Hawaiian Holdings, Inc.

Second-quarter total revenue increased 3.5% year over year, with capacity up just over 4%. System RASM declined about 1% year over year, in line with guidance. Adjusted EBITDA was a loss of $21 million, and adjusted EPS was a loss of $1.37 per share. That EPS included a negative $0.14 impact from a 0% effective tax rate versus the 10% expected, and year-over-year the tax rate change impacted adjusted EPS by $0.21 versus 14.7% last year. For 3Q, management expects system RASM to be down about 3% on capacity growth of about 7%. Full-year capacity guidance was cut to about 5.5% growth year over year, and full-year CapEx is now expected in the range of $350 million to $400 million.

Peter Ingram framed the quarter as steady operational progress amid a difficult demand backdrop and an unresolved merger process. He emphasized liquidity actions, saying the company raised about $400 million by financing 10 A321neo aircraft and exchanged $1.2 billion of loyalty bonds for $985 million of new notes due in 2029, which he said provides a runway into 2029. Strategically, he highlighted product upgrades, network discipline, and operational reliability, including better on-time performance, Starlink rollout, and the ramp of premium and freighter offerings.

Shannon Okinaka said the quarter ended with an adjusted EBITDA loss of $21 million and adjusted EPS loss of $1.37, with the tax rate causing a $0.14 headwind versus expectations. She noted better-than-expected CASMEx performance because fuel was lower and heavy maintenance shifted to the second half, while 3Q unit costs excluding fuel and special items are expected to be flat year over year. She also said the company ended the quarter with $1.5 billion in liquidity, roughly twice its pre-pandemic target, and lowered full-year capital spending to $350 million to $400 million because one 787 delivery moved from late 2024 into early 2025.

Analysts focused on why Hawaiian expects 3Q unit revenue pressure even after announcing added West Coast flying; management said the extra flying was timing-related, largely tied to previously cancelled year-end service and aircraft availability. Questions also centered on network flexibility during the merger review, and Peter Ingram said Hawaiian retains control over network deployment and pricing up to close, though there are some limitations during the process. Analysts asked about Starlink monetization and premium revenue; management said Starlink is free, early in deployment, and should mainly help guest satisfaction and demand over time, while premium cabins and extra comfort are proving more resilient than main cabin.