics.
The Company has revised its expectations for the quarter ended March 31, 2017 provided in its Fourth Quarter 2016 Earnings Release on January 24, 2017.
Specifically, the Company raised its expectations for operating revenue per ASM growth due to better than expected load factors and stronger yields primarily in the domestic network, and raised its expectations for gallons of jet fuel consumed.
The Company also raised its expectations for cost per ASM (CASM) excluding fuel and special items for the first quarter ended March 31, 2017 to include the impact of a newly ratified pilot contract and adoption of a new Accounting Standard Update. Excluding the impact of the pilots’ contract and the effect of the accounting change, the Company’s expectations of CASM excluding fuel and special items would be in line with original guidance.
On March 24, 2017, the Air Line Pilots Association (ALPA) announced the ratification of a new contract between the pilots and the Company. As a result, the Company recognized a charge of $7.5 million of wages and benefits expense relating to a ratification bonus, which is incremental to the $34 million special charge recorded in the fourth quarter of 2016. This represents approximately 2 percentage points of year-over-year increase in CASM excluding fuel and special items.
The Company also expects to record a special charge of approximately $20 million in the first quarter primarily related to a one-time lump sum payment for pilot benefits, which will have no impact on CASM excluding fuel and special items.