Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 04, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-31443 | ||
Entity Registrant Name | HAWAIIAN HOLDINGS INC | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 71-0879698 | ||
Entity Address, Address Line One | 3375 Koapaka Street, | ||
Entity Address, Address Line Two | Suite G-350 | ||
Entity Address, City or Town | Honolulu, | ||
Entity Address, State or Province | HI | ||
Entity Address, Postal Zip Code | 96819 | ||
City Area Code | 808 | ||
Local Phone Number | 835-3700 | ||
Title of 12(b) Security | Common Stock ($0.01 par value) | ||
Trading Symbol | HA | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.2 | ||
Entity Common Stock, Shares Outstanding | 51,233,641 | ||
Documents Incorporated by Reference | Portions of the registrant's Proxy Statement for the Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant's fiscal year ended December 31, 2021. | ||
Entity Central Index Key | 0001172222 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | ERNST & YOUNG LLP |
Auditor Location | Honolulu, Hawai'i |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Revenue: | |||
Operating Revenue | $ 1,596,584 | $ 844,813 | $ 2,832,228 |
Operating Expenses: | |||
Wages and benefits | 698,101 | 628,558 | 723,656 |
Aircraft fuel, including taxes and delivery | 363,003 | 161,363 | 542,573 |
Aircraft rent | 109,476 | 103,890 | 118,904 |
Maintenance materials and repairs | 170,048 | 121,571 | 249,772 |
Aircraft and passenger servicing | 105,675 | 58,016 | 164,275 |
Commissions and other selling | 72,512 | 46,297 | 130,216 |
Depreciation and amortization | 138,299 | 151,665 | 158,906 |
Other rentals and landing fees | 116,772 | 73,808 | 129,622 |
Purchased services | 103,213 | 99,050 | 131,567 |
Special items | 8,983 | 184,111 | 0 |
Government grant recognition | (320,645) | (240,648) | 0 |
Other | 113,711 | 104,743 | 155,260 |
Total | 1,679,148 | 1,492,424 | 2,504,751 |
Operating Income (Loss) | (82,564) | (647,611) | 327,477 |
Nonoperating Income (Expense): | |||
Other nonoperating special items | 0 | (5,682) | 0 |
Interest expense and amortization of debt discounts and issuance costs | (110,431) | (40,439) | (27,864) |
Interest income | 8,603 | 8,731 | 12,583 |
Capitalized interest | 3,357 | 3,236 | 4,492 |
Other components of net periodic benefit cost, excluding settlements | 3,566 | 1,300 | (3,864) |
Gains (losses) on fuel derivatives | 217 | (6,930) | (6,709) |
Loss on extinguishment of debt | (38,889) | 0 | 0 |
Other, net | 30,818 | (12,657) | (1,119) |
Total | (102,759) | (52,441) | (22,481) |
Income (Loss) Before Income Taxes | (185,323) | (700,052) | 304,996 |
Income tax expense (benefit) | (40,550) | (189,117) | 81,012 |
Net Income (Loss) | $ (144,773) | $ (510,935) | $ 223,984 |
Net Income (Loss) Per Common Stock Share: | |||
Basic (in dollars per share) | $ (2.85) | $ (11.08) | $ 4.72 |
Diluted (in dollars per share) | $ (2.85) | $ (11.08) | $ 4.71 |
Weighted Average Number of Common Stock Shares Outstanding: | |||
Basic (in shares) | 50,769 | 46,100 | 47,435 |
Diluted (in shares) | 50,769 | 46,100 | 47,546 |
Cash dividends declared per common share (in dollars per share) | $ 0 | $ 0.12 | $ 0.48 |
Passenger | |||
Operating Revenue: | |||
Operating Revenue | $ 1,370,902 | $ 664,799 | $ 2,597,772 |
Other | |||
Operating Revenue: | |||
Operating Revenue | $ 225,682 | $ 180,014 | $ 234,456 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ (144,773) | $ (510,935) | $ 223,984 |
Other Comprehensive Income (Loss), net: | |||
Net change related to employee benefit plans, net of tax expense of $13,107 for 2021, and net of tax benefit of $2,315, and $4,349 for 2020 and 2019, respectively | 41,156 | (8,153) | (12,173) |
Net change in derivative instruments, net of tax benefit of $1,098 for 2020 and net of tax expense of $21 for 2019 | 0 | (3,341) | 24 |
Net change in available-for-sale investments, net of tax benefit of $2,784 for 2021, net of tax expense of $273 and $459 for 2020 and 2019, respectively | (8,467) | 850 | 1,406 |
Total Other Comprehensive Income (Loss) | 32,689 | (10,644) | (10,743) |
Total Comprehensive Income (Loss) | $ (112,084) | $ (521,579) | $ 213,241 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net change related to employee benefit plans, tax expense (benefit) | $ 13,107 | $ (2,315) | $ (4,349) |
Net change in derivative instruments, tax expense (benefit) | (1,098) | 21 | |
Net change in available-for-sale investments, tax expense (benefit) | $ (2,784) | $ 273 | $ 459 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 490,561 | $ 509,639 |
Restricted cash | 17,267 | 0 |
Short-term investments | 1,241,752 | 354,782 |
Accounts receivable, net | 92,888 | 67,527 |
Income taxes receivable | 71,201 | 95,002 |
Spare parts and supplies, net | 34,109 | 35,442 |
Prepaid expenses and other | 66,127 | 56,086 |
Total | 2,013,905 | 1,118,478 |
Property and equipment, net | 1,957,623 | 2,085,030 |
Other Assets: | ||
Assets held for sale | 29,449 | 0 |
Operating lease right-of-use assets | 536,154 | 627,359 |
Long-term prepayments and other | 80,489 | 133,663 |
Intangible assets, net | 13,500 | 13,500 |
Total Assets | 4,631,120 | 3,978,030 |
Current Liabilities: | ||
Accounts payable | 114,400 | 112,002 |
Air traffic liability and current frequent flyer deferred revenue | 631,157 | 533,702 |
Other accrued liabilities | 165,050 | 140,081 |
Current maturities of long-term debt, less discount | 97,096 | 115,019 |
Current maturities of finance lease obligations | 24,149 | 21,290 |
Current maturities of operating leases | 79,158 | 82,454 |
Total | 1,111,010 | 1,004,548 |
Long-Term Debt | 1,704,298 | 1,034,805 |
Other Liabilities and Deferred Credits: | ||
Noncurrent finance lease obligations | 100,995 | 120,618 |
Noncurrent operating leases | 423,293 | 503,376 |
Accumulated pension and other postretirement benefit obligations | 160,817 | 217,737 |
Other liabilities and deferred credits | 78,340 | 78,908 |
Noncurrent frequent flyer deferred revenue | 296,484 | 201,239 |
Deferred tax liability, net | 186,797 | 216,642 |
Total | 1,246,726 | 1,338,520 |
Commitments and Contingent Liabilities | ||
Shareholders' Equity: | ||
Special preferred stock, $0.01 par value per share, three shares issued and outstanding at December 31, 2021 and 2020 | 0 | 0 |
Common stock, $0.01 par value per share, 51,233,369 and 48,145,093 shares issued and outstanding as of December 31, 2021 and 2020, respectively | 512 | 481 |
Capital in excess of par value | 269,575 | 188,593 |
Accumulated income | 380,837 | 525,610 |
Accumulated other comprehensive loss, net | (81,838) | (114,527) |
Total | 569,086 | 600,157 |
Total Liabilities and Shareholders' Equity | $ 4,631,120 | $ 3,978,030 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Special preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Special preferred stock, shares issued (in shares) | 3 | 3 |
Special preferred stock, shares outstanding (in shares) | 3 | 3 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 51,233,369 | 48,145,093 |
Common stock, shares outstanding (in shares) | 51,233,369 | 48,145,093 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | [1] | Special Preferred Stock | [2] | Capital In Excess of Par Value | Accumulated Income | Accumulated IncomeCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjustment |
Beginning balance at Dec. 31, 2018 | $ 947,994 | $ 4,900 | $ 485 | $ 0 | $ 128,448 | $ 912,201 | $ 4,900 | $ (93,140) | $ 0 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net Income (Loss) | 223,984 | 223,984 | |||||||||
Dividends declared on common stock | (22,774) | (22,774) | |||||||||
Other comprehensive (loss) income | (10,743) | (10,743) | |||||||||
Issuance of shares of common stock, net of shares withheld for taxes | (1,049) | 1 | (1,050) | ||||||||
Repurchase and retirement of shares of common stock | (68,769) | (25) | (68,744) | ||||||||
Share-based compensation expense | 8,253 | 8,253 | |||||||||
Ending balance at Dec. 31, 2019 | 1,081,796 | 461 | 0 | 135,651 | 1,049,567 | (103,883) | |||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net Income (Loss) | (510,935) | (510,935) | |||||||||
Dividends declared on common stock | (5,514) | (5,514) | |||||||||
Other comprehensive (loss) income | (10,644) | (10,644) | |||||||||
Issuance of shares of common stock, net of shares withheld for taxes | (1,373) | 1 | (1,374) | ||||||||
Repurchase and retirement of shares of common stock | (7,510) | (2) | (7,508) | ||||||||
CARES Act warrant issuance, net of tax | 7,409 | 7,409 | |||||||||
Share-based compensation expense | 4,936 | 4,936 | |||||||||
Issuance of 2,860,210 shares of common stock related to At-the-market offering | 41,992 | 21 | 41,971 | ||||||||
Ending balance at Dec. 31, 2020 | 600,157 | 481 | 0 | 188,593 | 525,610 | (114,527) | |||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net Income (Loss) | (144,773) | (144,773) | |||||||||
Other comprehensive (loss) income | 32,689 | 32,689 | |||||||||
Issuance of shares of common stock, net of shares withheld for taxes | (2,020) | 2 | (2,022) | ||||||||
CARES Act warrant issuance, net of tax | 4,419 | 4,419 | |||||||||
Share-based compensation expense | 8,645 | 8,645 | |||||||||
Issuance of 2,860,210 shares of common stock related to At-the-market offering | 69,969 | 29 | 69,940 | ||||||||
Ending balance at Dec. 31, 2021 | $ 569,086 | $ 512 | $ 0 | $ 269,575 | $ 380,837 | $ (81,838) | |||||
[1] | Common Stock—$0.01 par value; 118,000,000 authorized as of December 31, 2021 and 2020. | ||||||||||
[2] | Special Preferred Stock—$0.01 par value; 2,000,000 shares authorized as of December 31, 2021 and 2020. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Issuance of common stock related to stock awards (in shares) | 228,066 | 143,354 | 97,263 |
Repurchase and retirement of shares (in shares) | 259,910 | 2,515,684 | |
Number of shares sold (in shares) | 2,860,210 | 2,139,790 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 118,000,000 | 118,000,000 | |
Special preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Special preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows From Operating Activities: | |||
Net Income (Loss) | $ (144,773) | $ (510,935) | $ 223,984 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of intangible assets | 0 | 0 | 649 |
Depreciation and amortization of property and equipment | 138,299 | 151,665 | 158,714 |
Deferred income taxes, net | (41,624) | (72,188) | 124,068 |
Goodwill impairment | 0 | 106,662 | 0 |
Impairment of assets | 6,383 | 38,933 | 0 |
Stock compensation | 8,645 | 4,936 | 8,253 |
Loss on extinguishment of debt | 38,889 | 0 | 0 |
Amortization of debt discounts and issuance costs | 9,223 | 4,012 | 2,976 |
Employer contributions to pension and other postretirement plans | (10,232) | (7,691) | (7,169) |
Pension and postretirement benefit cost | 8,178 | 8,398 | 12,120 |
Special termination benefits and curtailment loss | 0 | 5,682 | 0 |
Change in unrealized gain on fuel derivative contracts | (383) | (2,106) | (5,694) |
Foreign currency debt remeasurement (gain) loss | (27,593) | 14,760 | 493 |
Other, net | 7,275 | (7,007) | 2,564 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (25,361) | 29,853 | (24,756) |
Income taxes receivable | 23,804 | (30,810) | 19,605 |
Spare parts and supplies, net | (1,562) | (1,066) | (8,767) |
Prepaid expenses and other current assets | (13,140) | 24,410 | 3,662 |
Accounts payable | 5,785 | (49,469) | 6,244 |
Air traffic liability | 146,655 | (117,279) | (3,071) |
Other accrued liabilities | 24,366 | (18,025) | (43,034) |
Frequent flyer deferred revenue | 46,045 | 70,318 | 17,618 |
Other assets and liabilities, net | 52,459 | 46,239 | (3,319) |
Net cash provided by (used in) operating activities | 251,338 | (310,708) | 485,140 |
Cash Flows From Investing Activities: | |||
Additions to property and equipment, including pre-delivery deposits | (39,264) | (105,313) | (397,421) |
Proceeds from purchase assignment and sale leaseback transactions | 0 | 114,000 | 0 |
Proceeds from disposition of equipment | 755 | 0 | 9,595 |
Purchases of investments | (1,856,035) | (395,793) | (312,768) |
Sales of investments | 958,242 | 288,336 | 301,662 |
Other | 0 | 0 | (6,275) |
Net cash used in investing activities | (936,302) | (98,770) | (405,207) |
Cash Flows From Financing Activities: | |||
Proceeds from the issuance of common stock | 68,132 | 41,196 | 0 |
Long-term borrowings | 1,251,705 | 602,264 | 227,889 |
Repayments of long-term debt and finance lease obligations | (611,725) | (78,824) | (109,128) |
Dividend payments | 0 | (5,514) | (22,774) |
Repurchases of common stock | 0 | (7,510) | (68,769) |
Debt issuance costs and discounts | (24,776) | (4,975) | (1,623) |
Other | (183) | (576) | (1,049) |
Net cash provided by financing activities | 683,153 | 546,061 | 24,546 |
Net increase (decrease) in cash and cash equivalents | (1,811) | 136,583 | 104,479 |
Cash, cash equivalents, and restricted cash—Beginning of Year | 509,639 | 373,056 | 268,577 |
Cash, cash equivalents, and restricted cash—End of Year | $ 507,828 | $ 509,639 | $ 373,056 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation Hawaiian Holdings, Inc. (the Company, Holdings, we, us and our) and its direct wholly-owned subsidiary, Hawaiian Airlines, Inc. (Hawaiian), are incorporated in the State of Delaware. The Company's primary asset is its sole ownership of all issued and outstanding shares of common stock of Hawaiian. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including its principal subsidiary, Hawaiian, through which the Company conducts substantially all of its operations. All significant inter-company balances and transactions have been eliminated upon consolidation. The Company reclassified certain prior period amounts to conform to current period presentation. Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. Cash and Cash Equivalents Highly liquid investments with a maturity of three months or less at the date of purchase are classified as cash and cash equivalents. Short Term Investments Debt and equity securities and other investments measured at net asset value are classified as available-for-sale and are stated at fair value. Realized gains and losses are recorded using the specific identification method and reflected in Other, net within nonoperating income (expense) in the Consolidated statements of operations. Unrealized gains and losses on available-for-sale securities are reflected as a component of accumulated other comprehensive income (loss). Spare Parts and Supplies Spare parts and supplies are valued at average cost, and primarily consist of expendable parts for flight equipment and other supplies. An allowance for obsolescence of expendable parts is provided over the estimated useful lives of the related aircraft and engines for spare parts expected to be on hand at the date the aircraft are retired from service. These allowances are based on management's estimates and are subject to change. Property, Equipment and Depreciation Property and equipment are stated at cost and depreciated on a straight-line basis to their estimated residual values over the asset's estimated useful life. Depreciation begins when the asset is placed into service. Aircraft and related parts begin depreciating on the aircraft's first revenue flight. The following table summarizes the Company's property and equipment: 2021 2020 (in thousands) Flight equipment $ 2,482,686 $ 2,526,440 Pre-delivery deposits on flight equipment 83,034 75,089 Other property and equipment 391,869 378,020 2,957,589 2,979,549 Less accumulated depreciation and amortization (999,966) (894,519) Total property and equipment, net 1,957,623 2,085,030 Estimated useful lives and residual values of property and equipment are as follows: Boeing 717-200 aircraft and engines 15-16 years, 5 - 34% residual value Airbus A330-200 aircraft and engines 25 years, 10% residual value Airbus A321neo aircraft and engines 25 years, 10% residual value Flight and ground equipment under finance lease Shorter of lease term or useful life Major rotable parts Average lease term or useful life for related aircraft, 10% - 15% residual value Improvements to leased flight equipment and the cargo maintenance hangar Shorter of lease term or useful life Facility leasehold improvements Shorter of lease term, including assumed lease renewals when renewal is economically compelled at key airports, or useful life Furniture, fixtures and other equipment 3 - 7 years, no residual value Capitalized software 3 - 7 years, no residual value Additions and modifications that significantly enhance the operating performance and/or extend the useful lives of property and equipment are capitalized and depreciated over the lesser of the remaining useful life of the asset or the remaining lease term, as applicable. Expenditures that do not improve or extend asset lives are charged to expense as incurred. Pre-delivery deposits are capitalized when paid. Aircraft under finance leases are recorded at an amount equal to the present value of minimum lease payments utilizing the Company's incremental borrowing rate at lease inception and amortized on a straight-line basis over the lesser of the remaining useful life of the aircraft or the lease term. The amortization is recorded in depreciation and amortization expense on the Consolidated Statement of Operations. Accumulated amortization of aircraft and other finance leases was $147.8 million and $124.3 million as of December 31, 2021 and 2020, respectively. The Company capitalizes certain costs related to the acquisition and development of computer software and amortizes these costs using the straight-line method over the estimated useful life of the software. The net book value of computer software, which is included in Other property and equipment on the Consolidated Balance Sheets, was $21.1 million and $29.2 million at December 31, 2021 and 2020, respectively. The value of construction in progress, primarily consisting of aircraft in 2021 and 2020, which is included in property and equipment on the Consolidated Balance Sheets, was $42.4 million and $27.5 million as of December 31, 2021 and 2020, respectively. Amortization expense related to computer software was $13.1 million, $15.7 million and $17.5 million for the years ended December 31, 2021, 2020, and 2019 respectively. Aircraft Maintenance and Repair Costs Maintenance and repair costs for owned and leased flight equipment, including the overhaul of aircraft components, are charged to operating expenses as incurred. Engine overhaul costs covered by power-by-the-hour arrangements are paid and expensed as incurred or expensed on a straight-line basis and are based on the amount of hours flown per contract. Under the terms of these power-by-the-hour agreements, the Company pays a set dollar amount per engine hour flown on a monthly basis and the third-party vendor assumes the obligation to repair the engines at no additional cost, subject to certain specified exclusions. As of December 31, 2021 and 2020, the Company had approximately $5.9 million and $56.3 million, respectively in prepayments to one of its power-by-the-hour vendors, which is recoverable over the next one year. Additionally, although the Company's aircraft lease agreements specifically provide that it is responsible for maintenance of the leased aircraft, the Company pays maintenance reserves to the aircraft lessors that are applied toward the cost of future maintenance events. These reserves are calculated based on a performance measure, such as flight hours, and are available for reimbursement to the Company upon the completion of the maintenance of the leased aircraft. However, reimbursements are limited to the available reserves associated with the specific maintenance activity for which the Company requests reimbursement. Under certain aircraft lease agreements, the lessor is entitled to retain excess amounts on deposit at the expiration of the lease, if any; whereas at the expiration of certain other existing aircraft lease agreements any such excess amounts are returned to the Company, provided that it has fulfilled all of its obligations under the lease agreements. The maintenance reserves paid under the lease agreements do not transfer either the obligation to maintain the aircraft or the cost risk associated with the maintenance activities to the aircraft lessor. In addition, the Company maintains the right to select any third-party maintenance provider. Maintenance reserve payments that are expected to be recovered from lessors are recorded as deposits in the Consolidated Balance Sheets as an asset until it is less than probable that any portion of the deposit is recoverable. In addition, payments of maintenance reserves that are not substantially and contractually related to the maintenance of the leased assets are accounted for as lease payments. In order to properly account for the costs that are related to the maintenance of the leased asset, the Company bifurcates its maintenance reserves between deposits and lease payments. Goodwill and Intangible Assets The Company has indefinite-lived intangible assets, including goodwill. Goodwill and indefinite-lived intangible assets are not amortized and the Company assesses the carrying value of goodwill and indefinite-lived intangible assets on an annual basis and, if certain events or circumstances indicate that an impairment loss may have been incurred, on an interim basis. The Company assesses the value of its goodwill and indefinite-lived assets under either a qualitative or quantitative approach. When the Company evaluates goodwill for impairment using a quantitative approach, it estimates the fair value of the reporting unit by considering the market capitalization. If the reporting unit's fair value exceeds its carrying value, no further testing is required. If, however, the reporting unit's carrying value exceeds its fair value, the Company then determines the amount of the impairment charge, if any. The Company recognizes an impairment charge if the carrying value of the reporting unit's goodwill exceeds its estimated fair value. During the first quarter of 2020, the adverse economic impact and declining passenger demand attributed to the COVID-19 pandemic drove the Company's stock price to 52-week lows and significantly reduced future cash flow projections. The Company qualitatively assessed that an impairment loss may have been incurred as of March 31, 2020 and performed an interim test of the recoverability of its goodwill and indefinite-lived intangible assets. The Company determined that the estimated fair value of the Company's one reporting unit was less than its carrying value and that the deficit between fair value and the carrying value of the reporting unit exceeded the amount of goodwill on the Company's Consolidated Balance Sheets, leading to the recognition of a goodwill impairment charge of $106.7 million in the first quarter of 2020. Fair value was determined using a combination of an income approach, which estimates fair value based upon projections of future revenues, expenses, and cash flows discounted to its present value, and a market approach. The valuation methodology and underlying financial information included in the Company's determination of fair value required significant judgments by management. The principal assumptions used in the Company's discounted cash flow analysis consisted of (a) the long-term projections of future financial performance and (b) the weighted-average cost of capital of market participants, adjusted for the risk attributable to the Company and the industry in which it operates. Under the market approach, the principal assumption included an estimate for a control premium. As of December 31, 2021, the Company had approximately $13.5 million in indefinite-lived intangible assets subject to impairment. The Company assesses its indefinite-lived assets under a qualitative approach. The Company analyzes market factors to determine if events and circumstances have affected the fair value of the indefinite-lived intangible assets. Impairment of Long-Lived Assets Long-lived assets used in operations, consist principally of property and equipment and have a carrying value of approximately $2.0 billion at December 31, 2021. Long-lived assets are tested for impairment when events or changes in circumstances indicate, in management's judgment, that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amount. To determine whether impairment exists for aircraft used in operations, assets are grouped at the fleet-type level (the lowest level for which there are identifiable cash flows) and future cash flows are estimated based on projections of capacity, passenger mile yield, fuel costs, labor costs and other relevant factors. If, at any time, management determines the net carrying value of an asset is not recoverable, the amount is reduced to its fair value during the period in which such determination is made. Any changes in the estimated useful lives of these assets will be accounted for prospectively. During the year ended December 31, 2020, the Company recorded an impairment charge of $39.4 million related to its ATR-42 and ATR-72 fleet, assets held under its commercial real estate subsidiary, and software-related projects that were discontinued as a result of the COVID-19 pandemic. In 2021, the Company announced the termination of its 'Ohana by Hawaiian operations, which operated the ATR-42 and ATR-72 aircraft under a capacity purchase agreement with a third-party carrier. Following the termination of the operations, management committed to a plan of sale and wrote down the related assets by approximately $6.4 million to fair value, less cost to sell, and reclassified approximately $23.4 million as assets held for sale on the Consolidated Balance Sheets. The Company estimated the fair value of its ATR-42 and ATR-72 fleets using a third-party valuation and estimated the fair value of the assets held in its commercial real-estate subsidiary using a combination of a market and income-based approach, which estimates fair value based upon projections of future revenues, expenses, and cash flows discounted to its present value. The principal assumptions used in the Company's discounted cash flow analysis consisted of (a) the long-term projections of future financial performance and (b) the weighted-average cost of capital of market participants, adjusted for the risk attributable to the Company and the industry in which it operates. Additionally, in the second quarter of 2021, management committed to a plan to sell certain commercial real-estate assets held by one of the Company's subsidiaries. Management fair valued the assets, less the cost to sell, which did not result in a write-down to the asset group, and reclassified approximately $6.1 million as assets held for sale on the Consolidated Balance Sheets. The Company will continue to monitor the duration and extent of the impact of the COVID-19 pandemic on its business and will continue to evaluate its current fleet and other long-lived assets for impairment accordingly. Assets Held for Sale Long-lived assets that meet the held for sale criteria are held for sale and reported at the lower of their carrying amount or fair value less cost to sell. Gains and losses realized on transactions are recognized immediately. If the determination is made that the Company no longer expects to sell an asset within the next year, the asset is reclassified out of assets held for sale. See Note 11 of the Notes to the Consolidated Financial Statements for additional discussion. Revenue Recognition The Company records direct passenger ticket sales and tickets sold by other airlines for use on Hawaiian as passenger revenue when the transportation is provided or upon scheduled flights for tickets expected to expire unused. The value of unused passenger tickets is included in current liabilities as Air traffic liability. Passenger revenue associated with unused tickets, which represent unexercised passenger rights, is recognized in proportion to the pattern of rights exercised by related passengers (e.g. scheduled departure dates). Prior to the second quarter of 2020, non-refundable tickets sold and credits issued generally expired 13 months from the date of issuance or flight, as applicable. In April 2020, the Company announced the waiver of certain change fees and extended ticket validity for up to 24 months for (a) tickets issued between March 1, 2020 and December 31, 2020 and (b) tickets issued prior to March 1, 2020 for original travel between March 1, 2020 and February 28, 2021. In December 2021, the Company announced the further extension of ticket validity for eligible tickets impacted by the COVID-19 pandemic, including all Main Cabin and First Class passenger tickets purchased in 2021, to December 31, 2022. The Company records an estimate of breakage revenue on the scheduled flight date for tickets that will expire unused. To calculate the portion to be recognized as revenue in the period, the Company utilizes historical information, available market information, forecasted trends, and the extension of the ticket validity date for those tickets impacted by COVID-19 and applies the estimated spoilage rate to passenger revenues for each specific period. During the year ended December 31, 2021, the Company recognized approximately $48.3 million in advanced ticket breakage. Given the impact of the COVID-19 pandemic on actual results along with reductions in operational capacity, the Company continues to monitor customers' travel behavior and may adjust its estimates in the future. Ticket change fees are recorded in Air traffic liability and recognized when the related transportation is provided. During the twelve months ended December 31, 2021, 2020 and 2019, the Company recognized approximately $4.8 million, $11.3 million and $28.2 million, respectively in ticket change fee revenue. Certain governmental taxes are imposed on the Company's ticket sales through a fee included in ticket prices. The Company collects these fees and remits them to the appropriate government agency. Management has elected (via a practical expedient election) to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer, e.g., sales, use, value added, and certain excise taxes. These fees have been presented on a net basis in the accompanying Consolidated Statements of Operations and recorded as a liability until remitted. Frequent Flyer Program HawaiianMiles, Hawaiian's frequent flyer travel award program, provides a variety of awards to program members based on accumulated mileage. ASC 606 requires the Company to account for miles earned by passengers in the HawaiianMiles program through flight activity as a component of the passenger revenue ticket transaction at the estimated selling price of the miles. Ticket consideration received is allocated between the performance obligations, primarily travel and miles earned by passengers. The allocated value of the miles is deferred until the free travel is used by the passenger, at which time it is included in revenue. The value of the ticket used in the determination of the estimated selling price is based on the historical value of equivalent flights to those provided for loyalty awards and the related miles redeemed to obtain that award adjusted for breakage or fulfillment. The equivalent ticket value (ETV) includes a fulfillment discount (breakage) to reflect the value of the award ticket over the number of miles that, based on historical experience, will be needed to obtain the award. The Company's estimate of ETV takes into consideration quantitative and qualitative factors, such as program changes and fares of similar tickets, and consideration of cabin class and geographic region. The Company also sells mileage credits to companies participating in its frequent flyer program. These contracts generally include multiple performance obligations, including the transportation that will ultimately be provided when the mileage credits are redeemed and marketing and brand related activities. The marketing and brand performance obligations are effectively provided each time a HawaiianMiles members uses the co-branded credit card and monthly access to customers lists and marketing is provided, which corresponds to the timing of when the Company issues or is obligated to issue the mileage credits to the HawaiianMiles member. Therefore, the Company recognizes revenue for the marketing and brand performance obligation when HawaiianMiles members use their co-brand credit card and the resulting mileage credits are issued to them, which best correlates with the Company's performance in satisfying the obligation. In 2018, the Company amended its partnership with Barclaycard US, Hawaiian's co-branded credit card partner. Management determined that the amendment should be accounted for as a termination of the existing contract and the creation of a new contract under ASC 606 and the relative selling price was determined for each performance obligation of the new agreement. The new agreement continues through 2024 and includes improved economics and enhanced product offerings for the Company's co-branded cardholders. The amended agreement did not change, and includes the following performance obligations; (i) transportation that will ultimately be provided when mileage credits are redeemed (transportation), (ii) the Hawaiian Airlines brand and access to its members lists (collectively, brand performance), (iii) marketing, and (iv) airline benefits to cardholders, including discounts and anniversary travel benefits, baggage waivers and inflight purchase credits. The Company determined the relative fair value of each performance obligation by estimating the selling prices of the deliverables by considering discounted cash flows using multiple inputs and assumptions, including: (1) the expected number of miles to be awarded and redeemed; (2) the estimated weighted average equivalent ticket value, adjusted by a fulfillment discount; (3) the estimated total annual cardholder spend; (4) an estimated royalty rate for the Hawaiian portfolio; and (5) the expected use of each of the airline benefits. The overall consideration received is allocated to the performance obligations based on their relative selling prices. Accounting for frequent flyer revenue involves the use of various techniques to estimate revenue. To determine the total estimated transaction price, the Company forecasts future credit card activity based on historical data. The relative selling price is determined using management's estimated standalone selling price of each performance obligation. The objective of using the estimated selling price based methodology is to determine the price at which the Company would transact a sale if the product or service were sold on a standalone basis. Accordingly, the Company determines its best estimate of selling price by considering multiple inputs and methods including, but not limited to, discounted cash flows, brand value, number of miles awarded and number of miles redeemed. The Company estimates the selling price of miles using an ETV adjusted for a fulfillment discount as described above. In April 2021, the Company announced the elimination of its HawaiianMiles expiration policy, effective immediately. Prior to April 2021, miles expired after 18 months of member account inactivity. The Company reviews its breakage estimates, which impacts ETV and loyalty recognition patterns, annually based upon the latest available information regarding redemption and expiration patterns (e.g., credit card and non-credit card holders). The Company's estimate of the expected expiration of miles requires management judgment. Current and future changes to expiration assumptions or to the expiration policy, or to program rules and program could affect the estimated value of a mile. Due to the effects of the COVID-19 pandemic, including changes to the Company's ticket validity and exchange policies, management continues to monitor customers' travel behavior and may adjust its estimates in the future as additional information becomes available. Accounts Receivable Accounts receivable primarily consist of amounts due from credit card companies, non-airline partners, and cargo transportation customers. The Company provides an allowance for uncollectible accounts equal to the estimated losses expected to be incurred based on historical chargebacks, write-offs, bankruptcies and other specific analyses. Bad debt expense was not material in any period presented. Costs to Obtain or Fulfill a Contract In order for the Company to provide transportation to its customers, the Company incurs fulfillment costs (booking fees, credit card fees, and commission/selling costs), which are deferred until the period in which the flight occurs. As of December 31, 2021 and 2020, the Company's asset balance associated with these costs were $13.9 million and $9.1 million, respectively. During the twelve months ended December 31, 2021, 2020, and 2019, expenses related to these costs totaled to $45.1 million, $24.6 million, and $91.0 million, respectively. To determine the amount to capitalize and expense at the end of each period, the Company uses historical sales data and estimates the amount associated with unflown tickets. Pension and Postretirement and Postemployment Benefits The Company accounts for its defined benefit pension and other postretirement and postemployment plans in accordance with ASC 715, Compensation—Retirement Benefits (ASC 715), which requires companies to measure their plans' assets and obligations to determine the funded status at fiscal year-end, reflect the funded status in the statement of financial position as an asset or liability, and recognize changes in the funded status of the plans in comprehensive income during the year in which the changes occur. Pension and other postretirement and postemployment benefit expenses are recognized on an accrual basis over each employee's service periods. Pension expense is generally independent of funding decisions or requirements. The Company uses the corridor approach in the valuation of its defined benefit pension and other postretirement and postemployment plans. The corridor approach defers all actuarial gains and losses resulting from variances between actual results and actuarial assumptions. These unrecognized actuarial gains and losses are amortized when the net gains and losses exceed 10% of the greater of the market-related value of plan assets or the projected benefit obligation at the beginning of the year. The amount in excess of the corridor is amortized over the expected average remaining service period of active plan participants for the open plans and is amortized over the expected average remaining lifetime of inactive participants for plans whose population is "all or almost all" inactive. Advertising Costs Advertising costs are expensed when incurred. Advertising expense was $20.2 million, $15.3 million and $22.3 million for the years ended December 31, 2021, 2020, and 2019, respectively. Capitalized Interest Interest is capitalized upon the payment of predelivery deposits for aircraft and engines, and is depreciated over the estimated useful life of the asset from service inception date. Share-Based Compensation The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The fair value of the awards is estimated using the following: (1) option-pricing models for grants of stock options or (2) fair value at the measurement date (usually the grant date) for restricted stock units (RSU) subject to service and / or performance-based vesting. The resulting cost is recognized as compensation expense over the period of time during which an employee is required to provide services to the Company (the service period) in exchange for the award, the service period generally being the vesting period of the award. The Company's policy is to recognize forfeitures as they occur. Financial Derivative Instruments The Company uses derivatives to manage risks associated with certain assets and liabilities arising from the potential adverse impact of fluctuations in global aircraft fuel prices, interest rates and foreign currency exchange rates. The following table summarizes the accounting treatment of the Company's derivative contracts: Derivative Type Accounting Designation Classification of Realized Classification of Unrealized Foreign currency exchange contracts Designated as cash flow hedges Passenger revenue AOCI Fuel hedge contracts Not designated as hedges Gains (losses) on fuel derivatives Change in fair value is recorded in nonoperating income (expense) Foreign currency exchange contracts Not designated as hedges Nonoperating income (expense), Other Change in fair value is recorded in nonoperating income (expense) If the Company terminates a derivative designated for hedge accounting under ASC 815, prior to its contractual settlement date, then the cumulative gain or loss recognized in AOCI at the termination date remains in AOCI until the forecasted transaction occurs. In a situation where it becomes probable that a hedged forecasted transaction will not occur, any gains and/or losses that have been recorded to AOCI would be required to be immediately reclassified into earnings. All cash flows associated with purchasing and settling derivatives are classified as operating cash flows in the Consolidated Statements of Cash Flows. Income Taxes We account for deferred income taxes under the liability method. We recognize deferred tax assets and liabilities based on the tax effects of temporary differences between the financial statement and tax basis of assets and liabilities, as measured by enacted tax rates. Deferred tax assets and liabilities are net by jurisdiction and are recorded as noncurrent on the consolidated balance sheets. A valuation allowance is recorded to reduce deferred tax assets when necessary. We periodically assess whether it is more likely than not that we will generate sufficient taxable income to realize our deferred income tax assets. We establish valuation allowances if it is not likely we will realize our deferred income tax assets. In making this determination, we consider available positive and negative evidence and make certain assumptions. We consider, among other things, projected future taxable income, scheduled reversals of deferred tax liabilities, the overall business environment, our historical financial results and tax planning strategies, where applicable. See Note 10 of the Notes to the consolidated financial statements for additional discussion. The Company has recorded reserves for income taxes and associated interest that may become payable in future years. Although management believes that its positions taken on income tax matters are reasonable, the Company nevertheless has established tax and interest reserves in recognition that various taxing authorities may challenge certain of the positions taken by the Company, potentially resulting in additional liabilities for taxes and interest. The Company's uncertain tax position reserves are reviewed periodically and are adjusted as events occur that affect its estimates, such as the availability of new information, the lapsing of applicable statutes of limitation, the conclusion of tax audits, the measurement of additional estimated liability, the identification of new tax matters, the release of administrative tax guidance affecting its estimates of tax liabilities, or the rendering of relevant court decisions. The Company records penalties and interest relating to uncertain tax positions as part of income tax expense in its Consolidated Statements of Operations. Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application of Topic 740. This guidance is effective for fiscal years beginning after December 15, 2020, including interim periods therein. The Company adopted ASU 2019-12 effective January 1, 2021 and its adoption did not have a material effect on the Company's consolidated financial statements. In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Reclassifications out of accumulated other comprehensive loss by component is as follows: Year ended December 31, Details about accumulated other comprehensive loss components 2021 2020 2019 Affected line items in the statement where net income is presented (in thousands) Derivatives designated as hedging instruments under ASC 815 Foreign currency derivative gains $ — $ (3,075) $ (5,307) Passenger revenue Foreign currency derivative gains — (3,945) — Nonoperating Income (Expense), Other, net Total before tax — (7,020) (5,307) Tax expense — 1,737 2,616 Total, net of tax $ — $ (5,283) $ (2,691) Amortization of defined benefit pension items Actuarial loss $ 4,195 $ 4,048 $ 3,201 Nonoperating Income (Expense), Other, net Prior service cost 370 712 225 Nonoperating Income (Expense), Other, net Special termination benefits — 5,258 — Other nonoperating special items Curtailment loss — 424 — Other nonoperating special items Total before tax 4,565 10,442 3,426 Tax benefit (1,103) (2,309) (902) Total, net of tax $ 3,462 $ 8,133 $ 2,524 Short-term investments Realized (gain) loss on sales of investments, net (1,531) (689) (192) Nonoperating Income (Expense), Other, net Total before tax (1,531) (689) (192) Tax expense 379 168 47 Total, net of tax (1,152) (521) (145) Total reclassifications for the period $ 2,310 $ 2,329 $ (312) A rollforward of the amounts included in accumulated other comprehensive loss, net of taxes, is as follows: Year ended December 31, 2021 Foreign Defined Short-Term Investments Total (in thousands) Beginning balance $ — $ (116,181) $ 1,654 $ (114,527) Other comprehensive income (loss) before reclassifications, net of tax — 37,694 (7,315) 30,379 Amounts reclassified from accumulated other comprehensive income (loss), net of tax — 3,462 (1,152) 2,310 Net current-period other comprehensive income (loss), net of tax — 41,156 (8,467) 32,689 Ending balance $ — $ (75,025) $ (6,813) $ (81,838) Year ended December 31, 2020 Foreign Defined Short-Term Investments Total (in thousands) Beginning balance $ 3,341 $ (108,028) $ 804 $ (103,883) Other comprehensive income (loss) before reclassifications, net of tax 1,942 (16,286) 1,371 (12,973) Amounts reclassified from accumulated other comprehensive income (loss), net of tax (5,283) 8,133 (521) 2,329 Net current-period other comprehensive income (loss), net of tax (3,341) (8,153) 850 (10,644) Ending balance $ — $ (116,181) $ 1,654 $ (114,527) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings (loss) per share, which excludes dilution, is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The potentially dilutive shares that were excluded from the computation of diluted weighted average common stock shares outstanding because their effect would have been antidilutive was 550,112 and 227,545 for the twelve months ended December 31, 2021 and 2020, respectively. The following table shows the Company's computation of basic and diluted earnings (loss) per share: Year Ended December 31, 2021 2020 2019 (in thousands, except for per share data) Numerator: Net Income (Loss) $ (144,773) $ (510,935) $ 223,984 Denominator: Weighted average common shares outstanding—Basic 50,769 46,100 47,435 Dilutive effect of share-based awards and warrants — — 111 Weighted average common shares outstanding—Diluted 50,769 46,100 47,546 Net Income (Loss) Per Common Stock Share: Basic $ (2.85) $ (11.08) $ 4.72 Diluted $ (2.85) $ (11.08) $ 4.71 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Passenger & Other revenue - The Company's contracts with customers have two principal performance obligations, which are the promise to provide transportation to the passenger and the frequent flyer miles earned on the flight. In addition, the Company often charges additional fees for items such as baggage and other miscellaneous ancillary services. Such items are not capable of being distinct from the transportation provided because the customer can only benefit from the services during the flight. The transportation performance obligation, including the redemption of HawaiianMiles awards for flights, is satisfied, and revenue is recognized, as transportation is provided. In some instances, tickets sold by the Company can include a flight segment on another carrier which is referred to as an interline segment. In this situation, the Company acts as an agent for the other carrier and revenue is recognized net of cost in other revenue. Tickets sold by other airlines where the Company provides the transportation are recognized as passenger revenue at the estimated value to be billed to the other airline when travel is provided. The majority of the Company's revenue is derived from transporting passengers on its aircraft. The Company's primary operations are that of its wholly-owned subsidiary, Hawaiian. Principally all operations of Hawaiian either originate and/or end in the state of Hawai'i. The management of such operations is based on a system-wide approach due to the interdependence of Hawaiian's route structure in its various markets. As Hawaiian offers only one significant line of business (i.e., air transportation), management has concluded that it has only one segment. The Company's operating revenues by geographic region (as defined by the Department of Transportation, DOT) are summarized below: Year Ended December 31, 2021 2020 2019 (in thousands) Domestic $ 1,504,151 $ 640,153 $ 2,057,650 Pacific 92,433 204,660 774,578 Total operating revenue $ 1,596,584 $ 844,813 $ 2,832,228 Hawaiian attributes operating revenue by geographic region based on the destination of each flight segment. Hawaiian's tangible assets consist primarily of flight equipment, which are mobile across geographic markets, and, therefore, have not been allocated to specific geographic regions. Domestic revenue includes the company's North America and Interisland operations. During the years ended December 31, 2021, 2020, and 2019, North America routes accounted for approximately 83%, 78% and 74% of domestic revenue, respectively. Other operating revenue consists of cargo revenue, ground handling fees, commissions, and fees earned under certain joint marketing agreements with other companies. These amounts are recognized when the service is provided. Year Ended December 31, 2021 2020 2019 Passenger Revenue by Type (in thousands) Passenger revenue, excluding frequent flyer $ 1,264,059 $ 616,214 $ 2,440,909 Frequent flyer revenue, transportation component 106,843 48,585 156,863 Passenger Revenue $ 1,370,902 $ 664,799 $ 2,597,772 Other revenue (e.g. cargo and other miscellaneous) $ 126,349 $ 94,187 $ 147,237 Frequent flyer revenue, marketing and brand component 99,333 85,827 87,219 Other Revenue $ 225,682 $ 180,014 $ 234,456 For the twelve months ended December 31, 2021, 2020, and 2019, the Company's total revenue was $1.6 billion, $0.8 billion, and $2.8 billion, respectively. As of December 31, 2021 and 2020, the Company's Air traffic liability balance as it relates to passenger tickets (excluding frequent flyer) was $448.2 million and $308.2 million, respectively, which represents future revenue that is expected to be realized. During the twelve months ended December 31, 2021, 2020, and 2019, the amount of revenue recognized that was included in Air traffic liability as of the beginning of the respective period was $184.0 million, $254.8 million, and $424.2 million, respectively. Frequent Flyer The Company's frequent flyer liability is recorded in Air traffic liability (short-term) and Noncurrent frequent flyer deferred revenue in the Company's Consolidated Balance Sheet based on estimated and expected redemption patterns using historical data and analysis. As of December 31, 2021 and 2020, the balances were as follows: As of December 31, 2021 2020 (in thousands) Air traffic liability (current portion of frequent flyer deferred revenue) $ 169,687 $ 218,886 Noncurrent frequent flyer deferred revenue 296,484 201,239 Total frequent flyer liability $ 466,171 $ 420,125 The table below presents a roll forward of Frequent flyer deferred revenue for the years ended December 31, 2021 and 2020: Year Ended December 31, 2021 2020 (in thousands) Total Frequent flyer liability - beginning balance $ 420,125 $ 349,806 Miles awarded 155,178 120,345 Travel miles redeemed (Passenger Revenue) (106,843) (48,585) Non-travel miles redeemed (Other Revenue) (2,289) (1,441) Total Frequent flyer liability - ending balance $ 466,171 $ 420,125 |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2021 | |
Short-term Investments [Abstract] | |
Short-Term Investments | Short-Term Investments Debt securities that are not classified as cash equivalents are classified as available-for-sale investments and are stated at fair value. Realized gains and losses on sales of investments are reflected in nonoperating income (expense). The following is a summary of short-term investments held as of December 31, 2021 and 2020: December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Debt securities Corporate debt securities $ 450,954 $ 277 $ (4,652) $ 446,579 U.S. government and agency securities 374,113 87 (1,893) 372,307 Asset-backed securities 142,035 883 (638) 142,280 Other fixed income securities 19,372 7 (71) 19,308 Collateralized loan obligations 51,082 32 (116) 50,998 Bank notes 8,110 — (20) 8,090 Equity securities 202,068 1 (2,023) 200,046 Other investments measured at net asset value 2,193 — (49) 2,144 Total short-term investments $ 1,249,927 $ 1,287 $ (9,462) $ 1,241,752 December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Debt securities Corporate debt $ 142,050 $ 1,354 $ (12) $ 143,392 U.S. government and agency securities 155,615 814 (1) 156,428 Other fixed income securities 54,928 34 — 54,962 Total short-term investments $ 352,593 $ 2,202 $ (13) $ 354,782 Contractual maturities of short-term investments as of December 31, 2021 are shown below: Under 1 Year 1 to 5 Years Over 5 Years Total (in thousands) Debt securities Corporate debt securities $ 30,425 $ 315,625 $ 100,529 $ 446,579 U.S. government and agency securities 25,742 340,858 5,707 372,307 Asset-backed securities 114,075 15,284 12,921 142,280 Other fixed income securities 11 12,532 6,765 19,308 Collateralized loan obligations — — 50,998 50,998 Bank notes — 4,100 3,990 8,090 Total debt securities $ 170,253 $ 688,399 $ 180,910 $ 1,039,562 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC 820 defines fair value as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 - Observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term for the assets or liabilities; and Level 3 - Unobservable inputs in which there is little or no market data and that are significant to the fair value of the assets or liabilities. The following tables present information about the Company's financial assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements as of December 31, 2021 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 339,522 $ 239,912 $ 99,610 $ — Restricted cash 17,267 17,267 — — Short-term investments Debt securities Corporate debt securities 446,579 — 446,579 — U.S. government and agency securities 372,307 — 372,307 — Other fixed income securities 142,280 — 142,280 — Asset-backed securities 19,308 — 15,305 4,003 Collateralized loan obligations 50,998 — 47,676 3,322 Bank notes 8,090 — 1,337 6,753 Equity securities 200,046 200,046 — — Other investments measured at net asset value 2,144 — — — Total short-term investments 1,241,752 200,046 1,025,484 14,078 Assets held for sale 29,449 — — 29,449 Total assets measured at fair value $ 1,627,990 $ 457,225 $ 1,125,094 $ 43,527 Foreign currency derivatives — — — — Total liabilities measured at fair value $ — $ — $ — $ — Fair Value Measurements as of December 31, 2020 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 345,766 $ 297,698 $ 48,068 $ — Short-term investments Corporate debt securities 198,355 — 198,355 — U.S. government and agency securities 156,427 — 156,427 — Total short-term investments 354,782 — 354,782 — Fuel derivative contracts 43 — 43 — Foreign currency derivatives 31 — 31 — Total assets measured at fair value $ 700,622 $ 297,698 $ 402,924 $ — Foreign currency derivatives 1,382 — 1,382 — Total liabilities measured at fair value $ 1,382 $ — $ 1,382 $ — Cash equivalents and restricted cash. The Company's Level 1 cash equivalents consist of money market securities and mutual funds. The carrying amounts approximate fair value because of the short-term maturity of these assets. Level 2 cash equivalents consist primarily of debt securities with original maturity dates less than 90 days. The fair value of these instruments is based on a market approach using prices generated by market transactions involving similar assets. Restricted cash includes funds held in a controlled account to be used for debt service payments associated with the Company's loyalty and intellectual brand offering. Short-term investments. The Company's Level 1 short-term investments consist of equity mutual funds, which are valued based on a market approach using prices generated by market transactions involving identical assets. Level 2 short-term investments consist of corporate debt securities, U.S. government and agency securities, other fixed income securities, asset-backed securities, collateralized loan obligations, and bank notes, which are valued based on a market approach using industry standard valuation techniques that incorporate inputs such as quoted prices for similar assets, interest rates, benchmark curves, credit ratings, and other observable inputs or market data. Certain asset-backed securities, collateralized loan obligations, and private bank notes that are not readily marketable are classified as Level 3 in the fair value hierarchy and are valued using certain unobservable inputs including future cash flows and discount rates. The Company entered into all of its Level 3 investments during the fourth quarter of 2021, and as a result, cost approximates fair value as of December 31, 2021. The reconciliation of our short-term investments measured at fair value on a recurring basis using unobservable inputs (Level 3) for the year ended December 31, 2021 is as follows: Short-term Investment Activity for the Twelve Months Ended December 31, 2021 Other fixed income securities Bank notes Collateralized loan obligations Total (in thousands) Beginning balance as of December 31, 2020 $ — $ — $ — $ — Purchases and settlements, net 4,012 6,772 3,322 14,106 Realized and unrealized net losses (9) (19) — (28) Ending balance as of December 31, 2021 $ 4,003 $ 6,753 $ 3,322 $ 14,078 Other investments at net asset value ("NAV") . In accordance with relevant accounting standards, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The investments measured using NAV are investments in a partnership for which a secondary market does not exist. Investments in the partnership are carried at estimated net asset value as determined by and reported by the general partners of the partnerships and represent the proportionate share of the estimated fair value of the underlying assets of the limited partnerships. The Company can redeem its shares upon approval by the respective partnerships' managing member. Fuel derivative contracts. Fuel derivative contracts, which are not traded on a public exchange, are valued based on inputs available or derived from public markets including contractual terms, market prices, yield curves, fuel price curves and measures of volatility, among others. Foreign currency derivatives. Foreign currency derivatives are valued based primarily on data readily observable in public markets. Assets held for sale . The Company's assets held for sale consist of aircraft, engine, rotable and expendable aircraft parts, and commercial real estate. The assets are measured at the lower of the carrying amount or fair value less cost to sell and a loss is recognized for any initial adjustment of the assets' carrying amount to fair value less cost to sell. The fair value measurements for the Company's held for sale assets were based on Level 3 inputs, which include information obtained from third-party valuation sources and other market sources. Refer to Note 11 of the Notes to Consolidated Financial Statements for additional discussion. The reconciliation of our assets held for sale measured at fair value on a recurring basis using unobservable inputs (Level 3) for the year ended December 31, 2021 is as follows: Assets Held for Sale Activity for the Twelve Months Ended December 31, 2021 (in thousands) Beginning balance as of December 31, 2020 $ — Additions 29,607 Sales (157) Ending balance as of December 31, 2021 $ 29,449 The table below presents the Company's debt measured at fair value: Fair Value of Debt December 31, 2021 December 31, 2020 Carrying Fair Value Carrying Fair Value Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (in thousands) $ 1,838,954 $ 1,808,530 $ — $ — $ 1,808,530 $ 1,171,349 $ 1,054,410 $ — $ — $ 1,054,410 The fair value estimates of the Company's debt were based on the discounted amount of future cash flows using the Company's current incremental rate of borrowing for similar obligations. The carrying amounts of cash, other receivables, and accounts payable approximate fair value due to the short-term nature of these financial instruments. |
Financial Derivative Instrument
Financial Derivative Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Derivative Instruments | Financial Derivative InstrumentsThe Company uses derivatives to manage risks associated with certain assets and liabilities arising from the potential adverse impact of fluctuations in global fuel prices, interest rates and foreign currencies. Fuel Risk Management The Company's operations are inherently dependent upon the price and availability of aircraft fuel. To manage economic risks associated with fluctuations in aircraft fuel prices, the Company periodically enters into derivative financial instruments. The Company uses a combination of derivative contracts to hedge its aircraft fuel expense. As of December 31, 2021, the Company did not hold any fuel derivative positions. The following table reflects the amount of realized and unrealized gains and losses recorded as nonoperating income (expense) in the Consolidated Statements of Operations. Year Ended December 31, 2021 2020 2019 (in thousands) Losses realized at settlement $ (165) $ (9,035) $ (12,403) Prior period unrealized amounts 382 2,487 8,181 Unrealized losses on contracts that will settle in future periods — (382) (2,487) Gains (losses) on fuel derivatives recorded as nonoperating income (expense) $ 217 $ (6,930) $ (6,709) Foreign Currency Exchange Rate Risk Management The Company is subject to foreign currency exchange rate risk due to revenues and expenses denominated in foreign currencies, with the primary exposures being the Japanese Yen and Australian Dollar. To manage exchange rate risk, the Company executes its international revenue and expense transactions in the same foreign currency to the extent practicable. The Company enters into foreign currency forward contracts to further manage the effects of fluctuating exchange rates. The gain or loss is reported as a component of accumulated other comprehensive income (AOCI) and reclassified into earnings in the same period in which the related sales are recognized as passenger revenue. Foreign currency forward contracts that are not designated as cash flow hedges are recorded at fair value, and therefore any changes in fair value are recognized as other nonoperating income (expense) in the period of change. During the twelve months ended December 31, 2020, the Company de-designated certain hedged transactions with maturity dates through February 2022 as the Company concluded that the cash flows attributable to the hedged risk were no longer probable of occurring. As a result, the Company reclassified approximately $3.9 million from AOCI to nonoperating income in the period during the twelve months ended December 31, 2020. Future gains and losses related to these instruments continue to be recorded in nonoperating expense. As of December 31, 2021, the Company did not have any open foreign currency derivative instruments. The following table presents the gross fair value of asset and liability derivatives that are designated as hedging instruments under ASC 815 and derivatives that are not designated as hedging instruments under ASC 815, as well as the net derivative positions and location of the asset and liability balances within the Consolidated Balance Sheets. Derivative positions as of December 31, 2020 Balance Sheet Notional Amount Final Gross fair Gross fair Net (in thousands) (in thousands) Derivatives not designated as hedges Foreign currency derivatives Other accrued liabilities 4,062,950 Japanese Yen 2,852 Australian Dollars December 2021 31 (1,156) (1,125) Other liabilities and deferred credits 789,000 Japanese Yen February 2022 — (226) (226) Fuel derivative contracts Prepaid expenses and other 8,652 gallons March 2021 43 — 43 The following table reflects the impact of cash flow hedges designated for hedge accounting treatment and their location within the Consolidated Statements of Comprehensive Income. (Gain) Loss recognized in AOCI on derivatives (Gain) Loss reclassified from AOCI into income Year ended December 31, Year ended December 31, 2021 2020 2019 2021 2020 2019 (in thousands) Foreign currency derivatives $ — $ 3,131 $ (5,349) $ — $ (7,020) $ (5,307) Risk and Collateral The financial derivative instruments expose the Company to possible credit loss in the event the counterparties to the agreements fail to meet their obligations. To manage such credit risks, the Company (1) selects its counterparties based on past experience and credit ratings, (2) limits its exposure to any single counterparty, and (3) periodically monitors the market position and credit rating of each counterparty. Credit risk is deemed to have a minimal impact on the fair value of the derivative instruments as cash collateral would be provided to or by the counterparties based on the current market exposure of the derivative. The Company's agreements with its counterparties also require the posting of cash collateral in the event the aggregate value of the Company's positions exceeds certain exposure thresholds. The aggregate fair value of the Company's derivative instruments that contain credit-risk related contingent features was in a net asset position of $1.3 million as of December 31, 2020. As of December 31, 2021, there were no open derivative positions. ASC 815 requires a reporting entity to elect a policy of whether to offset rights to reclaim cash collateral or obligations to return cash collateral against derivative assets and liabilities executed with the same counterparty under a master netting agreement, or present such amounts on a gross basis. The Company's accounting policy is to present its derivative assets and liabilities on a net basis, including any collateral posted with the counterparty. The Company had no collateral posted with its counterparties as of December 31, 2021 and $0.4 million collateral posted with its counterparties as of December 31, 2020. The Company is also subject to market risk in the event these financial instruments become less valuable in the market. However, changes in the fair value of the derivative instruments will generally offset the change in the fair value of the hedged item, limiting the Company's overall exposure. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt, net of unamortized discounts and issuance costs, is outlined as follows: December 31, 2021 2020 (in thousands) Class A EETC-13, fixed interest rate of 3.9%, semiannual principal and interest payments, remaining balance due at maturity in January 2026 $ 196,338 $ 214,923 Class B EETC-13, fixed interest rate of 4.95%, semiannual principal and interest payments, remaining balance of due at maturity in January 2022 45,090 75,565 Japanese Yen denominated financing, fixed interest rate of 1.05%, quarterly principal and interest payments, remaining balance due at maturity in May 2030 30,213 37,526 Japanese Yen denominated financing, fixed interest rate of 1.01%, semiannual principal and interest payments, remaining balance due at maturity in June 2030 26,271 33,573 Japanese Yen denominated financing, fixed interest rate of 0.65%, quarterly principal and interest payments, remaining balance due at maturity in March 2025 91,041 121,480 Japanese Yen denominated financing, fixed interest rate of 0.76%, semiannual principal and interest payments, remaining balance due at maturity in September 2031 70,269 86,018 Revolving credit facility, variable interest rate of LIBOR plus a margin of 2.25%, monthly interest payments, principal balance due at maturity in December 2022 — 235,000 Class A EETC-20, fixed interest rate of 7.375%, semiannual principal and interest payments, remaining balance due at maturity in September 2027 48,245 216,976 Class B EETC-20, fixed interest rate of 11.25%, semiannual principal and interest payments, remaining balance due at maturity in September 2025 19,504 45,010 CARES Act Payroll Support Program, fixed interest rate of 1.0% for the first through fifth years and variable interest of SOFR plus a margin of 2.0% for the sixth year through maturity, semiannual interest payments, principal balance due at maturity in April 2030 through September 2030 60,278 60,278 Payroll Support Program Extension, fixed interest rate of 1.0% for the first through fifth years and variable interest of SOFR plus a margin of 2.0% for the sixth year through maturity, semiannual interest payments, principal balance due at maturity in March 2031 through April 2031 27,797 — Payroll Support Program 3, fixed interest rate of 1.0% for the first through fifth years and variable interest of SOFR plus a margin of 2.0% for the sixth year through maturity, semiannual interest payments, principal balance due at maturity in June 2031 23,908 — CARES Act Economic Relief Program, variable interest rate of LIBOR plus a margin of 2.5%, quarterly interest payments, principal balance due at maturity in June 2024 — 45,000 Loyalty Program Financing, fixed interest of 5.75%, quarterly interest payments, principal balance due at maturity in January 2026 1,200,000 — Unamortized debt discount and issuance costs (37,560) (21,525) Total debt $ 1,801,394 $ 1,149,824 Less: Current maturities of long-term debt (97,096) (115,019) Long-Term Debt, less discount $ 1,704,298 $ 1,034,805 Enhanced Equipment Trust Certificates (EETC) In 2013, Hawaiian consummated an EETC financing, whereby it created two pass-through trusts, each of which issued pass-through certificates. The proceeds of the issuance of the pass-through certificates were used to purchase equipment notes issued by the Company to fund a portion of the purchase price for six Airbus aircraft, all of which were delivered in 2013 and 2014. The equipment notes are secured by a lien on the aircraft, and the payment obligations of Hawaiian under the equipment notes will be fully and unconditionally guaranteed by the Company. The Company issued the equipment notes to the trusts as aircraft were delivered to Hawaiian. Hawaiian received all proceeds from the pass-through trusts by 2014 and recorded the debt obligation upon issuance of the equipment notes rather than upon the initial issuance of the pass-through certificates. In August 2020, the Company completed a $262.0 million offering of Class A and B pass-through certificates, Series 2020-1 utilizing a pass through trust (the 2020-1 EETC). The terms of the loans have a final maturity date of September 2027 and September 2025, at fixed installment coupon rates of 7.375% and 11.250%, respectively. The 2020-1 EETC is secured by two A330-200 aircraft and six A321-200neo aircraft. The Company evaluated whether the pass-through trusts formed are variable interest entities (VIEs) required to be consolidated by the Company under applicable accounting guidance, and determined that the pass-through trusts are VIEs. The Company determined that it does not have a variable interest in the pass-through trusts. Neither the Company nor Hawaiian invested in or obtained a financial interest in the pass-through trusts. Rather, Hawaiian has an obligation to make interest and principal payments on the equipment notes held by the pass-through trusts, which are fully and unconditionally guaranteed by the Company. Neither the Company nor Hawaiian intends to have any voting or non-voting equity interest in the pass-through trusts or to absorb variability from the pass-through trusts. Based on this analysis, the Company determined that it is not required to consolidate the pass-through trusts. In October 2021, the Company repurchased approximately $160.9 million of its outstanding 7.375% Series 2020-1A Pass Through Certificates due 2027 and 11.250% Series 2020-1B Pass Through Certificates due 2025. The Company paid a premium on the repurchase, which resulted in the recognition of a loss on the extinguishment of debt of $34.9 million reflected as nonoperating income (expense) in the Consolidated Statement of Operations. In January 2022, the Company made the final scheduled principal payment of $45.1 million for its Class B EETC-13 debt obligation. Foreign Denominated Financing In 2018, the Company entered into two Japanese Yen denominated financings with a total value of approximately $86.5 million (¥9.6 billion), collateralized by the aircraft financed with a net book value of $106.1 million. Each financing is for a term of 12 years with quarterly or semiannual principal and interest payments, respectively, at fixed installment coupon rates of 1.01% and 1.05%, respectively. In 2019, the Company entered into two Japanese Yen denominated agreements totaling $227.9 million (¥24.7 billion), which were collateralized through a combination of two A321neo and four A330-200 aircraft with a net book value of approximately $382.7 million. The terms of the loans are 12 years and 5.5 years, at fixed installment coupon rates of 0.76% and 0.65%, respectively. At each balance sheet date, the Company remeasures the outstanding principal balance at the spot rate for the respective period and records any gain or loss at the current rate within the other nonoperating income (expense) line item in the Consolidated Statements of Operations. During 2021 and 2020, the Company recorded foreign currency unrealized gains of $27.6 million and unrealized losses of $14.8 million, respectively. Revolving Credit Facility In March 2020, the Company drew down $235 million in revolving loans pursuant to its Amended and Restated Credit and Guaranty Agreement (the Credit Agreement) dated December 11, 2018. In February 2021, the Company repaid the $235 million outstanding amount drawn on its revolving credit facility. The Credit Agreement terminates, and all outstanding revolving loans thereunder will be due and payable, on December 11, 2022, unless otherwise extended by the parties. The revolving loans bear a variable interest rate equal to the London interbank offer rate plus a margin of 2.25%. The Credit Agreement requires that the Company maintain $300 million in liquidity, as defined under the Credit Agreement. In the event that the requirement is not met, or other customary conditions are not satisfied, the due date of the revolving loans may be accelerated. As of December 31, 2021, the Company has $235 million undrawn and available under its revolving credit facility. Payroll Support Program Loans The Company participated in the initial PSP, the PSP Extension, and the PSP3. During the twelve months ended December 31, 2021, the Company received $372.4 million in payroll support payments. The support payments included total grants of $320.6 million that were recognized as a contra-expense in the Consolidated Statements of Operations. A summary of the amounts received and warrants issued as of December 31, 2021 under these programs is set forth in the following table: Summary of payroll support program activity (in millions, except percentages) Total Amount Grant Loan Number of warrants Percentage of outstanding shares at December 31, 2021 Payroll Support Program $ 300.9 $ 240.6 $ 60.3 0.5 1.0 % Payroll Support Program Extension 192.7 164.9 27.8 0.2 0.3 % Payroll Support Program 3 179.7 155.8 23.9 0.1 0.2 % Total $ 673.3 $ 561.3 $ 112.0 0.8 1.5 % Payroll Support Program. In April 2020, the Company entered into a Payroll Support Program agreement (the PSP Agreement) with the U.S. Department of Treasury (the Treasury) under the CARES Act. Pursuant to the PSP Agreement, the Treasury provided the Company with financial assistance, paid in installments, totaling approximately $300.9 million. The Company entered into the Note for approximately $60.3 million and agreed to issue to the Treasury a total of 509,964 PSP Warrants to purchase shares of the Company's common stock pursuant to the PSP Agreement. The PSP Warrants are non-voting, freely transferable, may be settled as net shares or in cash at the Company's option, expire five years from the date of issuance, and contain registration rights and customary anti-dilution provisions. The Company recorded the value of the Note and the PSP Warrants on a relative fair value basis as $53.6 million in noncurrent debt and $6.7 million in additional paid in capital, respectively. Payroll Support Program Extension. In January 2021, the Company entered into a PSP extension agreement (the PSP Extension Agreement) and contemporaneously entered into a warrant agreement (the Warrant Extension Agreement) with the Treasury and issued a promissory note to the Treasury (the Extension Note). During the twelve months ended December 31, 2021, the Company received a total of $192.7 million in financial assistance, to be used exclusively for continuing to pay employee salaries, wages and benefits, including the payment of lost wages, salaries and benefits to certain returning employees as defined in the PSP Extension Agreement. These support payments consisted of $164.9 million in a grant and $27.8 million in an unsecured 10-year low interest loan, and as compensation to the U.S. government, and pursuant to the Warrant Extension Agreement, the Company issued warrants to the Treasury to purchase up to a total of 156,341 shares of its common stock at an exercise price of $17.78 per share (the PSP Extension Warrants). The PSP Extension Warrants are non-voting, freely transferable, may be settled as net shares or in cash at the Company's option, expire five years from the date of issuance, and contain registration rights and customary anti-dilution provisions. The Company recorded the value of the Extension Note and the PSP Extension Warrants on a relative fair value basis as $23.8 million in noncurrent debt and $4.0 million in additional paid in capital, respectively. Payroll Support Program 3 . In April 2021, the Company entered into a Payroll Support Program 3 Agreement with the Treasury (PSP3 Agreement), a promissory note (the PSP3 Note), and a Warrant Agreement (the PSP3 Warrant Agreement). The PSP3 Agreement extends (i) the prohibition on conducting involuntary employee layoffs or furloughs through September 2021 or the date on which assistance provided under the agreement is exhausted, whichever is later, (ii) the prohibitions on share repurchases and dividends through September 2022, and (iii) the limitations on executive compensation until April 2023. During the twelve months ended December 31, 2021, the Company received $179.7 million in payroll support payments under the PSP3 Agreement, consisting of $155.8 million in a grant and $23.9 million in an unsecured 10-year low interest loan. As compensation to the U.S. government, and pursuant to the PSP3 Warrant Agreement, the Company issued warrants to the Treasury to purchase up to a total of 87,670 shares of its common stock at an exercise of $27.27 per share (the PSP3 Warrants). The terms of the PSP3 Note and PSP3 Warrants are consistent with those of the original PSP and the first PSP Extension. The Company recorded the value of the PSP3 Note and the PSP3 Warrants on a relative fair value basis as $22.1 million in noncurrent debt and $1.8 million in additional paid in capital, respectively. Economic Relief Program In 2020, the Company entered into and subsequently amended and restated its Loan Agreement with the Treasury (Amended and Restated Loan Agreement), which increased the maximum facility available to be borrowed by the Company to $622.0 million. As of September 30, 2020, the Company borrowed $45.0 million under the ERP and may, at its option, borrow additional amounts in up to two subsequent borrowings until March 26, 2021. The Company recorded the value of the loan and the ERP Warrants on a relative fair value basis as $41.9 million in noncurrent debt and $3.1 million in additional paid in capital, respectively. On February 4, 2021, the Company repaid in full the $45.0 million loan under the ERP, and in connection with this repayment, terminated the Amended and Restated Loan Agreement. The debt extinguishment resulted in the recognition of a loss of $4.0 million during the twelve months ended December 31, 2021, which is reflected in nonoperating income (expense) in the Consolidated Statement of Operations. The warrants issued under the ERP Warrant Agreement remain outstanding pursuant to its terms. Loyalty Program and Intellectual Property Financing In February 2021, the Company completed the private offering (the Notes Offering) by Hawaiian Brand Intellectual Property, Ltd., an indirect wholly owned subsidiary of Hawaiian (the Brand Issuer), and HawaiianMiles Loyalty, Ltd., an indirect wholly owned subsidiary of Hawaiian (the Loyalty Issuer and, together with the Brand Issuer, the Issuers) of an aggregate of $1.2 billion principal amount of their 5.750% senior secured notes due 2026 (the Notes). The Notes require interest only payments, payable quarterly in arrears on July 20, October 20, January 20 and April 20 of each year, which began on July 20, 2021. The Notes are fully and unconditionally guaranteed, jointly and severally, by (i) Hawaiian Finance 1 Ltd., a direct wholly owned subsidiary of Hawaiian (HoldCo 1), (ii) Hawaiian Finance 2 Ltd., a direct subsidiary of HoldCo 1 and indirect wholly owned subsidiary of Hawaiian (HoldCo 2 and, together with HoldCo 1, the Cayman Guarantors), (iii) Hawaiian and (iv) Holdings (Holdings, together with Hawaiian, the Parent Guarantors and the Parent Guarantors, together with the Cayman Guarantors, the Guarantors). The Notes were issued pursuant to the Indenture, among the Issuers, the Guarantors and Wilmington Trust, National Association, as trustee, collateral custodian. In connection with the issuance of the Notes, Hawaiian contributed to the Brand Issuer, which is a newly-formed subsidiary structured to be bankruptcy remote, all worldwide rights, owned or purported to be owned, or later developed or acquired and owned or purported to be owned, by Hawaiian or any of its subsidiaries, in and to all intellectual property, including all trademarks, service marks, brand names, designs, and logos that include the word "Hawaiian" or any successor brand and the "hawaiianairlines.com" domain name and similar domain names or any successor domain names (the Brand IP). The Brand Issuer indirectly granted Hawaiian an exclusive, worldwide, perpetual and royalty-bearing sublicense to use the Brand IP. Further, Hawaiian contributed to the Loyalty Issuer its rights to certain other collateral owned by Hawaiian, including, to the extent permitted by such agreements or otherwise by operation of law, any of Hawaiian's rights under the HawaiianMiles Agreements and the IP Agreements (each as defined in the Indenture), together with HawaiianMiles program (HawaiianMiles) customer data and certain other intellectual property owned or purported to be owned, or later developed or acquired and owned or purported to be owned, by Hawaiian or any of its subsidiaries (including the Issuers) and required or necessary to operate HawaiianMiles (the Loyalty Program IP) (all such collateral being, the Loyalty Program Collateral). The Loyalty Issuer indirectly granted Hawaiian an exclusive, worldwide, perpetual and royalty-free sub-license to use the Loyalty Program IP. As of December 31, 2021, approximately $17.3 million in cash was held in the Interest Reserve Account designated for debt servicing, and is classified as restricted cash on the Company's Consolidated Balance Sheets. Schedule of Debt Maturities As of December 31, 2021, the scheduled maturities of debt, excluding debt issuance costs, are as follows (in thousands): 2022 $ 98,735 2023 63,704 2024 61,589 2025 79,139 2026 1,347,440 Thereafter 188,347 $ 1,838,954 Covenants The Company's debt agreements contain various affirmative, negative and financial covenants as discussed above within this Note. We were in compliance with the covenants in these debt agreements as of December 31, 2021. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company leases aircraft, engines, airport terminal facilities, maintenance hangars, commercial real estate, and other property and equipment, among other items. The Company combines lease and nonlease components in calculating the Right-of-Use (ROU) asset and lease liabilities for the aforementioned asset groups. Certain leases include escalation clauses, renewal options, and/or termination options. When lease renewals or termination options are considered to be reasonably certain, such periods are included in the lease term and fixed payments are included in the calculation of the lease liability and ROU asset. The Company's leases do not provide a readily determinable implicit rate; therefore, the Company utilizes an incremental borrowing rate to discount lease payments based on information available at lease commencement. The Company gives consideration to its recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates. Sale-Leaseback Transactions During the twelve months ended December 31, 2020, the Company entered into sale-leaseback transactions for two A321-200 aircraft. The transactions qualified as a sale, generating an immaterial loss, and the associated assets were removed from property and equipment, net and recorded as operating lease right-of-use assets on the Company's Consolidated Balance Sheets. The liabilities are recorded within current and noncurrent operating lease liabilities on the Company's Consolidated Balance Sheets. Aircraft, Engines, and Aircraft Equipment As of December 31, 2021, the Company leased 21 of its 68 aircraft. Of the 21 lease contracts, 4 aircraft lease contracts were accounted for as finance leases, with the remaining 17 lease contracts accounted for as operating leases. These aircraft leases have remaining lease terms ranging from 2 years to 11 years. The Company also has 2 engines under operating leases with remaining lease terms of 4 years and 5 years. The Company has a flight simulator under a finance lease with a remaining lease term of approximately 4 years. Airport Terminal Facilities The Company's facility leases are primarily for terminal space at airports that it serves, most notably, its operations in the state of Hawai'i. These leases are classified as operating leases and reflect the Company's use of airport terminals, office space, cargo and maintenance facilities. The Company leases space from government agencies that control the use of the airport. The remaining lease terms vary from 1 month to 28 years. At the majority of U.S. airports, the lease rates depend on airport operating costs or the use of the facilities and are reset at least annually. Because of the variable nature of the rates, these leases are not recorded on the Company's balance sheet as a ROU asset and lease liability. Other Commercial Real Estate The Company leases non-airport facility office space supporting its operations, including its headquarters in Honolulu, Hawai'i. These leases are classified as operating and have remaining lease terms ranging between 1 to 7 years. Maintenance Hangar The Company leases a cargo and maintenance hangar at the Daniel K. Inouye International Airport. The lease is accounted for as an operating lease and has a remaining lease term of 30 years as of December 31, 2021. In July 2019, the Company entered into an amendment to the lease agreement with the Department of Transportation of the State of Hawai'i. The amendment resulted in the adjustment of lease rates and was accounted for as a modification under ASC 842. The modification did not result in a change in lease classification. The impact to both the ROU asset and lease liability is reflected in the Lease Position Table below. Other Property and Equipment The Company leases certain IT assets (including data center access, equipment, etc.) and various other non-aircraft equipment. The remaining lease terms range from 1 to 4 years. Certain lease IT assets are embedded within service agreements. The combined lease and nonlease components of those agreements are included in the ROU asset and lease liability. Lease Position as of December 31, 2021 The table below presents the lease-related assets and liabilities recorded on the Consolidated Balance Sheet. As of December 31, Classification on the Balance Sheet 2021 2020 (in thousands) Assets: Operating lease assets Operating lease right-of use assets $ 536,154 $ 627,359 Finance lease assets Property and equipment, net 114,376 129,969 Total lease assets $ 650,530 $ 757,328 Liabilities: Current Operating Current maturities of operating leases $ 79,158 $ 82,454 Finance Current maturities of finance lease obligations 24,149 21,290 Noncurrent Operating Noncurrent operating leases 423,293 503,376 Finance Finance lease obligations 100,995 120,618 Total lease liabilities $ 627,595 $ 727,738 Weighted-average remaining lease term Operating leases 10.4 years 10.6 years Finance leases 7.2 years 7.9 years Weighted-average discount rate Operating leases (1) 5.63 % 5.45 % Finance leases 4.37 % 4.42 % (1) Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. Lease Costs During the twelve months ended December 31, 2021 and 2020, the total lease costs for finance and operating leases were as follows: Year ended December 31, 2021 2020 2019 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 23,339 $ 23,197 $ 25,319 Interest of lease liabilities 6,022 6,887 8,249 Operating lease cost (1) 110,864 108,505 116,866 Short-term lease cost (1) 2,909 981 4,671 Variable lease cost (1) 112,475 68,212 126,989 Total lease cost $ 255,609 $ 207,782 $ 282,094 (1) Expenses are classified within aircraft rent and other rentals and landing fees in the Consolidated Statements of Operations. During the twelve months ended December 31, 2021, the cash paid for amounts included in the measurement of lease liabilities were as follows: Year ended December 31, 2021 2020 2019 (in thousands) Operating cash flows for operating leases 110,286 113,585 116,485 Operating cash flows for finance leases 5,997 6,887 8,223 Financing cash flows for finance lease 23,040 22,295 23,384 Undiscounted Cash Flows As of December 31, 2021, the scheduled future minimum rental payments under finance leases and operating leases with non-cancellable basic terms of more than one year are as follows: Finance Leases Operating Leases Aircraft Other Aircraft Other (in thousands) 2022 $ 23,413 $ 5,677 $ 92,603 $ 11,917 2023 22,972 6,570 86,467 12,057 2024 16,669 1,175 77,497 12,288 2025 11,941 974 56,045 11,715 2026 11,047 236 49,734 10,127 Thereafter 38,448 6,405 95,005 154,839 Total minimum lease payments 124,490 21,037 $ 457,351 $ 212,943 Less: amounts representing interest (16,533) (3,850) (78,408) (89,436) Present value of future minimum lease payments $ 107,957 $ 17,187 $ 378,943 $ 123,507 Less: current maturities of lease obligations (19,120) (5,029) (73,176) (5,981) Long-term lease obligations $ 88,837 $ 12,158 $ 305,767 $ 117,526 |
Leases | Leases The Company leases aircraft, engines, airport terminal facilities, maintenance hangars, commercial real estate, and other property and equipment, among other items. The Company combines lease and nonlease components in calculating the Right-of-Use (ROU) asset and lease liabilities for the aforementioned asset groups. Certain leases include escalation clauses, renewal options, and/or termination options. When lease renewals or termination options are considered to be reasonably certain, such periods are included in the lease term and fixed payments are included in the calculation of the lease liability and ROU asset. The Company's leases do not provide a readily determinable implicit rate; therefore, the Company utilizes an incremental borrowing rate to discount lease payments based on information available at lease commencement. The Company gives consideration to its recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates. Sale-Leaseback Transactions During the twelve months ended December 31, 2020, the Company entered into sale-leaseback transactions for two A321-200 aircraft. The transactions qualified as a sale, generating an immaterial loss, and the associated assets were removed from property and equipment, net and recorded as operating lease right-of-use assets on the Company's Consolidated Balance Sheets. The liabilities are recorded within current and noncurrent operating lease liabilities on the Company's Consolidated Balance Sheets. Aircraft, Engines, and Aircraft Equipment As of December 31, 2021, the Company leased 21 of its 68 aircraft. Of the 21 lease contracts, 4 aircraft lease contracts were accounted for as finance leases, with the remaining 17 lease contracts accounted for as operating leases. These aircraft leases have remaining lease terms ranging from 2 years to 11 years. The Company also has 2 engines under operating leases with remaining lease terms of 4 years and 5 years. The Company has a flight simulator under a finance lease with a remaining lease term of approximately 4 years. Airport Terminal Facilities The Company's facility leases are primarily for terminal space at airports that it serves, most notably, its operations in the state of Hawai'i. These leases are classified as operating leases and reflect the Company's use of airport terminals, office space, cargo and maintenance facilities. The Company leases space from government agencies that control the use of the airport. The remaining lease terms vary from 1 month to 28 years. At the majority of U.S. airports, the lease rates depend on airport operating costs or the use of the facilities and are reset at least annually. Because of the variable nature of the rates, these leases are not recorded on the Company's balance sheet as a ROU asset and lease liability. Other Commercial Real Estate The Company leases non-airport facility office space supporting its operations, including its headquarters in Honolulu, Hawai'i. These leases are classified as operating and have remaining lease terms ranging between 1 to 7 years. Maintenance Hangar The Company leases a cargo and maintenance hangar at the Daniel K. Inouye International Airport. The lease is accounted for as an operating lease and has a remaining lease term of 30 years as of December 31, 2021. In July 2019, the Company entered into an amendment to the lease agreement with the Department of Transportation of the State of Hawai'i. The amendment resulted in the adjustment of lease rates and was accounted for as a modification under ASC 842. The modification did not result in a change in lease classification. The impact to both the ROU asset and lease liability is reflected in the Lease Position Table below. Other Property and Equipment The Company leases certain IT assets (including data center access, equipment, etc.) and various other non-aircraft equipment. The remaining lease terms range from 1 to 4 years. Certain lease IT assets are embedded within service agreements. The combined lease and nonlease components of those agreements are included in the ROU asset and lease liability. Lease Position as of December 31, 2021 The table below presents the lease-related assets and liabilities recorded on the Consolidated Balance Sheet. As of December 31, Classification on the Balance Sheet 2021 2020 (in thousands) Assets: Operating lease assets Operating lease right-of use assets $ 536,154 $ 627,359 Finance lease assets Property and equipment, net 114,376 129,969 Total lease assets $ 650,530 $ 757,328 Liabilities: Current Operating Current maturities of operating leases $ 79,158 $ 82,454 Finance Current maturities of finance lease obligations 24,149 21,290 Noncurrent Operating Noncurrent operating leases 423,293 503,376 Finance Finance lease obligations 100,995 120,618 Total lease liabilities $ 627,595 $ 727,738 Weighted-average remaining lease term Operating leases 10.4 years 10.6 years Finance leases 7.2 years 7.9 years Weighted-average discount rate Operating leases (1) 5.63 % 5.45 % Finance leases 4.37 % 4.42 % (1) Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. Lease Costs During the twelve months ended December 31, 2021 and 2020, the total lease costs for finance and operating leases were as follows: Year ended December 31, 2021 2020 2019 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 23,339 $ 23,197 $ 25,319 Interest of lease liabilities 6,022 6,887 8,249 Operating lease cost (1) 110,864 108,505 116,866 Short-term lease cost (1) 2,909 981 4,671 Variable lease cost (1) 112,475 68,212 126,989 Total lease cost $ 255,609 $ 207,782 $ 282,094 (1) Expenses are classified within aircraft rent and other rentals and landing fees in the Consolidated Statements of Operations. During the twelve months ended December 31, 2021, the cash paid for amounts included in the measurement of lease liabilities were as follows: Year ended December 31, 2021 2020 2019 (in thousands) Operating cash flows for operating leases 110,286 113,585 116,485 Operating cash flows for finance leases 5,997 6,887 8,223 Financing cash flows for finance lease 23,040 22,295 23,384 Undiscounted Cash Flows As of December 31, 2021, the scheduled future minimum rental payments under finance leases and operating leases with non-cancellable basic terms of more than one year are as follows: Finance Leases Operating Leases Aircraft Other Aircraft Other (in thousands) 2022 $ 23,413 $ 5,677 $ 92,603 $ 11,917 2023 22,972 6,570 86,467 12,057 2024 16,669 1,175 77,497 12,288 2025 11,941 974 56,045 11,715 2026 11,047 236 49,734 10,127 Thereafter 38,448 6,405 95,005 154,839 Total minimum lease payments 124,490 21,037 $ 457,351 $ 212,943 Less: amounts representing interest (16,533) (3,850) (78,408) (89,436) Present value of future minimum lease payments $ 107,957 $ 17,187 $ 378,943 $ 123,507 Less: current maturities of lease obligations (19,120) (5,029) (73,176) (5,981) Long-term lease obligations $ 88,837 $ 12,158 $ 305,767 $ 117,526 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The significant components of income tax expense (benefit) are as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Current Federal $ 1,522 $ (113,010) $ (46,764) State (448) (3,919) 3,708 $ 1,074 $ (116,929) $ (43,056) Deferred Federal $ (39,589) $ (52,824) $ 109,489 State (2,035) (19,364) 14,579 $ (41,624) $ (72,188) $ 124,068 Income tax expense (benefit) $ (40,550) $ (189,117) $ 81,012 The income tax expense (benefit) differed from amounts computed at the statutory federal income tax rate as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Income tax expense computed at the statutory federal rate $ (38,918) $ (147,012) $ 64,049 Increase (decrease) resulting from: State income taxes, net of federal tax effect (6,203) (22,508) 14,446 Nondeductible meals 466 271 756 Goodwill impairment — 22,399 — Change in valuation allowance 4,445 7,070 — CARES Act (NOL carryback) — (45,417) — Excess tax benefits from stock issuance 436 473 — Other (776) (4,393) 1,761 Income tax expense (benefit) $ (40,550) $ (189,117) $ 81,012 On March 27, 2020, the CARES Act was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, allows for net operating losses (NOLs) incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes and eliminates the 80 percent limitation on carried back NOLs. During the year ended December 31, 2020, the carryback of NOLs to preceding tax years resulted in the recognition of a tax benefit of approximately $45.4 million. The components of the Company's deferred tax assets and liabilities were as follows: December 31, 2021 2020 (in thousands) Deferred tax assets: Accumulated pension and other postretirement benefits $ 41,740 $ 55,137 Operating leases liabilities 124,570 143,768 Finance leases 2,641 2,984 Air traffic liability and frequent flyer liability 118,005 90,047 Partnership deferred revenue 5,242 8,250 Federal and state net operating loss carryforwards 26,725 29,560 Accrued compensation 15,377 9,694 Other accrued assets 14,360 13,350 Other assets 33,046 18,972 Total gross deferred tax assets 381,706 371,762 Less: Valuation allowance (14,062) (9,617) Net deferred tax assets $ 367,644 $ 362,145 Deferred tax liabilities: Intangible assets $ (3,223) $ (3,190) Property and equipment, principally accelerated depreciation (394,207) (405,583) Finance leases (5,228) (6,369) Operating lease right-of-use assets (135,659) (156,155) Other liabilities (16,124) (7,490) Total deferred tax liabilities (554,441) (578,787) Net deferred tax liability $ (186,797) $ (216,642) As of December 31, 2021, the Company had federal and state NOL carryforwards of $5.4 million and $502.0 million, respectively. The Company's federal NOLs have an indefinite carryover period and state net operating losses will begin to expire in 2024 if not utilized. Utilization of the Company's NOL carryforwards may be subject to annual limitations due to the ownership change limitations provided by Section 382 of the Internal Revenue Code and similar state provisions. The Company's NOL carryforwards could expire before utilization if subject to annual limitations. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income (including the reversal of deferred tax liabilities) during the periods in which those deferred tax assets will become deductible. The Company assesses the realizability of its deferred tax assets and records a valuation allowance when it is more likely than not, that a portion, or all, of the deferred tax assets will not be realized. The tax benefit of the state NOL carryforwards as of December 31, 2021 was $25.6 million, of which $14.1 million has a valuation allowance. The tax benefit of the state NOL carryforwards as of December 31, 2020 was $21.1 million, of which $9.6 million has a valuation allowance. In accordance with ASC 740, the Company reviews its uncertain tax positions on an ongoing basis. The Company may be required to adjust its liability as these matters are finalized, which could increase or decrease its income tax expense and effective income tax rates or result in an adjustment to the valuation allowance. The Company records the uncertain tax position liability in Other accrued liabilities (current) and Other liabilities and deferred credits (non-current) in the Consolidated Balance Sheet, based on the period in which the Company expects the unrecognized tax benefits will be resolved. As of December 31, 2021, the Company has $0.5 million of uncertain tax positions that may decrease within the next twelve months due to the expiration of the statute of limitations. The table below reconciles beginning and ending amounts of unrecognized tax benefits related to uncertain tax positions: 2021 2020 2019 (in thousands) Balance at January 1 $ 3,449 $ 6,263 $ 5,086 Increases related to prior year tax positions 11 104 118 Increases related to current year tax positions 672 562 1,059 Settlements with taxing authority — (1,063) — Effect of the expiration of statutes of limitation (361) (2,417) — Balance at December 31 $ 3,771 $ 3,449 $ 6,263 The Company's policy is to recognize interest and penalties related to unrecognized tax benefits within the provision for income taxes. In 2021, 2020, and 2019, the Company recognized expense (benefit) of $0.0 million, $(0.7) million, and $0.9 million, respectively, for interest and penalties on uncertain tax positions. As of December 31, 2021 and 2020, the Company accrued approximately $0.2 million and $0.2 million, respectively, for the payment of interest and penalties related to uncertain tax positions. The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. The Company's federal and state income tax returns for tax years 2017 and beyond remain subject to examination by the Internal Revenue Service and state taxing authorities. |
Assets Held-For-Sale
Assets Held-For-Sale | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held-For-Sale | Assets Held-For-Sale During the second quarter of 2021, management reclassified approximately $29.5 million in long-lived assets as held for sale as follows: • Management announced the termination of its 'Ohana by Hawaiian operations, which utilizes its ATR-42 and ATR-72 fleet, and operated under a capacity purchase agreement (CPA) with a third-party carrier. Following the termination of the operations, management committed to a plan of sale and wrote-down the related assets by approximately $6.4 million to fair value, less cost to sell, and classified approximately $23.4 million as assets held for sale on the Consolidated Balance Sheets. • Management committed to a plan to sell certain commercial real-estate assets held by one of the Company's subsidiaries. Management fair valued the assets, less the cost to sell, which did not result in a write-down to the asset group, and reclassified approximately $6.1 million as assets held for sale on the Consolidated Balance Sheets. As of December 31, 2021 and 2020, the Company had approximately $29.4 million and $0.0 million, respectively, in assets held for sale on the Consolidated Balance Sheets. Management expects to complete the sale of the above referenced assets within the upcoming 12 months, and will continue to monitor the asset groups for potential impairment. |
Special Items
Special Items | 12 Months Ended |
Dec. 31, 2021 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Special Items | Special ItemsSpecial items in the Consolidated Statements of Operations consisted of the following: Year Ended December 31, 2021 2020 2019 (in thousands) Operating special items: 'Ohana by Hawaiian termination (1) $ 8,983 $ — $ — Collective bargaining agreement payment (2) — 20,242 — Goodwill impairment (3) — 106,662 — Long-lived asset impairment (4) — 38,933 — Capitalized software projects (4) — 509 — Severance and benefit costs (5) — 17,765 — Total Operating special items $ 8,983 $ 184,111 $ — Nonoperating special items: Special termination benefits (6) $ — $ 5,258 $ — Curtailment loss (6) — 424 — Total Other nonoperating special items $ — $ 5,682 $ — (1) In the second quarter of 2021, the Company announced the termination of its 'Ohana by Hawaiian operations. The Company wrote-down the asset group to fair value, less cost to sell by approximately $6.4 million. Additionally, the Company recorded a one-time charge of approximately $2.6 million for the early termination of its CPA. (2) In March 2020, the Company reached an agreement in principle with the flight attendants of Hawaiian, represented by the Association of Flight Attendants (the AFA) on a new five-year contract that runs through April 2025. On April 3, 2020, the Company received notice from the AFA that the collective bargaining agreement (the CBA) was ratified by its members. The ratified CBA provides for, among other things, a ratification payment to be paid over a one-year term, increased medical cost sharing, improved pay scales, and a one-time medical savings contribution to eligible flights attendants upon retirement. During the twelve months ended December 31, 2021, the Company recorded a $23.5 million ratification bonus, of which $20.2 million was related to service prior to January 1, 2020, and was recorded as a Special item in the Consolidated Statements of Operations. The remaining $3.3 million was recorded as a component of Wages and benefits in the Consolidated Statements of Operations. (3) As discussed in Note 1, the Company recognized a goodwill impairment charge of $106.7 million during the twelve months ended December 31, 2020. (4) As discussed in Note 1, the Company recognized an impairment of long-lived assets of $39.4 million during the twelve months ended December 31, 2020. (5) During the third quarter of 2020, the Company announced and completed voluntary separation program offerings across each of its labor groups. In addition to separation payments, the Company offered its employees, based on labor group, age, and years of service, special termination benefits in the form of retiree healthcare benefits as discussed below. The election and revocation windows for these programs closed during the quarter. Additionally, the Company announced involuntary separations and temporary leave programs, the majority of which were effective October 1, 2020. Combined, the separation and temporary leave programs represented a reduction of approximately 32% of the Company's workforce. The Company recorded $17.8 million during the twelve months ended December 31, 2020 related to the workforce reduction and separation programs. (6) During the twelve months ended December 31, 2020, the Company recorded $5.7 million in special termination benefits and curtailment losses related to the Company's pension and other postretirement benefit plans in connection with its voluntary separation programs. See Note 13 for additional information. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Benefit Plans Hawaiian sponsors a defined benefit pension plan covering the ALPA and prior to August 2017, sponsored the defined benefit pension plans for the International Association of Machinists and Aerospace Workers (AFL-CIO) (IAM) and other personnel (salaried, Transport Workers Union, Network Engineering Group). The plans for the IAM and other employees were frozen in September 1993. Effective January 1, 2008, benefit accruals for pilots under age 50 as of July 1, 2005 were frozen (with the exception of certain pilots who were both age 50 and older and participants of the plan on July 1, 2005) and Hawaiian began making contributions to an alternate defined contribution retirement program for its pilots. All of the pilots' accrued benefits under their defined benefit plan at the date of the freeze were preserved. In addition, Hawaiian sponsors four unfunded defined benefit postretirement medical and life insurance plans and a separate plan to administer the pilots' disability benefits. In 2016, the Hawaiian Airlines, Inc. Pension Plan for Salaried Employees (Salaried Plan) was consolidated into the Hawaiian Airlines, Inc. Pension Plan for Employees Represented by the International Association of Machinists (IAM), which established a merged plan (the Merged Plan). At that time, the net liabilities of the Salaried Plan were transferred to the Merged Plan. In 2017, the Company completed the termination of the plan by transferring the assets and liabilities to a third-party insurance company. The Company no longer has any expected contributions to the Merged Plan due to the final settlement. The following tables summarize changes to projected benefit obligations, plan assets, funded status and applicable amounts included in the Consolidated Balance Sheets: 2021 2020 Pension Other Pension Other (in thousands) Change in projected benefit obligations Benefit obligations, beginning of year $ (474,750) $ (171,480) $ (444,896) $ (147,286) Service cost — (11,744) (12) (10,791) Interest cost (12,216) (4,769) (14,639) (5,167) Actuarial gains (losses) 9,738 16,623 (39,039) (4,608) Benefits paid 24,603 5,641 23,836 5,785 Less: federal subsidy on benefits paid N/A — N/A — Plan amendments — — — (3,260) Special/contractual termination benefits — — — (5,258) Curtailments — — — (895) Benefit obligation at end of year (a) $ (452,625) $ (165,729) $ (474,750) $ (171,480) Change in plan assets Fair value of assets, beginning of year $ 382,846 $ 38,710 $ 351,821 $ 32,545 Actual return on plan assets 46,297 3,357 54,081 3,870 Employer contribution — 4,008 780 8,080 Benefits paid (23,777) (1,443) (23,836) (5,785) Fair value of assets at end of year $ 405,366 $ 44,632 $ 382,846 $ 38,710 Unfunded status at December 31 $ (47,259) $ (121,097) $ (91,904) $ (132,770) Amounts recognized in the statement of financial position consist of: Current benefit liability $ (800) $ (6,739) $ (793) $ (6,144) Noncurrent benefit liability (46,459) (114,358) (91,111) (126,626) $ (47,259) $ (121,097) $ (91,904) $ (132,770) Amounts recognized in accumulated other comprehensive loss Unamortized actuarial loss (gain) $ 94,537 $ (16,161) $ 131,653 $ 1,790 Prior service cost (credit) — 3,690 — 4,060 $ 94,537 $ (12,471) $ 131,653 $ 5,850 _______________________________________________________________________________ (a) The accumulated pension benefit obligation as of December 31, 2021 and 2020 was $452.6 million and $474.8 million, respectively. The following table sets forth the net periodic benefit cost: 2021 2020 2019 Pension Other Pension Other Pension Other (in thousands) Components of Net Periodic Benefit Cost Service cost $ — $ 11,744 $ 12 $ 10,791 $ 175 $ 8,255 Other cost: Interest cost 12,216 4,769 14,639 5,167 16,910 5,472 Expected return on plan assets (23,327) (1,785) (23,418) (1,746) (20,519) (1,421) Recognized net actuarial loss (gain) 4,407 (212) 4,091 (43) 4,103 (902) Prior service cost (credit) — 370 — 288 — 225 Total other components of the net periodic benefit cost $ (6,704) $ 3,142 $ (4,688) $ 3,666 $ 494 $ 3,374 Special/contractual termination benefits — — — 5,258 — — Curtailment loss — — — 424 — — Net periodic benefit cost $ (6,704) $ 14,886 $ (4,676) $ 20,139 $ 669 $ 11,629 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss Current year actuarial (gain) loss $ (32,709) $ (16,989) $ 8,376 $ 3,409 $ 6,907 $ 13,041 Current year prior service cost — — — 3,260 — — Amortization of actuarial gain (loss) (4,407) 212 (4,091) 43 (4,103) 902 Amortization of prior service credit (cost) — (370) — (712) — (225) Settlement and curtailment loss — — — — — — Total recognized in other comprehensive loss $ (37,116) $ (17,147) $ 4,285 $ 6,000 $ 2,804 $ 13,718 Total recognized in net periodic benefit cost and other comprehensive loss $ (43,820) $ (2,261) $ (391) $ 26,139 $ 3,473 $ 25,347 Service costs are recorded within Wages and benefits in the Consolidated Statements of Operations. Total other components of the net periodic benefit cost are recorded within the Nonoperating income (expense), other line item in the Consolidated Statements of Operations. During the twelve months ended December 31, 2021 and 2020, the Company was not required to and did not make cash contributions to its defined benefit and other post-retirement plans. The weighted average actuarial assumptions used to determine the net periodic benefit expense and the projected benefit obligation were as follows: Pension Postretirement Disability 2021 2020 2021 2020 2021 2020 Discount rate to determine net periodic benefit expense 2.63 % 3.38 % 2.62 % 2.89 % 2.67 % 3.18 % Discount rate to determine projected benefit obligation 2.98 % 2.63 % 2.99 % 2.62 % 3.03 % 2.67 % Expected return on plan assets 6.29 % ** 6.76 % N/A N/A 4.28 % ** 4.90 % Rate of compensation increase Various * Various * N/A N/A Various * Various * Health care trend rate to determine net periodic benefit expense N/A N/A 6.50 % 6.50 % N/A N/A Ultimate trend rate N/A N/A 4.75 % 4.75 % N/A N/A Years to reach ultimate trend rate N/A N/A 6 7 N/A N/A Health care trend rate to determine projected benefit obligation N/A N/A 6.25 % 6.50 % N/A N/A Ultimate trend rate N/A N/A 4.75 % 4.75 % N/A N/A Years to reach ultimate trend rate N/A N/A 6 6 N/A N/A _______________________________________________________________________________ * Differs for each pilot based on current fleet and seat position on the aircraft and seniority service. Negotiated salary increases and expected changes in fleet and seat positions on the aircraft are included in the assumed rate of compensation increase, which ranged from 2.0% to 7.3% in both 2021 and 2020). ** Expected return on plan assets used to determine the net periodic benefit expense for 2022 is 6.06% for Pension and 4.35% for Disability. Estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2022 are as follows: Pension Other (in thousands) Actuarial (gain) loss $ 2,596 $ (468) Amortization of prior service cost — 370 To be recognized in net periodic benefit cost from accumulated other comprehensive (gain) loss $ 2,596 $ (98) Plan Assets The Company develops the expected long-term rate of return assumption based on historical experience and by evaluating input from the trustee managing the plan's assets, including the trustee's review of asset class return expectations by several consultants and economists, as well as long-term inflation assumptions. The Company's expected long-term rate of return on plan assets is based on a target allocation of assets, which is based on the goal of earning the highest rate of return while maintaining risk at acceptable levels. The Retirement Plan for Pilots of Hawaiian Airlines, Inc. and the Pilot's Voluntary Employee Beneficiary Association Disability and Survivor's Benefit Plan (VEBA) strive to have assets sufficiently diversified so that adverse or unexpected results from any one security class will not have an unduly detrimental impact on the entire portfolio. Prior to termination, the Merged Plan targeted to have its assets align with the potential liability as of the expected settlement date. The actual allocation of the Company's pension and disability plan assets and the target allocation of assets by category at December 31, 2021 are as follows: Asset Allocation for Pilots pension and VEBA Plans 2021 Target Equity securities 56 % 60 % Fixed income securities 40 % 35 % Real estate investment trusts 4 % 5 % 100 % 100 % The table below presents the fair value of the Company's pension plan and other postretirement plan investments (excluding cash and receivables): Fair Value Measurements as of December 31, 2021 2020 (in thousands) Pension Plan Assets: Equity index funds $ 226,291 $ 227,357 Fixed income funds 158,334 134,074 Real estate investment fund 18,614 19,286 Insurance company pooled separate account 2,127 2,132 Total $ 405,366 $ 382,849 Postretirement Assets: Common collective trust fund $ 44,509 $ 38,579 Money market fund 123 131 $ 44,632 $ 38,710 The fair value of each of the investments in the table above has been estimated using the net asset value per share, and in accordance with subtopic ASC 820-10, Fair Value Measurement and Disclosures , is not required to be presented in the fair value hierarchy. Equity index funds. The investment objective of these funds is to obtain a reasonable rate of return while investing principally or entirely in foreign or domestic equity securities. There are currently no redemption restrictions on these investments. Fixed income funds. The investment objective of these funds is to obtain a reasonable rate of return while principally investing in foreign and domestic bonds, mortgage-backed securities, and asset-backed securities. There are currently no redemption restrictions on these investments. Real estate investment fund. The investment objective of this fund is to obtain a reasonable rate of return while principally investing in real estate investment trusts. There are currently no redemption restrictions on these investments. Insurance Company Pooled Separate Account. The investment objective of the Insurance Company Pooled Separate Account is to invest in short-term cash equivalent securities to provide a high current income consistent with the preservation of principal and liquidity. Common collective trust (CCT). The postretirement plan's CCT investment consists of a balanced profile fund and a conservative profile fund. These funds primarily invest in mutual funds and exchange-traded funds. The balanced profile fund is designed for participating trusts that seek substantial capital growth, place modest emphasis on short-term stability, have long-term investment objectives, and accept short-term volatility in the value of the fund's portfolio. The conservative profile fund is designed for participating trusts that place modest emphasis on capital growth, place moderate emphasis on short-term stability, have intermediate-to-long-term investment objectives, and accept moderate short-term volatility in the value of the fund's portfolio. There are currently no redemption restrictions on these investments. Based on current legislation and assumptions, the Company does not expect to have a minimum contribution requirement for 2022 as sufficient funding balance exists to cover all funding requirements in 2022. The Company projects that Hawaiian's pension plans and other postretirement benefit plans will make the following benefit payments, which reflect expected future service, during the years ending December 31: Other Benefits Pension Gross Expected (in thousands) 2022 $ 26,158 $ 8,400 $ — 2023 27,004 8,391 — 2024 27,477 8,819 — 2025 27,685 9,187 — 2026 27,777 9,792 — 2027 - 2031 136,006 52,565 — $ 272,107 $ 97,154 $ — Defined Contribution Plans The Company also sponsors separate defined contribution plans for its pilots, flight attendants and ground personnel, and salaried personnel. Contributions to the Company's defined contribution plans were $47.3 million, $43.6 million and $46.7 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Capital Stock and Share-based C
Capital Stock and Share-based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Capital Stock and Share-based Compensation | Capital Stock and Share-based Compensation Common Stock The Company has one class of common stock issued and outstanding. Each share of common stock is entitled to one vote per share. Special Preferred Stock The IAM, AFA, and ALPA each hold one share of Special Preferred Stock, which entitles each union to nominate one director to the Company's Board of Directors. In addition, each series of the Special Preferred Stock, unless otherwise specified: (i) ranks senior to the Company's common stock and ranks pari passu with each other series of Special Preferred Stock with respect to liquidation, dissolution and winding up of the Company and will be entitled to receive $0.01 per share before any payments are made, or assets distributed to holders of any stock ranking junior to the Special Preferred Stock; (ii) has no dividend rights unless a dividend is declared and paid on the Company's common stock, in which case the Special Preferred Stock would be entitled to receive a dividend in an amount per share equal to two times the dividend per share paid on the common stock; (iii) is entitled to one vote per share of such series and votes with the common stock as a single class on all matters submitted to holders of the Company's common stock; and (iv) automatically converts into the Company's common stock on a 1:1 basis, at such time as such shares are transferred or such holders are no longer entitled to nominate a representative to the Company's Board of Directors pursuant to their respective collective bargaining agreements. Dividends The Company's receipt of financial assistance under federal Payroll Support Programs precludes the Company from making any further dividend payments until September 30, 2022. Prior to the suspension of dividend payments, the Company paid cash dividends of $5.5 million and $22.8 million during the years ended December 31, 2020 and 2019, respectively. Stock Repurchase Program In November 2018, the Company's Board of Directors approved the repurchase of up to $100 million of its outstanding common stock over a two-year period through December 2020. On March 18, 2020, the Company announced the suspension of its stock repurchase program and pursuant to its receipt of financial assistance under federal Payroll Support Programs, it is restricted from making any stock repurchases until September 30, 2022. The Company had no stock repurchase activity during the twelve months ended December 31, 2021. Prior to the suspension of its stock repurchase program, the Company spent $7.5 million and $68.8 million to repurchase approximately 0.3 million shares and 2.5 million shares of the Company's common stock in open market transactions for the years ended December 31, 2020 and 2019, respectively. At-the-Market Offering Program On December 1, 2020, the Company entered into the Equity Distribution Agreement with the Managers relating to the issuance and sale from time to time by the Company through the Managers, of up to 5,000,000 shares of the Company's common stock, par value $0.01 per share. Sales of the shares, if any, under the Equity Distribution Agreement may be made in any transactions that are deemed to be "at-the-market" offerings as defined in Rule 415 under the Securities Act of 1933, as amended. Under the terms of the Equity Distribution Agreement, the Company will set the parameters for the sale of the shares, including the number of the shares to be issued, the time period during which sales are requested to be made, limitation on the number of the shares that may be sold in any one trading day and any minimum price below which sales may not be made. During the twelve months ended December 31, 2021, we sold 2.9 million shares pursuant to the Equity Distribution Agreement at an average price of $24.47 per share, with net proceeds totaling approximately $68.1 million. On March 5, 2021, the Company completed the sale of the 5.0 million shares authorized under the Equity Distribution Agreement at an average price of $22.46 per share, with total net proceeds of approximately $109.3 million. Share-Based Compensation Total share-based compensation expense recognized by the Company under ASC 718 was $8.6 million, $4.9 million and $8.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. As of December 31, 2021, $6.5 million of share-based compensation expense related to unvested RSU (inclusive of $0.5 million for RSU granted to non-employee directors) attributable to future performance and has not yet been recognized. The related expense will be recognized over a weighted average period of approximately 1.5 years. Performance-Based RSU During 2021, the Company granted performance-based RSU covering 141,473 shares of common stock (the Target Award) with a maximum payout of 212,210 shares of common stock (the Maximum Award) to employees pursuant to the Company's 2015 Stock Incentive Plan. These awards vest over a three year period. The performance-based RSU include a market condition and were valued using a binomial-lattice model (i.e. Monte Carlo simulation model). The Monte Carlo Simulation model required key assumptions: including the (a) expected volatility of the Company's common stock, (b) expected life of the RSU, (c) risk-free interest rate, and (d) dividend yield. The Company valued the award at $3.0 million, which will be recognized as stock-based compensation expense over the vesting period. The effect of market conditions is considered in determining the grant date fair value, which is not subsequently revised based on actual performance. During 2020 and 2019, the Company granted performance-based stock awards without a market condition, covering 204,589 and 114,858 shares, respectively, of common stock (the Target Award) with a maximum payout of 406,916 and 229,716 shares, respectively of common stock (the Maximum Award) to employees pursuant to the Company's 2015 Stock Incentive Plan. These awards vest over a three year period. The Company valued the performance-based stock awards using grant date fair values equal to the Company's share price on the measurement date. The following table summarizes information about performance-based stock awards: Number of units Weighted Non-vested at January 1, 2019 261,852 $ 33.01 Granted 114,858 31.74 Vested (56,641) 36.45 Forfeited (18,486) 34.32 Non-vested at December 31, 2019 301,583 $ 33.40 Granted 216,369 25.71 Vested (61,073) 43.62 Forfeited (14,926) 33.00 Non-vested at December 31, 2020 441,953 $ 30.98 Granted 141,473 21.52 Vested (67,695) 37.20 Forfeited (70,108) 39.09 Non-vested at December 31, 2021 445,623 $ 25.76 The fair value of performance-based RSU vested in the years ended December 31, 2021, 2020 and 2019 was $1.9 million, $1.7 million and $1.7 million, respectively. Service-Based RSU During 2021, the Company awarded 270,282 service-based RSU to employees and non-employee directors, pursuant to the Company's 2015 Stock Incentive Plan. These stock awards vest over one two The following table summarizes information about outstanding service-based RSU: Number of units Weighted Non-vested at January 1, 2019 142,951 $ 38.77 Granted 176,326 29.01 Vested (75,638) 38.39 Forfeited (10,357) 31.00 Non-vested at December 31, 2019 233,282 $ 31.80 Granted 353,538 19.71 Vested (129,297) 29.20 Forfeited (9,692) 27.18 Non-vested at December 31, 2020 447,831 $ 23.09 Granted 270,282 21.65 Vested (248,432) 21.75 Forfeited (12,313) 20.12 Non-vested at December 31, 2021 457,368 $ 23.09 The fair value of service-based RSU vested in 2021, 2020, and 2019 was $5.4 million, $2.8 million and $2.2 million, respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Commitments The Company has commitments with a third-party to provide aircraft maintenance services which include fixed payments as well as variable payments based on flight hours for the Company's Airbus fleet through 2027. The Company also has commitments with third-party service providers for reservations, IT, and accounting services through 2033. Committed capital and other expenditures include escalation and variable amounts based on estimated forecasts. The gross committed expenditures for upcoming aircraft deliveries and other commitments for the next five years and thereafter are detailed below: Aircraft and aircraft related Other Total Committed (in thousands) 2022 $ 92,402 $ 28,068 $ 120,470 2023 418,196 27,959 446,155 2024 503,272 26,392 529,664 2025 410,957 17,903 428,860 2026 233,822 13,532 247,354 Thereafter — 26,975 26,975 $ 1,658,649 $ 140,829 $ 1,799,478 As of December 31, 2021, the Company had the following capital commitments consisting of firm aircraft and engine orders and purchase rights: Aircraft Type Firm Purchase Expected Delivery Dates A321neo aircraft — 9 N/A B787-9 aircraft 10 10 Between 2023 and 2026 General Electric GEnx spare engines: B787-9 spare engines 2 2 Between 2023 and 2025 Boeing 787-9 Purchase Agreement In July 2018, the Company entered into a purchase agreement for the purchase of ten Boeing 787-9 "Dreamliner" aircraft with purchase rights for an additional 10 aircraft with scheduled delivery from 2021 to 2025. In October 2018, the Company entered into a definitive agreement for the selection of GEnx engines to power its Boeing 787-9 fleet. The agreement provides for the purchase of 20 GEnx engines, the right to purchase an additional 20 GEnx engines and the purchase of up to four spare engines. In October 2020, the Company entered into an amendment related to its Boeing 787-9 purchase agreement referenced above, which, amongst other things, provides for a change in the Company's aircraft delivery schedule to between 2022 and 2026. The committed expenditures under the amended agreement is reflected in the table above. In December 2021, the Company received notification of further delivery delays, and we have agreed to defer delivery of the first two aircraft from the scheduled delivery at the end of 2022 to the first half of 2023. The remainder of the B787-9 delivery schedule has not changed and all such commitments are reflected in the tables above. In order to complete the purchase of these aircraft and fund related costs, the Company may need to secure acceptable financing. The Company has backstop financing available from aircraft and engine manufacturers, subject to certain customary conditions. Financing may be necessary to satisfy the Company's capital commitments for firm order aircraft and other related capital expenditures. The Company can provide no assurance that any financing not already in place for aircraft and spare engine deliveries will be available to us on acceptable terms when necessary or at all. Litigation and Contingencies The Company is subject to legal proceedings arising in the normal course of its operations. Management does not anticipate that the disposition of any currently pending proceeding will have a material effect on the Company's operations, business or financial condition. General Guarantees and Indemnifications In the normal course of business, the Company enters into numerous aircraft financing and real estate leasing arrangements that have various guarantees included in such contracts. It is common in such lease transactions for the lessee to agree to indemnify the lessor and other related third-parties for tort liabilities that arise out of, or relate to, the lessee's use of the leased aircraft or occupancy of the leased premises. In some cases, this indemnity extends to related liabilities arising from the negligence of the indemnified parties, but usually excludes any liabilities caused by such parties' gross negligence or willful misconduct. Additionally, the lessee typically indemnifies such parties for any environmental liability that arises out of or relates to the lessee's use of the real estate leased premises. The Company believes that it is insured (subject to deductibles) for most of the tort liabilities and related indemnities described above with respect to the aircraft and real estate that it leases. The Company cannot reasonably estimate the potential amount of future payments, if any, under the foregoing indemnities and agreements. Credit Card Holdback Under the Company's bank-issued credit card processing agreements, certain proceeds from advance ticket sales may be held back to serve as collateral to cover any possible chargebacks or other disputed charges that may occur. As of December 31, 2021 and 2020, there were no holdbacks held with the Company's credit card processors. In the event of a material adverse change in the Company's business, the credit card processor could increase holdbacks to up to 100% of the amount of outstanding credit card tickets that are unflown (e.g., Air traffic liability, excluding frequent flyer deferred revenue), which would result in a restriction of cash. If the Company were unable to obtain a waiver of, or otherwise mitigate the increase in the restriction of cash, it could have a material impact on the Company's operations, business or financial condition. Labor Negotiations |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental disclosures of cash flow information and non-cash investing and financing activities were as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Cash payments for interest (net of amounts capitalized) $ 91,927 $ 23,951 $ 20,346 Cash payments (refunds) for income taxes (23,123) (81,372) 25,809 Investing and Financing Activities Not Affecting Cash: Property and equipment acquired through a finance lease 8,121 939 6,567 Right-of-use assets acquired under operating leases — 75,667 74,529 |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Condensed Consolidating Financial InformationThe following condensed consolidating financial information is presented in accordance with Regulation S-X paragraph 210.3-10 because, in connection with the issuance by two pass-through trusts formed by Hawaiian (which is also referred to in this Note 17 as Subsidiary Issuer / Guarantor) of pass-through certificates, as discussed in Note 8, the Company (which is also referred to in this Note 17 as Parent Issuer / Guarantor), is fully and unconditionally guaranteeing the payment obligations of Hawaiian, which is a 100% owned subsidiary of the Company, under equipment notes to be issued by Hawaiian to purchase new aircraft. Condensed consolidating financial statements are presented in the following tables: Condensed Consolidating Statements of Operations and Comprehensive Loss Year Ended December 31, 2021 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 1,593,058 $ 34,850 $ (31,324) $ 1,596,584 Operating Expenses: Aircraft fuel, including taxes and delivery — 363,003 — — 363,003 Wages and benefits — 698,101 — — 698,101 Aircraft rent — 109,476 — — 109,476 Maintenance materials and repairs — 169,977 71 — 170,048 Aircraft and passenger servicing — 105,675 — — 105,675 Commissions and other selling 8 71,171 1,533 (200) 72,512 Depreciation and amortization — 136,752 1,547 — 138,299 Other rentals and landing fees — 116,893 — (121) 116,772 Purchased services 2,033 103,749 2,053 (4,622) 103,213 Special items — 4,648 4,335 — 8,983 Government grant recognition — (320,645) — — (320,645) Other 6,289 131,842 1,961 (26,381) 113,711 Total 8,330 1,690,642 11,500 (31,324) 1,679,148 Operating Income (Loss) (8,330) (97,584) 23,350 — (82,564) Nonoperating Income (Expense): Undistributed net loss of subsidiaries (136,478) (39,344) — 175,822 — Interest expense and amortization of debt discounts and issuance costs — (46,329) (66,815) 2,713 (110,431) Interest income 35 8,555 2,726 (2,713) 8,603 Capitalized interest — 3,357 — — 3,357 Other components of net periodic benefit cost — 3,566 — — 3,566 Gains on fuel derivatives — 217 — — 217 Loss on debt extinguishment — (38,889) — — (38,889) Other, net — 30,818 — — 30,818 Total (136,443) (78,049) (64,089) 175,822 (102,759) Loss Before Income Taxes (144,773) (175,633) (40,739) 175,822 (185,323) Income tax benefit — (40,550) — — (40,550) Net Loss $ (144,773) $ (135,083) $ (40,739) $ 175,822 $ (144,773) Comprehensive Loss $ (112,084) $ (102,394) $ (40,739) $ 143,133 $ (112,084) Condensed Consolidating Statements of Operations and Comprehensive Loss Year Ended December 31, 2020 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 843,197 $ 14,268 $ (12,652) $ 844,813 Operating Expenses: Aircraft fuel, including taxes and delivery — 161,363 — — 161,363 Wages and benefits — 628,558 — — 628,558 Aircraft rent — 103,898 (8) — 103,890 Maintenance materials and repairs — 117,210 5,638 (1,277) 121,571 Aircraft and passenger servicing — 58,016 — — 58,016 Commissions and other selling (6) 46,262 97 (56) 46,297 Depreciation and amortization — 145,712 5,953 — 151,665 Other rentals and landing fees — 73,894 27 (113) 73,808 Purchased services 1,361 107,776 1,102 (11,189) 99,050 Special items — 148,355 35,756 — 184,111 Government grant recognition — (240,648) — — (240,648) Other 6,007 96,844 1,909 (17) 104,743 Total 7,362 1,447,240 50,474 (12,652) 1,492,424 Operating Loss (7,362) (604,043) (36,206) — (647,611) Nonoperating Income (Expense): Undistributed net loss of subsidiaries (505,131) — — 505,131 — Other nonoperating special items — (5,682) — — (5,682) Interest expense and amortization of debt discounts and issuance costs — (40,439) — — (40,439) Interest income 15 8,716 — — 8,731 Capitalized interest — 3,236 — — 3,236 Other components of net periodic benefit cost — 1,300 — — 1,300 Losses on fuel derivatives — (6,930) — — (6,930) Other, net — (12,652) (5) — (12,657) Total (505,116) (52,451) (5) 505,131 (52,441) Loss Before Income Taxes (512,478) (656,494) (36,211) 505,131 (700,052) Income tax benefit (1,543) (179,970) (7,604) — (189,117) Net Loss $ (510,935) $ (476,524) $ (28,607) $ 505,131 $ (510,935) Comprehensive Loss $ (521,579) $ (487,168) $ (28,607) $ 515,775 $ (521,579) Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Year Ended December 31, 2019 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 2,830,133 $ 12,202 $ (10,107) $ 2,832,228 Operating Expenses: Aircraft fuel, including taxes and delivery — 542,573 — — 542,573 Wages and benefits — 723,656 — — 723,656 Aircraft rent — 118,380 524 — 118,904 Maintenance materials and repairs — 238,198 12,207 (633) 249,772 Aircraft and passenger servicing — 164,275 — — 164,275 Commissions and other selling 11 130,226 138 (159) 130,216 Depreciation and amortization — 151,337 7,569 — 158,906 Other rentals and landing fees — 129,642 27 (47) 129,622 Purchased services 284 139,145 1,201 (9,063) 131,567 Other 5,991 147,378 2,096 (205) 155,260 Total 6,286 2,484,810 23,762 (10,107) 2,504,751 Operating Income (Loss) (6,286) 345,323 (11,560) — 327,477 Nonoperating Income (Expense): Undistributed net income of subsidiaries 228,934 — — (228,934) — Interest expense and amortization of debt discounts and issuance costs — (27,848) (16) — (27,864) Interest income 28 12,555 — — 12,583 Capitalized interest — 4,492 — — 4,492 Other components of net periodic benefit cost — (3,864) — — (3,864) Losses on fuel derivatives — (6,709) — — (6,709) Other, net (8) (1,104) (7) — (1,119) Total 228,954 (22,478) (23) (228,934) (22,481) Income (Loss) Before Income Taxes 222,668 322,845 (11,583) (228,934) 304,996 Income tax expense (benefit) (1,316) 84,760 (2,432) — 81,012 Net Income (Loss) $ 223,984 $ 238,085 $ (9,151) $ (228,934) $ 223,984 Comprehensive Income (Loss) $ 213,241 $ 227,342 $ (9,151) $ (218,191) $ 213,241 Condensed Consolidating Balance Sheets December 31, 2021 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated ASSETS (in thousands) Current assets: Cash and cash equivalents $ 20,803 $ 434,615 $ 35,143 $ — $ 490,561 Restricted cash — — 17,267 — 17,267 Short-term investments — 1,241,752 — — 1,241,752 Accounts receivable, net — 85,109 21,348 (13,569) 92,888 Income taxes receivable — 71,201 — — 71,201 Spare parts and supplies, net — 34,109 — — 34,109 Prepaid expenses and other 21 66,084 22 — 66,127 Total 20,824 1,932,870 73,780 (13,569) 2,013,905 Property and equipment at cost — 2,957,589 — — 2,957,589 Less accumulated depreciation and amortization — (999,966) — — (999,966) Property and equipment, net — 1,957,623 — — 1,957,623 Assets held for sale — 926 28,523 — 29,449 Operating lease right-of-use assets — 536,154 — — 536,154 Long-term prepayments and other 50 79,953 1,200,486 (1,200,000) 80,489 Goodwill and other intangible assets, net — 13,500 — 13,500 Intercompany receivable — 571,096 — (571,096) — Investment in consolidated subsidiaries 1,007,650 (26,344) 503 (981,809) — TOTAL ASSETS $ 1,028,524 $ 5,052,278 $ 1,316,792 $ (2,766,474) $ 4,631,120 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 422 $ 122,437 $ 2,398 $ (10,857) $ 114,400 Air traffic liability and current frequent flyer deferred revenue — 617,685 13,472 — 631,157 Other accrued liabilities — 153,423 14,339 (2,712) 165,050 Current maturities of long-term debt, less discount — 97,096 — — 97,096 Current maturities of finance lease obligations — 24,149 — — 24,149 Current maturities of operating leases — 79,158 — — 79,158 Total 422 1,093,948 30,209 (13,569) 1,111,010 Long-term debt — 1,724,631 1,179,667 (1,200,000) 1,704,298 Intercompany payable 459,016 — 112,080 (571,096) — Other liabilities and deferred credits: Noncurrent finance lease obligations — 100,995 — — 100,995 Noncurrent operating leases — 423,293 — — 423,293 Accumulated pension and other postretirement benefit obligations. — 160,817 — — 160,817 Other liabilities and deferred credits — 78,188 152 — 78,340 Noncurrent frequent flyer deferred revenue — 296,484 — — 296,484 Deferred tax liabilities, net — 186,797 — — 186,797 Total — 1,246,574 152 — 1,246,726 Shareholders' equity 569,086 987,125 (5,316) (981,809) 569,086 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,028,524 $ 5,052,278 $ 1,316,792 $ (2,766,474) $ 4,631,120 Condensed Consolidating Balance Sheets December 31, 2020 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated ASSETS (in thousands) Current assets: Cash and cash equivalents $ 24,088 $ 476,409 $ 9,142 $ — $ 509,639 Short-term investments — 354,782 — — 354,782 Accounts receivable, net — 67,831 424 (728) 67,527 Income taxes receivable — 95,002 — — 95,002 Spare parts and supplies, net — 35,442 — — 35,442 Prepaid expenses and other 21 56,046 19 — 56,086 Total 24,109 1,085,512 9,585 (728) 1,118,478 Property and equipment at cost — 2,916,850 62,699 — 2,979,549 Less accumulated depreciation and amortization — (865,952) (28,567) — (894,519) Property and equipment, net — 2,050,898 34,132 — 2,085,030 Operating lease right-of-use assets — 627,359 — — 627,359 Long-term prepayments and other 50 133,143 470 — 133,663 Goodwill and other intangible assets, net — 13,000 500 — 13,500 Intercompany receivable — 540,491 — (540,491) — Investment in consolidated subsidiaries 1,106,627 — 503 (1,107,130) — TOTAL ASSETS $ 1,130,786 $ 4,450,403 $ 45,190 $ (1,648,349) $ 3,978,030 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 720 $ 110,070 $ 1,940 $ (728) $ 112,002 Air traffic liability and current frequent flyer deferred revenue — 527,440 6,262 — 533,702 Other accrued liabilities — 139,878 203 — 140,081 Current maturities of long-term debt, less discount — 115,019 — — 115,019 Current maturities of finance lease obligations — 21,290 — — 21,290 Current maturities of operating leases — 82,454 — — 82,454 Total 720 996,151 8,405 (728) 1,004,548 Long-term debt — 1,034,805 — — 1,034,805 Intercompany payable 529,909 — 10,582 (540,491) — Other liabilities and deferred credits: Noncurrent finance lease obligations — 120,618 — — 120,618 Noncurrent operating leases — 503,376 — — 503,376 Accumulated pension and other postretirement benefit obligations. — 217,737 — — 217,737 Other liabilities and deferred credits — 77,803 1,105 — 78,908 Noncurrent frequent flyer deferred revenue — 201,239 — — 201,239 Deferred tax liabilities, net — 216,642 — — 216,642 Total — 1,337,415 1,105 — 1,338,520 Shareholders' equity 600,157 1,082,032 25,098 (1,107,130) 600,157 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,130,786 $ 4,450,403 $ 45,190 $ (1,648,349) $ 3,978,030 Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2021 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities: $ (7,489) $ 277,635 $ (18,808) $ — $ 251,338 Cash Flows From Investing Activities: Net payments to affiliates 2,725 1,179,100 (1,110,610) (71,215) — Additions to property and equipment, including pre-delivery deposits — (38,812) (452) — (39,264) Proceeds from disposition of property and equipment — 228 527 — 755 Purchases of investments — (1,856,035) — — (1,856,035) Sales of investments — 958,242 — — 958,242 Net cash provided by (used in) investing activities 2,725 242,723 (1,110,535) (71,215) (936,302) Cash Flows From Financing Activities: Proceeds from the issuance of common stock 68,132 — — — 68,132 Long-term borrowings — 51,705 1,200,000 — 1,251,705 Repayments of long-term debt and finance lease obligations — (611,725) — — (611,725) Debt issuance costs — (112) (24,664) — (24,776) Net payments from affiliates (68,490) — (2,725) 71,215 — Other 1,837 (2,020) — — (183) Net cash provided by (used in) financing activities 1,479 (562,152) 1,172,611 71,215 683,153 Net increase (decrease) in cash and cash equivalents (3,285) (41,794) 43,268 — (1,811) Cash and cash equivalents—Beginning of Period 24,088 476,409 9,142 — 509,639 Cash and cash equivalents—End of Period $ 20,803 $ 434,615 $ 52,410 $ — $ 507,828 Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2020 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities: $ 2,722 $ (315,245) $ 1,815 $ — $ (310,708) Cash Flows From Investing Activities: Net payments to affiliates (5,900) 3,696 (766) 2,970 — Additions to property and equipment, including pre-delivery deposits — (98,611) (6,702) — (105,313) Proceeds from purchase assignment and leaseback transactions — 114,000 — — 114,000 Purchases of investments — (395,793) — — (395,793) Sales of investments — 288,336 — — 288,336 Net cash used in investing activities (5,900) (88,372) (7,468) 2,970 (98,770) Cash Flows From Financing Activities: Proceeds from the issuance of common stock 41,196 — — — 41,196 Long-term borrowings — 602,264 — — 602,264 Repayments of long-term debt and finance lease obligations — (78,824) — — (78,824) Dividend payments (5,514) — — — (5,514) Repurchases of common stock (7,510) — — — (7,510) Debt issuance costs — (4,975) — — (4,975) Net payments from affiliates (2,930) — 5,900 (2,970) — Other 796 (1,372) — — (576) Net cash provided by financing activities 26,038 517,093 5,900 (2,970) 546,061 Net increase in cash and cash equivalents 22,860 113,476 247 — 136,583 Cash, cash equivalents, and restricted cash—Beginning of Period 1,228 362,933 8,895 — 373,056 Cash and cash equivalents—End of Period $ 24,088 $ 476,409 $ 9,142 $ — $ 509,639 Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2019 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities: $ (1,635) $ 484,602 $ 2,173 $ — $ 485,140 Cash Flows From Investing Activities: Net payments to affiliates (3,611) (92,562) — 96,173 — Additions to property and equipment, including pre-delivery deposits — (392,695) (4,726) — (397,421) Net proceeds from disposition of equipment — 9,595 — — 9,595 Purchases of investments — (312,768) — — (312,768) Sales of investments — 301,662 — — 301,662 Other — (6,275) — — (6,275) Net cash used in investing activities (3,611) (493,043) (4,726) 96,173 (405,207) Cash Flows From Financing Activities: Long-term borrowings — 227,889 — — 227,889 Repayments of long-term debt and finance lease obligations — (109,122) (6) — (109,128) Dividend payments (22,774) — — — (22,774) Repurchases of common stock (68,769) — — — (68,769) Debt issuance costs — (1,623) — — (1,623) Net payments from affiliates 92,863 — 3,310 (96,173) — Other — (1,049) — — (1,049) Net cash provided by financing activities 1,320 116,095 3,304 (96,173) 24,546 Net increase (decrease) in cash and cash equivalents (3,926) 107,654 751 — 104,479 Cash, cash equivalents, and restricted cash—Beginning of Period 5,154 255,279 8,144 — 268,577 Cash, cash equivalents, and restricted cash—End of Period $ 1,228 $ 362,933 $ 8,895 $ — $ 373,056 Income Taxes The income tax expense (benefit) is presented as if each entity that is part of the consolidated group files a separate return. |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | Schedule II—Hawaiian Holdings, Inc. Valuation and Qualifying Accounts Years Ended December 31, 2021, 2020 and 2019 COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E Description Balance at Beginning of Year Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Year (in thousands) Allowance for Doubtful Accounts 2021 $ 2,096 317 — (1,569) (a) $ 844 2020 $ 651 5,004 — (3,559) (a) $ 2,096 2019 $ 54 1,371 — (774) (a) $ 651 Allowance for Obsolescence of Flight Equipment Expendable Parts and Supplies 2021 $ 17,977 3,213 (b) — (2,457) (c) $ 18,733 2020 $ 15,919 3,254 (b) — (1,196) (c) $ 17,977 2019 $ 22,588 3,830 (b) — (10,499) (c) $ 15,919 Valuation Allowance on Deferred Tax Assets 2021 $ 9,617 4,445 — — $ 14,062 2020 $ 2,547 7,070 — — $ 9,617 2019 $ 2,547 — — — $ 2,547 _______________________________________________________________________________ (a) Doubtful accounts written off, net of recoveries. (b) Obsolescence reserve for Hawaiian flight equipment expendable parts and supplies. (c) Spare parts and supplies written off against the allowance for obsolescence. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Hawaiian Holdings, Inc. (the Company, Holdings, we, us and our) and its direct wholly-owned subsidiary, Hawaiian Airlines, Inc. (Hawaiian), are incorporated in the State of Delaware. The Company's primary asset is its sole ownership of all issued and outstanding shares of common stock of Hawaiian. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including its principal subsidiary, Hawaiian, through which the Company conducts substantially all of its operations. All significant inter-company balances and transactions have been eliminated upon consolidation. |
Reclassifications | The Company reclassified certain prior period amounts to conform to current period presentation. Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Highly liquid investments with a maturity of three months or less at the date of purchase are classified as cash and cash equivalents. |
Short Term Investments | Short Term Investments Debt and equity securities and other investments measured at net asset value are classified as available-for-sale and are stated at fair value. Realized gains and losses are recorded using the specific identification method and reflected in Other, net within nonoperating income (expense) in the Consolidated statements of operations. Unrealized gains and losses on available-for-sale securities are reflected as a component of accumulated other comprehensive income (loss). |
Spare Parts and Supplies | Spare Parts and Supplies Spare parts and supplies are valued at average cost, and primarily consist of expendable parts for flight equipment and other supplies. An allowance for obsolescence of expendable parts is provided over the estimated useful lives of the related aircraft and engines for spare parts expected to be on hand at the date the aircraft are retired from service. These allowances are based on management's estimates and are subject to change. |
Property, Equipment and Depreciation | Property, Equipment and Depreciation Property and equipment are stated at cost and depreciated on a straight-line basis to their estimated residual values over the asset's estimated useful life. Depreciation begins when the asset is placed into service. Aircraft and related parts begin depreciating on the aircraft's first revenue flight. The following table summarizes the Company's property and equipment: 2021 2020 (in thousands) Flight equipment $ 2,482,686 $ 2,526,440 Pre-delivery deposits on flight equipment 83,034 75,089 Other property and equipment 391,869 378,020 2,957,589 2,979,549 Less accumulated depreciation and amortization (999,966) (894,519) Total property and equipment, net 1,957,623 2,085,030 Estimated useful lives and residual values of property and equipment are as follows: Boeing 717-200 aircraft and engines 15-16 years, 5 - 34% residual value Airbus A330-200 aircraft and engines 25 years, 10% residual value Airbus A321neo aircraft and engines 25 years, 10% residual value Flight and ground equipment under finance lease Shorter of lease term or useful life Major rotable parts Average lease term or useful life for related aircraft, 10% - 15% residual value Improvements to leased flight equipment and the cargo maintenance hangar Shorter of lease term or useful life Facility leasehold improvements Shorter of lease term, including assumed lease renewals when renewal is economically compelled at key airports, or useful life Furniture, fixtures and other equipment 3 - 7 years, no residual value Capitalized software 3 - 7 years, no residual value Additions and modifications that significantly enhance the operating performance and/or extend the useful lives of property and equipment are capitalized and depreciated over the lesser of the remaining useful life of the asset or the remaining lease term, as applicable. Expenditures that do not improve or extend asset lives are charged to expense as incurred. Pre-delivery deposits are capitalized when paid. Aircraft under finance leases are recorded at an amount equal to the present value of minimum lease payments utilizing the Company's incremental borrowing rate at lease inception and amortized on a straight-line basis over the lesser of the remaining useful life of the aircraft or the lease term. The amortization is recorded in depreciation and amortization expense on the Consolidated Statement of Operations. Accumulated amortization of aircraft and other finance leases was $147.8 million and $124.3 million as of December 31, 2021 and 2020, respectively. |
Aircraft Maintenance and Repair Costs | Aircraft Maintenance and Repair Costs Maintenance and repair costs for owned and leased flight equipment, including the overhaul of aircraft components, are charged to operating expenses as incurred. Engine overhaul costs covered by power-by-the-hour arrangements are paid and expensed as incurred or expensed on a straight-line basis and are based on the amount of hours flown per contract. Under the terms of these power-by-the-hour agreements, the Company pays a set dollar amount per engine hour flown on a monthly basis and the third-party vendor assumes the obligation to repair the engines at no additional cost, subject to certain specified exclusions. As of December 31, 2021 and 2020, the Company had approximately $5.9 million and $56.3 million, respectively in prepayments to one of its power-by-the-hour vendors, which is recoverable over the next one year. Additionally, although the Company's aircraft lease agreements specifically provide that it is responsible for maintenance of the leased aircraft, the Company pays maintenance reserves to the aircraft lessors that are applied toward the cost of future maintenance events. These reserves are calculated based on a performance measure, such as flight hours, and are available for reimbursement to the Company upon the completion of the maintenance of the leased aircraft. However, reimbursements are limited to the available reserves associated with the specific maintenance activity for which the Company requests reimbursement. Under certain aircraft lease agreements, the lessor is entitled to retain excess amounts on deposit at the expiration of the lease, if any; whereas at the expiration of certain other existing aircraft lease agreements any such excess amounts are returned to the Company, provided that it has fulfilled all of its obligations under the lease agreements. The maintenance reserves paid under the lease agreements do not transfer either the obligation to maintain the aircraft or the cost risk associated with the maintenance activities to the aircraft lessor. In addition, the Company maintains the right to select any third-party maintenance provider. Maintenance reserve payments that are expected to be recovered from lessors are recorded as deposits in the Consolidated Balance Sheets as an asset until it is less than probable that any portion of the deposit is recoverable. In addition, payments of maintenance reserves that are not substantially and contractually related to the maintenance of the leased assets are accounted for as lease payments. In order to properly account for the costs that are related to the maintenance of the leased asset, the Company bifurcates its maintenance reserves between deposits and lease payments. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company has indefinite-lived intangible assets, including goodwill. Goodwill and indefinite-lived intangible assets are not amortized and the Company assesses the carrying value of goodwill and indefinite-lived intangible assets on an annual basis and, if certain events or circumstances indicate that an impairment loss may have been incurred, on an interim basis. The Company assesses the value of its goodwill and indefinite-lived assets under either a qualitative or quantitative approach. When the Company evaluates goodwill for impairment using a quantitative approach, it estimates the fair value of the reporting unit by considering the market capitalization. If the reporting unit's fair value exceeds its carrying value, no further testing is required. If, however, the reporting unit's carrying value exceeds its fair value, the Company then determines the amount of the impairment charge, if any. The Company recognizes an impairment charge if the carrying value of the reporting unit's goodwill exceeds its estimated fair value. During the first quarter of 2020, the adverse economic impact and declining passenger demand attributed to the COVID-19 pandemic drove the Company's stock price to 52-week lows and significantly reduced future cash flow projections. The Company qualitatively assessed that an impairment loss may have been incurred as of March 31, 2020 and performed an interim test of the recoverability of its goodwill and indefinite-lived intangible assets. The Company determined that the estimated fair value of the Company's one reporting unit was less than its carrying value and that the deficit between fair value and the carrying value of the reporting unit exceeded the amount of goodwill on the Company's Consolidated Balance Sheets, leading to the recognition of a goodwill impairment charge of $106.7 million in the first quarter of 2020. Fair value was determined using a combination of an income approach, which estimates fair value based upon projections of future revenues, expenses, and cash flows discounted to its present value, and a market approach. The valuation methodology and underlying financial information included in the Company's determination of fair value required significant judgments by management. The principal assumptions used in the Company's discounted cash flow analysis consisted of (a) the long-term projections of future financial performance and (b) the weighted-average cost of capital of market participants, adjusted for the risk attributable to the Company and the industry in which it operates. Under the market approach, the principal assumption included an estimate for a control premium. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets used in operations, consist principally of property and equipment and have a carrying value of approximately $2.0 billion at December 31, 2021. Long-lived assets are tested for impairment when events or changes in circumstances indicate, in management's judgment, that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amount. To determine whether impairment exists for aircraft used in operations, assets are grouped at the fleet-type level (the lowest level for which there are identifiable cash flows) and future cash flows are estimated based on projections of capacity, passenger mile yield, fuel costs, labor costs and other relevant factors. If, at any time, management determines the net carrying value of an asset is not recoverable, the amount is reduced to its fair value during the period in which such determination is made. Any changes in the estimated useful lives of these assets will be accounted for prospectively. During the year ended December 31, 2020, the Company recorded an impairment charge of $39.4 million related to its ATR-42 and ATR-72 fleet, assets held under its commercial real estate subsidiary, and software-related projects that were discontinued as a result of the COVID-19 pandemic. In 2021, the Company announced the termination of its 'Ohana by Hawaiian operations, which operated the ATR-42 and ATR-72 aircraft under a capacity purchase agreement with a third-party carrier. Following the termination of the operations, management committed to a plan of sale and wrote down the related assets by approximately $6.4 million to fair value, less cost to sell, and reclassified approximately $23.4 million as assets held for sale on the Consolidated Balance Sheets. The Company estimated the fair value of its ATR-42 and ATR-72 fleets using a third-party valuation and estimated the fair value of the assets held in its commercial real-estate subsidiary using a combination of a market and income-based approach, which estimates fair value based upon projections of future revenues, expenses, and cash flows discounted to its present value. The principal assumptions used in the Company's discounted cash flow analysis consisted of (a) the long-term projections of future financial performance and (b) the weighted-average cost of capital of market participants, adjusted for the risk attributable to the Company and the industry in which it operates. Additionally, in the second quarter of 2021, management committed to a plan to sell certain commercial real-estate assets held by one of the Company's subsidiaries. Management fair valued the assets, less the cost to sell, which did not result in a write-down to the asset group, and reclassified approximately $6.1 million as assets held for sale on the Consolidated Balance Sheets. The Company will continue to monitor the duration and extent of the impact of the COVID-19 pandemic on its business and will continue to evaluate its current fleet and other long-lived assets for impairment accordingly. |
Assets Held for Sale | Assets Held for Sale |
Revenue Recognition | Revenue Recognition The Company records direct passenger ticket sales and tickets sold by other airlines for use on Hawaiian as passenger revenue when the transportation is provided or upon scheduled flights for tickets expected to expire unused. The value of unused passenger tickets is included in current liabilities as Air traffic liability. Passenger revenue associated with unused tickets, which represent unexercised passenger rights, is recognized in proportion to the pattern of rights exercised by related passengers (e.g. scheduled departure dates). Prior to the second quarter of 2020, non-refundable tickets sold and credits issued generally expired 13 months from the date of issuance or flight, as applicable. In April 2020, the Company announced the waiver of certain change fees and extended ticket validity for up to 24 months for (a) tickets issued between March 1, 2020 and December 31, 2020 and (b) tickets issued prior to March 1, 2020 for original travel between March 1, 2020 and February 28, 2021. In December 2021, the Company announced the further extension of ticket validity for eligible tickets impacted by the COVID-19 pandemic, including all Main Cabin and First Class passenger tickets purchased in 2021, to December 31, 2022. The Company records an estimate of breakage revenue on the scheduled flight date for tickets that will expire unused. To calculate the portion to be recognized as revenue in the period, the Company utilizes historical information, available market information, forecasted trends, and the extension of the ticket validity date for those tickets impacted by COVID-19 and applies the estimated spoilage rate to passenger revenues for each specific period. During the year ended December 31, 2021, the Company recognized approximately $48.3 million in advanced ticket breakage. Given the impact of the COVID-19 pandemic on actual results along with reductions in operational capacity, the Company continues to monitor customers' travel behavior and may adjust its estimates in the future. Ticket change fees are recorded in Air traffic liability and recognized when the related transportation is provided. During the twelve months ended December 31, 2021, 2020 and 2019, the Company recognized approximately $4.8 million, $11.3 million and $28.2 million, respectively in ticket change fee revenue. Certain governmental taxes are imposed on the Company's ticket sales through a fee included in ticket prices. The Company collects these fees and remits them to the appropriate government agency. Management has elected (via a practical expedient election) to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer, e.g., sales, use, value added, and certain excise taxes. These fees have been presented on a net basis in the accompanying Consolidated Statements of Operations and recorded as a liability until remitted. |
Frequent Flyer Program | Frequent Flyer Program HawaiianMiles, Hawaiian's frequent flyer travel award program, provides a variety of awards to program members based on accumulated mileage. ASC 606 requires the Company to account for miles earned by passengers in the HawaiianMiles program through flight activity as a component of the passenger revenue ticket transaction at the estimated selling price of the miles. Ticket consideration received is allocated between the performance obligations, primarily travel and miles earned by passengers. The allocated value of the miles is deferred until the free travel is used by the passenger, at which time it is included in revenue. The value of the ticket used in the determination of the estimated selling price is based on the historical value of equivalent flights to those provided for loyalty awards and the related miles redeemed to obtain that award adjusted for breakage or fulfillment. The equivalent ticket value (ETV) includes a fulfillment discount (breakage) to reflect the value of the award ticket over the number of miles that, based on historical experience, will be needed to obtain the award. The Company's estimate of ETV takes into consideration quantitative and qualitative factors, such as program changes and fares of similar tickets, and consideration of cabin class and geographic region. The Company also sells mileage credits to companies participating in its frequent flyer program. These contracts generally include multiple performance obligations, including the transportation that will ultimately be provided when the mileage credits are redeemed and marketing and brand related activities. The marketing and brand performance obligations are effectively provided each time a HawaiianMiles members uses the co-branded credit card and monthly access to customers lists and marketing is provided, which corresponds to the timing of when the Company issues or is obligated to issue the mileage credits to the HawaiianMiles member. Therefore, the Company recognizes revenue for the marketing and brand performance obligation when HawaiianMiles members use their co-brand credit card and the resulting mileage credits are issued to them, which best correlates with the Company's performance in satisfying the obligation. In 2018, the Company amended its partnership with Barclaycard US, Hawaiian's co-branded credit card partner. Management determined that the amendment should be accounted for as a termination of the existing contract and the creation of a new contract under ASC 606 and the relative selling price was determined for each performance obligation of the new agreement. The new agreement continues through 2024 and includes improved economics and enhanced product offerings for the Company's co-branded cardholders. The amended agreement did not change, and includes the following performance obligations; (i) transportation that will ultimately be provided when mileage credits are redeemed (transportation), (ii) the Hawaiian Airlines brand and access to its members lists (collectively, brand performance), (iii) marketing, and (iv) airline benefits to cardholders, including discounts and anniversary travel benefits, baggage waivers and inflight purchase credits. The Company determined the relative fair value of each performance obligation by estimating the selling prices of the deliverables by considering discounted cash flows using multiple inputs and assumptions, including: (1) the expected number of miles to be awarded and redeemed; (2) the estimated weighted average equivalent ticket value, adjusted by a fulfillment discount; (3) the estimated total annual cardholder spend; (4) an estimated royalty rate for the Hawaiian portfolio; and (5) the expected use of each of the airline benefits. The overall consideration received is allocated to the performance obligations based on their relative selling prices. Accounting for frequent flyer revenue involves the use of various techniques to estimate revenue. To determine the total estimated transaction price, the Company forecasts future credit card activity based on historical data. The relative selling price is determined using management's estimated standalone selling price of each performance obligation. The objective of using the estimated selling price based methodology is to determine the price at which the Company would transact a sale if the product or service were sold on a standalone basis. Accordingly, the Company determines its best estimate of selling price by considering multiple inputs and methods including, but not limited to, discounted cash flows, brand value, number of miles awarded and number of miles redeemed. The Company estimates the selling price of miles using an ETV adjusted for a fulfillment discount as described above. In April 2021, the Company announced the elimination of its HawaiianMiles expiration policy, effective immediately. Prior to April 2021, miles expired after 18 months of member account inactivity. The Company reviews its breakage estimates, which impacts ETV and loyalty recognition patterns, annually based upon the latest available information regarding redemption and expiration patterns (e.g., credit card and non-credit card holders). The Company's estimate of the expected expiration of miles requires management judgment. Current and future changes to expiration assumptions or to the expiration policy, or to program rules and program could affect the estimated value of a mile. Due to the effects of the COVID-19 pandemic, including changes to the Company's ticket validity and exchange policies, management continues to monitor customers' travel behavior and may adjust its estimates in the future as additional information becomes available. |
Accounts Receivable | Accounts Receivable Accounts receivable primarily consist of amounts due from credit card companies, non-airline partners, and cargo transportation customers. The Company provides an allowance for uncollectible accounts equal to the estimated losses expected to be incurred based on historical chargebacks, write-offs, bankruptcies and other specific analyses. Bad debt expense was not material in any period presented. |
Pension and Postretirement and Postemployment Benefits | Pension and Postretirement and Postemployment Benefits The Company accounts for its defined benefit pension and other postretirement and postemployment plans in accordance with ASC 715, Compensation—Retirement Benefits (ASC 715), which requires companies to measure their plans' assets and obligations to determine the funded status at fiscal year-end, reflect the funded status in the statement of financial position as an asset or liability, and recognize changes in the funded status of the plans in comprehensive income during the year in which the changes occur. Pension and other postretirement and postemployment benefit expenses are recognized on an accrual basis over each employee's service periods. Pension expense is generally independent of funding decisions or requirements. The Company uses the corridor approach in the valuation of its defined benefit pension and other postretirement and postemployment plans. The corridor approach defers all actuarial gains and losses resulting from variances between actual results and actuarial assumptions. These unrecognized actuarial gains and losses are amortized when the net gains and losses exceed 10% of the greater of the market-related value of plan assets or the projected benefit obligation at the beginning of the year. The amount in excess of the corridor is amortized over the expected average remaining service period of active plan participants for the open plans and is amortized over the expected average remaining lifetime of inactive participants for plans whose population is "all or almost all" inactive. |
Advertising Costs | Advertising CostsAdvertising costs are expensed when incurred. |
Capitalized Interest | Capitalized Interest Interest is capitalized upon the payment of predelivery deposits for aircraft and engines, and is depreciated over the estimated useful life of the asset from service inception date. |
Share-Based Compensation | Share-Based Compensation The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The fair value of the awards is estimated using the following: (1) option-pricing models for grants of stock options or (2) fair value at the measurement date (usually the grant date) for restricted stock units (RSU) subject to service and / or performance-based vesting. The resulting cost is recognized as compensation expense over the period of time during which an employee is required to provide services to the Company (the service period) in exchange for the award, the service period generally being the vesting period of the award. The Company's policy is to recognize forfeitures as they occur. |
Financial Derivative Instruments | Financial Derivative Instruments The Company uses derivatives to manage risks associated with certain assets and liabilities arising from the potential adverse impact of fluctuations in global aircraft fuel prices, interest rates and foreign currency exchange rates. The following table summarizes the accounting treatment of the Company's derivative contracts: Derivative Type Accounting Designation Classification of Realized Classification of Unrealized Foreign currency exchange contracts Designated as cash flow hedges Passenger revenue AOCI Fuel hedge contracts Not designated as hedges Gains (losses) on fuel derivatives Change in fair value is recorded in nonoperating income (expense) Foreign currency exchange contracts Not designated as hedges Nonoperating income (expense), Other Change in fair value is recorded in nonoperating income (expense) |
Income Taxes | Income Taxes We account for deferred income taxes under the liability method. We recognize deferred tax assets and liabilities based on the tax effects of temporary differences between the financial statement and tax basis of assets and liabilities, as measured by enacted tax rates. Deferred tax assets and liabilities are net by jurisdiction and are recorded as noncurrent on the consolidated balance sheets. A valuation allowance is recorded to reduce deferred tax assets when necessary. We periodically assess whether it is more likely than not that we will generate sufficient taxable income to realize our deferred income tax assets. We establish valuation allowances if it is not likely we will realize our deferred income tax assets. In making this determination, we consider available positive and negative evidence and make certain assumptions. We consider, among other things, projected future taxable income, scheduled reversals of deferred tax liabilities, the overall business environment, our historical financial results and tax planning strategies, where applicable. See Note 10 of the Notes to the consolidated financial statements for additional discussion. The Company has recorded reserves for income taxes and associated interest that may become payable in future years. Although management believes that its positions taken on income tax matters are reasonable, the Company nevertheless has established tax and interest reserves in recognition that various taxing authorities may challenge certain of the positions taken by the Company, potentially resulting in additional liabilities for taxes and interest. The Company's uncertain tax position reserves are reviewed periodically and are adjusted as events occur that affect its estimates, such as the availability of new information, the lapsing of applicable statutes of limitation, the conclusion of tax audits, the measurement of additional estimated liability, the identification of new tax matters, the release of administrative tax guidance affecting its estimates of tax liabilities, or the rendering of relevant court decisions. The Company records penalties and interest relating to uncertain tax positions as part of income tax expense in its Consolidated Statements of Operations. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application of Topic 740. This guidance is effective for fiscal years beginning after December 15, 2020, including interim periods therein. The Company adopted ASU 2019-12 effective January 1, 2021 and its adoption did not have a material effect on the Company's consolidated financial statements. In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of property and equipment and estimated useful lives and residual values | The following table summarizes the Company's property and equipment: 2021 2020 (in thousands) Flight equipment $ 2,482,686 $ 2,526,440 Pre-delivery deposits on flight equipment 83,034 75,089 Other property and equipment 391,869 378,020 2,957,589 2,979,549 Less accumulated depreciation and amortization (999,966) (894,519) Total property and equipment, net 1,957,623 2,085,030 Estimated useful lives and residual values of property and equipment are as follows: Boeing 717-200 aircraft and engines 15-16 years, 5 - 34% residual value Airbus A330-200 aircraft and engines 25 years, 10% residual value Airbus A321neo aircraft and engines 25 years, 10% residual value Flight and ground equipment under finance lease Shorter of lease term or useful life Major rotable parts Average lease term or useful life for related aircraft, 10% - 15% residual value Improvements to leased flight equipment and the cargo maintenance hangar Shorter of lease term or useful life Facility leasehold improvements Shorter of lease term, including assumed lease renewals when renewal is economically compelled at key airports, or useful life Furniture, fixtures and other equipment 3 - 7 years, no residual value Capitalized software 3 - 7 years, no residual value |
Summary of accounting treatment of derivative contracts | The following table summarizes the accounting treatment of the Company's derivative contracts: Derivative Type Accounting Designation Classification of Realized Classification of Unrealized Foreign currency exchange contracts Designated as cash flow hedges Passenger revenue AOCI Fuel hedge contracts Not designated as hedges Gains (losses) on fuel derivatives Change in fair value is recorded in nonoperating income (expense) Foreign currency exchange contracts Not designated as hedges Nonoperating income (expense), Other Change in fair value is recorded in nonoperating income (expense) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Information related to amounts reclassified from AOCI | Reclassifications out of accumulated other comprehensive loss by component is as follows: Year ended December 31, Details about accumulated other comprehensive loss components 2021 2020 2019 Affected line items in the statement where net income is presented (in thousands) Derivatives designated as hedging instruments under ASC 815 Foreign currency derivative gains $ — $ (3,075) $ (5,307) Passenger revenue Foreign currency derivative gains — (3,945) — Nonoperating Income (Expense), Other, net Total before tax — (7,020) (5,307) Tax expense — 1,737 2,616 Total, net of tax $ — $ (5,283) $ (2,691) Amortization of defined benefit pension items Actuarial loss $ 4,195 $ 4,048 $ 3,201 Nonoperating Income (Expense), Other, net Prior service cost 370 712 225 Nonoperating Income (Expense), Other, net Special termination benefits — 5,258 — Other nonoperating special items Curtailment loss — 424 — Other nonoperating special items Total before tax 4,565 10,442 3,426 Tax benefit (1,103) (2,309) (902) Total, net of tax $ 3,462 $ 8,133 $ 2,524 Short-term investments Realized (gain) loss on sales of investments, net (1,531) (689) (192) Nonoperating Income (Expense), Other, net Total before tax (1,531) (689) (192) Tax expense 379 168 47 Total, net of tax (1,152) (521) (145) Total reclassifications for the period $ 2,310 $ 2,329 $ (312) |
Schedule of amounts included in accumulated other comprehensive loss, net of taxes | A rollforward of the amounts included in accumulated other comprehensive loss, net of taxes, is as follows: Year ended December 31, 2021 Foreign Defined Short-Term Investments Total (in thousands) Beginning balance $ — $ (116,181) $ 1,654 $ (114,527) Other comprehensive income (loss) before reclassifications, net of tax — 37,694 (7,315) 30,379 Amounts reclassified from accumulated other comprehensive income (loss), net of tax — 3,462 (1,152) 2,310 Net current-period other comprehensive income (loss), net of tax — 41,156 (8,467) 32,689 Ending balance $ — $ (75,025) $ (6,813) $ (81,838) Year ended December 31, 2020 Foreign Defined Short-Term Investments Total (in thousands) Beginning balance $ 3,341 $ (108,028) $ 804 $ (103,883) Other comprehensive income (loss) before reclassifications, net of tax 1,942 (16,286) 1,371 (12,973) Amounts reclassified from accumulated other comprehensive income (loss), net of tax (5,283) 8,133 (521) 2,329 Net current-period other comprehensive income (loss), net of tax (3,341) (8,153) 850 (10,644) Ending balance $ — $ (116,181) $ 1,654 $ (114,527) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings (loss) per share basic and diluted | The following table shows the Company's computation of basic and diluted earnings (loss) per share: Year Ended December 31, 2021 2020 2019 (in thousands, except for per share data) Numerator: Net Income (Loss) $ (144,773) $ (510,935) $ 223,984 Denominator: Weighted average common shares outstanding—Basic 50,769 46,100 47,435 Dilutive effect of share-based awards and warrants — — 111 Weighted average common shares outstanding—Diluted 50,769 46,100 47,546 Net Income (Loss) Per Common Stock Share: Basic $ (2.85) $ (11.08) $ 4.72 Diluted $ (2.85) $ (11.08) $ 4.71 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The Company's operating revenues by geographic region (as defined by the Department of Transportation, DOT) are summarized below: Year Ended December 31, 2021 2020 2019 (in thousands) Domestic $ 1,504,151 $ 640,153 $ 2,057,650 Pacific 92,433 204,660 774,578 Total operating revenue $ 1,596,584 $ 844,813 $ 2,832,228 Year Ended December 31, 2021 2020 2019 Passenger Revenue by Type (in thousands) Passenger revenue, excluding frequent flyer $ 1,264,059 $ 616,214 $ 2,440,909 Frequent flyer revenue, transportation component 106,843 48,585 156,863 Passenger Revenue $ 1,370,902 $ 664,799 $ 2,597,772 Other revenue (e.g. cargo and other miscellaneous) $ 126,349 $ 94,187 $ 147,237 Frequent flyer revenue, marketing and brand component 99,333 85,827 87,219 Other Revenue $ 225,682 $ 180,014 $ 234,456 |
Schedule of frequent flyer liability for future award redemptions | As of December 31, 2021 and 2020, the balances were as follows: As of December 31, 2021 2020 (in thousands) Air traffic liability (current portion of frequent flyer deferred revenue) $ 169,687 $ 218,886 Noncurrent frequent flyer deferred revenue 296,484 201,239 Total frequent flyer liability $ 466,171 $ 420,125 |
Frequent flyer deferred revenue | The table below presents a roll forward of Frequent flyer deferred revenue for the years ended December 31, 2021 and 2020: Year Ended December 31, 2021 2020 (in thousands) Total Frequent flyer liability - beginning balance $ 420,125 $ 349,806 Miles awarded 155,178 120,345 Travel miles redeemed (Passenger Revenue) (106,843) (48,585) Non-travel miles redeemed (Other Revenue) (2,289) (1,441) Total Frequent flyer liability - ending balance $ 466,171 $ 420,125 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Short-term Investments [Abstract] | |
Summary of short-term investments | The following is a summary of short-term investments held as of December 31, 2021 and 2020: December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Debt securities Corporate debt securities $ 450,954 $ 277 $ (4,652) $ 446,579 U.S. government and agency securities 374,113 87 (1,893) 372,307 Asset-backed securities 142,035 883 (638) 142,280 Other fixed income securities 19,372 7 (71) 19,308 Collateralized loan obligations 51,082 32 (116) 50,998 Bank notes 8,110 — (20) 8,090 Equity securities 202,068 1 (2,023) 200,046 Other investments measured at net asset value 2,193 — (49) 2,144 Total short-term investments $ 1,249,927 $ 1,287 $ (9,462) $ 1,241,752 December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Debt securities Corporate debt $ 142,050 $ 1,354 $ (12) $ 143,392 U.S. government and agency securities 155,615 814 (1) 156,428 Other fixed income securities 54,928 34 — 54,962 Total short-term investments $ 352,593 $ 2,202 $ (13) $ 354,782 |
Contractual maturities of short-term investments | Contractual maturities of short-term investments as of December 31, 2021 are shown below: Under 1 Year 1 to 5 Years Over 5 Years Total (in thousands) Debt securities Corporate debt securities $ 30,425 $ 315,625 $ 100,529 $ 446,579 U.S. government and agency securities 25,742 340,858 5,707 372,307 Asset-backed securities 114,075 15,284 12,921 142,280 Other fixed income securities 11 12,532 6,765 19,308 Collateralized loan obligations — — 50,998 50,998 Bank notes — 4,100 3,990 8,090 Total debt securities $ 170,253 $ 688,399 $ 180,910 $ 1,039,562 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial assets and liabilities measured at fair value on a recurring basis | The following tables present information about the Company's financial assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements as of December 31, 2021 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 339,522 $ 239,912 $ 99,610 $ — Restricted cash 17,267 17,267 — — Short-term investments Debt securities Corporate debt securities 446,579 — 446,579 — U.S. government and agency securities 372,307 — 372,307 — Other fixed income securities 142,280 — 142,280 — Asset-backed securities 19,308 — 15,305 4,003 Collateralized loan obligations 50,998 — 47,676 3,322 Bank notes 8,090 — 1,337 6,753 Equity securities 200,046 200,046 — — Other investments measured at net asset value 2,144 — — — Total short-term investments 1,241,752 200,046 1,025,484 14,078 Assets held for sale 29,449 — — 29,449 Total assets measured at fair value $ 1,627,990 $ 457,225 $ 1,125,094 $ 43,527 Foreign currency derivatives — — — — Total liabilities measured at fair value $ — $ — $ — $ — Fair Value Measurements as of December 31, 2020 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 345,766 $ 297,698 $ 48,068 $ — Short-term investments Corporate debt securities 198,355 — 198,355 — U.S. government and agency securities 156,427 — 156,427 — Total short-term investments 354,782 — 354,782 — Fuel derivative contracts 43 — 43 — Foreign currency derivatives 31 — 31 — Total assets measured at fair value $ 700,622 $ 297,698 $ 402,924 $ — Foreign currency derivatives 1,382 — 1,382 — Total liabilities measured at fair value $ 1,382 $ — $ 1,382 $ — |
Schedule of debt (excluding obligations under capital leases) measured at fair value | The table below presents the Company's debt measured at fair value: Fair Value of Debt December 31, 2021 December 31, 2020 Carrying Fair Value Carrying Fair Value Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (in thousands) $ 1,838,954 $ 1,808,530 $ — $ — $ 1,808,530 $ 1,171,349 $ 1,054,410 $ — $ — $ 1,054,410 |
Reconciliation of short term investments and assets held for sale measured at fair value on a recurring basis Unobservable input | The reconciliation of our short-term investments measured at fair value on a recurring basis using unobservable inputs (Level 3) for the year ended December 31, 2021 is as follows: Short-term Investment Activity for the Twelve Months Ended December 31, 2021 Other fixed income securities Bank notes Collateralized loan obligations Total (in thousands) Beginning balance as of December 31, 2020 $ — $ — $ — $ — Purchases and settlements, net 4,012 6,772 3,322 14,106 Realized and unrealized net losses (9) (19) — (28) Ending balance as of December 31, 2021 $ 4,003 $ 6,753 $ 3,322 $ 14,078 The reconciliation of our assets held for sale measured at fair value on a recurring basis using unobservable inputs (Level 3) for the year ended December 31, 2021 is as follows: Assets Held for Sale Activity for the Twelve Months Ended December 31, 2021 (in thousands) Beginning balance as of December 31, 2020 $ — Additions 29,607 Sales (157) Ending balance as of December 31, 2021 $ 29,449 |
Financial Derivative Instrume_2
Financial Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of realized and unrealized gains and losses recorded as nonoperating income (expense) | The following table reflects the amount of realized and unrealized gains and losses recorded as nonoperating income (expense) in the Consolidated Statements of Operations. Year Ended December 31, 2021 2020 2019 (in thousands) Losses realized at settlement $ (165) $ (9,035) $ (12,403) Prior period unrealized amounts 382 2,487 8,181 Unrealized losses on contracts that will settle in future periods — (382) (2,487) Gains (losses) on fuel derivatives recorded as nonoperating income (expense) $ 217 $ (6,930) $ (6,709) |
Schedule of fair value of the asset and liability derivatives and net derivative positions | The following table presents the gross fair value of asset and liability derivatives that are designated as hedging instruments under ASC 815 and derivatives that are not designated as hedging instruments under ASC 815, as well as the net derivative positions and location of the asset and liability balances within the Consolidated Balance Sheets. Derivative positions as of December 31, 2020 Balance Sheet Notional Amount Final Gross fair Gross fair Net (in thousands) (in thousands) Derivatives not designated as hedges Foreign currency derivatives Other accrued liabilities 4,062,950 Japanese Yen 2,852 Australian Dollars December 2021 31 (1,156) (1,125) Other liabilities and deferred credits 789,000 Japanese Yen February 2022 — (226) (226) Fuel derivative contracts Prepaid expenses and other 8,652 gallons March 2021 43 — 43 |
Schedule of realized and unrealized gains and losses of derivatives designated as cash flow hedges | The following table reflects the impact of cash flow hedges designated for hedge accounting treatment and their location within the Consolidated Statements of Comprehensive Income. (Gain) Loss recognized in AOCI on derivatives (Gain) Loss reclassified from AOCI into income Year ended December 31, Year ended December 31, 2021 2020 2019 2021 2020 2019 (in thousands) Foreign currency derivatives $ — $ 3,131 $ (5,349) $ — $ (7,020) $ (5,307) |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt, net of unamortized discounts and issuance costs, is outlined as follows: December 31, 2021 2020 (in thousands) Class A EETC-13, fixed interest rate of 3.9%, semiannual principal and interest payments, remaining balance due at maturity in January 2026 $ 196,338 $ 214,923 Class B EETC-13, fixed interest rate of 4.95%, semiannual principal and interest payments, remaining balance of due at maturity in January 2022 45,090 75,565 Japanese Yen denominated financing, fixed interest rate of 1.05%, quarterly principal and interest payments, remaining balance due at maturity in May 2030 30,213 37,526 Japanese Yen denominated financing, fixed interest rate of 1.01%, semiannual principal and interest payments, remaining balance due at maturity in June 2030 26,271 33,573 Japanese Yen denominated financing, fixed interest rate of 0.65%, quarterly principal and interest payments, remaining balance due at maturity in March 2025 91,041 121,480 Japanese Yen denominated financing, fixed interest rate of 0.76%, semiannual principal and interest payments, remaining balance due at maturity in September 2031 70,269 86,018 Revolving credit facility, variable interest rate of LIBOR plus a margin of 2.25%, monthly interest payments, principal balance due at maturity in December 2022 — 235,000 Class A EETC-20, fixed interest rate of 7.375%, semiannual principal and interest payments, remaining balance due at maturity in September 2027 48,245 216,976 Class B EETC-20, fixed interest rate of 11.25%, semiannual principal and interest payments, remaining balance due at maturity in September 2025 19,504 45,010 CARES Act Payroll Support Program, fixed interest rate of 1.0% for the first through fifth years and variable interest of SOFR plus a margin of 2.0% for the sixth year through maturity, semiannual interest payments, principal balance due at maturity in April 2030 through September 2030 60,278 60,278 Payroll Support Program Extension, fixed interest rate of 1.0% for the first through fifth years and variable interest of SOFR plus a margin of 2.0% for the sixth year through maturity, semiannual interest payments, principal balance due at maturity in March 2031 through April 2031 27,797 — Payroll Support Program 3, fixed interest rate of 1.0% for the first through fifth years and variable interest of SOFR plus a margin of 2.0% for the sixth year through maturity, semiannual interest payments, principal balance due at maturity in June 2031 23,908 — CARES Act Economic Relief Program, variable interest rate of LIBOR plus a margin of 2.5%, quarterly interest payments, principal balance due at maturity in June 2024 — 45,000 Loyalty Program Financing, fixed interest of 5.75%, quarterly interest payments, principal balance due at maturity in January 2026 1,200,000 — Unamortized debt discount and issuance costs (37,560) (21,525) Total debt $ 1,801,394 $ 1,149,824 Less: Current maturities of long-term debt (97,096) (115,019) Long-Term Debt, less discount $ 1,704,298 $ 1,034,805 |
Schedule of payroll support program activity | A summary of the amounts received and warrants issued as of December 31, 2021 under these programs is set forth in the following table: Summary of payroll support program activity (in millions, except percentages) Total Amount Grant Loan Number of warrants Percentage of outstanding shares at December 31, 2021 Payroll Support Program $ 300.9 $ 240.6 $ 60.3 0.5 1.0 % Payroll Support Program Extension 192.7 164.9 27.8 0.2 0.3 % Payroll Support Program 3 179.7 155.8 23.9 0.1 0.2 % Total $ 673.3 $ 561.3 $ 112.0 0.8 1.5 % |
Schedule of maturities of long-term debt | As of December 31, 2021, the scheduled maturities of debt, excluding debt issuance costs, are as follows (in thousands): 2022 $ 98,735 2023 63,704 2024 61,589 2025 79,139 2026 1,347,440 Thereafter 188,347 $ 1,838,954 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease related assets and liabilities | The table below presents the lease-related assets and liabilities recorded on the Consolidated Balance Sheet. As of December 31, Classification on the Balance Sheet 2021 2020 (in thousands) Assets: Operating lease assets Operating lease right-of use assets $ 536,154 $ 627,359 Finance lease assets Property and equipment, net 114,376 129,969 Total lease assets $ 650,530 $ 757,328 Liabilities: Current Operating Current maturities of operating leases $ 79,158 $ 82,454 Finance Current maturities of finance lease obligations 24,149 21,290 Noncurrent Operating Noncurrent operating leases 423,293 503,376 Finance Finance lease obligations 100,995 120,618 Total lease liabilities $ 627,595 $ 727,738 Weighted-average remaining lease term Operating leases 10.4 years 10.6 years Finance leases 7.2 years 7.9 years Weighted-average discount rate Operating leases (1) 5.63 % 5.45 % Finance leases 4.37 % 4.42 % (1) Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. |
Lease cost | During the twelve months ended December 31, 2021 and 2020, the total lease costs for finance and operating leases were as follows: Year ended December 31, 2021 2020 2019 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 23,339 $ 23,197 $ 25,319 Interest of lease liabilities 6,022 6,887 8,249 Operating lease cost (1) 110,864 108,505 116,866 Short-term lease cost (1) 2,909 981 4,671 Variable lease cost (1) 112,475 68,212 126,989 Total lease cost $ 255,609 $ 207,782 $ 282,094 (1) Expenses are classified within aircraft rent and other rentals and landing fees in the Consolidated Statements of Operations. During the twelve months ended December 31, 2021, the cash paid for amounts included in the measurement of lease liabilities were as follows: Year ended December 31, 2021 2020 2019 (in thousands) Operating cash flows for operating leases 110,286 113,585 116,485 Operating cash flows for finance leases 5,997 6,887 8,223 Financing cash flows for finance lease 23,040 22,295 23,384 |
Operating lease maturity | As of December 31, 2021, the scheduled future minimum rental payments under finance leases and operating leases with non-cancellable basic terms of more than one year are as follows: Finance Leases Operating Leases Aircraft Other Aircraft Other (in thousands) 2022 $ 23,413 $ 5,677 $ 92,603 $ 11,917 2023 22,972 6,570 86,467 12,057 2024 16,669 1,175 77,497 12,288 2025 11,941 974 56,045 11,715 2026 11,047 236 49,734 10,127 Thereafter 38,448 6,405 95,005 154,839 Total minimum lease payments 124,490 21,037 $ 457,351 $ 212,943 Less: amounts representing interest (16,533) (3,850) (78,408) (89,436) Present value of future minimum lease payments $ 107,957 $ 17,187 $ 378,943 $ 123,507 Less: current maturities of lease obligations (19,120) (5,029) (73,176) (5,981) Long-term lease obligations $ 88,837 $ 12,158 $ 305,767 $ 117,526 |
Finance lease maturity | As of December 31, 2021, the scheduled future minimum rental payments under finance leases and operating leases with non-cancellable basic terms of more than one year are as follows: Finance Leases Operating Leases Aircraft Other Aircraft Other (in thousands) 2022 $ 23,413 $ 5,677 $ 92,603 $ 11,917 2023 22,972 6,570 86,467 12,057 2024 16,669 1,175 77,497 12,288 2025 11,941 974 56,045 11,715 2026 11,047 236 49,734 10,127 Thereafter 38,448 6,405 95,005 154,839 Total minimum lease payments 124,490 21,037 $ 457,351 $ 212,943 Less: amounts representing interest (16,533) (3,850) (78,408) (89,436) Present value of future minimum lease payments $ 107,957 $ 17,187 $ 378,943 $ 123,507 Less: current maturities of lease obligations (19,120) (5,029) (73,176) (5,981) Long-term lease obligations $ 88,837 $ 12,158 $ 305,767 $ 117,526 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Significant components of income tax expense | The significant components of income tax expense (benefit) are as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Current Federal $ 1,522 $ (113,010) $ (46,764) State (448) (3,919) 3,708 $ 1,074 $ (116,929) $ (43,056) Deferred Federal $ (39,589) $ (52,824) $ 109,489 State (2,035) (19,364) 14,579 $ (41,624) $ (72,188) $ 124,068 Income tax expense (benefit) $ (40,550) $ (189,117) $ 81,012 |
Schedule of reconciliation between income tax expense and amounts computed at the statutory federal income tax rate | The income tax expense (benefit) differed from amounts computed at the statutory federal income tax rate as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Income tax expense computed at the statutory federal rate $ (38,918) $ (147,012) $ 64,049 Increase (decrease) resulting from: State income taxes, net of federal tax effect (6,203) (22,508) 14,446 Nondeductible meals 466 271 756 Goodwill impairment — 22,399 — Change in valuation allowance 4,445 7,070 — CARES Act (NOL carryback) — (45,417) — Excess tax benefits from stock issuance 436 473 — Other (776) (4,393) 1,761 Income tax expense (benefit) $ (40,550) $ (189,117) $ 81,012 |
Components of deferred tax asset and liabilities | The components of the Company's deferred tax assets and liabilities were as follows: December 31, 2021 2020 (in thousands) Deferred tax assets: Accumulated pension and other postretirement benefits $ 41,740 $ 55,137 Operating leases liabilities 124,570 143,768 Finance leases 2,641 2,984 Air traffic liability and frequent flyer liability 118,005 90,047 Partnership deferred revenue 5,242 8,250 Federal and state net operating loss carryforwards 26,725 29,560 Accrued compensation 15,377 9,694 Other accrued assets 14,360 13,350 Other assets 33,046 18,972 Total gross deferred tax assets 381,706 371,762 Less: Valuation allowance (14,062) (9,617) Net deferred tax assets $ 367,644 $ 362,145 Deferred tax liabilities: Intangible assets $ (3,223) $ (3,190) Property and equipment, principally accelerated depreciation (394,207) (405,583) Finance leases (5,228) (6,369) Operating lease right-of-use assets (135,659) (156,155) Other liabilities (16,124) (7,490) Total deferred tax liabilities (554,441) (578,787) Net deferred tax liability $ (186,797) $ (216,642) |
Reconciliation of unrecognized tax benefits related to uncertain tax positions | The table below reconciles beginning and ending amounts of unrecognized tax benefits related to uncertain tax positions: 2021 2020 2019 (in thousands) Balance at January 1 $ 3,449 $ 6,263 $ 5,086 Increases related to prior year tax positions 11 104 118 Increases related to current year tax positions 672 562 1,059 Settlements with taxing authority — (1,063) — Effect of the expiration of statutes of limitation (361) (2,417) — Balance at December 31 $ 3,771 $ 3,449 $ 6,263 |
Special Items (Tables)
Special Items (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Schedule of Special Charges | Special items in the Consolidated Statements of Operations consisted of the following: Year Ended December 31, 2021 2020 2019 (in thousands) Operating special items: 'Ohana by Hawaiian termination (1) $ 8,983 $ — $ — Collective bargaining agreement payment (2) — 20,242 — Goodwill impairment (3) — 106,662 — Long-lived asset impairment (4) — 38,933 — Capitalized software projects (4) — 509 — Severance and benefit costs (5) — 17,765 — Total Operating special items $ 8,983 $ 184,111 $ — Nonoperating special items: Special termination benefits (6) $ — $ 5,258 $ — Curtailment loss (6) — 424 — Total Other nonoperating special items $ — $ 5,682 $ — (1) In the second quarter of 2021, the Company announced the termination of its 'Ohana by Hawaiian operations. The Company wrote-down the asset group to fair value, less cost to sell by approximately $6.4 million. Additionally, the Company recorded a one-time charge of approximately $2.6 million for the early termination of its CPA. (2) In March 2020, the Company reached an agreement in principle with the flight attendants of Hawaiian, represented by the Association of Flight Attendants (the AFA) on a new five-year contract that runs through April 2025. On April 3, 2020, the Company received notice from the AFA that the collective bargaining agreement (the CBA) was ratified by its members. The ratified CBA provides for, among other things, a ratification payment to be paid over a one-year term, increased medical cost sharing, improved pay scales, and a one-time medical savings contribution to eligible flights attendants upon retirement. During the twelve months ended December 31, 2021, the Company recorded a $23.5 million ratification bonus, of which $20.2 million was related to service prior to January 1, 2020, and was recorded as a Special item in the Consolidated Statements of Operations. The remaining $3.3 million was recorded as a component of Wages and benefits in the Consolidated Statements of Operations. (3) As discussed in Note 1, the Company recognized a goodwill impairment charge of $106.7 million during the twelve months ended December 31, 2020. (4) As discussed in Note 1, the Company recognized an impairment of long-lived assets of $39.4 million during the twelve months ended December 31, 2020. (5) During the third quarter of 2020, the Company announced and completed voluntary separation program offerings across each of its labor groups. In addition to separation payments, the Company offered its employees, based on labor group, age, and years of service, special termination benefits in the form of retiree healthcare benefits as discussed below. The election and revocation windows for these programs closed during the quarter. Additionally, the Company announced involuntary separations and temporary leave programs, the majority of which were effective October 1, 2020. Combined, the separation and temporary leave programs represented a reduction of approximately 32% of the Company's workforce. The Company recorded $17.8 million during the twelve months ended December 31, 2020 related to the workforce reduction and separation programs. (6) During the twelve months ended December 31, 2020, the Company recorded $5.7 million in special termination benefits and curtailment losses related to the Company's pension and other postretirement benefit plans in connection with its voluntary separation programs. See Note 13 for additional information. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Summary of changes | The following tables summarize changes to projected benefit obligations, plan assets, funded status and applicable amounts included in the Consolidated Balance Sheets: 2021 2020 Pension Other Pension Other (in thousands) Change in projected benefit obligations Benefit obligations, beginning of year $ (474,750) $ (171,480) $ (444,896) $ (147,286) Service cost — (11,744) (12) (10,791) Interest cost (12,216) (4,769) (14,639) (5,167) Actuarial gains (losses) 9,738 16,623 (39,039) (4,608) Benefits paid 24,603 5,641 23,836 5,785 Less: federal subsidy on benefits paid N/A — N/A — Plan amendments — — — (3,260) Special/contractual termination benefits — — — (5,258) Curtailments — — — (895) Benefit obligation at end of year (a) $ (452,625) $ (165,729) $ (474,750) $ (171,480) Change in plan assets Fair value of assets, beginning of year $ 382,846 $ 38,710 $ 351,821 $ 32,545 Actual return on plan assets 46,297 3,357 54,081 3,870 Employer contribution — 4,008 780 8,080 Benefits paid (23,777) (1,443) (23,836) (5,785) Fair value of assets at end of year $ 405,366 $ 44,632 $ 382,846 $ 38,710 Unfunded status at December 31 $ (47,259) $ (121,097) $ (91,904) $ (132,770) Amounts recognized in the statement of financial position consist of: Current benefit liability $ (800) $ (6,739) $ (793) $ (6,144) Noncurrent benefit liability (46,459) (114,358) (91,111) (126,626) $ (47,259) $ (121,097) $ (91,904) $ (132,770) Amounts recognized in accumulated other comprehensive loss Unamortized actuarial loss (gain) $ 94,537 $ (16,161) $ 131,653 $ 1,790 Prior service cost (credit) — 3,690 — 4,060 $ 94,537 $ (12,471) $ 131,653 $ 5,850 _______________________________________________________________________________ |
Schedule of net periodic benefit cost | The following table sets forth the net periodic benefit cost: 2021 2020 2019 Pension Other Pension Other Pension Other (in thousands) Components of Net Periodic Benefit Cost Service cost $ — $ 11,744 $ 12 $ 10,791 $ 175 $ 8,255 Other cost: Interest cost 12,216 4,769 14,639 5,167 16,910 5,472 Expected return on plan assets (23,327) (1,785) (23,418) (1,746) (20,519) (1,421) Recognized net actuarial loss (gain) 4,407 (212) 4,091 (43) 4,103 (902) Prior service cost (credit) — 370 — 288 — 225 Total other components of the net periodic benefit cost $ (6,704) $ 3,142 $ (4,688) $ 3,666 $ 494 $ 3,374 Special/contractual termination benefits — — — 5,258 — — Curtailment loss — — — 424 — — Net periodic benefit cost $ (6,704) $ 14,886 $ (4,676) $ 20,139 $ 669 $ 11,629 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss Current year actuarial (gain) loss $ (32,709) $ (16,989) $ 8,376 $ 3,409 $ 6,907 $ 13,041 Current year prior service cost — — — 3,260 — — Amortization of actuarial gain (loss) (4,407) 212 (4,091) 43 (4,103) 902 Amortization of prior service credit (cost) — (370) — (712) — (225) Settlement and curtailment loss — — — — — — Total recognized in other comprehensive loss $ (37,116) $ (17,147) $ 4,285 $ 6,000 $ 2,804 $ 13,718 Total recognized in net periodic benefit cost and other comprehensive loss $ (43,820) $ (2,261) $ (391) $ 26,139 $ 3,473 $ 25,347 |
Schedule of weighted average actuarial assumptions | The weighted average actuarial assumptions used to determine the net periodic benefit expense and the projected benefit obligation were as follows: Pension Postretirement Disability 2021 2020 2021 2020 2021 2020 Discount rate to determine net periodic benefit expense 2.63 % 3.38 % 2.62 % 2.89 % 2.67 % 3.18 % Discount rate to determine projected benefit obligation 2.98 % 2.63 % 2.99 % 2.62 % 3.03 % 2.67 % Expected return on plan assets 6.29 % ** 6.76 % N/A N/A 4.28 % ** 4.90 % Rate of compensation increase Various * Various * N/A N/A Various * Various * Health care trend rate to determine net periodic benefit expense N/A N/A 6.50 % 6.50 % N/A N/A Ultimate trend rate N/A N/A 4.75 % 4.75 % N/A N/A Years to reach ultimate trend rate N/A N/A 6 7 N/A N/A Health care trend rate to determine projected benefit obligation N/A N/A 6.25 % 6.50 % N/A N/A Ultimate trend rate N/A N/A 4.75 % 4.75 % N/A N/A Years to reach ultimate trend rate N/A N/A 6 6 N/A N/A _______________________________________________________________________________ * Differs for each pilot based on current fleet and seat position on the aircraft and seniority service. Negotiated salary increases and expected changes in fleet and seat positions on the aircraft are included in the assumed rate of compensation increase, which ranged from 2.0% to 7.3% in both 2021 and 2020). ** Expected return on plan assets used to determine the net periodic benefit expense for 2022 is 6.06% for Pension and 4.35% for Disability. |
Estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost | Estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2022 are as follows: Pension Other (in thousands) Actuarial (gain) loss $ 2,596 $ (468) Amortization of prior service cost — 370 To be recognized in net periodic benefit cost from accumulated other comprehensive (gain) loss $ 2,596 $ (98) |
Schedule of actual allocation of the pension and disability plan assets and the target allocation of assets by category | The actual allocation of the Company's pension and disability plan assets and the target allocation of assets by category at December 31, 2021 are as follows: Asset Allocation for Pilots pension and VEBA Plans 2021 Target Equity securities 56 % 60 % Fixed income securities 40 % 35 % Real estate investment trusts 4 % 5 % 100 % 100 % |
Schedule of fair values of pension plan and other postretirement plan investments | The table below presents the fair value of the Company's pension plan and other postretirement plan investments (excluding cash and receivables): Fair Value Measurements as of December 31, 2021 2020 (in thousands) Pension Plan Assets: Equity index funds $ 226,291 $ 227,357 Fixed income funds 158,334 134,074 Real estate investment fund 18,614 19,286 Insurance company pooled separate account 2,127 2,132 Total $ 405,366 $ 382,849 Postretirement Assets: Common collective trust fund $ 44,509 $ 38,579 Money market fund 123 131 $ 44,632 $ 38,710 |
Projected benefit payments | The Company projects that Hawaiian's pension plans and other postretirement benefit plans will make the following benefit payments, which reflect expected future service, during the years ending December 31: Other Benefits Pension Gross Expected (in thousands) 2022 $ 26,158 $ 8,400 $ — 2023 27,004 8,391 — 2024 27,477 8,819 — 2025 27,685 9,187 — 2026 27,777 9,792 — 2027 - 2031 136,006 52,565 — $ 272,107 $ 97,154 $ — |
Capital Stock and Share-based_2
Capital Stock and Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Performance-Based Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Awards | The following table summarizes information about performance-based stock awards: Number of units Weighted Non-vested at January 1, 2019 261,852 $ 33.01 Granted 114,858 31.74 Vested (56,641) 36.45 Forfeited (18,486) 34.32 Non-vested at December 31, 2019 301,583 $ 33.40 Granted 216,369 25.71 Vested (61,073) 43.62 Forfeited (14,926) 33.00 Non-vested at December 31, 2020 441,953 $ 30.98 Granted 141,473 21.52 Vested (67,695) 37.20 Forfeited (70,108) 39.09 Non-vested at December 31, 2021 445,623 $ 25.76 |
Service-Based Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Awards | The following table summarizes information about outstanding service-based RSU: Number of units Weighted Non-vested at January 1, 2019 142,951 $ 38.77 Granted 176,326 29.01 Vested (75,638) 38.39 Forfeited (10,357) 31.00 Non-vested at December 31, 2019 233,282 $ 31.80 Granted 353,538 19.71 Vested (129,297) 29.20 Forfeited (9,692) 27.18 Non-vested at December 31, 2020 447,831 $ 23.09 Granted 270,282 21.65 Vested (248,432) 21.75 Forfeited (12,313) 20.12 Non-vested at December 31, 2021 457,368 $ 23.09 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Gross committed expenditures and committed financings | The gross committed expenditures for upcoming aircraft deliveries and other commitments for the next five years and thereafter are detailed below: Aircraft and aircraft related Other Total Committed (in thousands) 2022 $ 92,402 $ 28,068 $ 120,470 2023 418,196 27,959 446,155 2024 503,272 26,392 529,664 2025 410,957 17,903 428,860 2026 233,822 13,532 247,354 Thereafter — 26,975 26,975 $ 1,658,649 $ 140,829 $ 1,799,478 |
Schedule of firm aircraft and engine orders and purchase rights | As of December 31, 2021, the Company had the following capital commitments consisting of firm aircraft and engine orders and purchase rights: Aircraft Type Firm Purchase Expected Delivery Dates A321neo aircraft — 9 N/A B787-9 aircraft 10 10 Between 2023 and 2026 General Electric GEnx spare engines: B787-9 spare engines 2 2 Between 2023 and 2025 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of non-cash investing and financing activities | Supplemental disclosures of cash flow information and non-cash investing and financing activities were as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Cash payments for interest (net of amounts capitalized) $ 91,927 $ 23,951 $ 20,346 Cash payments (refunds) for income taxes (23,123) (81,372) 25,809 Investing and Financing Activities Not Affecting Cash: Property and equipment acquired through a finance lease 8,121 939 6,567 Right-of-use assets acquired under operating leases — 75,667 74,529 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | Condensed Consolidating Statements of Operations and Comprehensive Loss Year Ended December 31, 2021 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 1,593,058 $ 34,850 $ (31,324) $ 1,596,584 Operating Expenses: Aircraft fuel, including taxes and delivery — 363,003 — — 363,003 Wages and benefits — 698,101 — — 698,101 Aircraft rent — 109,476 — — 109,476 Maintenance materials and repairs — 169,977 71 — 170,048 Aircraft and passenger servicing — 105,675 — — 105,675 Commissions and other selling 8 71,171 1,533 (200) 72,512 Depreciation and amortization — 136,752 1,547 — 138,299 Other rentals and landing fees — 116,893 — (121) 116,772 Purchased services 2,033 103,749 2,053 (4,622) 103,213 Special items — 4,648 4,335 — 8,983 Government grant recognition — (320,645) — — (320,645) Other 6,289 131,842 1,961 (26,381) 113,711 Total 8,330 1,690,642 11,500 (31,324) 1,679,148 Operating Income (Loss) (8,330) (97,584) 23,350 — (82,564) Nonoperating Income (Expense): Undistributed net loss of subsidiaries (136,478) (39,344) — 175,822 — Interest expense and amortization of debt discounts and issuance costs — (46,329) (66,815) 2,713 (110,431) Interest income 35 8,555 2,726 (2,713) 8,603 Capitalized interest — 3,357 — — 3,357 Other components of net periodic benefit cost — 3,566 — — 3,566 Gains on fuel derivatives — 217 — — 217 Loss on debt extinguishment — (38,889) — — (38,889) Other, net — 30,818 — — 30,818 Total (136,443) (78,049) (64,089) 175,822 (102,759) Loss Before Income Taxes (144,773) (175,633) (40,739) 175,822 (185,323) Income tax benefit — (40,550) — — (40,550) Net Loss $ (144,773) $ (135,083) $ (40,739) $ 175,822 $ (144,773) Comprehensive Loss $ (112,084) $ (102,394) $ (40,739) $ 143,133 $ (112,084) Condensed Consolidating Statements of Operations and Comprehensive Loss Year Ended December 31, 2020 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 843,197 $ 14,268 $ (12,652) $ 844,813 Operating Expenses: Aircraft fuel, including taxes and delivery — 161,363 — — 161,363 Wages and benefits — 628,558 — — 628,558 Aircraft rent — 103,898 (8) — 103,890 Maintenance materials and repairs — 117,210 5,638 (1,277) 121,571 Aircraft and passenger servicing — 58,016 — — 58,016 Commissions and other selling (6) 46,262 97 (56) 46,297 Depreciation and amortization — 145,712 5,953 — 151,665 Other rentals and landing fees — 73,894 27 (113) 73,808 Purchased services 1,361 107,776 1,102 (11,189) 99,050 Special items — 148,355 35,756 — 184,111 Government grant recognition — (240,648) — — (240,648) Other 6,007 96,844 1,909 (17) 104,743 Total 7,362 1,447,240 50,474 (12,652) 1,492,424 Operating Loss (7,362) (604,043) (36,206) — (647,611) Nonoperating Income (Expense): Undistributed net loss of subsidiaries (505,131) — — 505,131 — Other nonoperating special items — (5,682) — — (5,682) Interest expense and amortization of debt discounts and issuance costs — (40,439) — — (40,439) Interest income 15 8,716 — — 8,731 Capitalized interest — 3,236 — — 3,236 Other components of net periodic benefit cost — 1,300 — — 1,300 Losses on fuel derivatives — (6,930) — — (6,930) Other, net — (12,652) (5) — (12,657) Total (505,116) (52,451) (5) 505,131 (52,441) Loss Before Income Taxes (512,478) (656,494) (36,211) 505,131 (700,052) Income tax benefit (1,543) (179,970) (7,604) — (189,117) Net Loss $ (510,935) $ (476,524) $ (28,607) $ 505,131 $ (510,935) Comprehensive Loss $ (521,579) $ (487,168) $ (28,607) $ 515,775 $ (521,579) Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Year Ended December 31, 2019 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 2,830,133 $ 12,202 $ (10,107) $ 2,832,228 Operating Expenses: Aircraft fuel, including taxes and delivery — 542,573 — — 542,573 Wages and benefits — 723,656 — — 723,656 Aircraft rent — 118,380 524 — 118,904 Maintenance materials and repairs — 238,198 12,207 (633) 249,772 Aircraft and passenger servicing — 164,275 — — 164,275 Commissions and other selling 11 130,226 138 (159) 130,216 Depreciation and amortization — 151,337 7,569 — 158,906 Other rentals and landing fees — 129,642 27 (47) 129,622 Purchased services 284 139,145 1,201 (9,063) 131,567 Other 5,991 147,378 2,096 (205) 155,260 Total 6,286 2,484,810 23,762 (10,107) 2,504,751 Operating Income (Loss) (6,286) 345,323 (11,560) — 327,477 Nonoperating Income (Expense): Undistributed net income of subsidiaries 228,934 — — (228,934) — Interest expense and amortization of debt discounts and issuance costs — (27,848) (16) — (27,864) Interest income 28 12,555 — — 12,583 Capitalized interest — 4,492 — — 4,492 Other components of net periodic benefit cost — (3,864) — — (3,864) Losses on fuel derivatives — (6,709) — — (6,709) Other, net (8) (1,104) (7) — (1,119) Total 228,954 (22,478) (23) (228,934) (22,481) Income (Loss) Before Income Taxes 222,668 322,845 (11,583) (228,934) 304,996 Income tax expense (benefit) (1,316) 84,760 (2,432) — 81,012 Net Income (Loss) $ 223,984 $ 238,085 $ (9,151) $ (228,934) $ 223,984 Comprehensive Income (Loss) $ 213,241 $ 227,342 $ (9,151) $ (218,191) $ 213,241 |
Schedule of Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets December 31, 2021 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated ASSETS (in thousands) Current assets: Cash and cash equivalents $ 20,803 $ 434,615 $ 35,143 $ — $ 490,561 Restricted cash — — 17,267 — 17,267 Short-term investments — 1,241,752 — — 1,241,752 Accounts receivable, net — 85,109 21,348 (13,569) 92,888 Income taxes receivable — 71,201 — — 71,201 Spare parts and supplies, net — 34,109 — — 34,109 Prepaid expenses and other 21 66,084 22 — 66,127 Total 20,824 1,932,870 73,780 (13,569) 2,013,905 Property and equipment at cost — 2,957,589 — — 2,957,589 Less accumulated depreciation and amortization — (999,966) — — (999,966) Property and equipment, net — 1,957,623 — — 1,957,623 Assets held for sale — 926 28,523 — 29,449 Operating lease right-of-use assets — 536,154 — — 536,154 Long-term prepayments and other 50 79,953 1,200,486 (1,200,000) 80,489 Goodwill and other intangible assets, net — 13,500 — 13,500 Intercompany receivable — 571,096 — (571,096) — Investment in consolidated subsidiaries 1,007,650 (26,344) 503 (981,809) — TOTAL ASSETS $ 1,028,524 $ 5,052,278 $ 1,316,792 $ (2,766,474) $ 4,631,120 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 422 $ 122,437 $ 2,398 $ (10,857) $ 114,400 Air traffic liability and current frequent flyer deferred revenue — 617,685 13,472 — 631,157 Other accrued liabilities — 153,423 14,339 (2,712) 165,050 Current maturities of long-term debt, less discount — 97,096 — — 97,096 Current maturities of finance lease obligations — 24,149 — — 24,149 Current maturities of operating leases — 79,158 — — 79,158 Total 422 1,093,948 30,209 (13,569) 1,111,010 Long-term debt — 1,724,631 1,179,667 (1,200,000) 1,704,298 Intercompany payable 459,016 — 112,080 (571,096) — Other liabilities and deferred credits: Noncurrent finance lease obligations — 100,995 — — 100,995 Noncurrent operating leases — 423,293 — — 423,293 Accumulated pension and other postretirement benefit obligations. — 160,817 — — 160,817 Other liabilities and deferred credits — 78,188 152 — 78,340 Noncurrent frequent flyer deferred revenue — 296,484 — — 296,484 Deferred tax liabilities, net — 186,797 — — 186,797 Total — 1,246,574 152 — 1,246,726 Shareholders' equity 569,086 987,125 (5,316) (981,809) 569,086 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,028,524 $ 5,052,278 $ 1,316,792 $ (2,766,474) $ 4,631,120 Condensed Consolidating Balance Sheets December 31, 2020 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated ASSETS (in thousands) Current assets: Cash and cash equivalents $ 24,088 $ 476,409 $ 9,142 $ — $ 509,639 Short-term investments — 354,782 — — 354,782 Accounts receivable, net — 67,831 424 (728) 67,527 Income taxes receivable — 95,002 — — 95,002 Spare parts and supplies, net — 35,442 — — 35,442 Prepaid expenses and other 21 56,046 19 — 56,086 Total 24,109 1,085,512 9,585 (728) 1,118,478 Property and equipment at cost — 2,916,850 62,699 — 2,979,549 Less accumulated depreciation and amortization — (865,952) (28,567) — (894,519) Property and equipment, net — 2,050,898 34,132 — 2,085,030 Operating lease right-of-use assets — 627,359 — — 627,359 Long-term prepayments and other 50 133,143 470 — 133,663 Goodwill and other intangible assets, net — 13,000 500 — 13,500 Intercompany receivable — 540,491 — (540,491) — Investment in consolidated subsidiaries 1,106,627 — 503 (1,107,130) — TOTAL ASSETS $ 1,130,786 $ 4,450,403 $ 45,190 $ (1,648,349) $ 3,978,030 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 720 $ 110,070 $ 1,940 $ (728) $ 112,002 Air traffic liability and current frequent flyer deferred revenue — 527,440 6,262 — 533,702 Other accrued liabilities — 139,878 203 — 140,081 Current maturities of long-term debt, less discount — 115,019 — — 115,019 Current maturities of finance lease obligations — 21,290 — — 21,290 Current maturities of operating leases — 82,454 — — 82,454 Total 720 996,151 8,405 (728) 1,004,548 Long-term debt — 1,034,805 — — 1,034,805 Intercompany payable 529,909 — 10,582 (540,491) — Other liabilities and deferred credits: Noncurrent finance lease obligations — 120,618 — — 120,618 Noncurrent operating leases — 503,376 — — 503,376 Accumulated pension and other postretirement benefit obligations. — 217,737 — — 217,737 Other liabilities and deferred credits — 77,803 1,105 — 78,908 Noncurrent frequent flyer deferred revenue — 201,239 — — 201,239 Deferred tax liabilities, net — 216,642 — — 216,642 Total — 1,337,415 1,105 — 1,338,520 Shareholders' equity 600,157 1,082,032 25,098 (1,107,130) 600,157 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,130,786 $ 4,450,403 $ 45,190 $ (1,648,349) $ 3,978,030 |
Schedule of Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2021 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities: $ (7,489) $ 277,635 $ (18,808) $ — $ 251,338 Cash Flows From Investing Activities: Net payments to affiliates 2,725 1,179,100 (1,110,610) (71,215) — Additions to property and equipment, including pre-delivery deposits — (38,812) (452) — (39,264) Proceeds from disposition of property and equipment — 228 527 — 755 Purchases of investments — (1,856,035) — — (1,856,035) Sales of investments — 958,242 — — 958,242 Net cash provided by (used in) investing activities 2,725 242,723 (1,110,535) (71,215) (936,302) Cash Flows From Financing Activities: Proceeds from the issuance of common stock 68,132 — — — 68,132 Long-term borrowings — 51,705 1,200,000 — 1,251,705 Repayments of long-term debt and finance lease obligations — (611,725) — — (611,725) Debt issuance costs — (112) (24,664) — (24,776) Net payments from affiliates (68,490) — (2,725) 71,215 — Other 1,837 (2,020) — — (183) Net cash provided by (used in) financing activities 1,479 (562,152) 1,172,611 71,215 683,153 Net increase (decrease) in cash and cash equivalents (3,285) (41,794) 43,268 — (1,811) Cash and cash equivalents—Beginning of Period 24,088 476,409 9,142 — 509,639 Cash and cash equivalents—End of Period $ 20,803 $ 434,615 $ 52,410 $ — $ 507,828 Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2020 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities: $ 2,722 $ (315,245) $ 1,815 $ — $ (310,708) Cash Flows From Investing Activities: Net payments to affiliates (5,900) 3,696 (766) 2,970 — Additions to property and equipment, including pre-delivery deposits — (98,611) (6,702) — (105,313) Proceeds from purchase assignment and leaseback transactions — 114,000 — — 114,000 Purchases of investments — (395,793) — — (395,793) Sales of investments — 288,336 — — 288,336 Net cash used in investing activities (5,900) (88,372) (7,468) 2,970 (98,770) Cash Flows From Financing Activities: Proceeds from the issuance of common stock 41,196 — — — 41,196 Long-term borrowings — 602,264 — — 602,264 Repayments of long-term debt and finance lease obligations — (78,824) — — (78,824) Dividend payments (5,514) — — — (5,514) Repurchases of common stock (7,510) — — — (7,510) Debt issuance costs — (4,975) — — (4,975) Net payments from affiliates (2,930) — 5,900 (2,970) — Other 796 (1,372) — — (576) Net cash provided by financing activities 26,038 517,093 5,900 (2,970) 546,061 Net increase in cash and cash equivalents 22,860 113,476 247 — 136,583 Cash, cash equivalents, and restricted cash—Beginning of Period 1,228 362,933 8,895 — 373,056 Cash and cash equivalents—End of Period $ 24,088 $ 476,409 $ 9,142 $ — $ 509,639 Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2019 Parent Issuer / Subsidiary Non-Guarantor Eliminations Consolidated (in thousands) Net Cash Provided By (Used In) Operating Activities: $ (1,635) $ 484,602 $ 2,173 $ — $ 485,140 Cash Flows From Investing Activities: Net payments to affiliates (3,611) (92,562) — 96,173 — Additions to property and equipment, including pre-delivery deposits — (392,695) (4,726) — (397,421) Net proceeds from disposition of equipment — 9,595 — — 9,595 Purchases of investments — (312,768) — — (312,768) Sales of investments — 301,662 — — 301,662 Other — (6,275) — — (6,275) Net cash used in investing activities (3,611) (493,043) (4,726) 96,173 (405,207) Cash Flows From Financing Activities: Long-term borrowings — 227,889 — — 227,889 Repayments of long-term debt and finance lease obligations — (109,122) (6) — (109,128) Dividend payments (22,774) — — — (22,774) Repurchases of common stock (68,769) — — — (68,769) Debt issuance costs — (1,623) — — (1,623) Net payments from affiliates 92,863 — 3,310 (96,173) — Other — (1,049) — — (1,049) Net cash provided by financing activities 1,320 116,095 3,304 (96,173) 24,546 Net increase (decrease) in cash and cash equivalents (3,926) 107,654 751 — 104,479 Cash, cash equivalents, and restricted cash—Beginning of Period 5,154 255,279 8,144 — 268,577 Cash, cash equivalents, and restricted cash—End of Period $ 1,228 $ 362,933 $ 8,895 $ — $ 373,056 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Expenses (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Equipment and Depreciation | ||||
Flight equipment | $ 2,482,686,000 | $ 2,526,440,000 | ||
Pre-delivery deposits on flight equipment | 83,034,000 | 75,089,000 | ||
Other property and equipment | 391,869,000 | 378,020,000 | ||
Property and equipment, gross | 2,957,589,000 | 2,979,549,000 | ||
Less accumulated depreciation and amortization | (999,966,000) | (894,519,000) | ||
Total property and equipment, net | 1,957,623,000 | 2,085,030,000 | ||
Accumulated amortization of aircraft and other finance leases | 147,800,000 | 124,300,000 | ||
Value of construction in progress | 42,400,000 | 27,500,000 | ||
Aircraft Maintenance and Repair Costs | ||||
Additional cost of repairing engines | 0 | |||
Impairment of Long-Lived Assets | ||||
Long lived assets | 1,957,623,000 | 2,085,030,000 | ||
Impairment of assets | 0 | 38,933,000 | $ 0 | |
Write-down of fleet | $ 6,400,000 | |||
Cost s to Obtain or Fulfill a Contract | ||||
Costs to obtain or fulfill a contract | 13,900,000 | 9,100,000 | ||
Advertising Costs | ||||
Advertising expense | 20,200,000 | 15,300,000 | 22,300,000 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | 'Ohana by Hawaiian | ||||
Impairment of Long-Lived Assets | ||||
Write-down of fleet | $ 6,400,000 | |||
COVID-19 | ATR-42 And ATR-72 Fleets | ||||
Impairment of Long-Lived Assets | ||||
Impairment of assets | 39,400,000 | |||
Boeing 717-200 aircraft and engines | Minimum | ||||
Property, Equipment and Depreciation | ||||
Estimated useful lives | 15 years | |||
Residual value | 5.00% | |||
Boeing 717-200 aircraft and engines | Maximum | ||||
Property, Equipment and Depreciation | ||||
Estimated useful lives | 16 years | |||
Residual value | 34.00% | |||
Airbus A330-200 aircraft and engines | ||||
Property, Equipment and Depreciation | ||||
Estimated useful lives | 25 years | |||
Residual value | 10.00% | |||
Airbus A321neo aircraft and engines | ||||
Property, Equipment and Depreciation | ||||
Estimated useful lives | 25 years | |||
Residual value | 10.00% | |||
Major rotable parts | Minimum | ||||
Property, Equipment and Depreciation | ||||
Residual value | 10.00% | |||
Major rotable parts | Maximum | ||||
Property, Equipment and Depreciation | ||||
Residual value | 15.00% | |||
Furniture, fixtures and other equipment | ||||
Property, Equipment and Depreciation | ||||
Residual value | 0.00% | |||
Furniture, fixtures and other equipment | Minimum | ||||
Property, Equipment and Depreciation | ||||
Estimated useful lives | 3 years | |||
Furniture, fixtures and other equipment | Maximum | ||||
Property, Equipment and Depreciation | ||||
Estimated useful lives | 7 years | |||
Capitalized software | ||||
Property, Equipment and Depreciation | ||||
Total property and equipment, net | $ 21,100,000 | 29,200,000 | ||
Residual value | 0.00% | |||
Amortization expense | $ 13,100,000 | 15,700,000 | 17,500,000 | |
Impairment of Long-Lived Assets | ||||
Long lived assets | $ 21,100,000 | 29,200,000 | ||
Capitalized software | Minimum | ||||
Property, Equipment and Depreciation | ||||
Estimated useful lives | 3 years | |||
Capitalized software | Maximum | ||||
Property, Equipment and Depreciation | ||||
Estimated useful lives | 7 years | |||
Power-by-hour Vendors | ||||
Aircraft Maintenance and Repair Costs | ||||
Prepaid expense, noncurrent | $ 5,900,000 | 56,300,000 | ||
Prepaid expense, recovery period | 1 year | |||
Fulfillment Services | ||||
Cost s to Obtain or Fulfill a Contract | ||||
Expenses related to costs to obtain or fulfill a contract | $ 45,100,000 | $ 24,600,000 | $ 91,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Intangible Assets (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($)unit | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Intangible Assets | ||||
Number of reporting units | unit | 1 | |||
Goodwill impairment | $ 0 | $ 106,662 | $ 0 | |
Indefinite-lived intangible assets | $ 13,500 | |||
COVID-19 | ||||
Intangible Assets | ||||
Goodwill impairment | $ 106,700 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Revenue Recognition Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||||
Non-refundable ticket expiration period | 13 months | ||||
Extended ticket validity period | 24 months | ||||
Passenger revenue, excluding frequent flyer | |||||
Disaggregation of Revenue [Line Items] | |||||
Air traffic liability, revenue recognized | $ 184 | $ 254.8 | $ 424.2 | ||
Passenger revenue, excluding frequent flyer | Advanced Ticket Breakage | |||||
Disaggregation of Revenue [Line Items] | |||||
Air traffic liability, revenue recognized | 48.3 | ||||
Passenger revenue, excluding frequent flyer | Ticket Change Fee Revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Air traffic liability, revenue recognized | $ 4.8 | $ 11.3 | $ 28.2 | ||
Frequent flyer revenue, transportation component | |||||
Disaggregation of Revenue [Line Items] | |||||
Miles expiration period | 18 months |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amounts reclassified from AOCI | |||
Revenue | $ (1,596,584) | $ (844,813) | $ (2,832,228) |
Nonoperating Income (Expense), Other, net | (30,818) | 12,657 | 1,119 |
Other nonoperating special items | 0 | 5,682 | 0 |
Income tax benefit | (40,550) | (189,117) | 81,012 |
Total, net of tax | 144,773 | 510,935 | (223,984) |
Amount reclassified from accumulated other comprehensive loss | |||
Amounts reclassified from AOCI | |||
Total, net of tax | 2,310 | 2,329 | (312) |
Derivatives designated as hedging instruments under ASC 815 | Amount reclassified from accumulated other comprehensive loss | |||
Amounts reclassified from AOCI | |||
Total before tax | 0 | (7,020) | (5,307) |
Income tax benefit | 0 | 1,737 | 2,616 |
Total, net of tax | 0 | (5,283) | (2,691) |
Derivatives designated as hedging instruments under ASC 815 | Amount reclassified from accumulated other comprehensive loss | Foreign currency derivative gains | |||
Amounts reclassified from AOCI | |||
Nonoperating Income (Expense), Other, net | 0 | (3,945) | 0 |
Actuarial loss | Amount reclassified from accumulated other comprehensive loss | |||
Amounts reclassified from AOCI | |||
Nonoperating Income (Expense), Other, net | 4,195 | 4,048 | 3,201 |
Prior service cost | Amount reclassified from accumulated other comprehensive loss | |||
Amounts reclassified from AOCI | |||
Nonoperating Income (Expense), Other, net | 370 | 712 | 225 |
Special termination benefits | Amount reclassified from accumulated other comprehensive loss | |||
Amounts reclassified from AOCI | |||
Other nonoperating special items | 0 | 5,258 | 0 |
Curtailment loss | Amount reclassified from accumulated other comprehensive loss | |||
Amounts reclassified from AOCI | |||
Other nonoperating special items | 0 | 424 | 0 |
Amortization of defined benefit pension items | Amount reclassified from accumulated other comprehensive loss | |||
Amounts reclassified from AOCI | |||
Total before tax | 4,565 | 10,442 | 3,426 |
Income tax benefit | (1,103) | (2,309) | (902) |
Total, net of tax | 3,462 | 8,133 | 2,524 |
Short-term investments | Amount reclassified from accumulated other comprehensive loss | |||
Amounts reclassified from AOCI | |||
Nonoperating Income (Expense), Other, net | (1,531) | (689) | (192) |
Total before tax | (1,531) | (689) | (192) |
Income tax benefit | 379 | 168 | 47 |
Total, net of tax | (1,152) | (521) | (145) |
Passenger | |||
Amounts reclassified from AOCI | |||
Revenue | (1,370,902) | (664,799) | (2,597,772) |
Passenger | Derivatives designated as hedging instruments under ASC 815 | Amount reclassified from accumulated other comprehensive loss | Foreign currency derivative gains | |||
Amounts reclassified from AOCI | |||
Revenue | $ 0 | $ (3,075) | $ (5,307) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Roll forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Roll forward of accumulated other comprehensive income (loss) | |||
Beginning balance | $ 600,157 | $ 1,081,796 | $ 947,994 |
Other comprehensive income (loss) before reclassifications, net of tax | 30,379 | (12,973) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 2,310 | 2,329 | |
Total Other Comprehensive Income (Loss) | 32,689 | (10,644) | (10,743) |
Ending balance | 569,086 | 600,157 | 1,081,796 |
Foreign Currency Derivatives | |||
Roll forward of accumulated other comprehensive income (loss) | |||
Beginning balance | 0 | 3,341 | |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 1,942 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | (5,283) | |
Total Other Comprehensive Income (Loss) | 0 | (3,341) | |
Ending balance | 0 | 0 | 3,341 |
Defined Benefit Pension Items | |||
Roll forward of accumulated other comprehensive income (loss) | |||
Beginning balance | (116,181) | (108,028) | |
Other comprehensive income (loss) before reclassifications, net of tax | 37,694 | (16,286) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 3,462 | 8,133 | |
Total Other Comprehensive Income (Loss) | 41,156 | (8,153) | |
Ending balance | (75,025) | (116,181) | (108,028) |
Short-term investments | |||
Roll forward of accumulated other comprehensive income (loss) | |||
Beginning balance | 1,654 | 804 | |
Other comprehensive income (loss) before reclassifications, net of tax | (7,315) | 1,371 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (1,152) | (521) | |
Total Other Comprehensive Income (Loss) | (8,467) | 850 | |
Ending balance | (6,813) | 1,654 | 804 |
Total | |||
Roll forward of accumulated other comprehensive income (loss) | |||
Beginning balance | (114,527) | (103,883) | (93,140) |
Total Other Comprehensive Income (Loss) | 32,689 | (10,644) | (10,743) |
Ending balance | $ (81,838) | $ (114,527) | $ (103,883) |
Earnings Per Share - Potential
Earnings Per Share - Potential Dilution (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Potentially dilutive shares excluded (in shares) | 550,112 | 227,545 | |
Numerator: | |||
Net Income (Loss) | $ (144,773) | $ (510,935) | $ 223,984 |
Denominator: | |||
Weighted average common shares outstanding—Basic (in shares) | 50,769,000 | 46,100,000 | 47,435,000 |
Dilutive effect of share-based awards and warrants (in shares) | 0 | 0 | 111,000 |
Weighted average common shares outstanding—Diluted (in shares) | 50,769,000 | 46,100,000 | 47,546,000 |
Net Income (Loss) Per Common Stock Share: | |||
Basic (in dollars per share) | $ (2.85) | $ (11.08) | $ 4.72 |
Diluted (in dollars per share) | $ (2.85) | $ (11.08) | $ 4.71 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021segmentbusiness | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Number of significant lines of business offered by company | business | 1 | ||
Number of reportable segments | segment | 1 | ||
Geographic Concentration Risk | North America | Domestic Revenue Benchmark | |||
Disaggregation of Revenue [Line Items] | |||
Percent of domestic revenue from North American routes | 83.00% | 78.00% | 74.00% |
Revenue Recognition Summary of
Revenue Recognition Summary of Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Operating revenue | $ 1,596,584 | $ 844,813 | $ 2,832,228 |
Air traffic liability (current portion of frequent flyer deferred revenue) | 631,157 | 533,702 | |
Noncurrent frequent flyer deferred revenue | $ 296,484 | 201,239 | |
Expected timing of satisfaction for future revenue | future revenue that is expected to be realized | ||
Passenger revenue, excluding frequent flyer | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenue | $ 1,264,059 | 616,214 | 2,440,909 |
Total frequent flyer liability | 448,200 | 308,200 | |
Air traffic liability, revenue recognized | 184,000 | 254,800 | 424,200 |
Frequent flyer revenue, transportation component | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenue | 106,843 | 48,585 | 156,863 |
Passenger Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenue | 1,370,902 | 664,799 | 2,597,772 |
Other revenue (e.g. cargo and other miscellaneous) | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenue | 126,349 | 94,187 | 147,237 |
Frequent flyer revenue, marketing and brand component | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenue | 99,333 | 85,827 | 87,219 |
Other Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenue | 225,682 | 180,014 | 234,456 |
Frequent Flyer Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Air traffic liability (current portion of frequent flyer deferred revenue) | 169,687 | 218,886 | |
Noncurrent frequent flyer deferred revenue | 296,484 | 201,239 | |
Total frequent flyer liability | 466,171 | 420,125 | 349,806 |
Domestic Destination | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenue | 1,504,151 | 640,153 | 2,057,650 |
Pacific Destination | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenue | $ 92,433 | $ 204,660 | $ 774,578 |
Revenue Recognition - Rollforwa
Revenue Recognition - Rollforward of Frequent Flyer Deferred Revenue (Details) - Frequent Flyer Revenue - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Deferred Revenue [Roll Forward] | ||
Total Frequent flyer liability - beginning balance | $ 420,125 | $ 349,806 |
Miles awarded | 155,178 | 120,345 |
Travel miles redeemed (Passenger Revenue) | (106,843) | (48,585) |
Non-travel miles redeemed (Other Revenue) | (2,289) | (1,441) |
Total Frequent flyer liability - ending balance | $ 466,171 | $ 420,125 |
Short-Term Investments (Details
Short-Term Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Short-term Investments | ||
Amortized Cost | $ 1,249,927 | $ 352,593 |
Gross Unrealized Gains | 1,287 | 2,202 |
Gross Unrealized Losses | (9,462) | (13) |
Fair Value | 1,241,752 | 354,782 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Total | 1,241,752 | 354,782 |
Debt Securities | ||
Short-term Investments | ||
Fair Value | 1,039,562 | |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Under 1 Year | 170,253 | |
1 to 5 Years | 688,399 | |
Over 5 Years | 180,910 | |
Total | 1,039,562 | |
Corporate debt securities | ||
Short-term Investments | ||
Amortized Cost | 450,954 | 142,050 |
Gross Unrealized Gains | 277 | 1,354 |
Gross Unrealized Losses | (4,652) | (12) |
Fair Value | 446,579 | 143,392 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Under 1 Year | 30,425 | |
1 to 5 Years | 315,625 | |
Over 5 Years | 100,529 | |
Total | 446,579 | 143,392 |
U.S. government and agency securities | ||
Short-term Investments | ||
Amortized Cost | 374,113 | 155,615 |
Gross Unrealized Gains | 87 | 814 |
Gross Unrealized Losses | (1,893) | (1) |
Fair Value | 372,307 | 156,428 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Under 1 Year | 25,742 | |
1 to 5 Years | 340,858 | |
Over 5 Years | 5,707 | |
Total | 372,307 | 156,428 |
Asset-backed securities | ||
Short-term Investments | ||
Amortized Cost | 142,035 | |
Gross Unrealized Gains | 883 | |
Gross Unrealized Losses | (638) | |
Fair Value | 142,280 | |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Under 1 Year | 114,075 | |
1 to 5 Years | 15,284 | |
Over 5 Years | 12,921 | |
Total | 142,280 | |
Other fixed income securities | ||
Short-term Investments | ||
Amortized Cost | 19,372 | 54,928 |
Gross Unrealized Gains | 7 | 34 |
Gross Unrealized Losses | (71) | 0 |
Fair Value | 19,308 | 54,962 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Under 1 Year | 11 | |
1 to 5 Years | 12,532 | |
Over 5 Years | 6,765 | |
Total | 19,308 | $ 54,962 |
Collateralized loan obligations | ||
Short-term Investments | ||
Amortized Cost | 51,082 | |
Gross Unrealized Gains | 32 | |
Gross Unrealized Losses | (116) | |
Fair Value | 50,998 | |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Under 1 Year | 0 | |
1 to 5 Years | 0 | |
Over 5 Years | 50,998 | |
Total | 50,998 | |
Bank notes | ||
Short-term Investments | ||
Amortized Cost | 8,110 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (20) | |
Fair Value | 8,090 | |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Under 1 Year | 0 | |
1 to 5 Years | 4,100 | |
Over 5 Years | 3,990 | |
Total | 8,090 | |
Equity securities | ||
Short-term Investments | ||
Amortized Cost | 202,068 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (2,023) | |
Fair Value | 200,046 | |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Total | 200,046 | |
Other investments measured at net asset value | ||
Short-term Investments | ||
Amortized Cost | 2,193 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (49) | |
Fair Value | 2,144 | |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Total | $ 2,144 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets measured at fair value | ||
Restricted cash | $ 17,267 | $ 0 |
Total short-term investments | 1,241,752 | 354,782 |
Recurring basis | ||
Assets measured at fair value | ||
Cash equivalents | 339,522 | 345,766 |
Restricted cash | 17,267 | |
Total short-term investments | 1,241,752 | 354,782 |
Equity securities | 200,046 | |
Assets held for sale | 29,449 | |
Total assets measured at fair value | 1,627,990 | 700,622 |
Liabilities measured at fair value | ||
Total liabilities measured at fair value | 0 | 1,382 |
Recurring basis | Fuel derivative contracts | ||
Assets measured at fair value | ||
Derivative asset, fair value | 43 | |
Recurring basis | Foreign currency derivatives | ||
Assets measured at fair value | ||
Derivative asset, fair value | 31 | |
Liabilities measured at fair value | ||
Derivative contracts | 0 | 1,382 |
Recurring basis | Fair Value Measured at Net Asset Value Per Share | ||
Assets measured at fair value | ||
Other investments measured at net asset value | 2,144 | |
Recurring basis | Level 1 | ||
Assets measured at fair value | ||
Cash equivalents | 239,912 | 297,698 |
Restricted cash | 17,267 | |
Total short-term investments | 200,046 | 0 |
Equity securities | 200,046 | |
Assets held for sale | 0 | |
Total assets measured at fair value | 457,225 | 297,698 |
Liabilities measured at fair value | ||
Total liabilities measured at fair value | 0 | 0 |
Recurring basis | Level 1 | Fuel derivative contracts | ||
Assets measured at fair value | ||
Derivative asset, fair value | 0 | |
Recurring basis | Level 1 | Foreign currency derivatives | ||
Assets measured at fair value | ||
Derivative asset, fair value | 0 | |
Liabilities measured at fair value | ||
Derivative contracts | 0 | 0 |
Recurring basis | Level 2 | ||
Assets measured at fair value | ||
Cash equivalents | 99,610 | 48,068 |
Restricted cash | 0 | |
Total short-term investments | 1,025,484 | 354,782 |
Equity securities | 0 | |
Assets held for sale | 0 | |
Total assets measured at fair value | 1,125,094 | 402,924 |
Liabilities measured at fair value | ||
Total liabilities measured at fair value | 0 | 1,382 |
Recurring basis | Level 2 | Fuel derivative contracts | ||
Assets measured at fair value | ||
Derivative asset, fair value | 43 | |
Recurring basis | Level 2 | Foreign currency derivatives | ||
Assets measured at fair value | ||
Derivative asset, fair value | 31 | |
Liabilities measured at fair value | ||
Derivative contracts | 0 | 1,382 |
Recurring basis | Level 3 | ||
Assets measured at fair value | ||
Cash equivalents | 0 | 0 |
Restricted cash | 0 | |
Total short-term investments | 14,078 | 0 |
Equity securities | 0 | |
Assets held for sale | 29,449 | |
Total assets measured at fair value | 43,527 | 0 |
Liabilities measured at fair value | ||
Total liabilities measured at fair value | 0 | 0 |
Recurring basis | Level 3 | Fuel derivative contracts | ||
Assets measured at fair value | ||
Derivative asset, fair value | 0 | |
Recurring basis | Level 3 | Foreign currency derivatives | ||
Assets measured at fair value | ||
Derivative asset, fair value | 0 | |
Liabilities measured at fair value | ||
Derivative contracts | 0 | 0 |
Corporate debt securities | Recurring basis | ||
Assets measured at fair value | ||
Total short-term investments | 446,579 | 198,355 |
Corporate debt securities | Recurring basis | Level 1 | ||
Assets measured at fair value | ||
Total short-term investments | 0 | 0 |
Corporate debt securities | Recurring basis | Level 2 | ||
Assets measured at fair value | ||
Total short-term investments | 446,579 | 198,355 |
Corporate debt securities | Recurring basis | Level 3 | ||
Assets measured at fair value | ||
Total short-term investments | 0 | 0 |
U.S. government and agency securities | Recurring basis | ||
Assets measured at fair value | ||
Total short-term investments | 372,307 | 156,427 |
U.S. government and agency securities | Recurring basis | Level 1 | ||
Assets measured at fair value | ||
Total short-term investments | 0 | 0 |
U.S. government and agency securities | Recurring basis | Level 2 | ||
Assets measured at fair value | ||
Total short-term investments | 372,307 | 156,427 |
U.S. government and agency securities | Recurring basis | Level 3 | ||
Assets measured at fair value | ||
Total short-term investments | 0 | $ 0 |
Other fixed income securities | Recurring basis | ||
Assets measured at fair value | ||
Total short-term investments | 142,280 | |
Other fixed income securities | Recurring basis | Level 1 | ||
Assets measured at fair value | ||
Total short-term investments | 0 | |
Other fixed income securities | Recurring basis | Level 2 | ||
Assets measured at fair value | ||
Total short-term investments | 142,280 | |
Other fixed income securities | Recurring basis | Level 3 | ||
Assets measured at fair value | ||
Total short-term investments | 0 | |
Asset-backed securities | Recurring basis | ||
Assets measured at fair value | ||
Total short-term investments | 19,308 | |
Asset-backed securities | Recurring basis | Level 1 | ||
Assets measured at fair value | ||
Total short-term investments | 0 | |
Asset-backed securities | Recurring basis | Level 2 | ||
Assets measured at fair value | ||
Total short-term investments | 15,305 | |
Asset-backed securities | Recurring basis | Level 3 | ||
Assets measured at fair value | ||
Total short-term investments | 4,003 | |
Collateralized loan obligations | Recurring basis | ||
Assets measured at fair value | ||
Total short-term investments | 50,998 | |
Collateralized loan obligations | Recurring basis | Level 1 | ||
Assets measured at fair value | ||
Total short-term investments | 0 | |
Collateralized loan obligations | Recurring basis | Level 2 | ||
Assets measured at fair value | ||
Total short-term investments | 47,676 | |
Collateralized loan obligations | Recurring basis | Level 3 | ||
Assets measured at fair value | ||
Total short-term investments | 3,322 | |
Bank notes | Recurring basis | ||
Assets measured at fair value | ||
Total short-term investments | 8,090 | |
Bank notes | Recurring basis | Level 1 | ||
Assets measured at fair value | ||
Total short-term investments | 0 | |
Bank notes | Recurring basis | Level 2 | ||
Assets measured at fair value | ||
Total short-term investments | 1,337 | |
Bank notes | Recurring basis | Level 3 | ||
Assets measured at fair value | ||
Total short-term investments | $ 6,753 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of short term investments and assets held for sale measured at fair value on a recurring basis Unobservable input (Details) - Recurring basis - Level 3 $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Short-term Investments | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 0 |
Purchases and settlements, net | 14,106 |
Realized and unrealized net losses | (28) |
Ending balance | 14,078 |
Short-term Investments | Other fixed income securities | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 0 |
Purchases and settlements, net | 4,012 |
Realized and unrealized net losses | (9) |
Ending balance | 4,003 |
Short-term Investments | Bank notes | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 0 |
Purchases and settlements, net | 6,772 |
Realized and unrealized net losses | (19) |
Ending balance | 6,753 |
Short-term Investments | Collateralized loan obligations | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 0 |
Purchases and settlements, net | 3,322 |
Realized and unrealized net losses | 0 |
Ending balance | 3,322 |
Assets Held For Sale | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 0 |
Additions | 29,607 |
Sales | (157) |
Ending balance | $ 29,449 |
Fair Value Measurements - Debt
Fair Value Measurements - Debt Measured at Fair Value (Excluding Obligations Under Capital Leases and Financing Obligations) (Details) - Recurring basis - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value Measurements | ||
Carrying Amount | $ 1,838,954 | $ 1,171,349 |
Fair Value | 1,808,530 | 1,054,410 |
Level 1 | ||
Fair Value Measurements | ||
Fair Value | 0 | 0 |
Level 2 | ||
Fair Value Measurements | ||
Fair Value | 0 | 0 |
Level 3 | ||
Fair Value Measurements | ||
Fair Value | $ 1,808,530 | $ 1,054,410 |
Financial Derivative Instrume_3
Financial Derivative Instruments Realized and Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative instrument | |||
Gains (losses) on fuel derivatives recorded as nonoperating income (expense) | $ 217 | $ (6,930) | $ (6,709) |
Reclassification from de-designation | 3,900 | ||
Derivatives not designated as hedges | Commodity Contract | |||
Derivative instrument | |||
Losses realized at settlement | (165) | (9,035) | (12,403) |
Prior period unrealized amounts | 382 | 2,487 | 8,181 |
Unrealized losses on contracts that will settle in future periods | 0 | (382) | (2,487) |
Gains (losses) on fuel derivatives recorded as nonoperating income (expense) | $ 217 | $ (6,930) | $ (6,709) |
Financial Derivative Instrume_4
Financial Derivative Instruments Derivative Positions (Details) - 12 months ended Dec. 31, 2020 ¥ in Thousands, gal in Thousands, $ in Thousands, $ in Thousands | JPY (¥)gal | AUD ($) | USD ($) |
Fair Value of Derivatives | |||
Net derivative position | $ 1,300 | ||
Derivatives not designated as hedges | Foreign currency derivatives | Other accrued liabilities | |||
Fair Value of Derivatives | |||
Notional amount | ¥ 4,062,950 | $ 2,852 | |
Gross fair value of assets, current | 31 | ||
Gross fair value of (liabilities), current | (1,156) | ||
Net derivative position | (1,125) | ||
Derivatives not designated as hedges | Foreign currency derivatives | Other liabilities and deferred credits | |||
Fair Value of Derivatives | |||
Notional amount | ¥ | ¥ 789,000 | ||
Gross fair value of assets, noncurrent | 0 | ||
Gross fair value of (liabilities), noncurrent | (226) | ||
Net derivative position | (226) | ||
Derivatives not designated as hedges | Commodity Contract | Prepaid expenses and other | |||
Fair Value of Derivatives | |||
Notional Amount (volume) | gal | 8,652 | ||
Gross fair value of assets, current | 43 | ||
Gross fair value of (liabilities), current | 0 | ||
Net derivative position | $ 43 |
Financial Derivative Instrume_5
Financial Derivative Instruments Impact of Cash Flow Hedges; Risk and Collateral (Details) - Cash Flow Hedging - Foreign currency derivatives - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Gains (losses) for designated hedge contracts | |||
(Gain) Loss recognized in AOCI on derivatives | $ 0 | $ 3,131 | $ (5,349) |
(Gain) Loss reclassified from AOCI into income | $ 0 | $ (7,020) | $ (5,307) |
Financial Derivative Instrume_6
Financial Derivative Instruments Risk and Collateral (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Net derivative position | $ 1,300,000 | |
Collateral posted with counterparties | $ 0 | $ 400,000 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020 | Dec. 31, 2021 | Oct. 31, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 1,838,954 | |||||
Unamortized debt discount and issuance costs | (37,560) | $ (21,525) | ||||
Total debt | 1,801,394 | 1,149,824 | ||||
Less: Current maturities of long-term debt | (97,096) | (115,019) | ||||
Long-term debt | 1,704,298 | 1,034,805 | ||||
Enhanced Equipment Trust Certificates (EETC) | Class A EETC-13 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 196,338 | 214,923 | ||||
Stated interest rate | 3.90% | |||||
Enhanced Equipment Trust Certificates (EETC) | Class B EETC-13 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 45,090 | 75,565 | ||||
Stated interest rate | 4.95% | |||||
Enhanced Equipment Trust Certificates (EETC) | Class A EETC-20 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 48,245 | 216,976 | ||||
Stated interest rate | 7.375% | 7.375% | ||||
Enhanced Equipment Trust Certificates (EETC) | Class B EETC-20 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 19,504 | 45,010 | ||||
Stated interest rate | 11.25% | 11.25% | ||||
1.05% Japanese Yen Denominated Debt, Due May 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 30,213 | 37,526 | ||||
Stated interest rate | 1.05% | |||||
1.01% Japanese Yen Denominated Debt, Due June 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 26,271 | 33,573 | ||||
Stated interest rate | 1.01% | |||||
0.65% Japanese Yen Denominated Debt, Due May 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 91,041 | 121,480 | ||||
Stated interest rate | 0.65% | |||||
0.76% Japanese Yen Denominated Debt, Due June 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 70,269 | 86,018 | ||||
Stated interest rate | 0.76% | |||||
Line of Credit | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 0 | 235,000 | ||||
Line of Credit | Revolving Credit Facility | London interbank offered rate | ||||||
Debt Instrument [Line Items] | ||||||
Margin | 2.25% | 2.25% | ||||
Payroll Support Program | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 60,278 | 60,278 | ||||
Stated interest rate | 1.00% | |||||
Payroll Support Program | Secured overnight financing rate | ||||||
Debt Instrument [Line Items] | ||||||
Margin | 2.00% | |||||
Payroll Support Program Extension | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 27,797 | 0 | ||||
Stated interest rate | 1.00% | |||||
Payroll Support Program Extension | Secured overnight financing rate | ||||||
Debt Instrument [Line Items] | ||||||
Margin | 2.00% | |||||
Payroll Support Program 3 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 23,908 | 0 | ||||
Stated interest rate | 1.00% | |||||
Payroll Support Program 3 | Secured overnight financing rate | ||||||
Debt Instrument [Line Items] | ||||||
Margin | 2.00% | |||||
Economic Relief Program Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 0 | 45,000 | $ 45,000 | |||
Economic Relief Program Facility | London interbank offered rate | ||||||
Debt Instrument [Line Items] | ||||||
Margin | 2.50% | |||||
Senior Notes | 5.750% Senior Secured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 1,200,000 | $ 0 | ||||
Stated interest rate | 5.75% | 5.75% |
Debt - Enhanced Equipment Trust
Debt - Enhanced Equipment Trust Certificates (EETC) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Oct. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2013aircrafttrust | Jan. 31, 2022USD ($) | Aug. 31, 2020USD ($)aircraft | |
Debt Instrument [Line Items] | |||||||
Number of pass-through trusts | trust | 2 | ||||||
Loss on extinguishment of debt | $ 38,889 | $ 0 | $ 0 | ||||
Enhanced Equipment Trust Certificates (EETC) | |||||||
Debt Instrument [Line Items] | |||||||
Number of aircraft financed through notes issued | aircraft | 6 | ||||||
Total principle sum of note | $ 262,000 | ||||||
Debt instrument, repurchase amount | $ 160,900 | ||||||
Loss on extinguishment of debt | $ 34,900 | ||||||
Enhanced Equipment Trust Certificates (EETC) | A330-200 aircraft | |||||||
Debt Instrument [Line Items] | |||||||
Number of aircraft to secure financing | aircraft | 2 | ||||||
Enhanced Equipment Trust Certificates (EETC) | A321neo aircraft | |||||||
Debt Instrument [Line Items] | |||||||
Number of aircraft to secure financing | aircraft | 6 | ||||||
Enhanced Equipment Trust Certificates (EETC) | Class A EETC-20 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 7.375% | 7.375% | |||||
Enhanced Equipment Trust Certificates (EETC) | Class B EETC-20 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 11.25% | 11.25% | |||||
Enhanced Equipment Trust Certificates (EETC) | Class B EETC-13 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 4.95% | ||||||
Enhanced Equipment Trust Certificates (EETC) | Class B EETC-13 | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Total principle sum of note | $ 45,100 |
Debt - Foreign Denominated Fina
Debt - Foreign Denominated Financing (Details) $ in Thousands, ¥ in Billions | 12 Months Ended | |||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)aircraftagreement | Dec. 31, 2018USD ($)agreement | Dec. 31, 2019JPY (¥)aircraft | Dec. 31, 2018JPY (¥) | |
Debt Instrument [Line Items] | ||||||
Foreign currency debt remeasurement gain (loss) | $ | $ 27,593 | $ (14,760) | $ (493) | |||
Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Total principle sum of note | $ | $ 382,700 | $ 106,100 | ||||
Secured Debt | Japanese Yen Denominated Debt | ||||||
Debt Instrument [Line Items] | ||||||
Number of debt agreements | agreement | 2 | 2 | ||||
Total principle sum of note | $ 227,900 | $ 86,500 | ¥ 24.7 | ¥ 9.6 | ||
Debt, duration of loan | 12 years | |||||
Minimum | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt, duration of loan | 5 years 6 months | |||||
Minimum | Secured Debt | Japanese Yen Denominated Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt, fixed installment coupon rate | 0.76% | 1.01% | 0.76% | 1.01% | ||
Maximum | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt, duration of loan | 12 years | |||||
Maximum | Secured Debt | Japanese Yen Denominated Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt, fixed installment coupon rate | 0.65% | 1.05% | 0.65% | 1.05% | ||
A321neo aircraft | Japanese Yen Denominated Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, collateral, number of aircraft | aircraft | 2 | 2 | ||||
A330-200 aircraft | Japanese Yen Denominated Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, collateral, number of aircraft | aircraft | 4 | 4 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility, Payroll Support Program, Economic Relief Program and Loyalty Program and Intellectual Property Financing (Details) $ / shares in Units, $ in Thousands | Feb. 04, 2021USD ($) | Feb. 28, 2021USD ($) | Jan. 31, 2021USD ($)$ / sharesshares | Apr. 30, 2020USD ($)shares | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($)borrowing |
Line of Credit Facility [Line Items] | |||||||||
Government grant recognition | $ 320,645 | $ 240,648 | $ 0 | ||||||
Financial assistance | $ 673,300 | ||||||||
Warrants issued (in shares) | shares | 800,000 | ||||||||
Long-term debt | $ 1,838,954 | ||||||||
Loss on extinguishment of debt | 38,889 | 0 | $ 0 | ||||||
Restricted cash | $ 17,300 | ||||||||
Payroll Support Program Warrants | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Warrants issued (in shares) | shares | 500,000 | ||||||||
Warrants expiration term | 5 years | ||||||||
Payroll Support Program Warrants | Common Stock | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Warrants issued (in shares) | shares | 509,964 | ||||||||
Adjustments to additional paid in capital, warrant issued | $ 6,700 | ||||||||
Payroll Support Program Extension Warrants | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Warrants issued (in shares) | shares | 200,000 | ||||||||
Warrants expiration term | 5 years | ||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 17.78 | ||||||||
Payroll Support Program Extension Warrants | Common Stock | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Warrants issued (in shares) | shares | 156,341 | ||||||||
Adjustments to additional paid in capital, warrant issued | $ 4,000 | ||||||||
Payroll Support Program 3 Warrants | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Warrants issued (in shares) | shares | 87,670 | ||||||||
Adjustments to additional paid in capital, warrant issued | $ 1,800 | ||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 27.27 | ||||||||
Economic Relief Program Warrants | Common Stock | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Adjustments to additional paid in capital, warrant issued | 3,100 | ||||||||
Payroll Support Program | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum financial assistance | $ 372,400 | ||||||||
Government grant recognition | 320,600 | ||||||||
Financial assistance | 300,900 | 300,900 | |||||||
Total principle sum of note | 60,300 | ||||||||
Fair value of warrants and notes | $ 53,600 | ||||||||
Long-term debt | $ 60,278 | 60,278 | |||||||
Stated interest rate | 1.00% | ||||||||
Payroll Support Program Extension | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Government grant recognition | 164,900 | ||||||||
Financial assistance | $ 192,700 | ||||||||
Total principle sum of note | 27,800 | ||||||||
Fair value of warrants and notes | $ 23,800 | ||||||||
Debt, duration of loan | 10 years | ||||||||
Long-term debt | $ 27,797 | 0 | |||||||
Stated interest rate | 1.00% | ||||||||
Payroll Support Program 3 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum financial assistance | $ 179,700 | ||||||||
Government grant recognition | 155,800 | ||||||||
Financial assistance | 179,700 | ||||||||
Total principle sum of note | 23,900 | ||||||||
Fair value of warrants and notes | $ 22,100 | ||||||||
Debt, duration of loan | 10 years | ||||||||
Long-term debt | $ 23,908 | 0 | |||||||
Stated interest rate | 1.00% | ||||||||
Economic Relief Program Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Fair value of warrants and notes | 41,900 | ||||||||
Maximum barrowing capacity | 622,000 | ||||||||
Long-term debt | $ 0 | 45,000 | $ 45,000 | ||||||
Number of subsequent borrowings | borrowing | 2 | ||||||||
Repayments of long-term debt | $ 45,000 | ||||||||
Loss on extinguishment of debt | 4,000 | ||||||||
Senior Notes | 5.750% Senior Secured Notes | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Total principle sum of note | $ 1,200,000 | ||||||||
Long-term debt | $ 1,200,000 | 0 | |||||||
Stated interest rate | 5.75% | 5.75% | |||||||
Revolving Credit Facility | Line of Credit | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Draw down on revolving loans | $ 235,000 | ||||||||
Repayments of lines of credit | $ 235,000 | ||||||||
Minimum liquidity | $ 300,000 | ||||||||
Undrawn on revolving loans | 235,000 | ||||||||
Long-term debt | $ 0 | $ 235,000 | |||||||
London interbank offered rate | Economic Relief Program Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Margin | 2.50% | ||||||||
London interbank offered rate | Revolving Credit Facility | Line of Credit | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Margin | 2.25% | 2.25% |
Debt - Payroll Support Program
Debt - Payroll Support Program Activity (Details) $ in Millions | 1 Months Ended | 12 Months Ended |
Apr. 30, 2020USD ($) | Dec. 31, 2021USD ($)shares | |
Debt Instrument [Line Items] | ||
Total Amount | $ 673.3 | |
Grant | 561.3 | |
Loan | $ 112 | |
Number of warrants (in shares) | shares | 800,000 | |
Percentage of outstanding shares | 0.015 | |
Payroll Support Program Warrants | ||
Debt Instrument [Line Items] | ||
Number of warrants (in shares) | shares | 500,000 | |
Percentage of outstanding shares | 0.010 | |
Payroll Support Program Extension Warrants | ||
Debt Instrument [Line Items] | ||
Number of warrants (in shares) | shares | 200,000 | |
Percentage of outstanding shares | 0.003 | |
Payroll Support Program 3 Warrants | ||
Debt Instrument [Line Items] | ||
Number of warrants (in shares) | shares | 87,670 | |
Percentage of outstanding shares | 0.002 | |
Payroll Support Program | ||
Debt Instrument [Line Items] | ||
Total Amount | $ 300.9 | $ 300.9 |
Grant | 240.6 | |
Loan | 60.3 | |
Payroll Support Program Extension | ||
Debt Instrument [Line Items] | ||
Total Amount | 192.7 | |
Grant | 164.9 | |
Loan | 27.8 | |
Payroll Support Program 3 | ||
Debt Instrument [Line Items] | ||
Total Amount | 179.7 | |
Grant | 155.8 | |
Loan | $ 23.9 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-Term Debt (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 98,735 |
2023 | 63,704 |
2024 | 61,589 |
2025 | 79,139 |
2026 | 1,347,440 |
Thereafter | 188,347 |
Total long-term debt | $ 1,838,954 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2021aircraftcontractengine | Dec. 31, 2020transaction | |
Operating Leased Assets [Line Items] | ||
Number of sale leaseback transactions | transaction | 2 | |
Aircraft | ||
Operating Leased Assets [Line Items] | ||
Number of aircraft under lease | 21 | |
Number of aircraft | aircraft | 68 | |
Number of aircraft under finance lease | 4 | |
Number of aircraft under operating leases | 17 | |
Aircraft | Minimum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term | 2 years | |
Aircraft | Maximum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term | 11 years | |
Engines | ||
Operating Leased Assets [Line Items] | ||
Number of aircraft under operating leases | engine | 2 | |
Engines | Minimum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term | 4 years | |
Engines | Maximum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term | 5 years | |
Flight Simulator | ||
Operating Leased Assets [Line Items] | ||
Finance lease, remaining lease term | 4 years | |
Airport space | Minimum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term | 1 month | |
Airport space | Maximum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term | 28 years | |
Office building | Minimum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term | 1 year | |
Office building | Maximum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term | 7 years | |
Cargo and maintenance hangar | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term | 30 years | |
IT assets | Minimum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term | 1 year | |
IT assets | Maximum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term | 4 years |
Leases - Leases Related Assets
Leases - Leases Related Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Operating lease assets | $ 536,154 | $ 627,359 |
Finance lease assets | 114,376 | 129,969 |
Total lease assets | 650,530 | 757,328 |
Current | ||
Operating | 79,158 | 82,454 |
Finance | 24,149 | 21,290 |
Noncurrent | ||
Operating | 423,293 | 503,376 |
Finance | 100,995 | 120,618 |
Total lease liabilities | $ 627,595 | $ 727,738 |
Weighted-average remaining lease term | ||
Operating leases | 10 years 4 months 24 days | 10 years 7 months 6 days |
Finance leases | 7 years 2 months 12 days | 7 years 10 months 24 days |
Weighted-average discount rate | ||
Operating lease | 5.63% | 5.45% |
Finance leases | 4.37% | 4.42% |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Long lived assets | Long lived assets |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Amortization of right-of-use assets | $ 23,339 | $ 23,197 | $ 25,319 |
Interest of lease liabilities | 6,022 | 6,887 | 8,249 |
Operating lease cost | 110,864 | 108,505 | 116,866 |
Short-term lease cost | 2,909 | 981 | 4,671 |
Variable lease cost | 112,475 | 68,212 | 126,989 |
Total lease cost | $ 255,609 | $ 207,782 | $ 282,094 |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating cash flows for operating leases | $ 110,286 | $ 113,585 | $ 116,485 |
Operating cash flows for finance leases | 5,997 | 6,887 | 8,223 |
Financing cash flows for finance lease | $ 23,040 | $ 22,295 | $ 23,384 |
Leases - Operating and Finance
Leases - Operating and Finance Lease Maturity Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finance Leases | ||
Less: current maturities of lease obligations | $ (24,149) | $ (21,290) |
Noncurrent finance lease obligations | 100,995 | 120,618 |
Operating Leases | ||
Less: current maturities of lease obligations | (79,158) | (82,454) |
Long-term lease obligations | 423,293 | $ 503,376 |
Aircraft | ||
Finance Leases | ||
2022 | 23,413 | |
2023 | 22,972 | |
2024 | 16,669 | |
2025 | 11,941 | |
2026 | 11,047 | |
Thereafter | 38,448 | |
Total minimum lease payments | 124,490 | |
Less: amounts representing interest | (16,533) | |
Present value of future minimum lease payments | 107,957 | |
Less: current maturities of lease obligations | (19,120) | |
Noncurrent finance lease obligations | 88,837 | |
Operating Leases | ||
2022 | 92,603 | |
2023 | 86,467 | |
2024 | 77,497 | |
2025 | 56,045 | |
2026 | 49,734 | |
Thereafter | 95,005 | |
Total minimum lease payments | 457,351 | |
Less: amounts representing interest | (78,408) | |
Present value of future minimum lease payments | 378,943 | |
Less: current maturities of lease obligations | (73,176) | |
Long-term lease obligations | 305,767 | |
Other | ||
Finance Leases | ||
2022 | 5,677 | |
2023 | 6,570 | |
2024 | 1,175 | |
2025 | 974 | |
2026 | 236 | |
Thereafter | 6,405 | |
Total minimum lease payments | 21,037 | |
Less: amounts representing interest | (3,850) | |
Present value of future minimum lease payments | 17,187 | |
Less: current maturities of lease obligations | (5,029) | |
Noncurrent finance lease obligations | 12,158 | |
Operating Leases | ||
2022 | 11,917 | |
2023 | 12,057 | |
2024 | 12,288 | |
2025 | 11,715 | |
2026 | 10,127 | |
Thereafter | 154,839 | |
Total minimum lease payments | 212,943 | |
Less: amounts representing interest | (89,436) | |
Present value of future minimum lease payments | 123,507 | |
Less: current maturities of lease obligations | (5,981) | |
Long-term lease obligations | $ 117,526 |
Income Taxes Significant Compon
Income Taxes Significant Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current | |||
Federal | $ 1,522 | $ (113,010) | $ (46,764) |
State | (448) | (3,919) | 3,708 |
Current income tax expense (benefit) | 1,074 | (116,929) | (43,056) |
Deferred | |||
Federal | (39,589) | (52,824) | 109,489 |
State | (2,035) | (19,364) | 14,579 |
Deferred income tax expense (benefit) | (41,624) | (72,188) | 124,068 |
Income tax expense (benefit) | $ (40,550) | $ (189,117) | $ 81,012 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||
CARES Act (NOL carryback) | $ 0 | $ (45,417) | $ 0 |
Federal and state net operating loss carryforwards | 26,725 | 29,560 | |
Valuation allowance | 14,062 | 9,617 | |
Uncertain tax position decrease | 500 | ||
Income tax penalties and interest expense (benefit) | 0 | (700) | $ 900 |
Accrued interest and penalties | 200 | 200 | |
Federal | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 5,400 | ||
State and Local | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 502,000 | ||
Federal and state net operating loss carryforwards | 25,600 | 21,100 | |
Valuation allowance | $ 14,100 | $ 9,600 |
Income Taxes Effective Income T
Income Taxes Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense computed at the statutory federal rate | $ (38,918) | $ (147,012) | $ 64,049 |
Increase (decrease) resulting from: | |||
State income taxes, net of federal tax effect | (6,203) | (22,508) | 14,446 |
Nondeductible meals | 466 | 271 | 756 |
Goodwill impairment | 0 | 22,399 | 0 |
Change in valuation allowance | 4,445 | 7,070 | 0 |
CARES Act (NOL carryback) | 0 | (45,417) | 0 |
Excess tax benefits from stock issuance | 436 | 473 | 0 |
Other | (776) | (4,393) | 1,761 |
Income tax expense (benefit) | $ (40,550) | $ (189,117) | $ 81,012 |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Accumulated pension and other postretirement benefits | $ 41,740 | $ 55,137 |
Operating leases liabilities | 124,570 | 143,768 |
Finance leases | 2,641 | 2,984 |
Air traffic liability and frequent flyer liability | 118,005 | 90,047 |
Partnership deferred revenue | 5,242 | 8,250 |
Federal and state net operating loss carryforwards | 26,725 | 29,560 |
Accrued compensation | 15,377 | 9,694 |
Other accrued assets | 14,360 | 13,350 |
Other assets | 33,046 | 18,972 |
Total gross deferred tax assets | 381,706 | 371,762 |
Less: Valuation allowance | (14,062) | (9,617) |
Net deferred tax assets | 367,644 | 362,145 |
Deferred tax liabilities: | ||
Intangible assets | (3,223) | (3,190) |
Property and equipment, principally accelerated depreciation | (394,207) | (405,583) |
Finance leases | (5,228) | (6,369) |
Operating lease right-of-use assets | (135,659) | (156,155) |
Other liabilities | (16,124) | (7,490) |
Total deferred tax liabilities | (554,441) | (578,787) |
Net deferred tax liability | $ (186,797) | $ (216,642) |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefits Related to Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 3,449 | $ 6,263 | $ 5,086 |
Increases related to prior year tax positions | 11 | 104 | 118 |
Increases related to current year tax positions | 672 | 562 | 1,059 |
Settlements with taxing authority | 0 | (1,063) | 0 |
Effect of the expiration of statutes of limitation | (361) | (2,417) | 0 |
Ending balance | $ 3,771 | $ 3,449 | $ 6,263 |
Assets Held-For-Sale (Details)
Assets Held-For-Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | $ 29,449 | $ 0 | |
Write-down of fleet | $ 6,400 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | 29,500 | 29,400 | $ 0 |
Disposal Group, Held-for-sale, Not Discontinued Operations | 'Ohana by Hawaiian | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | 23,400 | ||
Write-down of fleet | $ 6,400 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | Commercial Real Estate Assets | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | $ 6,100 |
Special Items (Details)
Special Items (Details) - USD ($) $ in Thousands | Apr. 03, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Operating special items: | ||||||
Ohana by Hawaiian termination | $ 8,983 | $ 0 | $ 0 | |||
Collective bargaining agreement payment | 0 | 20,242 | 0 | |||
Goodwill impairment | 0 | 106,662 | 0 | |||
Impairment of assets | 0 | 38,933 | 0 | |||
Capitalized software projects | 0 | 509 | 0 | |||
Severance and benefit costs | 0 | 17,765 | 0 | |||
Total Operating special items | 8,983 | 184,111 | 0 | |||
Other nonoperating special items: | ||||||
Special/contractual termination benefits | 0 | 5,258 | 0 | |||
Curtailment loss | 0 | 424 | 0 | |||
Total Other nonoperating special items | 0 | 5,682 | $ 0 | |||
Write-down of fleet | $ 6,400 | |||||
One time charge | $ 2,600 | |||||
Collective bargaining agreement, contract term | 5 years | |||||
Collective bargaining agreement, ratification payment term | 1 year | |||||
Accrual related to past service | 23,500 | |||||
Impairment of long lived assets | $ 39,400 | |||||
Reduction in workforce, percent | 32.00% | |||||
Special Item | ||||||
Operating special items: | ||||||
Collective bargaining agreement payment | 20,200 | |||||
Wages And Benefits | ||||||
Operating special items: | ||||||
Collective bargaining agreement payment | $ 3,300 |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Benefit Plans Narrative (Details) | Jan. 01, 2008 | Dec. 31, 2021USD ($)plan | Dec. 31, 2020USD ($) |
Retirement Benefits [Abstract] | |||
Frozen benefit accruals for pilots as of July 1, 2005, maximum age | 50 years | ||
Minimum age of pilots who were participants of plan as of July 1, 2005 for whom further benefit will accrue | 50 years | ||
Number of unfunded defined benefit postretirement medical and life insurance plans sponsored by company | plan | 4 | ||
Employer contribution | $ | $ 0 | $ 0 |
Employee Benefit Plans - Defi_2
Employee Benefit Plans - Defined Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Change in plan assets | |||
Employer contribution | $ 0 | $ 0 | |
Amounts recognized in the statement of financial position consist of: | |||
Noncurrent benefit liability | (160,817,000) | (217,737,000) | |
Amounts recognized in accumulated other comprehensive loss | |||
Accumulated pension benefit obligation | 452,600,000 | 474,800,000 | |
Pension | |||
Change in projected benefit obligations | |||
Benefit obligations, beginning of year | (474,750,000) | (444,896,000) | |
Service cost | 0 | (12,000) | $ (175,000) |
Interest cost | (12,216,000) | (14,639,000) | (16,910,000) |
Actuarial gains (losses) | 9,738,000 | (39,039,000) | |
Benefits paid | 24,603,000 | 23,836,000 | |
Plan amendments | 0 | 0 | |
Special/contractual termination benefits | 0 | 0 | |
Curtailments | 0 | 0 | |
Benefit obligation at end of year | (452,625,000) | (474,750,000) | (444,896,000) |
Change in plan assets | |||
Fair value of assets, beginning of year | 382,846,000 | 351,821,000 | |
Actual return on plan assets | 46,297,000 | 54,081,000 | |
Employer contribution | 0 | 780,000 | |
Benefits paid | (23,777,000) | (23,836,000) | |
Fair value of assets at end of year | 405,366,000 | 382,846,000 | 351,821,000 |
Unfunded status at December 31 | (47,259,000) | (91,904,000) | |
Amounts recognized in the statement of financial position consist of: | |||
Current benefit liability | (800,000) | (793,000) | |
Noncurrent benefit liability | (46,459,000) | (91,111,000) | |
Total recognized in the statement of financial position | (47,259,000) | (91,904,000) | |
Amounts recognized in accumulated other comprehensive loss | |||
Unamortized actuarial loss (gain) | 94,537,000 | 131,653,000 | |
Prior service cost (credit) | 0 | 0 | |
Total reflected in other comprehensive loss | 94,537,000 | 131,653,000 | |
Other | |||
Change in projected benefit obligations | |||
Benefit obligations, beginning of year | (171,480,000) | (147,286,000) | |
Service cost | (11,744,000) | (10,791,000) | (8,255,000) |
Interest cost | (4,769,000) | (5,167,000) | (5,472,000) |
Actuarial gains (losses) | 16,623,000 | (4,608,000) | |
Benefits paid | 5,641,000 | 5,785,000 | |
Less: federal subsidy on benefits paid | 0 | 0 | |
Plan amendments | 0 | (3,260,000) | |
Special/contractual termination benefits | 0 | (5,258,000) | |
Curtailments | 0 | (895,000) | |
Benefit obligation at end of year | (165,729,000) | (171,480,000) | (147,286,000) |
Change in plan assets | |||
Fair value of assets, beginning of year | 38,710,000 | 32,545,000 | |
Actual return on plan assets | 3,357,000 | 3,870,000 | |
Employer contribution | 4,008,000 | 8,080,000 | |
Benefits paid | (1,443,000) | (5,785,000) | |
Fair value of assets at end of year | 44,632,000 | 38,710,000 | $ 32,545,000 |
Unfunded status at December 31 | (121,097,000) | (132,770,000) | |
Amounts recognized in the statement of financial position consist of: | |||
Current benefit liability | (6,739,000) | (6,144,000) | |
Noncurrent benefit liability | (114,358,000) | (126,626,000) | |
Total recognized in the statement of financial position | (121,097,000) | (132,770,000) | |
Amounts recognized in accumulated other comprehensive loss | |||
Unamortized actuarial loss (gain) | (16,161,000) | 1,790,000 | |
Prior service cost (credit) | 3,690,000 | 4,060,000 | |
Total reflected in other comprehensive loss | $ (12,471,000) | $ 5,850,000 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Components of Net Periodic Benefit Cost | |||
Special/contractual termination benefits | $ 0 | $ 5,258 | $ 0 |
Curtailment loss | 0 | 424 | 0 |
Pension | |||
Components of Net Periodic Benefit Cost | |||
Service cost | 0 | 12 | 175 |
Interest cost | 12,216 | 14,639 | 16,910 |
Expected return on plan assets | (23,327) | (23,418) | (20,519) |
Recognized net actuarial loss (gain) | 4,407 | 4,091 | 4,103 |
Prior service cost (credit) | 0 | 0 | 0 |
Total other components of the net periodic benefit cost | (6,704) | (4,688) | 494 |
Special/contractual termination benefits | 0 | 0 | 0 |
Curtailment loss | 0 | 0 | 0 |
Net periodic benefit cost | (6,704) | (4,676) | 669 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss | |||
Current year actuarial (gain) loss | (32,709) | 8,376 | 6,907 |
Current year prior service cost | 0 | 0 | 0 |
Amortization of actuarial gain (loss) | (4,407) | (4,091) | (4,103) |
Amortization of prior service credit (cost) | 0 | 0 | 0 |
Settlement and curtailment loss | 0 | 0 | 0 |
Total recognized in other comprehensive loss | (37,116) | 4,285 | 2,804 |
Total recognized in net periodic benefit cost and other comprehensive loss | (43,820) | (391) | 3,473 |
Other | |||
Components of Net Periodic Benefit Cost | |||
Service cost | 11,744 | 10,791 | 8,255 |
Interest cost | 4,769 | 5,167 | 5,472 |
Expected return on plan assets | (1,785) | (1,746) | (1,421) |
Recognized net actuarial loss (gain) | (212) | (43) | (902) |
Prior service cost (credit) | 370 | 288 | 225 |
Total other components of the net periodic benefit cost | 3,142 | 3,666 | 3,374 |
Special/contractual termination benefits | 0 | 5,258 | 0 |
Curtailment loss | 0 | 424 | 0 |
Net periodic benefit cost | 14,886 | 20,139 | 11,629 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss | |||
Current year actuarial (gain) loss | (16,989) | 3,409 | 13,041 |
Current year prior service cost | 0 | 3,260 | 0 |
Amortization of actuarial gain (loss) | 212 | 43 | 902 |
Amortization of prior service credit (cost) | (370) | (712) | (225) |
Settlement and curtailment loss | 0 | 0 | 0 |
Total recognized in other comprehensive loss | (17,147) | 6,000 | 13,718 |
Total recognized in net periodic benefit cost and other comprehensive loss | $ (2,261) | $ 26,139 | $ 25,347 |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted Average Actuarial Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Expected return on plan assets used to determine net periodic benefit expense, disability | 4.35% | |
Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate to determine net periodic benefit expense | 2.63% | 3.38% |
Discount rate to determine projected benefit obligation | 2.98% | 2.63% |
Expected return on plan assets | 6.29% | 6.76% |
Expected return on plan assets used to determine net periodic benefit expense | 6.06% | |
Postretirement | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate to determine net periodic benefit expense | 2.62% | 2.89% |
Discount rate to determine projected benefit obligation | 2.99% | 2.62% |
Health care trend rate to determine net periodic benefit expense | 6.50% | 6.50% |
Ultimate trend rate | 4.75% | 4.75% |
Years to reach ultimate trend rate | 6 years | 7 years |
Health care trend rate to determine projected benefit obligation | 6.25% | 6.50% |
Ultimate trend rate | 4.75% | 4.75% |
Years to reach ultimate trend rate | 6 years | 6 years |
Disability | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate to determine net periodic benefit expense, Disability | 2.67% | 3.18% |
Discount rate to determine projected benefit obligation, Disability | 3.03% | 2.67% |
Expected return on plan assets, Disability | 4.28% | 4.90% |
Career progression | Pension | Minimum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Assumed rate of compensation increases | 2.00% | |
Career progression | Pension | Maximum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Assumed rate of compensation increases | 7.30% |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Assumptions and Estimates (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actuarial (gain) loss | $ 2,596 |
Amortization of prior service cost | 0 |
To be recognized in net periodic benefit cost from accumulated other comprehensive (gain) loss | 2,596 |
Postretirement | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actuarial (gain) loss | (468) |
Amortization of prior service cost | 370 |
To be recognized in net periodic benefit cost from accumulated other comprehensive (gain) loss | $ (98) |
Employee Benefit Plans - Plan A
Employee Benefit Plans - Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset allocation, actual | 100.00% | |
Asset allocation, target | 100.00% | |
Benefit plan assets excluding cash and receivables | $ 44,632 | $ 38,710 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Benefit plan assets excluding cash and receivables | 405,366 | 382,849 |
Expected Future Benefit Payments | ||
2022 | 26,158 | |
2023 | 27,004 | |
2024 | 27,477 | |
2025 | 27,685 | |
2026 | 27,777 | |
2027 - 2031 | 136,006 | |
Expected future benefit payments | 272,107 | |
Other Benefits | ||
Expected Future Benefit Payments | ||
2022 | 8,400 | |
2023 | 8,391 | |
2024 | 8,819 | |
2025 | 9,187 | |
2026 | 9,792 | |
2027 - 2031 | 52,565 | |
Expected future benefit payments | 97,154 | |
Prescription Drug Subsidy Receipts, Rolling Maturity [Abstract] (Deprecated 2017-01-31) | ||
2022, Expected Federal Subsidy | 0 | |
2023, Expected Federal Subsidy | 0 | |
2024, Expected Federal Subsidy | 0 | |
2025, Expected Federal Subsidy | 0 | |
2026, Expected Federal Subsidy | 0 | |
2027 - 2031, Expected Federal Subsidy | 0 | |
Expected Federal Subsidy | $ 0 | |
Equity securities | Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset allocation, actual | 56.00% | |
Asset allocation, target | 60.00% | |
Benefit plan assets excluding cash and receivables | $ 226,291 | 227,357 |
Fixed income securities | Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset allocation, actual | 40.00% | |
Asset allocation, target | 35.00% | |
Benefit plan assets excluding cash and receivables | $ 158,334 | 134,074 |
Real estate investment trusts | Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset allocation, actual | 4.00% | |
Asset allocation, target | 5.00% | |
Benefit plan assets excluding cash and receivables | $ 18,614 | 19,286 |
Insurance company pooled separate account | Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Benefit plan assets excluding cash and receivables | 2,127 | 2,132 |
Common collective trust fund | Other Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Benefit plan assets excluding cash and receivables | 44,509 | 38,579 |
Money market fund | Other Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Benefit plan assets excluding cash and receivables | $ 123 | $ 131 |
Employee Benefit Plans - Defi_3
Employee Benefit Plans - Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Contributions to the defined contribution plans | $ 47.3 | $ 43.6 | $ 46.7 |
Capital Stock and Share-based_3
Capital Stock and Share-based Compensation Common Stock and Special Preferred Stock (Details) | 12 Months Ended | |
Dec. 31, 2021classvotedirector$ / sharesshares | Dec. 31, 2020$ / shares | |
Class of Stock [Line Items] | ||
Number of class of common stock issued and outstanding | class | 1 | |
Number of shares of Special Preferred Stock held by each union | shares | 1 | |
Number of directors eligible for nomination by each union | director | 1 | |
Special preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 |
Multiplier of dividend per share paid on common stock to determine dividend on Special Preferred Stock | 2 | |
Conversion ratio for Special Preferred Stock | 1 | |
Common Stock | ||
Class of Stock [Line Items] | ||
Number of votes per share | 1 | |
Preferred Stock | ||
Class of Stock [Line Items] | ||
Number of votes per share | 1 |
Capital Stock and Share-based_4
Capital Stock and Share-based Compensation Dividends (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||
Cash payment for dividends | $ 5,514 | $ 22,774 |
Capital Stock and Share-based_5
Capital Stock and Share-based Compensation Stock Repurchase Program (Details) - USD ($) shares in Millions | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Approved stock repurchase program, amount | $ 100,000,000 | ||
Period of time to repurchase outstanding stock | 2 years | ||
Amount spent to repurchase shares | $ 7,500,000 | $ 68,800,000 | |
Number of shares repurchased (in shares) | 0.3 | 2.5 |
Capital Stock and Share-based_6
Capital Stock and Share-based Compensation - At-the-Market Offering Program (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 05, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 01, 2020 |
Subsidiary, Sale of Stock [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
ATM Offering | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Maximum shares to be issued and sold (in shares) | 5,000,000 | |||
Shares sold (in shares) | 2,900,000 | |||
Average price of shares sold (in dollars per share) | $ 24.47 | |||
Net proceeds from sale of stock | $ 68.1 | |||
ATM Offering 2 | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares sold (in shares) | 5,000,000 | |||
Average price of shares sold (in dollars per share) | $ 22.46 | |||
Net proceeds from sale of stock | $ 109.3 |
Capital Stock and Share-based_7
Capital Stock and Share-based Compensation Share-Based Compensation and Stock Options (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense recognized | $ 8.6 | $ 4.9 | $ 8.3 |
Share-based compensation expense related to unvested stock options and other stock awards | $ 6.5 | ||
Weighted average period related expense will be recognized | 1 year 6 months | ||
Non-employee directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense related to unvested stock options and other stock awards | $ 0.5 |
Capital Stock and Share-based_8
Capital Stock and Share-based Compensation Performance-Based Stock Awards (Details) - Performance Shares - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted, before performance based metric (in shares) | 141,473 | 204,589 | 114,858 |
Maximum payout (in shares) | 212,210 | 406,916 | 229,716 |
Vesting period | 3 years | ||
Intrinsic value | $ 3 | ||
Number of units | |||
Non-vested at the beginning of the period (in shares) | 441,953 | 301,583 | 261,852 |
Granted (in shares) | 141,473 | 216,369 | 114,858 |
Vested (in shares) | (67,695) | (61,073) | (56,641) |
Forfeited (in shares) | (70,108) | (14,926) | (18,486) |
Non-vested at the end of the period (in shares) | 445,623 | 441,953 | 301,583 |
Weighted average grant date fair value | |||
Non-vested at the beginning of the period (in dollars per share) | $ 30.98 | $ 33.40 | $ 33.01 |
Granted (in dollars per share) | 21.52 | 25.71 | 31.74 |
Vested (in dollars per share) | 37.20 | 43.62 | 36.45 |
Forfeited (in dollars per share) | 39.09 | 33 | 34.32 |
Non-vested at the end of the period (in dollars per share) | $ 25.76 | $ 30.98 | $ 33.40 |
Fair value of vested awards | $ 1.9 | $ 1.7 | $ 1.7 |
Capital Stock and Share-based_9
Capital Stock and Share-based Compensation Time-Based Stock Awards (Details) - Service-Based Stock Awards - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted (in shares) | 270,282 | 353,538 | 176,326 |
Number of units | |||
Non-vested at the beginning of the period (in shares) | 447,831 | 233,282 | 142,951 |
Granted (in shares) | 270,282 | 353,538 | 176,326 |
Vested (in shares) | (248,432) | (129,297) | (75,638) |
Forfeited (in shares) | (12,313) | (9,692) | (10,357) |
Non-vested at the end of the period (in shares) | 457,368 | 447,831 | 233,282 |
Weighted average grant date fair value | |||
Non-vested at the beginning of the period (in dollars per share) | $ 23.09 | $ 31.80 | $ 38.77 |
Granted (in dollars per share) | 21.65 | 19.71 | 29.01 |
Vested (in dollars per share) | 21.75 | 29.20 | 38.39 |
Forfeited (in dollars per share) | 20.12 | 27.18 | 31 |
Non-vested at the end of the period (in dollars per share) | $ 23.09 | $ 23.09 | $ 31.80 |
Fair value of vested awards | $ 5.4 | $ 2.8 | $ 2.2 |
Share-based Compensation Award, Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Share-based Compensation Award, Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
Share-based Compensation Award, Tranche Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Expenditures (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Long-term Purchase Commitment [Line Items] | |
2022 | $ 120,470 |
2023 | 446,155 |
2024 | 529,664 |
2025 | 428,860 |
2026 | 247,354 |
Thereafter | 26,975 |
Total contractual obligation | 1,799,478 |
Aircraft and aircraft related | |
Long-term Purchase Commitment [Line Items] | |
2022 | 92,402 |
2023 | 418,196 |
2024 | 503,272 |
2025 | 410,957 |
2026 | 233,822 |
Thereafter | 0 |
Total contractual obligation | 1,658,649 |
Other | |
Long-term Purchase Commitment [Line Items] | |
2022 | 28,068 |
2023 | 27,959 |
2024 | 26,392 |
2025 | 17,903 |
2026 | 13,532 |
Thereafter | 26,975 |
Total contractual obligation | $ 140,829 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Orders and Purchase Rights (Details) - Aircraft and aircraft related | 12 Months Ended |
Dec. 31, 2021orderpurchaseRight | |
B787-9 spare engines | |
Long-term Purchase Commitment [Line Items] | |
Firm Orders | order | 2 |
Purchase Rights | purchaseRight | 2 |
A321neo aircraft | |
Long-term Purchase Commitment [Line Items] | |
Firm Orders | order | 0 |
Purchase Rights | purchaseRight | 9 |
B787-9 aircraft | |
Long-term Purchase Commitment [Line Items] | |
Firm Orders | order | 10 |
Purchase Rights | purchaseRight | 10 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2018purchaseRightorder | Jul. 31, 2018aircraft | Dec. 31, 2021USD ($)aircraft | Dec. 31, 2020USD ($) | |
Long-term Purchase Commitment [Line Items] | ||||
Number of aircraft with deferred delivery | 2 | |||
Percentage of employees represented by unions | 82.30% | |||
Association of Flight Attendants | ||||
Long-term Purchase Commitment [Line Items] | ||||
Percentage of employees represented by unions | 37.90% | |||
Transport Workers Union | ||||
Long-term Purchase Commitment [Line Items] | ||||
Percentage of employees represented by unions | 0.80% | |||
Credit card processing agreements | ||||
Long-term Purchase Commitment [Line Items] | ||||
Restricted cash | $ | $ 0 | $ 0 | ||
Maximum amount that holdback could increase | 100.00% | |||
B787-9 aircraft | ||||
Long-term Purchase Commitment [Line Items] | ||||
Number of aircrafts under purchase agreement | 10 | |||
Number of aircrafts with purchase rights under purchase agreement | 10 | |||
B787-9 aircraft | GEnx Engines | ||||
Long-term Purchase Commitment [Line Items] | ||||
Number of engine firm order | purchaseRight | 20 | |||
Number of engine, purchase rights | order | 20 | |||
B787-9 aircraft | GEnx spare engines | ||||
Long-term Purchase Commitment [Line Items] | ||||
Number of spare engines, with option to purchase | purchaseRight | 4 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |||
Cash payments for interest (net of amounts capitalized) | $ 91,927 | $ 23,951 | $ 20,346 |
Cash payments (refunds) for income taxes | (23,123) | (81,372) | 25,809 |
Investing and Financing Activities Not Affecting Cash: | |||
Property and equipment acquired through a finance lease | 8,121 | 939 | 6,567 |
Right-of-use assets acquired under operating leases | $ 0 | $ 75,667 | $ 74,529 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)trust | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2013trust | |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ||||
Number of pass-through trusts | trust | 2 | |||
Operating Revenue: | ||||
Operating Revenue | $ 1,596,584 | $ 844,813 | $ 2,832,228 | |
Operating Expenses: | ||||
Aircraft fuel, including taxes and delivery | 363,003 | 161,363 | 542,573 | |
Wages and benefits | 698,101 | 628,558 | 723,656 | |
Aircraft rent | 109,476 | 103,890 | 118,904 | |
Maintenance materials and repairs | 170,048 | 121,571 | 249,772 | |
Aircraft and passenger servicing | 105,675 | 58,016 | 164,275 | |
Commissions and other selling | 72,512 | 46,297 | 130,216 | |
Depreciation and amortization | 138,299 | 151,665 | 158,906 | |
Other rentals and landing fees | 116,772 | 73,808 | 129,622 | |
Purchased services | 103,213 | 99,050 | 131,567 | |
Special items | 8,983 | 184,111 | 0 | |
Government grant recognition | (320,645) | (240,648) | 0 | |
Other | 113,711 | 104,743 | 155,260 | |
Total | 1,679,148 | 1,492,424 | 2,504,751 | |
Operating Income (Loss) | (82,564) | (647,611) | 327,477 | |
Nonoperating Income (Expense): | ||||
Undistributed net loss of subsidiaries | 0 | 0 | 0 | |
Other nonoperating special items | 0 | (5,682) | 0 | |
Interest expense and amortization of debt discounts and issuance costs | (110,431) | (40,439) | (27,864) | |
Interest income | 8,603 | 8,731 | 12,583 | |
Capitalized interest | 3,357 | 3,236 | 4,492 | |
Other components of net periodic benefit cost | 3,566 | 1,300 | (3,864) | |
Gains (losses) on fuel derivatives | 217 | (6,930) | (6,709) | |
Loss on debt extinguishment | (38,889) | 0 | 0 | |
Other, net | 30,818 | (12,657) | (1,119) | |
Total | (102,759) | (52,441) | (22,481) | |
Income (Loss) Before Income Taxes | (185,323) | (700,052) | 304,996 | |
Income tax benefit | (40,550) | (189,117) | 81,012 | |
Net Income (Loss) | (144,773) | (510,935) | 223,984 | |
Comprehensive Loss | (112,084) | (521,579) | 213,241 | |
Eliminations | ||||
Operating Revenue: | ||||
Operating Revenue | (31,324) | (12,652) | (10,107) | |
Operating Expenses: | ||||
Aircraft fuel, including taxes and delivery | 0 | 0 | 0 | |
Wages and benefits | 0 | 0 | 0 | |
Aircraft rent | 0 | 0 | 0 | |
Maintenance materials and repairs | 0 | (1,277) | (633) | |
Aircraft and passenger servicing | 0 | 0 | 0 | |
Commissions and other selling | (200) | (56) | (159) | |
Depreciation and amortization | 0 | 0 | 0 | |
Other rentals and landing fees | (121) | (113) | (47) | |
Purchased services | (4,622) | (11,189) | (9,063) | |
Special items | 0 | 0 | ||
Government grant recognition | 0 | 0 | ||
Other | (26,381) | (17) | (205) | |
Total | (31,324) | (12,652) | (10,107) | |
Operating Income (Loss) | 0 | 0 | 0 | |
Nonoperating Income (Expense): | ||||
Undistributed net loss of subsidiaries | 175,822 | 505,131 | (228,934) | |
Other nonoperating special items | 0 | |||
Interest expense and amortization of debt discounts and issuance costs | 2,713 | 0 | 0 | |
Interest income | (2,713) | 0 | 0 | |
Capitalized interest | 0 | 0 | 0 | |
Other components of net periodic benefit cost | 0 | 0 | 0 | |
Gains (losses) on fuel derivatives | 0 | 0 | 0 | |
Loss on debt extinguishment | 0 | |||
Other, net | 0 | 0 | 0 | |
Total | 175,822 | 505,131 | (228,934) | |
Income (Loss) Before Income Taxes | 175,822 | 505,131 | (228,934) | |
Income tax benefit | 0 | 0 | 0 | |
Net Income (Loss) | 175,822 | 505,131 | (228,934) | |
Comprehensive Loss | 143,133 | 515,775 | (218,191) | |
Parent Issuer / Guarantor | Reportable Legal Entities | ||||
Operating Revenue: | ||||
Operating Revenue | 0 | 0 | 0 | |
Operating Expenses: | ||||
Aircraft fuel, including taxes and delivery | 0 | 0 | 0 | |
Wages and benefits | 0 | 0 | 0 | |
Aircraft rent | 0 | 0 | 0 | |
Maintenance materials and repairs | 0 | 0 | 0 | |
Aircraft and passenger servicing | 0 | 0 | 0 | |
Commissions and other selling | 8 | (6) | 11 | |
Depreciation and amortization | 0 | 0 | 0 | |
Other rentals and landing fees | 0 | 0 | 0 | |
Purchased services | 2,033 | 1,361 | 284 | |
Special items | 0 | 0 | ||
Government grant recognition | 0 | 0 | ||
Other | 6,289 | 6,007 | 5,991 | |
Total | 8,330 | 7,362 | 6,286 | |
Operating Income (Loss) | (8,330) | (7,362) | (6,286) | |
Nonoperating Income (Expense): | ||||
Undistributed net loss of subsidiaries | (136,478) | (505,131) | 228,934 | |
Other nonoperating special items | 0 | |||
Interest expense and amortization of debt discounts and issuance costs | 0 | 0 | 0 | |
Interest income | 35 | 15 | 28 | |
Capitalized interest | 0 | 0 | 0 | |
Other components of net periodic benefit cost | 0 | 0 | 0 | |
Gains (losses) on fuel derivatives | 0 | 0 | 0 | |
Loss on debt extinguishment | 0 | |||
Other, net | 0 | 0 | (8) | |
Total | (136,443) | (505,116) | 228,954 | |
Income (Loss) Before Income Taxes | (144,773) | (512,478) | 222,668 | |
Income tax benefit | 0 | (1,543) | (1,316) | |
Net Income (Loss) | (144,773) | (510,935) | 223,984 | |
Comprehensive Loss | $ (112,084) | (521,579) | 213,241 | |
Subsidiary Issuer / Guarantor | ||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ||||
Number of pass-through trusts | trust | 2 | |||
Subsidiary Issuer / Guarantor | Reportable Legal Entities | ||||
Operating Revenue: | ||||
Operating Revenue | $ 1,593,058 | 843,197 | 2,830,133 | |
Operating Expenses: | ||||
Aircraft fuel, including taxes and delivery | 363,003 | 161,363 | 542,573 | |
Wages and benefits | 698,101 | 628,558 | 723,656 | |
Aircraft rent | 109,476 | 103,898 | 118,380 | |
Maintenance materials and repairs | 169,977 | 117,210 | 238,198 | |
Aircraft and passenger servicing | 105,675 | 58,016 | 164,275 | |
Commissions and other selling | 71,171 | 46,262 | 130,226 | |
Depreciation and amortization | 136,752 | 145,712 | 151,337 | |
Other rentals and landing fees | 116,893 | 73,894 | 129,642 | |
Purchased services | 103,749 | 107,776 | 139,145 | |
Special items | 4,648 | 148,355 | ||
Government grant recognition | (320,645) | (240,648) | ||
Other | 131,842 | 96,844 | 147,378 | |
Total | 1,690,642 | 1,447,240 | 2,484,810 | |
Operating Income (Loss) | (97,584) | (604,043) | 345,323 | |
Nonoperating Income (Expense): | ||||
Undistributed net loss of subsidiaries | (39,344) | 0 | 0 | |
Other nonoperating special items | (5,682) | |||
Interest expense and amortization of debt discounts and issuance costs | (46,329) | (40,439) | (27,848) | |
Interest income | 8,555 | 8,716 | 12,555 | |
Capitalized interest | 3,357 | 3,236 | 4,492 | |
Other components of net periodic benefit cost | 3,566 | 1,300 | (3,864) | |
Gains (losses) on fuel derivatives | 217 | (6,930) | (6,709) | |
Loss on debt extinguishment | (38,889) | |||
Other, net | 30,818 | (12,652) | (1,104) | |
Total | (78,049) | (52,451) | (22,478) | |
Income (Loss) Before Income Taxes | (175,633) | (656,494) | 322,845 | |
Income tax benefit | (40,550) | (179,970) | 84,760 | |
Net Income (Loss) | (135,083) | (476,524) | 238,085 | |
Comprehensive Loss | (102,394) | (487,168) | 227,342 | |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Operating Revenue: | ||||
Operating Revenue | 34,850 | 14,268 | 12,202 | |
Operating Expenses: | ||||
Aircraft fuel, including taxes and delivery | 0 | 0 | 0 | |
Wages and benefits | 0 | 0 | 0 | |
Aircraft rent | 0 | (8) | 524 | |
Maintenance materials and repairs | 71 | 5,638 | 12,207 | |
Aircraft and passenger servicing | 0 | 0 | 0 | |
Commissions and other selling | 1,533 | 97 | 138 | |
Depreciation and amortization | 1,547 | 5,953 | 7,569 | |
Other rentals and landing fees | 0 | 27 | 27 | |
Purchased services | 2,053 | 1,102 | 1,201 | |
Special items | 4,335 | 35,756 | ||
Government grant recognition | 0 | 0 | ||
Other | 1,961 | 1,909 | 2,096 | |
Total | 11,500 | 50,474 | 23,762 | |
Operating Income (Loss) | 23,350 | (36,206) | (11,560) | |
Nonoperating Income (Expense): | ||||
Undistributed net loss of subsidiaries | 0 | 0 | 0 | |
Other nonoperating special items | 0 | |||
Interest expense and amortization of debt discounts and issuance costs | (66,815) | 0 | (16) | |
Interest income | 2,726 | 0 | 0 | |
Capitalized interest | 0 | 0 | 0 | |
Other components of net periodic benefit cost | 0 | 0 | 0 | |
Gains (losses) on fuel derivatives | 0 | 0 | 0 | |
Loss on debt extinguishment | 0 | |||
Other, net | 0 | (5) | (7) | |
Total | (64,089) | (5) | (23) | |
Income (Loss) Before Income Taxes | (40,739) | (36,211) | (11,583) | |
Income tax benefit | 0 | (7,604) | (2,432) | |
Net Income (Loss) | (40,739) | (28,607) | (9,151) | |
Comprehensive Loss | $ (40,739) | $ (28,607) | $ (9,151) |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||||
Cash and cash equivalents | $ 490,561 | $ 509,639 | ||
Restricted cash | 17,267 | 0 | ||
Short-term investments | 1,241,752 | 354,782 | ||
Accounts receivable, net | 92,888 | 67,527 | ||
Income taxes receivable | 71,201 | 95,002 | ||
Spare parts and supplies, net | 34,109 | 35,442 | ||
Prepaid expenses and other | 66,127 | 56,086 | ||
Total | 2,013,905 | 1,118,478 | ||
Property and equipment at cost | 2,957,589 | 2,979,549 | ||
Less accumulated depreciation and amortization | (999,966) | (894,519) | ||
Total property and equipment, net | 1,957,623 | 2,085,030 | ||
Assets held for sale | 29,449 | 0 | ||
Operating lease right-of-use assets | 536,154 | 627,359 | ||
Long-term prepayments and other | 80,489 | 133,663 | ||
Goodwill and other intangible assets, net | 13,500 | 13,500 | ||
Intercompany receivable | 0 | 0 | ||
Investment in consolidated subsidiaries | 0 | 0 | ||
Total Assets | 4,631,120 | 3,978,030 | ||
Current liabilities: | ||||
Accounts payable | 114,400 | 112,002 | ||
Air traffic liability and current frequent flyer deferred revenue | 631,157 | 533,702 | ||
Other accrued liabilities | 165,050 | 140,081 | ||
Current maturities of long-term debt, less discount | 97,096 | 115,019 | ||
Current maturities of finance lease obligations | 24,149 | 21,290 | ||
Current maturities of operating leases | 79,158 | 82,454 | ||
Total | 1,111,010 | 1,004,548 | ||
Long-term debt | 1,704,298 | 1,034,805 | ||
Intercompany payable | 0 | 0 | ||
Other liabilities and deferred credits: | ||||
Noncurrent finance lease obligations | 100,995 | 120,618 | ||
Noncurrent operating leases | 423,293 | 503,376 | ||
Accumulated pension and other postretirement benefit obligations. | 160,817 | 217,737 | ||
Other liabilities and deferred credits | 78,340 | 78,908 | ||
Noncurrent frequent flyer deferred revenue | 296,484 | 201,239 | ||
Deferred tax liabilities, net | 186,797 | 216,642 | ||
Total | 1,246,726 | 1,338,520 | ||
Shareholders' equity | 569,086 | 600,157 | $ 1,081,796 | $ 947,994 |
Total Liabilities and Shareholders' Equity | 4,631,120 | 3,978,030 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | |||
Short-term investments | 0 | 0 | ||
Accounts receivable, net | (13,569) | (728) | ||
Income taxes receivable | 0 | 0 | ||
Spare parts and supplies, net | 0 | 0 | ||
Prepaid expenses and other | 0 | 0 | ||
Total | (13,569) | (728) | ||
Property and equipment at cost | 0 | 0 | ||
Less accumulated depreciation and amortization | 0 | 0 | ||
Total property and equipment, net | 0 | 0 | ||
Assets held for sale | 0 | |||
Operating lease right-of-use assets | 0 | 0 | ||
Long-term prepayments and other | (1,200,000) | 0 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Intercompany receivable | (571,096) | (540,491) | ||
Investment in consolidated subsidiaries | (981,809) | (1,107,130) | ||
Total Assets | (2,766,474) | (1,648,349) | ||
Current liabilities: | ||||
Accounts payable | (10,857) | (728) | ||
Air traffic liability and current frequent flyer deferred revenue | 0 | 0 | ||
Other accrued liabilities | (2,712) | 0 | ||
Current maturities of long-term debt, less discount | 0 | 0 | ||
Current maturities of finance lease obligations | 0 | 0 | ||
Current maturities of operating leases | 0 | 0 | ||
Total | (13,569) | (728) | ||
Long-term debt | (1,200,000) | 0 | ||
Intercompany payable | (571,096) | (540,491) | ||
Other liabilities and deferred credits: | ||||
Noncurrent finance lease obligations | 0 | 0 | ||
Noncurrent operating leases | 0 | 0 | ||
Accumulated pension and other postretirement benefit obligations. | 0 | 0 | ||
Other liabilities and deferred credits | 0 | 0 | ||
Noncurrent frequent flyer deferred revenue | 0 | 0 | ||
Deferred tax liabilities, net | 0 | 0 | ||
Total | 0 | 0 | ||
Shareholders' equity | (981,809) | (1,107,130) | ||
Total Liabilities and Shareholders' Equity | (2,766,474) | (1,648,349) | ||
Parent Issuer / Guarantor | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 20,803 | 24,088 | ||
Restricted cash | 0 | |||
Short-term investments | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Income taxes receivable | 0 | 0 | ||
Spare parts and supplies, net | 0 | 0 | ||
Prepaid expenses and other | 21 | 21 | ||
Total | 20,824 | 24,109 | ||
Property and equipment at cost | 0 | 0 | ||
Less accumulated depreciation and amortization | 0 | 0 | ||
Total property and equipment, net | 0 | 0 | ||
Assets held for sale | 0 | |||
Operating lease right-of-use assets | 0 | 0 | ||
Long-term prepayments and other | 50 | 50 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Intercompany receivable | 0 | 0 | ||
Investment in consolidated subsidiaries | 1,007,650 | 1,106,627 | ||
Total Assets | 1,028,524 | 1,130,786 | ||
Current liabilities: | ||||
Accounts payable | 422 | 720 | ||
Air traffic liability and current frequent flyer deferred revenue | 0 | 0 | ||
Other accrued liabilities | 0 | 0 | ||
Current maturities of long-term debt, less discount | 0 | 0 | ||
Current maturities of finance lease obligations | 0 | 0 | ||
Current maturities of operating leases | 0 | 0 | ||
Total | 422 | 720 | ||
Long-term debt | 0 | 0 | ||
Intercompany payable | 459,016 | 529,909 | ||
Other liabilities and deferred credits: | ||||
Noncurrent finance lease obligations | 0 | 0 | ||
Noncurrent operating leases | 0 | 0 | ||
Accumulated pension and other postretirement benefit obligations. | 0 | 0 | ||
Other liabilities and deferred credits | 0 | 0 | ||
Noncurrent frequent flyer deferred revenue | 0 | 0 | ||
Deferred tax liabilities, net | 0 | 0 | ||
Total | 0 | 0 | ||
Shareholders' equity | 569,086 | 600,157 | ||
Total Liabilities and Shareholders' Equity | 1,028,524 | 1,130,786 | ||
Subsidiary Issuer / Guarantor | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 434,615 | 476,409 | ||
Restricted cash | 0 | |||
Short-term investments | 1,241,752 | 354,782 | ||
Accounts receivable, net | 85,109 | 67,831 | ||
Income taxes receivable | 71,201 | 95,002 | ||
Spare parts and supplies, net | 34,109 | 35,442 | ||
Prepaid expenses and other | 66,084 | 56,046 | ||
Total | 1,932,870 | 1,085,512 | ||
Property and equipment at cost | 2,957,589 | 2,916,850 | ||
Less accumulated depreciation and amortization | (999,966) | (865,952) | ||
Total property and equipment, net | 1,957,623 | 2,050,898 | ||
Assets held for sale | 926 | |||
Operating lease right-of-use assets | 536,154 | 627,359 | ||
Long-term prepayments and other | 79,953 | 133,143 | ||
Goodwill and other intangible assets, net | 13,000 | |||
Intercompany receivable | 571,096 | 540,491 | ||
Investment in consolidated subsidiaries | (26,344) | 0 | ||
Total Assets | 5,052,278 | 4,450,403 | ||
Current liabilities: | ||||
Accounts payable | 122,437 | 110,070 | ||
Air traffic liability and current frequent flyer deferred revenue | 617,685 | 527,440 | ||
Other accrued liabilities | 153,423 | 139,878 | ||
Current maturities of long-term debt, less discount | 97,096 | 115,019 | ||
Current maturities of finance lease obligations | 24,149 | 21,290 | ||
Current maturities of operating leases | 79,158 | 82,454 | ||
Total | 1,093,948 | 996,151 | ||
Long-term debt | 1,724,631 | 1,034,805 | ||
Intercompany payable | 0 | 0 | ||
Other liabilities and deferred credits: | ||||
Noncurrent finance lease obligations | 100,995 | 120,618 | ||
Noncurrent operating leases | 423,293 | 503,376 | ||
Accumulated pension and other postretirement benefit obligations. | 160,817 | 217,737 | ||
Other liabilities and deferred credits | 78,188 | 77,803 | ||
Noncurrent frequent flyer deferred revenue | 296,484 | 201,239 | ||
Deferred tax liabilities, net | 186,797 | 216,642 | ||
Total | 1,246,574 | 1,337,415 | ||
Shareholders' equity | 987,125 | 1,082,032 | ||
Total Liabilities and Shareholders' Equity | 5,052,278 | 4,450,403 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 35,143 | 9,142 | ||
Restricted cash | 17,267 | |||
Short-term investments | 0 | 0 | ||
Accounts receivable, net | 21,348 | 424 | ||
Income taxes receivable | 0 | 0 | ||
Spare parts and supplies, net | 0 | 0 | ||
Prepaid expenses and other | 22 | 19 | ||
Total | 73,780 | 9,585 | ||
Property and equipment at cost | 0 | 62,699 | ||
Less accumulated depreciation and amortization | 0 | (28,567) | ||
Total property and equipment, net | 0 | 34,132 | ||
Assets held for sale | 28,523 | |||
Operating lease right-of-use assets | 0 | 0 | ||
Long-term prepayments and other | 1,200,486 | 470 | ||
Goodwill and other intangible assets, net | 13,500 | 500 | ||
Intercompany receivable | 0 | 0 | ||
Investment in consolidated subsidiaries | 503 | 503 | ||
Total Assets | 1,316,792 | 45,190 | ||
Current liabilities: | ||||
Accounts payable | 2,398 | 1,940 | ||
Air traffic liability and current frequent flyer deferred revenue | 13,472 | 6,262 | ||
Other accrued liabilities | 14,339 | 203 | ||
Current maturities of long-term debt, less discount | 0 | 0 | ||
Current maturities of finance lease obligations | 0 | 0 | ||
Current maturities of operating leases | 0 | 0 | ||
Total | 30,209 | 8,405 | ||
Long-term debt | 1,179,667 | 0 | ||
Intercompany payable | 112,080 | 10,582 | ||
Other liabilities and deferred credits: | ||||
Noncurrent finance lease obligations | 0 | 0 | ||
Noncurrent operating leases | 0 | 0 | ||
Accumulated pension and other postretirement benefit obligations. | 0 | 0 | ||
Other liabilities and deferred credits | 152 | 1,105 | ||
Noncurrent frequent flyer deferred revenue | 0 | 0 | ||
Deferred tax liabilities, net | 0 | 0 | ||
Total | 152 | 1,105 | ||
Shareholders' equity | (5,316) | 25,098 | ||
Total Liabilities and Shareholders' Equity | $ 1,316,792 | $ 45,190 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Consolidating Financial Statements | |||
Net Cash Provided By (Used In) Operating Activities: | $ 251,338 | $ (310,708) | $ 485,140 |
Cash Flows From Investing Activities: | |||
Net payments to affiliates | 0 | 0 | 0 |
Additions to property and equipment, including pre-delivery deposits | (39,264) | (105,313) | (397,421) |
Proceeds from purchase assignment and sale leaseback transactions | 0 | 114,000 | 0 |
Proceeds from disposition of property and equipment | 755 | 0 | 9,595 |
Purchases of investments | (1,856,035) | (395,793) | (312,768) |
Sales of investments | 958,242 | 288,336 | 301,662 |
Other | 0 | 0 | (6,275) |
Net cash used in investing activities | (936,302) | (98,770) | (405,207) |
Cash Flows From Financing Activities: | |||
Proceeds from the issuance of common stock | 68,132 | 41,196 | 0 |
Long-term borrowings | 1,251,705 | 602,264 | 227,889 |
Repayments of long-term debt and finance lease obligations | (611,725) | (78,824) | (109,128) |
Dividend payments | 0 | (5,514) | (22,774) |
Repurchases of common stock | 0 | (7,510) | (68,769) |
Debt issuance costs | (24,776) | (4,975) | (1,623) |
Net payments from affiliates | 0 | 0 | 0 |
Other | (183) | (576) | (1,049) |
Net cash provided by financing activities | 683,153 | 546,061 | 24,546 |
Net increase (decrease) in cash and cash equivalents | (1,811) | 136,583 | 104,479 |
Cash, cash equivalents, and restricted cash—Beginning of Year | 509,639 | 373,056 | 268,577 |
Cash, cash equivalents, and restricted cash—End of Year | 507,828 | 509,639 | 373,056 |
Eliminations | |||
Condensed Consolidating Financial Statements | |||
Net Cash Provided By (Used In) Operating Activities: | 0 | 0 | 0 |
Cash Flows From Investing Activities: | |||
Net payments to affiliates | (71,215) | 2,970 | 96,173 |
Additions to property and equipment, including pre-delivery deposits | 0 | 0 | 0 |
Proceeds from purchase assignment and sale leaseback transactions | 0 | ||
Proceeds from disposition of property and equipment | 0 | 0 | |
Purchases of investments | 0 | 0 | 0 |
Sales of investments | 0 | 0 | 0 |
Other | 0 | ||
Net cash used in investing activities | (71,215) | 2,970 | 96,173 |
Cash Flows From Financing Activities: | |||
Proceeds from the issuance of common stock | 0 | 0 | |
Long-term borrowings | 0 | 0 | 0 |
Repayments of long-term debt and finance lease obligations | 0 | 0 | 0 |
Dividend payments | 0 | 0 | |
Repurchases of common stock | 0 | 0 | |
Debt issuance costs | 0 | 0 | 0 |
Net payments from affiliates | 71,215 | (2,970) | (96,173) |
Other | 0 | 0 | 0 |
Net cash provided by financing activities | 71,215 | (2,970) | (96,173) |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash, cash equivalents, and restricted cash—Beginning of Year | 0 | 0 | 0 |
Cash, cash equivalents, and restricted cash—End of Year | 0 | 0 | 0 |
Parent Issuer / Guarantor | Reportable Legal Entities | |||
Condensed Consolidating Financial Statements | |||
Net Cash Provided By (Used In) Operating Activities: | (7,489) | 2,722 | (1,635) |
Cash Flows From Investing Activities: | |||
Net payments to affiliates | 2,725 | (5,900) | (3,611) |
Additions to property and equipment, including pre-delivery deposits | 0 | 0 | 0 |
Proceeds from purchase assignment and sale leaseback transactions | 0 | ||
Proceeds from disposition of property and equipment | 0 | 0 | |
Purchases of investments | 0 | 0 | 0 |
Sales of investments | 0 | 0 | 0 |
Other | 0 | ||
Net cash used in investing activities | 2,725 | (5,900) | (3,611) |
Cash Flows From Financing Activities: | |||
Proceeds from the issuance of common stock | 68,132 | 41,196 | |
Long-term borrowings | 0 | 0 | 0 |
Repayments of long-term debt and finance lease obligations | 0 | 0 | 0 |
Dividend payments | (5,514) | (22,774) | |
Repurchases of common stock | (7,510) | (68,769) | |
Debt issuance costs | 0 | 0 | 0 |
Net payments from affiliates | (68,490) | (2,930) | 92,863 |
Other | 1,837 | 796 | 0 |
Net cash provided by financing activities | 1,479 | 26,038 | 1,320 |
Net increase (decrease) in cash and cash equivalents | (3,285) | 22,860 | (3,926) |
Cash, cash equivalents, and restricted cash—Beginning of Year | 24,088 | 1,228 | 5,154 |
Cash, cash equivalents, and restricted cash—End of Year | 20,803 | 24,088 | 1,228 |
Subsidiary Issuer / Guarantor | Reportable Legal Entities | |||
Condensed Consolidating Financial Statements | |||
Net Cash Provided By (Used In) Operating Activities: | 277,635 | (315,245) | 484,602 |
Cash Flows From Investing Activities: | |||
Net payments to affiliates | 1,179,100 | 3,696 | (92,562) |
Additions to property and equipment, including pre-delivery deposits | (38,812) | (98,611) | (392,695) |
Proceeds from purchase assignment and sale leaseback transactions | 114,000 | ||
Proceeds from disposition of property and equipment | 228 | 9,595 | |
Purchases of investments | (1,856,035) | (395,793) | (312,768) |
Sales of investments | 958,242 | 288,336 | 301,662 |
Other | (6,275) | ||
Net cash used in investing activities | 242,723 | (88,372) | (493,043) |
Cash Flows From Financing Activities: | |||
Proceeds from the issuance of common stock | 0 | 0 | |
Long-term borrowings | 51,705 | 602,264 | 227,889 |
Repayments of long-term debt and finance lease obligations | (611,725) | (78,824) | (109,122) |
Dividend payments | 0 | 0 | |
Repurchases of common stock | 0 | 0 | |
Debt issuance costs | (112) | (4,975) | (1,623) |
Net payments from affiliates | 0 | 0 | 0 |
Other | (2,020) | (1,372) | (1,049) |
Net cash provided by financing activities | (562,152) | 517,093 | 116,095 |
Net increase (decrease) in cash and cash equivalents | (41,794) | 113,476 | 107,654 |
Cash, cash equivalents, and restricted cash—Beginning of Year | 476,409 | 362,933 | 255,279 |
Cash, cash equivalents, and restricted cash—End of Year | 434,615 | 476,409 | 362,933 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||
Condensed Consolidating Financial Statements | |||
Net Cash Provided By (Used In) Operating Activities: | (18,808) | 1,815 | 2,173 |
Cash Flows From Investing Activities: | |||
Net payments to affiliates | (1,110,610) | (766) | 0 |
Additions to property and equipment, including pre-delivery deposits | (452) | (6,702) | (4,726) |
Proceeds from purchase assignment and sale leaseback transactions | 0 | ||
Proceeds from disposition of property and equipment | 527 | 0 | |
Purchases of investments | 0 | 0 | 0 |
Sales of investments | 0 | 0 | 0 |
Other | 0 | ||
Net cash used in investing activities | (1,110,535) | (7,468) | (4,726) |
Cash Flows From Financing Activities: | |||
Proceeds from the issuance of common stock | 0 | 0 | |
Long-term borrowings | 1,200,000 | 0 | 0 |
Repayments of long-term debt and finance lease obligations | 0 | 0 | (6) |
Dividend payments | 0 | 0 | |
Repurchases of common stock | 0 | 0 | |
Debt issuance costs | (24,664) | 0 | 0 |
Net payments from affiliates | (2,725) | 5,900 | 3,310 |
Other | 0 | 0 | 0 |
Net cash provided by financing activities | 1,172,611 | 5,900 | 3,304 |
Net increase (decrease) in cash and cash equivalents | 43,268 | 247 | 751 |
Cash, cash equivalents, and restricted cash—Beginning of Year | 9,142 | 8,895 | 8,144 |
Cash, cash equivalents, and restricted cash—End of Year | $ 52,410 | $ 9,142 | $ 8,895 |
Schedule II-Valuation and Qua_2
Schedule II-Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Doubtful Accounts | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | $ 2,096 | $ 651 | $ 54 |
Charged to Costs and Expenses | 317 | 5,004 | 1,371 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (1,569) | (3,559) | (774) |
Balance at End of Year | 844 | 2,096 | 651 |
Allowance for Obsolescence of Flight Equipment Expendable Parts and Supplies | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 17,977 | 15,919 | 22,588 |
Charged to Costs and Expenses | 3,213 | 3,254 | 3,830 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (2,457) | (1,196) | (10,499) |
Balance at End of Year | 18,733 | 17,977 | 15,919 |
Valuation Allowance on Deferred Tax Assets | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 9,617 | 2,547 | 2,547 |
Charged to Costs and Expenses | 4,445 | 7,070 | 0 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | $ 14,062 | $ 9,617 | $ 2,547 |
Uncategorized Items - ha-202112
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |