Hawaiian Airlines, Inc., a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA), has announced its system-wide traffic statistics for the month of September, third quarter, and year-to-date. It also updated its expectations for certain third quarter financial metrics.
Revenue Passenger Miles; one paying passenger transported one mile
Available Seat Miles; one seat transported one mile
Load Factor; percentage of seating capacity filled
1 Includes the operations of contract carriers under capacity purchase agreements.
Third Quarter 2017 Outlook
The Company has revised its expectations for the quarter ended September 30, 2017 provided in its Second Quarter 2017 Earnings Release on July 25, 2017.
Specifically, the Company revised its estimates for gallons of jet fuel consumed and economic fuel cost per gallon.
The table below summarizes the Company’s revised expectations for the quarter ended September 30, 2017, expressed as an expected percentage change compared to the results for the quarter ended September 30, 2016.
Gallons of jet fuel consumed
Up 3% to up 5%
Up 3% to up 4%
Economic fuel cost per gallon (a)(b)
$1.55 to $1.65
$1.65 to $1.75
Fuel cost per gallon
$1.50 to $1.60
$1.61 to $1.71
See reconciliation of actual fuel costs to economic fuel costs.
Economic fuel cost per gallon estimates are based on September 19, 2017 fuel forward curve.
The Company believes that economic fuel expense is a good measure of the effect of fuel prices on its business as it most closely approximates the net cash outflow associated with the purchase of fuel for its operations in a period. The Company defines economic fuel expense as GAAP fuel expense plus losses/(gains) realized through actual cash (receipts)/payments received from or paid to hedge counterparties for fuel hedge derivative contracts settled during the period.
Non-GAAP Financial Reconciliations(in thousands)
Estimated three months endedSeptember 30, 2017
(in thousands, except per-gallon
Aircraft fuel expense, including taxes and delivery
Realized (gains)/losses on settlement of fuel derivative contracts
Economic fuel expense
Fuel gallons consumed
Economic fuel cost per gallon