Hawaiian Holdings, Inc. (NASDAQ: HA), parent company of Hawaiian Airlines, Inc., has reported a net income loss of USE (144.4m) or a diluted EPS of USD (3.14) per share, in the first quarter of 2020, the company said.
As of March 31, 2020, the company had:
-Unrestricted cash, cash equivalents and short-term investments of USD 815 million
-Outstanding debt and finance lease obligations of USD 976 million
-Air traffic liability of USD 624 million
In light of the significant drop in air travel demand due to government travel restrictions, stay-at-home orders and consumer fear of travel due to the COVID-19 pandemic, the Company suspended its service to South Korea in late February, suspended its service to Australia and New Zealand in mid-March and then reduced its schedule by 95 percent in the last week of March due to the State of Hawaii´s mandate for 14-day self-quarantine for all incoming and neighbor island travelers.
In addition to service suspension and schedule reduction, the Company has taken, and will continue to take, actions to minimize cash outflow in an effort to mitigate the effects of declining demand, including, but not limited to:
-Suspending dividend payments on, and the repurchase of, its common stock
-Instituting a hiring freeze across the Company, except for operationally critical and essential positions
-Deferring non-critical capital expenditures
-Instituting voluntary unpaid leave programs
-Reducing executive pay by 10% – 50%
-Reducing other discretionary spending, including contractor and vendor spend
-Negotiating payment deferrals with key vendors
-To increase liquidity, the Company fully drew down USD 235 million from its revolving credit facility in March.
In addition, the company:
-Applied for and received funding under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Payroll Support Program, with an initial tranche of USD 146.2 million received in April
-Applied for the CARES Act Economic Relief Program
-Continues to pursue additional financing to be secured by the Company´s unencumbered assets
In response to the COVID-19 pandemic, the company has enhanced cleaning procedures and will be revising processes in an effort to ensure aircraft and airport spaces are safe and clean.