On this page of StockholderLetter.com we present the latest annual shareholder letter from HAWAIIAN HOLDINGS INC — ticker symbol HA. Reading current and past HA letters to shareholders can bring important insights into the investment thesis.
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4/1/2024 Letter Continued (Full PDF)
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4/5/2023 HA Stockholder Letter
• More "Airlines" Category Stockholder Letters
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HA Benford's Law Stock Score = 96
4/1/2024 Letter Continued (Full PDF)
•
4/5/2023 HA Stockholder Letter•
More "Airlines" Category Stockholder Letters•
HA Benford's Law Stock Score = 96HA Shareholder/Stockholder Letter Transcript:
20 Annual 23 Report H A W A I I A N HAWN-39198_AnnualReportCover_Mar2023_r2_singles.indd 2 H O L D I N G S , I N C . 3/28/24 2:32 PM FRONT COVER CANADA Seattle Portland Asahikawa Sapporo/Chitose Memanbetsu Kushiro Obihiro Hakodate CHINA JAPAN Misawa Aomori Beijing Dalian Seoul/Incheon Seoul/Gimpo Komatsu Osaka /Itami Izumo SOUTH Busan Hiroshima Ube Kitakyushu KOREA Fukuoka Shanghai/Hongqiao Akita Niigata Sacramento Oakland San Francisco Reno San Jose Hanamaki Sendai Yamagata Tokyo/Narita Nagoya NORTH AMERICA Chicago Salt Lake City Richmond Las Vegas Ontario Long Beach San Diego Phoenix Tokyo/Haneda Nashville Los Angeles Osaka/Kansai Nanki Shirahama Okayama Tokushima Takamatsu Kochi Oita Matsuyama Miyazaki Amami Oshima Nagasaki Kumamoto Kagoshima Atlanta Shanghai/Pudong Taipei Austin Guangzhou Washington D.C./Reagan Raleigh-Durham Charlotte Charleston Savannah Jacksonville Kahului Honolulu San Juan Kailua-Kona THAILAND VIETNAM Manila PUERTO RICO HAWAI I PHILIPPINES Guam KAUA I Ho Chi Minh City CAMBODIA L hu e MALAYSIA Kuala Lumpur Nantucket Martha s Vineyard New York/Kennedy L hu e Hong Kong Hanoi Bangkok Portland Boston Orlando Tampa West Palm Beach Fort Myers Fort Lauderdale Miami MEXICO Naha/Okinawa Miyako Jima Ishigaki Rochester Buffalo Detroit Syracuse Cleveland Newark Pittsburgh Philadelphia NI IHAU PAPUA NEW GUINEA Singapore O AHU Honolulu MOLOKA I Kahului INDONESIA Jakarta MAUI LA NA I KAHO OLAWE Pago Pago AMERICAN SAMOA Cairns AUSTRALIA Rarotonga COOK ISLANDS Hilo Papeete TAHITI Kailua-Kona HAWAI I ISLAND Sunshine Coast Brisbane Gold Coast Ballina Byron Perth Sydney Adelaide Auckland Melbourne Launceston Hobart NEW ZEALAND Queenstown Codeshare Partners: Not all routes operate year-round. Interline Partners: Hawaiian Airlines has 65 Interline Partners across the globe. Some international routes behind and beyond Japan pending receipt of governmental operating authority. HAWN-39198_AnnualReportCover_Mar2023_r2_singles.indd 3 3/28/24 2:32 PM INSIDE FRONT COVER JOB#: HAWN-39198 CLIENT: COLOR: Hawaiian Airlines 4C nnual Report Cover A 2023 RUN DATE: March 2024 PUB: .25 16.5 w x 10.75 h LIVE AREA: .5 margin BLEED: TRIM: If you have questions concerning this file, please contact our Creative Production Manager immediately at 808.544.3056 April 1, 2024 To our Stockholders: 2023 was a year in which we made founda onal investments in our business while facing a number of external challenges. Through it all, our employees executed on several large ini a ves and took care of our guests with the signature Hawaiian hospitality for which we are known. I am grateful to them for their dedica on and care. And the year culminated with the announcement of our plans to combine with Alaska Airlines a transac on we believe will create a more compe ve airline that bene ts our exis ng shareholders, consumers, and the communi es we serve. We began the past year with signi cant opera onal issues associated with runway construc on at Honolulu Interna onal Airport, our largest hub. These persisted into the early days of summer and prevented us from regaining the na on s on- me performance crown which we had held for 19 straight years through 2021. We also faced ongoing struggles with the reliability and availability of the Pra and Whitney Geared Turbofan (GTF) engines that power our eet of 18 A321neo aircra . These GTF issues resulted in schedule adjustments and some disrup ve closein cancella ons that a ected our guests. These challenges were exacerbated by several brief but impac ul technology issues, all of which have since been addressed. While our employees did a heroic job caring for our guests through these di cult events, there is no denying the impact they had on our guests. In August, our home community was devastated by the tragic res on the island of Maui. Hawaiian Airlines leapt into ac on, conduc ng one of the largest civilian airli s in the state s history to evacuate visitors and displaced residents and bring in rst responders and cri cal emergency supplies. While all of our nearly 500 Maui-based employees were safe, many su ered enormous losses. In spite of that, they reported to work to take care of our guests many of whom were their friends and neighbors. The commitment of our team to rallying to support the community during its me of need was inspiring. With all of these challenges, we ended the year with an adjusted net loss of $313 million, on revenues of $2.7 billion which were up 2.8% over the prior year. Turning to demand, travel from North America to Hawai i remained strong with the excep on of inbound travel to Maui in the second half of 2023. In our interna onal markets, South Korea and Australia have shown encouraging improvement, while Japan, our largest interna onal market, con nues to lag the pace of recovery in other markets. The Neighbor Island market con nues to su er from excess capacity, but we are compe ng e ec vely, commanding strong consumer preference, and have seen improving average fares in recent months. Combining with Alaska On December 3, 2023, we announced our plan to combine with Alaska Airlines. While the board remains con dent in Hawaiian s long-term, stand-alone plan, we believe that the acquisi on by Alaska creates more value for our stockholders, and for consumers. Bringing together our complementary networks will allow travelers in Hawai i and elsewhere around the world to reach more des na ons while enjoying the high-quality service for which both Alaska and Hawaiian are known. A combined loyalty program, as well as membership in the oneworld alliance, will bring greater bene ts to members. And the beloved Hawaiian Airlines brand will live on as a part of the combined company. Together, we believe we will be able to compete more e ec vely against the giant airlines who dominate the U.S. domes c industry, and invest more in sustainability, workforce development, and community. We were gra ed that on February 16th, a substan al majority of our stockholders voted in favor of the merger. We are now working collabora vely with Alaska to provide the informa on requested by the Department of Jus ce for its review of our combina on with Alaska. Growing and diversifying our business In 2023, we ini ated our freighter service for Amazon. We received the rst of 10 commi ed A330-300 freighters and began service on schedule. Opera onal performance for this business, even during the high-pressure holiday season, was excellent. This new venture, which builds on the success of our preexis ng cargo opera on, is an important ini a ve to add a diversi ed stream of revenue to our leisure-travel-focused core business, and we recently inducted our second new freighter aircra into the Amazon opera on. We expect to have up to six freighters ying by the end of 2024. While the challenges with the A321neo engines and delayed delivery of the Boeing 787-9 limited our ability to grow the passenger network in 2023, we expanded our presence in Oceania with new service to the Cook Islands, and returned to Fukuoka, Japan. For 2024, we have announced new service between Honolulu and Salt Lake City, as well as addi onal service between Sacramento and Kona and Lihue. Suppor ng our community and stewarding the environment We con nue to invest in our workforce of the future, expanding on innova ve programs like our partnership with Honolulu Community College to train maintenance technicians. We have joined Embry-Riddle Aeronau cal University's Avia on Maintenance Technology SkillBridge program, which has successfully transi oned more than 380 service members into civilian careers since its incep on in 2019. We con nue to work with universi es, including the University of Hawai i and Arizona State University, on career pathway programs and have begun expanding our presence in Hawai i s public and private high schools. Hawaiian Airlines remains an employer of choice in our home communi es, and we are excited to be crea ng ful lling, well-compensated jobs in Hawai i and beyond. Having agreed upon a new, four-year contract with our pilots in March of 2023, none of our labor contracts are currently amendable. As an airline based in the Paci c, we are acutely aware of the vulnerability of our environment to human caused impacts, including climate change. We are advancing our strategy to achieve netzero carbon emissions by 2050 while con nuing to provide the air service that is the lifeblood of our island economy. Our highest priority remains sourcing sustainable avia on fuel (SAF), which can be used on current aircra and drama cally reduces the lifecycle carbon emissions associated with ying. We have commi ed to purchase 50 million gallons of SAF and con nue to work with suppliers to ramp up produc on. Hawaiian in 2023 joined the United Airlines Ventures Sustainable Flight Fund, to co-invest in early-stage companies innova ng SAF produc on. We have also formed a coali on to advocate for legisla on to support the produc on of SAF in our home state, which will both drive decarboniza on and improve our energy independence. Above and beyond our normal focus on community giving and employee volunteerism, in 2023 our team rallied to support the Maui community in the wake of the wild res. In the rst three days of the crisis, we transported more than 17,000 people out of Maui, and brought in more than 54,000 pounds of essen al supplies. We and our members donated HawaiianMiles equivalent to thousands of neighbor island seats to help the American Red Cross move personnel and displaced community members. As the recovery con nued, and Maui s tourism economy su ered, we produced our Travel Pono Maui video series to encourage visitors to return to Maui with an understanding of the challenges faced by the community. Our M lama Maui Desk responded to hundreds of requests for assistance, and we guided our guests to resources on how to help. We remain commi ed to Maui a place personally dear to me and my family and will be there for the long haul to support the recovery. Becoming a be er airline for our guests, our employees and our communi es While 2023 was a challenging year, it was one in which we con nued to make strategic, long-term investments in our business. We emerge from that year energized around delivering on what s most important for our guests great opera onal performance; warm, authen c hospitality; a great guest experience; and of course, an unwavering and uncompromising focus on safety. This year, we welcomed our rst 787-9 also called the Dreamliner and our new agship and expect to take delivery of two more aircra by the end of 2024. With a new business class suite product called the Leih k Suite and a rich, Hawai i-inspired design throughout the cabin, this is going to be a truly excep onal way to get to and from our islands. The Dreamliner s improved fuel e ciency will also help us move toward our net zero emissions goal. We are installing fast, free Starlink connec vity across our long-haul eet by far the best in ight wi- available worldwide. To match this excep onal experience in the air, we are also inves ng in our airport facili es,