Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 03, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
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 | No | ||
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 | $ 735.3 | ||
Entity Common Stock, Shares Outstanding | 51,451,449 | ||
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, 2022. | ||
Entity Central Index Key | 0001172222 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Revenue: | |||
Operating Revenue | $ 2,641,267 | $ 1,596,584 | $ 844,813 |
Operating Expenses: | |||
Wages and benefits | 833,137 | 698,101 | 628,558 |
Aircraft fuel, including taxes and delivery | 817,077 | 363,003 | 161,363 |
Aircraft rent | 103,846 | 109,476 | 103,890 |
Maintenance materials and repairs | 236,153 | 170,048 | 121,571 |
Aircraft and passenger servicing | 152,550 | 105,675 | 58,016 |
Commissions and other selling | 113,843 | 72,512 | 46,297 |
Depreciation and amortization | 136,169 | 138,299 | 151,665 |
Other rentals and landing fees | 147,143 | 116,772 | 73,808 |
Purchased services | 129,350 | 103,213 | 99,050 |
Special items | 18,803 | 8,983 | 184,111 |
Government grant recognition | 0 | (320,645) | (240,648) |
Other | 163,250 | 113,711 | 104,743 |
Total | 2,851,321 | 1,679,148 | 1,492,424 |
Operating Loss | (210,054) | (82,564) | (647,611) |
Nonoperating Income (Expense): | |||
Other nonoperating special items | 0 | 0 | (5,682) |
Interest expense and amortization of debt discounts and issuance costs | (95,815) | (110,431) | (40,439) |
Interest and dividend income | 32,141 | 8,603 | 8,731 |
Capitalized interest | 4,244 | 3,357 | 3,236 |
Other components of net periodic benefit cost, excluding settlements | 5,065 | 3,566 | 1,300 |
Gains (losses) on fuel derivatives | (3,041) | 217 | (6,930) |
Loss on extinguishment of debt | (8,568) | (38,889) | 0 |
Gains (losses) on investments, net | (43,082) | 1,426 | 271 |
Gains (losses) on foreign debt | 26,667 | 27,773 | (14,913) |
Other, net | (1,406) | 1,619 | 1,985 |
Total | (83,795) | (102,759) | (52,441) |
Loss Before Income Taxes | (293,849) | (185,323) | (700,052) |
Income tax benefit | (53,768) | (40,550) | (189,117) |
Net Loss | $ (240,081) | $ (144,773) | $ (510,935) |
Net Loss Per Common Stock Share: | |||
Basic (in dollars per share) | $ (4.67) | $ (2.85) | $ (11.08) |
Diluted (in dollars per share) | $ (4.67) | $ (2.85) | $ (11.08) |
Weighted Average Number of Common Stock Shares Outstanding: | |||
Basic (in shares) | 51,361 | 50,769 | 46,100 |
Diluted (in shares) | 51,361 | 50,769 | 46,100 |
Cash dividends declared per common share (in dollars per share) | $ 0 | $ 0 | $ 0.12 |
Passenger | |||
Operating Revenue: | |||
Operating Revenue | $ 2,335,440 | $ 1,370,902 | $ 664,799 |
Other | |||
Operating Revenue: | |||
Operating Revenue | $ 305,827 | $ 225,682 | $ 180,014 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net Loss | $ (240,081) | $ (144,773) | $ (510,935) |
Other Comprehensive Income (Loss), net: | |||
Net change related to employee benefit plans, net of tax expense of $5,250 for 2022, net of tax expense of $13,107 for 2021, and net of tax benefit of $2,315 for 2020 | 15,586 | 41,156 | (8,153) |
Net change in derivative instruments, net of tax benefit of $1,098 for 2020 | 0 | 0 | (3,341) |
Net change in available-for-sale investments, net of tax benefit of $9,446 for 2022, net of tax benefit of $2,784 for 2021, and net of tax expense of $273 for 2020 | (28,914) | (8,467) | 850 |
Total Other Comprehensive Income (Loss) | (13,328) | 32,689 | (10,644) |
Total Comprehensive Loss | $ (253,409) | $ (112,084) | $ (521,579) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net change related to employee benefit plans, tax expense (benefit) | $ 5,250 | $ 13,107 | $ (2,315) |
Net change in derivative instruments, tax expense (benefit) | (1,098) | ||
Net change in available-for-sale investments, tax expense (benefit) | $ (9,446) | $ (2,784) | $ 273 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 229,122 | $ 490,561 |
Restricted cash | 17,498 | 17,267 |
Short-term investments | 1,147,193 | 1,241,752 |
Accounts receivable, net | 113,862 | 92,888 |
Income taxes receivable | 70,204 | 71,201 |
Spare parts and supplies, net | 36,875 | 34,109 |
Prepaid expenses and other | 63,553 | 66,127 |
Total | 1,678,307 | 2,013,905 |
Property and equipment, net | 1,874,352 | 1,957,623 |
Other Assets: | ||
Assets held for sale | 14,019 | 29,449 |
Operating lease right-of-use assets | 459,128 | 536,154 |
Long-term prepayments and other | 100,317 | 80,489 |
Intangible assets, net | 13,500 | 13,500 |
Total Assets | 4,139,623 | 4,631,120 |
Current Liabilities: | ||
Accounts payable | 196,009 | 114,400 |
Air traffic liability and current frequent flyer deferred revenue | 590,796 | 631,157 |
Other accrued liabilities | 182,036 | 165,050 |
Current maturities of long-term debt, less discount | 47,836 | 97,096 |
Current maturities of finance lease obligations | 25,789 | 24,149 |
Current maturities of operating leases | 77,858 | 79,158 |
Total | 1,120,324 | 1,111,010 |
Long-Term Debt | 1,583,889 | 1,704,298 |
Other Liabilities and Deferred Credits: | ||
Noncurrent finance lease obligations | 75,221 | 100,995 |
Noncurrent operating leases | 347,726 | 423,293 |
Accumulated pension and other postretirement benefit obligations | 135,775 | 160,817 |
Other liabilities and deferred credits | 94,654 | 78,340 |
Noncurrent frequent flyer deferred revenue | 318,369 | 296,484 |
Deferred tax liability, net | 130,400 | 186,797 |
Total | 1,102,145 | 1,246,726 |
Commitments and Contingent Liabilities | ||
Shareholders' Equity: | ||
Special preferred stock, $0.01 par value per share, three shares issued and outstanding at December 31, 2022 and 2021 | 0 | 0 |
Common stock, $0.01 par value per share, 51,450,904 and 51,233,369 shares issued and outstanding as of December 31, 2022 and 2021, respectively | 514 | 512 |
Capital in excess of par value | 287,161 | 269,575 |
Accumulated income | 140,756 | 380,837 |
Accumulated other comprehensive loss, net | (95,166) | (81,838) |
Total | 333,265 | 569,086 |
Total Liabilities and Shareholders' Equity | $ 4,139,623 | $ 4,631,120 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
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) | 51,450,904 | 51,233,369 |
Common stock, shares outstanding (in shares) | 51,450,904 | 51,233,369 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Special Preferred Stock | [2] | Capital In Excess of Par Value | Accumulated Income | Accumulated Other Comprehensive Income (Loss) | |
Beginning balance at Dec. 31, 2019 | $ 1,081,796 | $ 461 | [1] | $ 0 | $ 135,651 | $ 1,049,567 | $ (103,883) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net Loss | (510,935) | (510,935) | ||||||
Dividends declared on common stock | (5,514) | (5,514) | ||||||
Net current-period other comprehensive income (loss), net of tax | (10,644) | (10,644) | ||||||
Issuance of shares of common stock, net of shares withheld for taxes | (1,373) | 1 | [1] | (1,374) | ||||
Repurchase and retirement of shares of common stock | (7,510) | (2) | [1] | (7,508) | ||||
CARES Act warrant issuance, net of tax | 7,409 | 7,409 | ||||||
Share-based compensation expense | 4,936 | 4,936 | ||||||
Issuance of — shares of common stock related to At-the-market offering | 41,992 | 21 | 41,971 | |||||
Ending balance at Dec. 31, 2020 | 600,157 | 481 | [1] | 0 | 188,593 | 525,610 | (114,527) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net Loss | (144,773) | (144,773) | ||||||
Net current-period other comprehensive income (loss), net of tax | 32,689 | 32,689 | ||||||
Issuance of shares of common stock, net of shares withheld for taxes | (2,020) | 2 | [1] | (2,022) | ||||
CARES Act warrant issuance, net of tax | 4,419 | 4,419 | ||||||
Share-based compensation expense | 8,645 | 8,645 | ||||||
Issuance of — shares of common stock related to At-the-market offering | 69,969 | 29 | [1] | 69,940 | ||||
Ending balance at Dec. 31, 2021 | 569,086 | 512 | [1] | 0 | 269,575 | 380,837 | (81,838) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net Loss | (240,081) | (240,081) | ||||||
Net current-period other comprehensive income (loss), net of tax | (13,328) | (13,328) | ||||||
Issuance of shares of common stock, net of shares withheld for taxes | (1,892) | 2 | [1] | (1,894) | ||||
CARES Act warrant issuance, net of tax | 11,571 | 11,571 | ||||||
Share-based compensation expense | 7,909 | 7,909 | ||||||
Ending balance at Dec. 31, 2022 | $ 333,265 | $ 514 | [1] | $ 0 | $ 287,161 | $ 140,756 | $ (95,166) | |
[1]Common Stock—$0.01 par value; 118,000,000 authorized as of December 31, 2022 and 2021.[2]Special Preferred Stock—$0.01 par value; 2,000,000 shares authorized as of December 31, 2022 and 2021. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Issuance of common stock related to stock awards (in shares) | 217,535 | 228,066 | 143,354 |
Repurchase and retirement of shares (in shares) | 259,910 | ||
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows From Operating Activities: | |||
Net Loss | $ (240,081) | $ (144,773) | $ (510,935) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of property and equipment | 136,169 | 138,299 | 151,665 |
Deferred income taxes, net | (52,202) | (41,624) | (72,188) |
Goodwill impairment | 0 | 0 | 106,662 |
Impairment of assets | 6,303 | 6,383 | 38,933 |
Stock compensation | 7,909 | 8,645 | 4,936 |
Loss on contract termination | 12,500 | 0 | 0 |
Loss on extinguishment of debt | 8,568 | 38,889 | 0 |
Amortization of debt discounts and issuance costs | 8,881 | 9,223 | 4,012 |
Employer contributions to pension and other postretirement plans | (11,861) | (10,232) | (7,691) |
Pension and postretirement benefit cost | 7,846 | 8,178 | 8,398 |
Special termination benefits and curtailment loss | 0 | 0 | 5,682 |
Change in unrealized (gain) loss on fuel derivative contracts | 2,638 | (383) | (2,106) |
Change in unrealized loss on investments | 24,949 | 0 | 0 |
Foreign currency debt remeasurement (gain) loss | 26,196 | 27,593 | (14,760) |
Other, net | (835) | 7,275 | (7,007) |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (20,974) | (25,361) | 29,853 |
Income taxes receivable | 997 | 23,804 | (30,810) |
Spare parts and supplies, net | (5,824) | (1,562) | (1,066) |
Prepaid expenses and other current assets | (29,300) | (13,140) | 24,410 |
Accounts payable | 92,812 | 5,785 | (49,469) |
Air traffic liability | (36,886) | 146,655 | (117,279) |
Other accrued liabilities | 16,795 | 24,366 | (18,025) |
Frequent flyer deferred revenue | 18,410 | 46,045 | 70,318 |
Other assets and liabilities, net | 21,630 | 52,459 | 46,239 |
Net cash provided by (used in) operating activities | (57,752) | 251,338 | (310,708) |
Cash Flows From Investing Activities: | |||
Additions to property and equipment, including pre-delivery deposits | (47,532) | (39,264) | (105,313) |
Proceeds from purchase assignment and sale leaseback transactions | 0 | 0 | 114,000 |
Proceeds from disposition of equipment | 12,182 | 755 | 0 |
Purchases of investments | (859,833) | (1,856,035) | (395,793) |
Sales of investments | 880,161 | 958,242 | 288,336 |
Net cash used in investing activities | (15,022) | (936,302) | (98,770) |
Cash Flows From Financing Activities: | |||
Proceeds from the issuance of common stock | 0 | 68,132 | 41,196 |
Long-term borrowings | 0 | 1,251,705 | 602,264 |
Repayments of long-term debt and finance lease obligations | (184,306) | (611,725) | (78,824) |
Dividend payments | 0 | 0 | (5,514) |
Repurchases of common stock | 0 | 0 | (7,510) |
Debt issuance costs and discounts | (2,236) | (24,776) | (4,975) |
Other | (1,892) | (183) | (576) |
Net cash provided by (used in) financing activities | (188,434) | 683,153 | 546,061 |
Net increase (decrease) in cash and cash equivalents | (261,208) | (1,811) | 136,583 |
Cash, cash equivalents, and restricted cash—Beginning of Year | 507,828 | 509,639 | 373,056 |
Cash, cash equivalents, and restricted cash—End of Year | $ 246,620 | $ 507,828 | $ 509,639 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation Hawaiian Holdings, Inc. (Holdings) and its direct wholly-owned subsidiary, Hawaiian Airlines, Inc. (Hawaiian), are incorporated in the State of Delaware. Holdings' primary asset is its sole ownership of all issued and outstanding shares of common stock of Hawaiian. References to the "Company", "we," "us," "our" in these Notes to Consolidated Financial Statements include both Holdings and Hawaiian unless the context requires otherwise. The consolidated financial statements include the accounts of Holdings 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. Significant Accounting Policies Cash and Cash Equivalents and Short-Term Investments Highly liquid investments with a maturity of three months or less when purchased are classified as cash equivalents. Investments with maturities greater than three months are classified as short-term investments and stated at fair value. Investments with maturities beyond one year when purchased may be classified as short-term investments if they are expected to be available to support our short-term liquidity needs. Realized gains and losses on sales of investments as well as unrealized gains and losses related to changes in the fair value of equity securities and investment derivative contracts are reflected in Gains (losses) on investments, net within nonoperating income (expense) on the Consolidated statements of operations. Unrealized gains and losses on debt securities are reflected as a component of accumulated other comprehensive income (loss). The Company reviews debt securities quarterly for credit losses and impairment. If the cost of an investment exceeds its fair value, the Company will evaluate, among other factors, general market conditions, credit quality of debt instrument issuers, and the extent to which the fair value is less than cost. This determination requires significant judgment. In making this judgment, the Company employs a systematic methodology that considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. In addition, the Company considers specific adverse conditions related to the financial health of, and business outlook for, the investee. If the Company has plans to sell the security or it is more likely than not that the Company will be required to sell the security before recovery, then a decline in fair value below cost is recorded as an impairment charge in Other, net, within non-operating expense on the Consolidated Statements of Operations, and a new cost basis in the investment is established. If market, industry, and/or investee conditions deteriorate, the Company may incur future impairments. 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: 2022 2021 (in thousands) Flight equipment $ 2,492,722 $ 2,482,686 Pre-delivery deposits on flight equipment 83,034 83,034 Other property and equipment 433,858 391,869 3,009,614 2,957,589 Less accumulated depreciation and amortization (1,135,262) (999,966) Total property and equipment, net $ 1,874,352 $ 1,957,623 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 $171.3 million and $147.8 million as of December 31, 2022 and 2021, 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 $31.6 million and $21.1 million at December 31, 2022 and 2021, respectively. The value of construction in progress, primarily consisting of aircraft and software-related projects in 2022 and 2021, which is included in property and equipment on the Consolidated Balance Sheets, was $55.5 million and $42.4 million as of December 31, 2022 and 2021, respectively. Amortization expense related to computer software was $12.3 million, $13.1 million and $15.7 million for the years ended December 31, 2022, 2021, and 2020 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, 2022 and 2021, the Company had approximately $0.0 million and $5.9 million, respectively, in prepayments to one of its power-by-the-hour vendors. 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 intangible 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, 2022, 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, analyzing 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 $1.9 billion at December 31, 2022. 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 years ended December 31, 2022, 2021, and 2020, the Company recorded impairment of $6.3 million, $6.4 million, and $39.4 million, respectively, as follows: • In 2020, the Company recorded impairment 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. 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. • In 2022, the Company recorded impairment of $6.3 million on its remaining ATR-42 and ATR-72 aircraft, using available market information and taking into consideration recent transactions. The Company estimated the fair value of its ATR-42 and ATR-72 fleets using a third-party valuation, available market information, and consideration of recent transaction 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. 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. Given the ongoing impacts of the COVID-19 pandemic on actual results, the Company continues to monitor customers' travel behavior and may adjust its estimates in the future. In 2020, the Company amended its policy to eliminate ticket change fees, excluding its Main Cabin Basic products. Ticket change fees are recorded in Air traffic liability and recognized when the related transportation is provided. During the twelve months ended December 31, 2022, 2021 and 2020, the Company recognized approximately $5.3 million, $4.8 million and $11.3 million, respectively in ticket change fee revenue related to tickets sold prior to the policy change. 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. Management continues to monitor customers' travel behavior, changes in policies, and other factors, 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, 2022 and 2021, the Company's asset balance associated with these costs were $13.2 million and $13.9 million, respectively. During the twelve months ended December 31, 2022, 2021, and 2020, expenses related to these costs totaled to $83.1 million, $45.1 million, and $24.6 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 $22.6 million, $20.2 million and $15.3 million for the years ended December 31, 2022, 2021, and 2020, 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. Derivative instruments in the Company's fuel and investment portfolios were not designated as hedges under ASC Topic 815, Derivatives and Hedging (ASC 815) , for hedge accounting treatment, and as a result, any change in the fair value of these derivative instruments is adjusted through Other Nonoperating Income (Expense) in the Consolidated Statement of Operations in the period of change. 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 2020 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) Passenger revenue Foreign currency derivative gains — — (3,945) Nonoperating income (expense), other, net Total before tax — — (7,020) Tax expense — — 1,737 Total, net of tax $ — $ — $ (5,283) Amortization of defined benefit pension items Actuarial loss $ 2,063 $ 4,195 $ 4,048 Nonoperating income (expense), other, net Prior service cost 438 370 712 Nonoperating income (expense), other, net Special termination benefits — — 5,258 Other nonoperating special items Curtailment loss — — 424 Other nonoperating special items Total before tax 2,501 4,565 10,442 Tax benefit (640) (1,103) (2,309) Total, net of tax $ 1,861 $ 3,462 $ 8,133 Short-term investments Realized gain on sales of investments (228) (2,208) (959) Gains (losses) on investments, net Realized loss on sales of investments, net 22,222 677 270 Gains (losses) on investments, net Total before tax 21,994 (1,531) (689) Tax expense (5,428) 379 168 Total, net of tax 16,566 (1,152) (521) Total reclassifications for the period $ 18,427 $ 2,310 $ 2,329 A rollforward of the amounts included in accumulated other comprehensive loss, net of taxes, is as follows: Year ended December 31, 2022 Defined Short-Term Investments Total (in thousands) Beginning balance $ (75,025) $ (6,813) $ (81,838) Other comprehensive income (loss) before reclassifications, net of tax 13,725 (45,480) (31,755) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 1,861 16,566 18,427 Net current-period other comprehensive income (loss), net of tax 15,586 (28,914) (13,328) Ending balance $ (59,439) $ (35,727) $ (95,166) Year ended December 31, 2021 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) |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) 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 398,509 and 550,112 for the twelve months ended December 31, 2022 and 2021, respectively. Unvested warrant shares held by Amazon have not been included in the computation as their performance condition has not yet been satisfied. As of December 31, 2022, the unvested Amazon warrant shares excluded from antidilutive shares were 8,183,451. Refer to Note 14 to the Notes to Consolidated Financial Statements for additional discussion. The following table shows the Company's computation of basic and diluted earnings (loss) per share: Year Ended December 31, 2022 2021 2020 (in thousands, except for per share data) Numerator: Net Loss $ (240,081) $ (144,773) $ (510,935) Denominator: Weighted average common shares outstanding—Basic 51,361 50,769 46,100 Dilutive effect of share-based awards and warrants — — — Weighted average common shares outstanding—Diluted 51,361 50,769 46,100 Net Loss Per Common Stock Share: Basic $ (4.67) $ (2.85) $ (11.08) Diluted $ (4.67) $ (2.85) $ (11.08) |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
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. Holdings' 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, 2022 2021 2020 (in thousands) Domestic $ 2,304,522 $ 1,504,151 $ 640,153 Pacific 336,745 92,433 204,660 Total operating revenue $ 2,641,267 $ 1,596,584 $ 844,813 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, 2022, 2021, and 2020, North America routes accounted for approximately 82%, 83% and 78% 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, 2022 2021 2020 Passenger Revenue by Type (in thousands) Passenger revenue, excluding frequent flyer $ 2,152,536 $ 1,264,059 $ 616,214 Frequent flyer revenue, transportation component 182,904 106,843 48,585 Passenger Revenue $ 2,335,440 $ 1,370,902 $ 664,799 Other revenue (e.g. cargo and other miscellaneous) $ 182,468 $ 126,349 $ 94,187 Frequent flyer revenue, marketing and brand component 123,359 99,333 85,827 Other Revenue $ 305,827 $ 225,682 $ 180,014 For the twelve months ended December 31, 2022, 2021, and 2020, the Company's total revenue was $2.6 billion, $1.6 billion, and $0.8 billion, respectively. As of December 31, 2022 and 2021, the Company's Air traffic liability balance as it relates to passenger tickets (excluding frequent flyer) was $414.5 million and $448.2 million, respectively, which represents future revenue that is expected to be realized. During the twelve months ended December 31, 2022, 2021, and 2020, the amount of revenue recognized that was included in Air traffic liability as of the beginning of the respective period was $436.5 million, $184.0 million, and $254.8 million, respectively. Prior to the second quarter of 2020, non-refundable tickets sold and credits issued generally expired 13 months from the date of issuance or scheduled 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 to December 31, 2022, which also included all Main Cabin and First Class passenger tickets purchased in 2021. The Company records an estimate of breakage revenue on the scheduled flight date for tickets that will expire unused. These estimates are based on the evaluation of actual historical results, available market information, forecasted trends and the extension of the expiration date for certain tickets impacted by the COVID-19 pandemic. At December 31, 2022, $151.9 million of passenger tickets expired unused after receiving extended validity dates throughout the past two years. During the years ended December 31, 2022 and 2021, the Company recognized approximately $100.5 million and $51.4 million, respectively, in advanced ticket breakage related to these tickets. Excluding tickets with extended validity dates, as discussed above, the Company recognized advanced breakage of $49.8 million, $48.3 million, and $12.8 million, during the years ended December 31, 2022, 2021 and 2020, respectively. Despite improvements in the industry and overall travel demand, the unflown rates continue to have higher than normal volatility in comparison to historical trends. The Company will continue to monitor customers' travel behavior and may adjust its estimates in the future. 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, 2022 and 2021, the balances were as follows: As of December 31, 2022 2021 (in thousands) Air traffic liability (current portion of frequent flyer deferred revenue) $ 166,211 $ 169,687 Noncurrent frequent flyer deferred revenue 318,369 296,484 Total frequent flyer liability $ 484,580 $ 466,171 The table below presents a roll forward of Frequent flyer deferred revenue for the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 2021 (in thousands) Total Frequent flyer liability - beginning balance $ 466,171 $ 420,125 Miles awarded 205,614 155,178 Travel miles redeemed (Passenger Revenue) (182,904) (106,843) Non-travel miles redeemed (Other Revenue) (4,301) (2,289) Total Frequent flyer liability - ending balance $ 484,580 $ 466,171 |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2022 | |
Short-Term Investments [Abstract] | |
Short-Term Investments | Short-Term Investments The following is a summary of short-term investments held as of December 31, 2022 and 2021: December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Debt securities Corporate debt securities $ 340,493 $ 139 $ (23,009) $ 317,623 U.S. government and agency securities 467,049 181 (12,341) 454,889 Other fixed income securities 110,881 23 (6,499) 104,405 Asset-backed securities 30,205 — (2,039) 28,166 Collateralized loan obligations 43,736 130 (3,684) 40,182 Bank notes 11,493 3 (192) 11,304 Derivatives 43 1,433 (178) 1,298 Equity securities 213,569 — (26,109) 187,460 Other investments measured at net asset value 2,087 — (221) 1,866 Total short-term investments $ 1,219,556 $ 1,909 $ (74,272) $ 1,147,193 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 Other fixed income securities 142,035 62 (564) 141,533 Asset-backed securities 19,372 7 (71) 19,308 Collateralized loan obligations 51,082 32 (116) 50,998 Bank notes 8,110 — (20) 8,090 Derivatives — 821 (74) 747 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 The following tables present fair values and gross unrealized losses by security type and length of time that individual securities have been in a continuous unrealized loss position: Less than 12 Months 12 Months or Greater Total December 31, 2022 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) Debt securities Corporate debt $ 145,299 $ (10,104) $ 159,216 $ (12,905) $ 304,515 $ (23,009) U.S. government and agency debt 314,790 (8,097) 98,653 (4,244) 413,443 (12,341) Other fixed income securities 17,836 (1,191) 23,316 (5,308) 41,152 (6,499) Asset-backed securities 11,155 (755) 14,435 (1,284) 25,590 (2,039) Collateralized loan obligations 28,133 (2,372) 9,491 (1,312) 37,624 (3,684) Bank notes 2,836 (192) — — 2,836 (192) Other investments measured at net asset value 865 (221) — — 865 (221) $ 520,914 $ (22,932) $ 305,111 $ (25,053) $ 826,025 $ (47,985) Less than 12 Months 12 Months or Greater Total December 31, 2021 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) Debt securities Corporate debt $ 316,719 $ (4,239) $ 83,889 $ (413) $ 400,608 $ (4,652) U.S. government and agency debt 291,949 (1,716) 52,501 (177) 344,450 (1,893) Other fixed income securities 28,198 (638) — — 28,198 (638) Asset-backed securities 16,949 (67) 1,046 (4) 17,995 (71) Collateralized loan obligations 24,030 (116) — — 24,030 (116) Bank notes 3,990 (20) — — 3,990 (20) Other investments measured at net asset value 2,144 (49) — — 2,144 (49) $ 683,979 $ (6,845) $ 137,436 $ (594) $ 821,415 $ (7,439) As of December 31, 2022 and December 31, 2021, the Company's unrealized losses from debt securities were generated from 496 positions out of 547 positions and 451 positions out of 558 positions, respectively. Debt securities in a continuous unrealized loss position for twelve months or greater as of December 31, 2022 and December 31, 2021 were primarily attributable to changes in interest rates, relative to when the investment securities were purchased. The Company does not intend to sell any of these investments and it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis, which may be at maturity. Accordingly, the Company has determined that the unrealized losses on our debt securities as of December 31, 2022 were temporary in nature. The Company has also evaluated its debt securities and did not recognize any significant credit losses as of December 31, 2022 and December 31, 2021. For the twelve months ended December 31, 2022 and 2021, the unrealized losses on equity securities were $26.3 million and $2.1 million, respectively. Contractual maturities of short-term investments as of December 31, 2022 are shown below: Under 1 Year 1 to 5 Years Over 5 Years Total (in thousands) Debt securities Corporate debt securities $ 2,794 $ 236,545 $ 78,284 $ 317,623 U.S. government and agency securities 39,472 406,126 9,291 454,889 Other fixed income securities 60,884 29,671 13,850 104,405 Asset-backed securities 481 18,238 9,447 28,166 Collateralized loan obligations — — 40,182 40,182 Bank notes — 7,260 4,044 11,304 Total debt securities $ 103,631 $ 697,840 $ 155,098 $ 956,569 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 46,729 $ 46,535 $ 194 $ — Restricted cash 17,498 17,498 — — Short-term investments Debt securities Corporate debt securities 317,623 — 309,450 8,173 U.S. government and agency securities 454,889 — 454,889 — Other fixed income securities 104,405 — 104,405 — Asset-backed securities 28,166 — 19,133 9,033 Collateralized loan obligations 40,182 — 37,624 2,558 Bank notes 11,304 — 1,878 9,426 Derivatives 1,298 — 1,298 — Equity securities 187,460 186,670 790 — Other investments measured at net asset value 1,866 — — — Total short-term investments 1,147,193 186,670 929,467 29,190 Other Assets Assets held for sale 14,019 — — 14,019 Crude oil call options 5,308 — 5,308 — Total assets measured at fair value $ 1,230,747 $ 250,703 $ 934,969 $ 43,209 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 18,561 — 14,558 4,003 Collateralized loan obligations 50,998 — 47,676 3,322 Bank notes 8,090 — 1,337 6,753 Derivatives 747 — 747 — 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 Cash equivalents and restricted cash. The Company's Level 1 cash equivalents consist of money market securities and mutual funds, which are valued based on quoted prices in an active market. 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. As of December 31, 2022 , approximately $17.5 million was held in the controlled account designated for debt servicing and was classified as restricted cash on the Company's Consolidated Balance Sheets. 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, bank notes, equity securities, and derivative instruments as further discussed in Note 5 , 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 valued using certain unobservable inputs including future cash flows and discount rates. The reconciliation of the Company's short-term investments measured at fair value on a recurring basis using unobservable inputs (Level 3) for the year ended December 31, 2022 is as follows: Short-term Investment Activity for the Twelve Months Ended December 31, 2022 Asset-backed securities Bank notes Collateralized loan obligations Corporate debt securities Total (in thousands) Beginning balance as of January 1, 2022 $ 4,003 $ 6,753 $ 3,322 $ — $ 14,078 Purchases 5,449 3,440 2,100 8,593 19,582 Proceeds from sale — — (122) — (122) Redemptions and paydowns (143) (747) (2,852) — (3,742) Amortization and accretion, net 98 9 (10) 47 144 Realized and unrealized gains (losses), net (374) (29) 120 (467) (750) Ending balance as of December 31, 2022 $ 9,033 $ 9,426 $ 2,558 8,173 $ 29,190 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. The Company uses derivatives to manage risks associated with certain assets and liabilities arising from the potential adverse impact of fluctuations in global fuel prices. 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. Any changes in fair value of these derivative instruments are adjusted through other nonoperating income (expense) in the period of change. The Company’s fuel derivative contracts consist of crude oil call options, which are not traded on a public exchange. The fair value of these instruments is determined based on inputs available or derived from public markets including contractual terms, market prices, yield curves, and measures of volatility, among others. Assets held for sale . The Company's assets held for sale consist of aircraft, engine, rotable and expendable aircraft parts related to the ATR-42 and ATR-72 fleet, and commercial real estate. These 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, 2022 is as follows: Assets Held for Sale Activity for the Twelve Months Ended December 31, 2022 ATR Aircraft Commercial Real Estate Total (in thousands) Beginning balance as of January 1, 2022 $ 23,158 $ 6,291 $ 29,449 Additions — — — Proceeds from sale (12,580) — (12,580) Impairment charge (6,303) — (6,303) Realized gains 3,460 — 3,460 Realized losses (7) — (7) Ending balance as of December 31, 2022 $ 7,728 $ 6,291 $ 14,019 The table below presents the Company's debt measured at fair value: Fair Value of Debt December 31, 2022 December 31, 2021 Carrying Fair Value Carrying Fair Value Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (in thousands) $ 1,631,725 $ 1,356,561 $ — $ — $ 1,356,561 $ 1,838,954 $ 1,808,530 $ — $ — $ 1,808,530 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, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 fuel prices. 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. The following table reflects the amount of realized and unrealized gains and losses recorded as Nonoperating income (expense) in the Consolidated Statements of Operations. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt, net of unamortized discounts and issuance costs, is outlined as follows: December 31, 2022 2021 (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 $ 184,572 $ 196,338 Class B EETC-13, fixed interest rate of 4.95%, semiannual principal and interest payments — 45,090 Japanese Yen denominated financing, fixed interest rate of 1.05%, quarterly principal and interest payments, remaining balance due at maturity in May 2030 23,524 30,213 Japanese Yen denominated financing, fixed interest rate of 1.01%, semiannual principal and interest payments, remaining balance due at maturity in June 2030 20,350 26,271 Japanese Yen denominated financing, fixed interest rate of 0.65%, quarterly principal and interest payments, remaining balance due at maturity in March 2025 64,276 91,041 Japanese Yen denominated financing, fixed interest rate of 0.76%, semiannual principal and interest payments, remaining balance due at maturity in September 2031 55,731 70,269 Class A EETC-20, fixed interest rate of 7.375%, semiannual principal and interest payments — 48,245 Class B EETC-20, fixed interest rate of 11.25%, semiannual principal and interest payments — 19,504 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 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 23,908 Loyalty Program Financing, fixed interest of 5.75%, quarterly interest payments, principal balance due at maturity in January 2026 1,200,000 1,200,000 Unamortized debt discount and issuance costs (28,711) (37,560) Total debt $ 1,631,725 $ 1,801,394 Less: Current maturities of long-term debt (47,836) (97,096) Long-Term Debt, less discount $ 1,583,889 $ 1,704,298 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 had 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 was 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. In June 2022, the Company repurchased the remaining $62.4 million of outstanding Series 2020-1A and Series 2020-1B Equipment Notes. The repurchase resulted in the recognition of a loss on extinguishment of debt of $8.6 million during the year ended December 31, 2022, which is reflected in the nonoperating income (expense), Loss on extinguishment of debt line item on the Consolidated Statements of Operations. 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 2022 and 2021, the Company recorded foreign currency unrealized gains of $26.2 million and $27.6 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. In August 2022, the Company entered into an Amended and Restated Credit and Guarantee Agreement (the Revolving Credit Facility). The Revolving Credit Facility has an aggregate principal amount not to exceed $235 million and matures in December 2025. The Company may, from time to time, grant liens on certain eligible account receivables, aircraft, spare engines, ground support equipment and route authorities, as well as cash and certain cash equivalents, in order to secure its outstanding obligations under the Revolving Credit Facility. Indebtedness under the Revolving Credit Facility will bear interest, at a per annum rate based on, at the Company's option: (1) a variable rate equal to the Secured overnight financing rate plus a margin of 3.0%; or (2) Alternate base rate (as defined in the Revolving Credit Facility) plus a margin of 2.0%. The Revolving Credit Facility 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, 2022, 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, 2022 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, 2022 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 issued a promissory note to the Treasury (the PSP Note) for approximately $60.3 million and agreed to issue to the Treasury a total of 509,964 warrants to purchase shares of the Company's common stock at an exercise price of $11.82 per share (the PSP Warrants) 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 PSP 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 PSP 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 156,340 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 PSP 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 through April 1, 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, 2022, approximately $17.5 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, 2022, the scheduled maturities of debt, excluding debt issuance costs, are as follows (in thousands): 2023 $ 49,118 2024 46,978 2025 60,697 2026 1,339,518 2027 12,065 Thereafter 152,060 $ 1,660,436 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, 2022. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
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 non-lease 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, 2022, the Company leased 21 of its 64 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 1 year to 10 years. The Company also has 2 engines under operating lease with remaining lease terms of 3 years and 4 years, respectively. The Company has a flight simulator under a finance lease with a remaining lease term of approximately 3 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 27 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 4 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 29 years as of December 31, 2022. 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 3 years. Certain lease IT assets are embedded within service agreements. The combined lease and non-lease components of those agreements are included in the ROU asset and lease liability. Lease Position as of December 31, 2022 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 2022 2021 (in thousands) Assets: Operating lease assets Operating lease right-of use assets $ 459,128 $ 536,154 Finance lease assets Property and equipment, net 90,847 114,376 Total lease assets $ 549,975 $ 650,530 Liabilities: Current Operating Current maturities of operating leases $ 77,858 $ 79,158 Finance Current maturities of finance lease obligations 25,789 24,149 Noncurrent Operating Noncurrent operating leases 347,726 423,293 Finance Finance lease obligations 75,221 100,995 Total lease liabilities $ 526,594 $ 627,595 Weighted-average remaining lease term Operating leases 10.4 years 10.4 years Finance leases 6.9 years 7.2 years Weighted-average discount rate Operating leases (1) 5.72 % 5.63 % Finance leases 4.30 % 4.37 % (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, 2022 and 2021, the total lease costs for finance and operating leases were as follows: Year ended December 31, 2022 2021 2020 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 23,265 $ 23,339 $ 23,197 Interest of lease liabilities 4,963 6,022 6,887 Operating lease cost (1) 105,445 110,864 108,505 Short-term lease cost (1) 2,650 2,909 981 Variable lease cost (1) 142,894 112,475 68,212 Total lease cost $ 279,217 $ 255,609 $ 207,782 (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, 2022, the cash paid for amounts included in the measurement of lease liabilities were as follows: Year ended December 31, 2022 2021 2020 (in thousands) Operating cash flows for operating leases 105,021 110,286 113,585 Operating cash flows for finance leases 4,948 5,997 6,887 Financing cash flows for finance lease 24,137 23,040 22,295 Undiscounted Cash Flows As of December 31, 2022, 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) 2023 $ 22,972 $ 6,564 $ 86,467 $ 13,154 2024 16,669 1,175 77,497 13,249 2025 11,941 974 56,045 12,084 2026 11,047 236 49,734 10,127 2027 11,047 236 34,772 6,072 Thereafter 27,400 6,170 60,233 148,767 Total minimum lease payments $ 101,076 $ 15,355 $ 364,748 $ 203,453 Less: amounts representing interest (12,240) (3,180) (58,918) (83,699) Present value of future minimum lease payments $ 88,836 $ 12,175 $ 305,830 $ 119,754 Less: current maturities of lease obligations (19,602) (6,187) (70,537) (7,321) Long-term lease obligations $ 69,234 $ 5,988 $ 235,293 $ 112,433 |
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 non-lease 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, 2022, the Company leased 21 of its 64 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 1 year to 10 years. The Company also has 2 engines under operating lease with remaining lease terms of 3 years and 4 years, respectively. The Company has a flight simulator under a finance lease with a remaining lease term of approximately 3 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 27 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 4 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 29 years as of December 31, 2022. 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 3 years. Certain lease IT assets are embedded within service agreements. The combined lease and non-lease components of those agreements are included in the ROU asset and lease liability. Lease Position as of December 31, 2022 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 2022 2021 (in thousands) Assets: Operating lease assets Operating lease right-of use assets $ 459,128 $ 536,154 Finance lease assets Property and equipment, net 90,847 114,376 Total lease assets $ 549,975 $ 650,530 Liabilities: Current Operating Current maturities of operating leases $ 77,858 $ 79,158 Finance Current maturities of finance lease obligations 25,789 24,149 Noncurrent Operating Noncurrent operating leases 347,726 423,293 Finance Finance lease obligations 75,221 100,995 Total lease liabilities $ 526,594 $ 627,595 Weighted-average remaining lease term Operating leases 10.4 years 10.4 years Finance leases 6.9 years 7.2 years Weighted-average discount rate Operating leases (1) 5.72 % 5.63 % Finance leases 4.30 % 4.37 % (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, 2022 and 2021, the total lease costs for finance and operating leases were as follows: Year ended December 31, 2022 2021 2020 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 23,265 $ 23,339 $ 23,197 Interest of lease liabilities 4,963 6,022 6,887 Operating lease cost (1) 105,445 110,864 108,505 Short-term lease cost (1) 2,650 2,909 981 Variable lease cost (1) 142,894 112,475 68,212 Total lease cost $ 279,217 $ 255,609 $ 207,782 (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, 2022, the cash paid for amounts included in the measurement of lease liabilities were as follows: Year ended December 31, 2022 2021 2020 (in thousands) Operating cash flows for operating leases 105,021 110,286 113,585 Operating cash flows for finance leases 4,948 5,997 6,887 Financing cash flows for finance lease 24,137 23,040 22,295 Undiscounted Cash Flows As of December 31, 2022, 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) 2023 $ 22,972 $ 6,564 $ 86,467 $ 13,154 2024 16,669 1,175 77,497 13,249 2025 11,941 974 56,045 12,084 2026 11,047 236 49,734 10,127 2027 11,047 236 34,772 6,072 Thereafter 27,400 6,170 60,233 148,767 Total minimum lease payments $ 101,076 $ 15,355 $ 364,748 $ 203,453 Less: amounts representing interest (12,240) (3,180) (58,918) (83,699) Present value of future minimum lease payments $ 88,836 $ 12,175 $ 305,830 $ 119,754 Less: current maturities of lease obligations (19,602) (6,187) (70,537) (7,321) Long-term lease obligations $ 69,234 $ 5,988 $ 235,293 $ 112,433 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The significant components of income tax expense (benefit) are as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Current Federal $ (1,073) $ 1,522 $ (113,010) State (493) (448) (3,919) $ (1,566) $ 1,074 $ (116,929) Deferred Federal $ (49,646) $ (39,589) $ (52,824) State (2,556) (2,035) (19,364) $ (52,202) $ (41,624) $ (72,188) Income tax benefit $ (53,768) $ (40,550) $ (189,117) The income tax benefit differed from amounts computed at the statutory federal income tax rate as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Income tax benefit computed at the statutory federal rate $ (61,709) $ (38,918) $ (147,012) Increase (decrease) resulting from: State income taxes, net of federal tax effect (11,186) (6,203) (22,508) Nondeductible meals 597 466 271 Goodwill impairment — — 22,399 Change in valuation allowance 17,805 4,445 7,070 CARES Act (NOL carryback) — — (45,417) Stock compensation 920 436 473 Other (195) (776) (4,393) Income tax benefit $ (53,768) $ (40,550) $ (189,117) 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, 2022 2021 (in thousands) Deferred tax assets: Accumulated pension and other postretirement benefits $ 35,384 $ 41,740 Operating leases liabilities 104,938 124,570 Finance leases 2,616 2,641 Air traffic liability and frequent flyer liability 84,723 118,005 Partnership deferred revenue 4,377 5,242 Federal and state net operating loss carryforwards 86,452 26,725 Accrued compensation 16,720 15,377 Other accrued assets 16,803 14,360 Capital losses 10,271 — Deferred interest under IRC Section 163(j) 34,132 18,956 Other assets 23,612 14,090 Total gross deferred tax assets 420,028 381,706 Less: Valuation allowance (31,867) (14,062) Net deferred tax assets $ 388,161 $ 367,644 Deferred tax liabilities: Intangible assets $ (3,205) $ (3,223) Property and equipment, principally accelerated depreciation (377,943) (394,207) Finance leases (787) (5,228) Operating lease right-of-use assets (115,765) (135,659) Other liabilities (20,861) (16,124) Total deferred tax liabilities (518,561) (554,441) Net deferred tax liability $ (130,400) $ (186,797) As of December 31, 2022, the Company had federal and state NOL carryforwards of $236.0 million and $708.0 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. As of December 31, 2022, the Company had gross realized capital loss carryforwards of $16.7 million, which expire in 2027 if not utilized. As of December 31, 2022, the Company had research and development tax credit and Work Opportunity tax credit carryforwards totaling $3.9 million, which may be used to offset future tax liabilities, and which will begin to expire in 2034. 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, 2022 was $37.0 million, of which $21.6 million has a valuation allowance. The tax benefit of the capital loss carryforwards as of December 31, 2022 was $10.3 million, of which $4.1 million relates to net realized capital losses that will expire in 2027 if not utilized and $6.2 million relates to net unrealized capital losses. A full valuation allowance has been recorded against this entire amount. 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. 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, 2022, the Company has $0.8 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: 2022 2021 2020 (in thousands) Balance at January 1 $ 3,771 $ 3,449 $ 6,263 Increases related to prior year tax positions (81) 11 104 Increases related to current year tax positions 568 672 562 Settlements with taxing authority — — (1,063) Effect of the expiration of statutes of limitation (513) (361) (2,417) Balance at December 31 $ 3,745 $ 3,771 $ 3,449 The Company's policy is to recognize interest and penalties related to unrecognized tax benefits within the provision for income taxes. In 2022, 2021, and 2020, the Company recognized expense (benefit) of $0.0 million, $0.0 million, and $(0.7) million, respectively, for interest and penalties on uncertain tax positions. As of December 31, 2022 and 2021, the Company accrued approximately $0.1 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 income tax returns for tax years 2018 and beyond, 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, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held-For-Sale | Assets Held-For-Sale During the second quarter of 2021, the Company reclassified approximately $29.5 million in long-lived assets as held for sale as follows: • The Company announced the termination of its 'Ohana by Hawaiian operations, which utilizes its ATR-42 and ATR-72 fleet, and was 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. • The Company 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. During the second quarter of 2022, the Company sold three ATR-72 aircraft and recognized a $2.6 million gain on the transactions, which was recorded in Other operating expense As of December 31, 2022 and 2021, the Company had approximately $14.0 million and $29.4 million, respectively, in assets held for sale on the Consolidated Balance Sheets. Management continues to actively market the above referenced assets and expects their sale 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, 2022 | |
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, 2022 2021 2020 (in thousands) Operating special items: Contract termination fee (1) $ 12,500 $ — $ — Assets held-for-sale impairment (2) 6,303 — — Ohana by Hawaiian termination (3) — 8,983 — Collective bargaining agreement payment (4) — — 20,242 Goodwill impairment (5) — — 106,662 Long-lived asset impairment (6) — — 38,933 Capitalized software projects (6) — — 509 Severance and benefit costs (7) — — 17,765 Total Operating special items $ 18,803 $ 8,983 $ 184,111 Nonoperating special items: Other nonoperating special items: Special termination benefits (8) $ — $ — $ 5,258 Curtailment loss (8) — — 424 Total Other nonoperating special items $ — $ — $ 5,682 (1) In December 2022, the Company entered into a Memorandum of Understanding (MOU) with its third-party service provider to early terminate its Amended and Restated Complete Fleet Services (CFS) Agreement (Amended CFS). The Amended CFS was originally scheduled to run through December 2027, and will now terminate in April 2023. In connection with the MOU, the Company agreed to pay a total of $12.5 million in termination fees, which was recognized at execution as a Special item in the Consolidated Statements of Operations. (2) As discussed in Note 11, during the year ended December 31, 2022, the Company recognized impairment of $6.3 million related to its assets held-for-sale. (3) 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. (4) 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, 2020, 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. (5) As discussed in Note 1, the Company recognized a goodwill impairment charge of $106.7 million during the twelve months ended December 31, 2020. (6) As discussed in Note 1, the Company recognized an impairment of long-lived assets of $ 39.4 million (7) 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. (8) 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, 2022 | |
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: 2022 2021 Pension Other Pension Other (in thousands) Change in projected benefit obligations Benefit obligations, beginning of year $ (452,625) $ (165,729) $ (474,750) $ (171,480) Service cost — (9,568) — (11,744) Interest cost (13,101) (5,220) (12,216) (4,769) Actuarial gains 102,544 42,834 9,738 16,623 Benefits paid 25,637 6,728 24,603 5,641 Less: federal subsidy on benefits paid N/A — N/A — Plan amendments — (1,750) — — Benefit obligation at end of year (a) $ (337,545) $ (132,705) $ (452,625) $ (165,729) Change in plan assets Fair value of assets, beginning of year $ 405,366 $ 44,632 $ 382,846 $ 38,710 Actual return on plan assets (93,701) (6,879) 46,297 3,357 Employer contribution — 4,045 — 4,008 Benefits paid (24,813) (1,904) (23,777) (1,443) Fair value of assets at end of year $ 286,852 $ 39,894 $ 405,366 $ 44,632 Unfunded status at December 31 $ (50,693) $ (92,811) $ (47,259) $ (121,097) Amounts recognized in the statement of financial position consist of: Current benefit liability $ (789) $ (6,941) $ (800) $ (6,739) Noncurrent benefit liability (49,904) (85,870) (46,459) (114,358) $ (50,693) $ (92,811) $ (47,259) $ (121,097) Amounts recognized in accumulated other comprehensive loss Unamortized actuarial loss (gain) $ 106,906 $ (49,505) $ 94,537 $ (16,161) Prior service cost (credit) — 5,002 — 3,690 $ 106,906 $ (44,503) $ 94,537 $ (12,471) _______________________________________________________________________________ (a) The accumulated pension benefit obligation as of December 31, 2022 and 2021 was $337.5 million and $452.6 million, respectively. The following table sets forth the net periodic benefit cost: 2022 2021 2020 Pension Other Pension Other Pension Other (in thousands) Components of Net Periodic Benefit Cost Service cost $ — $ 9,568 $ — $ 11,744 $ 12 $ 10,791 Other cost: Interest cost 13,101 5,220 12,216 4,769 14,639 5,167 Expected return on plan assets (23,809) (2,077) (23,327) (1,785) (23,418) (1,746) Recognized net actuarial loss (gain) 2,596 (533) 4,407 (212) 4,091 (43) Prior service cost — 438 — 370 — 288 Total other components of the net periodic benefit cost $ (8,112) $ 3,048 $ (6,704) $ 3,142 $ (4,688) $ 3,666 Special/contractual termination benefits — — — — — 5,258 Curtailment loss — — — — — 424 Net periodic benefit cost $ (8,112) $ 12,616 $ (6,704) $ 14,886 $ (4,676) $ 20,139 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss Current year actuarial (gain) loss $ 14,966 $ (35,051) $ (32,709) $ (16,989) $ 8,376 $ 3,409 Current year prior service cost — 1,750 — — — 3,260 Amortization of actuarial gain (loss) (2,596) 533 (4,407) 212 (4,091) 43 Amortization of prior service cost — (438) — (370) — (712) Settlement and curtailment loss — — — — — — Total recognized in other comprehensive loss $ 12,370 $ (33,206) $ (37,116) $ (17,147) $ 4,285 $ 6,000 Total recognized in net periodic benefit cost and other comprehensive loss $ 4,258 $ (20,590) $ (43,820) $ (2,261) $ (391) $ 26,139 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, 2022 and 2021, 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 2022 2021 2022 2021 2022 2021 Discount rate to determine net periodic benefit expense 2.98 % 2.63 % 3.02 % 2.62 % 3.03 % 2.67 % Discount rate to determine projected benefit obligation 5.58 % 2.98 % 5.57 % 2.99 % 5.52 % 3.03 % Expected return on plan assets 6.06 % ** 6.29 % N/A N/A 4.35 % ** 4.28 % 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 6.25 % 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 5 6 N/A N/A Health care trend rate to determine projected benefit obligation N/A N/A 6.75 % 6.25 % 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 8 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 7.25% in both 2022 and 2021). ** Expected return on plan assets used to determine the net periodic benefit expense for 2023 is 7.1% for Pension and 6.2% for Disability. Estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2023 are as follows: Pension Other (in thousands) Actuarial (gain) loss $ 3,975 $ (2,345) Amortization of prior service cost — 497 To be recognized in net periodic benefit cost from accumulated other comprehensive (gain) loss $ 3,975 $ (1,848) 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, 2022 are as follows: Asset Allocation for Pilots pension and VEBA Plans 2022 Target Equity securities 55 % 60 % Fixed income securities 41 % 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, 2022 2021 (in thousands) Pension Plan Assets: Equity index funds $ 158,580 $ 226,291 Fixed income funds 113,029 158,334 Real estate investment fund 12,844 18,614 Insurance company pooled separate account 2,399 2,127 Total $ 286,852 $ 405,366 Postretirement Assets: Common collective trust fund $ 39,716 $ 44,509 Money market fund 178 123 $ 39,894 $ 44,632 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 2023 as sufficient funding balance exists to cover all funding requirements in 2023. 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) 2023 $ 26,886 $ 9,388 $ — 2024 27,424 8,935 — 2025 27,668 8,973 — 2026 27,760 9,701 — 2027 27,718 9,856 — 2028 - 2032 133,029 54,916 — $ 270,485 $ 101,769 $ — 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 $57.0 million, $47.3 million and $43.6 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Amazon Agreement
Amazon Agreement | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Amazon Agreement | Amazon Agreement On October 20, 2022, Hawaiian and Amazon.com Services LLC (Customer), a wholly owned subsidiary of Amazon.com, Inc. (Amazon), entered into an Air Transportation Services Agreement (the ATSA) under which the Company will provide certain air cargo transportation services to the Customer for an initial term of eight years. Thereafter, the Customer may elect to extend the ATSA for two years and, at the end of such period, the parties may mutually agree to extend the term for three additional years The ATSA provides for the Company to initially operate ten A330-300F aircraft for air cargo transportation services, with the Customer having the right to enter into work orders for additional aircraft. The Company will supply flight crews, perform maintenance and certain administrative functions, and procure aircraft insurance. The Customer will pay the Company a fixed monthly fee per aircraft, a per flight hour fee, and a per flight cycle fee for each flight cycle operated. The Customer will also reimburse the Company for certain operating expenses, including fuel, certain maintenance, and insurance premiums. As part of the ATSA, the Company received $11.5 million toward start-up costs which has been recorded in Other liabilities in the Consolidated Balance Sheet. The deferred up-front payment will be amortized into revenue on a pro-rata basis over the term of the contract. Operations under the ATSA are expected to commence in the fourth quarter of 2023. During the year ended December 31, 2022, $0 was amortized into revenue on the Company's Consolidated Statements of Operations. The Company and Amazon also entered into a Transaction Agreement, under which, the Company agreed to issue to Amazon.com NV Investment Holdings LLC, a wholly owned subsidiary of Amazon, a warrant (the Warrant) to acquire up to 9,442,443 shares (the Warrant Shares), of the Company's common stock, par value $0.01 per share, valued at approximately $82.5 million, which will be recognized as a reduction of revenue over the vesting period. At execution, 1,258,992 Warrant Shares, valued at $11.6 million, vested upon warrant issuance, and are recorded in Other assets in the Consolidated Balance Sheet. Future vesting is based on payments to be made by Amazon or its affiliates either under the ATSA or generally with respect to air cargo or air charters, excluding commercial passenger service, up to $1.8 billion in the aggregate. Subject to certain conditions, including vesting, the Warrant may be exercised, in whole or in part and for cash or on a net exercise basis, at any time before October 20, 2031. The exercise price with respect to the first 6,294,962 Warrant Shares that vest will be $14.71 per share (the First Tranche). The exercise price with respect to the remaining 3,147,481 Warrant Shares (Second Tranche) will be determined based on the 30-day volume-weighted average price of the Company's common stock as of the earlier of (i) October 20, 2025, or (ii) the date that the entire First Tranche is vested. The exercise prices and the Warrant Shares issuable are subject to customary antidilution adjustments. |
Capital Stock and Share-based C
Capital Stock and Share-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
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 Pursuant to the Company's receipt of financial assistance under the federal government's Payroll Support Programs, the Company was restricted from making dividend payments until September 30, 2022. Prior to the suspension of dividend payments, the Company paid cash dividends of $5.5 million during the year ended December 31, 2020. 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 the federal government's Payroll Support Programs, it was restricted from making any stock repurchases until September 30, 2022. The Company had no stock repurchase activity during the twelve months ended December 31, 2022 and 2021. Prior to the suspension of its stock repurchase program, the Company spent $7.5 million to repurchase approximately 0.3 million shares of the Company's common stock in open market transactions for the year ended December 31, 2020. 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, the Company 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 $7.9 million, $8.6 million and $4.9 million for the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022, $5.8 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 and Market-Based RSU During 2022, the Company granted two types of performance-based RSUs covering 143,849 shares of common stock (the Target Award) with a maximum payout of 254,530 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 and were valued as follows: • Awards with a market condition 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 effect of market conditions is considered in determining the grant date fair value, which is not subsequently revised based on actual performance. • Awards with a performance condition were valued using grant date fair values equal to the Company's share price on the measurement date. The Company valued the 2022 awards at $2.7 million, which will be recognized as stock-based compensation expense over the vesting period. During 2021, the Company granted performance-based RSUs 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 2021 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 2021 awards 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, the Company granted performance-based stock awards without a market condition, covering 204,589 shares of common stock (the Target Award) with a maximum payout of 406,916 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 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 average grant date fair value Non-vested at January 1, 2020 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 Granted 143,849 18.51 Vested (101,125) 23.82 Forfeited (73,318) 31.03 Non-vested at December 31, 2022 415,029 $ 22.78 The fair value of performance-based RSUs vested in the years ended December 31, 2022, 2021 and 2020 was $2.4 million, $1.9 million and $1.7 million, respectively. Service-Based RSU During 2022, the Company awarded 274,832 service-based RSUs 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 RSUs: Number of units Weighted average grant date fair value Non-vested at January 1, 2020 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 Granted 274,832 18.15 Vested (251,024) 24.03 Forfeited (11,002) 22.12 Non-vested at December 31, 2022 470,174 $ 19.74 The fair value of service-based RSUs vested in 2022, 2021, and 2020 was $6.0 million, $5.4 million and $2.8 million, respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
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) 2023 $ 290,808 $ 26,728 $ 317,536 2024 482,099 22,556 504,655 2025 493,090 12,657 505,747 2026 396,103 8,159 404,262 2027 230,126 6,036 236,162 Thereafter — 15,564 15,564 $ 1,892,226 $ 91,700 $ 1,983,926 As of December 31, 2022, 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 12 8 Between 2023 and 2027 General Electric GEnx spare engines: B787-9 spare engines 3 1 Between 2023 and 2027 Boeing 787-9 Purchase Agreement In July 2018, the Company entered into a purchase agreement for the purchase of 10 Boeing 787-9 "Dreamliner" aircraft with purchase rights for an additional 10 aircraft. 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 December 2022, the Company entered into a supplemental agreement to its B787-9 purchase agreement, pursuant to which (a) the Company agreed with Boeing to defer the delivery of the B787-9 aircraft, which will now be delivered between the fourth quarter of 2023 and 2027, and (b) agreed to exercise purchase options for an additional two B787-9 aircraft. The committed expenditures under the amended purchase agreement is reflected in the table 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, 2022 and 2021, 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 As of December 31, 2022, approximately 81.3% of employees were represented by unions. In February 2022, the Company's International Association of Machinists and Aerospace Workers (IAM-M) and International Association of Machinists and Aerospace Workers - Clerical Division (IAM-C) employees ratified a new collective bargaining agreement (CBA), which included scheduled pay rate increases, a signing bonus valued at approximately $2.1 million, improved health benefits and cost sharing, as well as the establishment of Health Retirement Accounts (HRAs) for retirees. During the second quarter, the Company recorded approximately $2.6 million in one-time CBA related expenses associated with a voluntary separation program and establishment of the HRA plan. In April 2022, flight dispatch personnel represented by the Transport Workers Union (TWU), ratified a new CBA. The terms of the new CBA were consistent with those of the IAM discussed above; however, the impact of the TWU CBA was not material to the Company's financial statements. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 (in thousands) Cash payments for interest (net of amounts capitalized) $ 85,370 $ 91,927 $ 23,951 Cash payments (refunds) for income taxes 1,233 (23,123) (81,372) Investing and Financing Activities Not Affecting Cash: Property and equipment acquired through a finance lease — 8,121 939 Right-of-use assets acquired under operating leases 2,625 — 75,667 |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2022 | |
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 18 as Subsidiary Issuer / Guarantor) of pass-through certificates, as discussed in Note 8, the Company (which is also referred to in this Note 18 as Parent Issuer / Guarantor), is fully and unconditionally guaranteeing the payment obligations of Hawaiian, which is a 100% owned subsidiary of Holdings, 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, 2022 Parent Issuer / Subsidiary Issuer / Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 2,637,422 $ 45,924 $ (42,079) $ 2,641,267 Operating Expenses: Aircraft fuel, including taxes and delivery — 817,077 — — 817,077 Wages and benefits — 833,137 — — 833,137 Aircraft rent — 103,846 — — 103,846 Maintenance materials and repairs — 235,749 404 — 236,153 Aircraft and passenger servicing — 152,550 — — 152,550 Commissions and other selling 18 113,469 852 (496) 113,843 Depreciation and amortization — 136,169 — — 136,169 Other rentals and landing fees — 147,259 — (116) 147,143 Purchased services 224 127,873 1,517 (264) 129,350 Special items — 12,500 6,303 — 18,803 Other 6,821 198,610 (978) (41,203) 163,250 Total 7,063 2,878,239 8,098 (42,079) 2,851,321 Operating Income (Loss) (7,063) (240,817) 37,826 — (210,054) Nonoperating Income (Expense): Undistributed net loss of subsidiaries (233,288) (31,357) — 264,645 — Interest expense and amortization of debt discounts and issuance costs — (24,924) (73,891) 3,000 (95,815) Interest income 320 31,219 3,602 (3,000) 32,141 Capitalized interest — 4,244 — — 4,244 Other components of net periodic benefit cost — 5,065 — — 5,065 Losses on fuel derivatives — (3,041) — — (3,041) Loss on debt extinguishment — (8,568) — — (8,568) Losses on investments, net — (43,082) — — (43,082) Gains on foreign debt — 26,667 — — 26,667 Other, net (50) (1,356) — — (1,406) Total (233,018) (45,133) (70,289) 264,645 (83,795) Loss Before Income Taxes (240,081) (285,950) (32,463) 264,645 (293,849) Income tax benefit — (53,768) — — (53,768) Net Loss $ (240,081) $ (232,182) $ (32,463) $ 264,645 $ (240,081) Comprehensive Loss $ (253,409) $ (245,510) $ (32,463) $ 277,973 $ (253,409) Condensed Consolidating Statements of Operations and Comprehensive Loss Year Ended December 31, 2021 Parent Issuer / Subsidiary Issuer / Guarantor 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 extinguishment of debt — (38,889) — — (38,889) Gains on investments, net — 1,426 — — 1,426 Gains on foreign debt — 27,773 — — 27,773 Other, net — 1,619 — — 1,619 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 Issuer / Guarantor 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) Gains on investments, net — 271 — — 271 Losses on foreign debt — (14,913) — — (14,913) Other, net — 1,990 (5) — 1,985 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 Balance Sheets December 31, 2022 Parent Issuer / Subsidiary Issuer / Guarantor Non-Guarantor Eliminations Consolidated ASSETS (in thousands) Current assets: Cash and cash equivalents $ 28,620 $ 151,357 $ 49,145 $ — $ 229,122 Restricted cash — — 17,498 — 17,498 Short-term investments — 1,147,193 — — 1,147,193 Accounts receivable, net — 106,321 25,785 (18,244) 113,862 Income taxes receivable — 70,204 — — 70,204 Spare parts and supplies, net — 36,875 — — 36,875 Prepaid expenses and other — 63,524 29 — 63,553 Total 28,620 1,575,474 92,457 (18,244) 1,678,307 Property and equipment at cost — 3,009,614 — — 3,009,614 Less accumulated depreciation and amortization — (1,135,262) — — (1,135,262) Property and equipment, net — 1,874,352 — — 1,874,352 Assets held for sale — 293 13,726 — 14,019 Operating lease right-of-use assets — 459,128 — — 459,128 Long-term prepayments and other — 99,801 1,200,516 (1,200,000) 100,317 Goodwill and other intangible assets, net — — 13,500 — 13,500 Intercompany receivable — 609,207 — (609,207) — Investment in consolidated subsidiaries 767,831 (57,699) 502 (710,634) — TOTAL ASSETS $ 796,451 $ 4,560,556 $ 1,320,701 $ (2,538,085) $ 4,139,623 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 630 $ 207,294 $ 617 $ (12,532) $ 196,009 Air traffic liability and current frequent flyer deferred revenue — 579,872 10,924 — 590,796 Other accrued liabilities — 172,190 15,558 (5,712) 182,036 Current maturities of long-term debt, less discount — 47,836 — — 47,836 Current maturities of finance lease obligations — 25,789 — — 25,789 Current maturities of operating leases — 77,858 — — 77,858 Total 630 1,110,839 27,099 (18,244) 1,120,324 Long-term debt — 1,599,330 1,184,559 (1,200,000) 1,583,889 Intercompany payable 462,556 — 146,651 (609,207) — Other liabilities and deferred credits: Noncurrent finance lease obligations — 75,221 — — 75,221 Noncurrent operating leases — 347,726 — — 347,726 Accumulated pension and other postretirement benefit obligations. — 135,775 — — 135,775 Other liabilities and deferred credits — 94,481 173 — 94,654 Noncurrent frequent flyer deferred revenue — 318,369 — — 318,369 Deferred tax liabilities, net — 130,400 — — 130,400 Total — 1,101,972 173 — 1,102,145 Shareholders' equity 333,265 748,415 (37,781) (710,634) 333,265 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 796,451 $ 4,560,556 $ 1,320,701 $ (2,538,085) $ 4,139,623 Condensed Consolidating Balance Sheets December 31, 2021 Parent Issuer / Subsidiary Issuer / Guarantor 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 Statements of Cash Flows Year Ended December 31, 2022 Parent Issuer / Subsidiary Issuer / Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net Cash Used In Operating Activities: $ (5,401) $ (20,253) $ (32,098) $ — $ (57,752) Cash Flows From Investing Activities: Net payments to affiliates — (47,553) 34,335 13,218 — Additions to property and equipment, including pre-delivery deposits — (47,532) — — (47,532) Proceeds from disposition of property and equipment — 186 11,996 — 12,182 Purchases of investments — (859,833) — — (859,833) Sales of investments — 880,161 — — 880,161 Net cash provided by (used in) investing activities — (74,571) 46,331 13,218 (15,022) Cash Flows From Financing Activities: Proceeds from the issuance of common stock 13,218 — — (13,218) — Repayments of long-term debt and finance lease obligations — (184,306) — — (184,306) Debt issuance costs — (2,236) — — (2,236) Other — (1,892) — — (1,892) Net cash provided by (used in) financing activities 13,218 (188,434) — (13,218) (188,434) Net increase (decrease) in cash and cash equivalents 7,817 (283,258) 14,233 — (261,208) Cash and cash equivalents—Beginning of Period 20,803 434,615 52,410 — 507,828 Cash and cash equivalents—End of Period $ 28,620 $ 151,357 $ 66,643 $ — $ 246,620 Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2021 Parent Issuer / Subsidiary Issuer / Guarantor 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, cash equivalents, and restricted cash—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 Issuer / Guarantor 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 provided by (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, cash equivalents, and restricted cash—End of Period $ 24,088 $ 476,409 $ 9,142 $ — $ 509,639 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, 2022 | |
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, 2022, 2021 and 2020 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 2022 $ 844 1,407 — (1,512) (a) $ 739 2021 $ 2,096 317 — (1,569) (a) $ 844 2020 $ 651 5,004 — (3,559) (a) $ 2,096 Allowance for Obsolescence of Flight Equipment Expendable Parts and Supplies 2022 $ 18,733 3,312 (b) — (906) (c) $ 21,139 2021 $ 17,977 3,213 (b) — (2,457) (c) $ 18,733 2020 $ 15,919 3,254 (b) — (1,196) (c) $ 17,977 Valuation Allowance on Deferred Tax Assets 2022 $ 14,062 17,805 — — $ 31,867 2021 $ 9,617 4,445 — — $ 14,062 2020 $ 2,547 7,070 — — $ 9,617 _______________________________________________________________________________ (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, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Hawaiian Holdings, Inc. (Holdings) and its direct wholly-owned subsidiary, Hawaiian Airlines, Inc. (Hawaiian), are incorporated in the State of Delaware. Holdings' primary asset is its sole ownership of all issued and outstanding shares of common stock of Hawaiian. References to the "Company", "we," "us," "our" in these Notes to Consolidated Financial Statements include both Holdings and Hawaiian unless the context requires otherwise. The consolidated financial statements include the accounts of Holdings 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 and Short-Term InvestmentsHighly liquid investments with a maturity of three months or less when purchased are classified as cash equivalents. Investments with maturities |
Short Term Investments | Investments with maturities greater than three months are classified as short-term investments and stated at fair value. Investments with maturities beyond one year when purchased may be classified as short-term investments if they are expected to be available to support our short-term liquidity needs. Realized gains and losses on sales of investments as well as unrealized gains and losses related to changes in the fair value of equity securities and investment derivative contracts are reflected in Gains (losses) on investments, net within nonoperating income (expense) on the Consolidated statements of operations. Unrealized gains and losses on debt securities are reflected as a component of accumulated other comprehensive income (loss).The Company reviews debt securities quarterly for credit losses and impairment. If the cost of an investment exceeds its fair value, the Company will evaluate, among other factors, general market conditions, credit quality of debt instrument issuers, and the extent to which the fair value is less than cost. This determination requires significant judgment. In making this judgment, the Company employs a systematic methodology that considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. In addition, the Company considers specific adverse conditions related to the financial health of, and business outlook for, the investee. If the Company has plans to sell the security or it is more likely than not that the Company will be required to sell the security before recovery, then a decline in fair value below cost is recorded as an impairment charge in Other, net, within non-operating expense on the Consolidated Statements of Operations, and a new cost basis in the investment is established. If market, industry, and/or investee conditions deteriorate, the Company may incur future impairments. |
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: 2022 2021 (in thousands) Flight equipment $ 2,492,722 $ 2,482,686 Pre-delivery deposits on flight equipment 83,034 83,034 Other property and equipment 433,858 391,869 3,009,614 2,957,589 Less accumulated depreciation and amortization (1,135,262) (999,966) Total property and equipment, net $ 1,874,352 $ 1,957,623 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 $171.3 million and $147.8 million as of December 31, 2022 and 2021, 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, 2022 and 2021, the Company had approximately $0.0 million and $5.9 million, respectively, in prepayments to one of its power-by-the-hour vendors. 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 intangible 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 $1.9 billion at December 31, 2022. 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 years ended December 31, 2022, 2021, and 2020, the Company recorded impairment of $6.3 million, $6.4 million, and $39.4 million, respectively, as follows: • In 2020, the Company recorded impairment 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. 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. • In 2022, the Company recorded impairment of $6.3 million on its remaining ATR-42 and ATR-72 aircraft, using available market information and taking into consideration recent transactions. |
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. Given the ongoing impacts of the COVID-19 pandemic on actual results, the Company continues to monitor customers' travel behavior and may adjust its estimates in the future. In 2020, the Company amended its policy to eliminate ticket change fees, excluding its Main Cabin Basic products. Ticket change fees are recorded in Air traffic liability and recognized when the related transportation is provided. During the twelve months ended December 31, 2022, 2021 and 2020, the Company recognized approximately $5.3 million, $4.8 million and $11.3 million, respectively in ticket change fee revenue related to tickets sold prior to the policy change. 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. Management continues to monitor customers' travel behavior, changes in policies, and other factors, 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. Derivative instruments in the Company's fuel and investment portfolios were not designated as hedges under ASC Topic 815, Derivatives and Hedging (ASC 815) , for hedge accounting treatment, and as a result, any change in the fair value of these derivative instruments is adjusted through Other Nonoperating Income (Expense) in the Consolidated Statement of Operations in the period of change. All cash flows associated with purchasing and settling derivatives are classified as Operating cash flows in the Consolidated Statements of Cash Flows. |
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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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: 2022 2021 (in thousands) Flight equipment $ 2,492,722 $ 2,482,686 Pre-delivery deposits on flight equipment 83,034 83,034 Other property and equipment 433,858 391,869 3,009,614 2,957,589 Less accumulated depreciation and amortization (1,135,262) (999,966) Total property and equipment, net $ 1,874,352 $ 1,957,623 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 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Summary of 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 2022 2021 2020 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) Passenger revenue Foreign currency derivative gains — — (3,945) Nonoperating income (expense), other, net Total before tax — — (7,020) Tax expense — — 1,737 Total, net of tax $ — $ — $ (5,283) Amortization of defined benefit pension items Actuarial loss $ 2,063 $ 4,195 $ 4,048 Nonoperating income (expense), other, net Prior service cost 438 370 712 Nonoperating income (expense), other, net Special termination benefits — — 5,258 Other nonoperating special items Curtailment loss — — 424 Other nonoperating special items Total before tax 2,501 4,565 10,442 Tax benefit (640) (1,103) (2,309) Total, net of tax $ 1,861 $ 3,462 $ 8,133 Short-term investments Realized gain on sales of investments (228) (2,208) (959) Gains (losses) on investments, net Realized loss on sales of investments, net 22,222 677 270 Gains (losses) on investments, net Total before tax 21,994 (1,531) (689) Tax expense (5,428) 379 168 Total, net of tax 16,566 (1,152) (521) Total reclassifications for the period $ 18,427 $ 2,310 $ 2,329 |
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, 2022 Defined Short-Term Investments Total (in thousands) Beginning balance $ (75,025) $ (6,813) $ (81,838) Other comprehensive income (loss) before reclassifications, net of tax 13,725 (45,480) (31,755) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 1,861 16,566 18,427 Net current-period other comprehensive income (loss), net of tax 15,586 (28,914) (13,328) Ending balance $ (59,439) $ (35,727) $ (95,166) Year ended December 31, 2021 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) |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 (in thousands, except for per share data) Numerator: Net Loss $ (240,081) $ (144,773) $ (510,935) Denominator: Weighted average common shares outstanding—Basic 51,361 50,769 46,100 Dilutive effect of share-based awards and warrants — — — Weighted average common shares outstanding—Diluted 51,361 50,769 46,100 Net Loss Per Common Stock Share: Basic $ (4.67) $ (2.85) $ (11.08) Diluted $ (4.67) $ (2.85) $ (11.08) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of 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, 2022 2021 2020 (in thousands) Domestic $ 2,304,522 $ 1,504,151 $ 640,153 Pacific 336,745 92,433 204,660 Total operating revenue $ 2,641,267 $ 1,596,584 $ 844,813 Year Ended December 31, 2022 2021 2020 Passenger Revenue by Type (in thousands) Passenger revenue, excluding frequent flyer $ 2,152,536 $ 1,264,059 $ 616,214 Frequent flyer revenue, transportation component 182,904 106,843 48,585 Passenger Revenue $ 2,335,440 $ 1,370,902 $ 664,799 Other revenue (e.g. cargo and other miscellaneous) $ 182,468 $ 126,349 $ 94,187 Frequent flyer revenue, marketing and brand component 123,359 99,333 85,827 Other Revenue $ 305,827 $ 225,682 $ 180,014 |
Schedule of Frequent Flyer Liability for Future Award Redemptions | As of December 31, 2022 and 2021, the balances were as follows: As of December 31, 2022 2021 (in thousands) Air traffic liability (current portion of frequent flyer deferred revenue) $ 166,211 $ 169,687 Noncurrent frequent flyer deferred revenue 318,369 296,484 Total frequent flyer liability $ 484,580 $ 466,171 |
Summary of Frequent Flyer Deferred Revenue | The table below presents a roll forward of Frequent flyer deferred revenue for the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 2021 (in thousands) Total Frequent flyer liability - beginning balance $ 466,171 $ 420,125 Miles awarded 205,614 155,178 Travel miles redeemed (Passenger Revenue) (182,904) (106,843) Non-travel miles redeemed (Other Revenue) (4,301) (2,289) Total Frequent flyer liability - ending balance $ 484,580 $ 466,171 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Short-Term Investments [Abstract] | |
Summary of Short-Term Investments | The following is a summary of short-term investments held as of December 31, 2022 and 2021: December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Debt securities Corporate debt securities $ 340,493 $ 139 $ (23,009) $ 317,623 U.S. government and agency securities 467,049 181 (12,341) 454,889 Other fixed income securities 110,881 23 (6,499) 104,405 Asset-backed securities 30,205 — (2,039) 28,166 Collateralized loan obligations 43,736 130 (3,684) 40,182 Bank notes 11,493 3 (192) 11,304 Derivatives 43 1,433 (178) 1,298 Equity securities 213,569 — (26,109) 187,460 Other investments measured at net asset value 2,087 — (221) 1,866 Total short-term investments $ 1,219,556 $ 1,909 $ (74,272) $ 1,147,193 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 Other fixed income securities 142,035 62 (564) 141,533 Asset-backed securities 19,372 7 (71) 19,308 Collateralized loan obligations 51,082 32 (116) 50,998 Bank notes 8,110 — (20) 8,090 Derivatives — 821 (74) 747 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 The following tables present fair values and gross unrealized losses by security type and length of time that individual securities have been in a continuous unrealized loss position: Less than 12 Months 12 Months or Greater Total December 31, 2022 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) Debt securities Corporate debt $ 145,299 $ (10,104) $ 159,216 $ (12,905) $ 304,515 $ (23,009) U.S. government and agency debt 314,790 (8,097) 98,653 (4,244) 413,443 (12,341) Other fixed income securities 17,836 (1,191) 23,316 (5,308) 41,152 (6,499) Asset-backed securities 11,155 (755) 14,435 (1,284) 25,590 (2,039) Collateralized loan obligations 28,133 (2,372) 9,491 (1,312) 37,624 (3,684) Bank notes 2,836 (192) — — 2,836 (192) Other investments measured at net asset value 865 (221) — — 865 (221) $ 520,914 $ (22,932) $ 305,111 $ (25,053) $ 826,025 $ (47,985) Less than 12 Months 12 Months or Greater Total December 31, 2021 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) Debt securities Corporate debt $ 316,719 $ (4,239) $ 83,889 $ (413) $ 400,608 $ (4,652) U.S. government and agency debt 291,949 (1,716) 52,501 (177) 344,450 (1,893) Other fixed income securities 28,198 (638) — — 28,198 (638) Asset-backed securities 16,949 (67) 1,046 (4) 17,995 (71) Collateralized loan obligations 24,030 (116) — — 24,030 (116) Bank notes 3,990 (20) — — 3,990 (20) Other investments measured at net asset value 2,144 (49) — — 2,144 (49) $ 683,979 $ (6,845) $ 137,436 $ (594) $ 821,415 $ (7,439) |
Summary of Contractual Maturities of Short-Term Investments | Contractual maturities of short-term investments as of December 31, 2022 are shown below: Under 1 Year 1 to 5 Years Over 5 Years Total (in thousands) Debt securities Corporate debt securities $ 2,794 $ 236,545 $ 78,284 $ 317,623 U.S. government and agency securities 39,472 406,126 9,291 454,889 Other fixed income securities 60,884 29,671 13,850 104,405 Asset-backed securities 481 18,238 9,447 28,166 Collateralized loan obligations — — 40,182 40,182 Bank notes — 7,260 4,044 11,304 Total debt securities $ 103,631 $ 697,840 $ 155,098 $ 956,569 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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, 2022 Total Level 1 Level 2 Level 3 (in thousands) Cash equivalents $ 46,729 $ 46,535 $ 194 $ — Restricted cash 17,498 17,498 — — Short-term investments Debt securities Corporate debt securities 317,623 — 309,450 8,173 U.S. government and agency securities 454,889 — 454,889 — Other fixed income securities 104,405 — 104,405 — Asset-backed securities 28,166 — 19,133 9,033 Collateralized loan obligations 40,182 — 37,624 2,558 Bank notes 11,304 — 1,878 9,426 Derivatives 1,298 — 1,298 — Equity securities 187,460 186,670 790 — Other investments measured at net asset value 1,866 — — — Total short-term investments 1,147,193 186,670 929,467 29,190 Other Assets Assets held for sale 14,019 — — 14,019 Crude oil call options 5,308 — 5,308 — Total assets measured at fair value $ 1,230,747 $ 250,703 $ 934,969 $ 43,209 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 18,561 — 14,558 4,003 Collateralized loan obligations 50,998 — 47,676 3,322 Bank notes 8,090 — 1,337 6,753 Derivatives 747 — 747 — 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 |
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, 2022 December 31, 2021 Carrying Fair Value Carrying Fair Value Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (in thousands) $ 1,631,725 $ 1,356,561 $ — $ — $ 1,356,561 $ 1,838,954 $ 1,808,530 $ — $ — $ 1,808,530 |
Summary of Reconciliation of Short Term Investments and Assets Held for Sale Measured at fair Value on a Recurring Basis Unobservable Input | The reconciliation of the Company's short-term investments measured at fair value on a recurring basis using unobservable inputs (Level 3) for the year ended December 31, 2022 is as follows: Short-term Investment Activity for the Twelve Months Ended December 31, 2022 Asset-backed securities Bank notes Collateralized loan obligations Corporate debt securities Total (in thousands) Beginning balance as of January 1, 2022 $ 4,003 $ 6,753 $ 3,322 $ — $ 14,078 Purchases 5,449 3,440 2,100 8,593 19,582 Proceeds from sale — — (122) — (122) Redemptions and paydowns (143) (747) (2,852) — (3,742) Amortization and accretion, net 98 9 (10) 47 144 Realized and unrealized gains (losses), net (374) (29) 120 (467) (750) Ending balance as of December 31, 2022 $ 9,033 $ 9,426 $ 2,558 8,173 $ 29,190 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, 2022 is as follows: Assets Held for Sale Activity for the Twelve Months Ended December 31, 2022 ATR Aircraft Commercial Real Estate Total (in thousands) Beginning balance as of January 1, 2022 $ 23,158 $ 6,291 $ 29,449 Additions — — — Proceeds from sale (12,580) — (12,580) Impairment charge (6,303) — (6,303) Realized gains 3,460 — 3,460 Realized losses (7) — (7) Ending balance as of December 31, 2022 $ 7,728 $ 6,291 $ 14,019 |
Financial Derivative Instrume_2
Financial Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 (in thousands) Losses realized at settlement $ (401) $ (165) $ (9,035) Prior period unrealized amounts — 382 2,487 Unrealized gains (losses) that will settle in future periods (2,640) — (382) Gains (losses) on fuel derivatives recorded as nonoperating income (expense) $ (3,041) $ 217 $ (6,930) |
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, 2022 Balance Sheet Notional Amount Final Gross fair Gross fair Net (in thousands) (in thousands) Derivatives not designated as hedges Fuel derivative contracts Prepaid expenses and other 57,288 gallons December 2023 $ 5,308 $ — $ 5,308 Foreign currency derivatives Short-term investments 36,426 European Dollars March 2025 $ 1,254 $ (46) $ 1,208 Interest rate contracts Short-term investments 32,891 US Dollars March 2026 $ 190 $ (100) $ 90 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt, net of unamortized discounts and issuance costs, is outlined as follows: December 31, 2022 2021 (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 $ 184,572 $ 196,338 Class B EETC-13, fixed interest rate of 4.95%, semiannual principal and interest payments — 45,090 Japanese Yen denominated financing, fixed interest rate of 1.05%, quarterly principal and interest payments, remaining balance due at maturity in May 2030 23,524 30,213 Japanese Yen denominated financing, fixed interest rate of 1.01%, semiannual principal and interest payments, remaining balance due at maturity in June 2030 20,350 26,271 Japanese Yen denominated financing, fixed interest rate of 0.65%, quarterly principal and interest payments, remaining balance due at maturity in March 2025 64,276 91,041 Japanese Yen denominated financing, fixed interest rate of 0.76%, semiannual principal and interest payments, remaining balance due at maturity in September 2031 55,731 70,269 Class A EETC-20, fixed interest rate of 7.375%, semiannual principal and interest payments — 48,245 Class B EETC-20, fixed interest rate of 11.25%, semiannual principal and interest payments — 19,504 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 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 23,908 Loyalty Program Financing, fixed interest of 5.75%, quarterly interest payments, principal balance due at maturity in January 2026 1,200,000 1,200,000 Unamortized debt discount and issuance costs (28,711) (37,560) Total debt $ 1,631,725 $ 1,801,394 Less: Current maturities of long-term debt (47,836) (97,096) Long-Term Debt, less discount $ 1,583,889 $ 1,704,298 |
Schedule of Payroll Support Program Activity | A summary of the amounts received and warrants issued as of December 31, 2022 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, 2022 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, 2022, the scheduled maturities of debt, excluding debt issuance costs, are as follows (in thousands): 2023 $ 49,118 2024 46,978 2025 60,697 2026 1,339,518 2027 12,065 Thereafter 152,060 $ 1,660,436 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of 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 2022 2021 (in thousands) Assets: Operating lease assets Operating lease right-of use assets $ 459,128 $ 536,154 Finance lease assets Property and equipment, net 90,847 114,376 Total lease assets $ 549,975 $ 650,530 Liabilities: Current Operating Current maturities of operating leases $ 77,858 $ 79,158 Finance Current maturities of finance lease obligations 25,789 24,149 Noncurrent Operating Noncurrent operating leases 347,726 423,293 Finance Finance lease obligations 75,221 100,995 Total lease liabilities $ 526,594 $ 627,595 Weighted-average remaining lease term Operating leases 10.4 years 10.4 years Finance leases 6.9 years 7.2 years Weighted-average discount rate Operating leases (1) 5.72 % 5.63 % Finance leases 4.30 % 4.37 % (1) Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. |
Schedule of Lease Cost | During the twelve months ended December 31, 2022 and 2021, the total lease costs for finance and operating leases were as follows: Year ended December 31, 2022 2021 2020 (in thousands) Finance lease cost: Amortization of right-of-use assets $ 23,265 $ 23,339 $ 23,197 Interest of lease liabilities 4,963 6,022 6,887 Operating lease cost (1) 105,445 110,864 108,505 Short-term lease cost (1) 2,650 2,909 981 Variable lease cost (1) 142,894 112,475 68,212 Total lease cost $ 279,217 $ 255,609 $ 207,782 (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, 2022, the cash paid for amounts included in the measurement of lease liabilities were as follows: Year ended December 31, 2022 2021 2020 (in thousands) Operating cash flows for operating leases 105,021 110,286 113,585 Operating cash flows for finance leases 4,948 5,997 6,887 Financing cash flows for finance lease 24,137 23,040 22,295 |
Schedule of Operating Lease Maturity | As of December 31, 2022, 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) 2023 $ 22,972 $ 6,564 $ 86,467 $ 13,154 2024 16,669 1,175 77,497 13,249 2025 11,941 974 56,045 12,084 2026 11,047 236 49,734 10,127 2027 11,047 236 34,772 6,072 Thereafter 27,400 6,170 60,233 148,767 Total minimum lease payments $ 101,076 $ 15,355 $ 364,748 $ 203,453 Less: amounts representing interest (12,240) (3,180) (58,918) (83,699) Present value of future minimum lease payments $ 88,836 $ 12,175 $ 305,830 $ 119,754 Less: current maturities of lease obligations (19,602) (6,187) (70,537) (7,321) Long-term lease obligations $ 69,234 $ 5,988 $ 235,293 $ 112,433 |
Schedule of Finance Lease Maturity | As of December 31, 2022, 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) 2023 $ 22,972 $ 6,564 $ 86,467 $ 13,154 2024 16,669 1,175 77,497 13,249 2025 11,941 974 56,045 12,084 2026 11,047 236 49,734 10,127 2027 11,047 236 34,772 6,072 Thereafter 27,400 6,170 60,233 148,767 Total minimum lease payments $ 101,076 $ 15,355 $ 364,748 $ 203,453 Less: amounts representing interest (12,240) (3,180) (58,918) (83,699) Present value of future minimum lease payments $ 88,836 $ 12,175 $ 305,830 $ 119,754 Less: current maturities of lease obligations (19,602) (6,187) (70,537) (7,321) Long-term lease obligations $ 69,234 $ 5,988 $ 235,293 $ 112,433 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Significant Components of Income Tax Expense | The significant components of income tax expense (benefit) are as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Current Federal $ (1,073) $ 1,522 $ (113,010) State (493) (448) (3,919) $ (1,566) $ 1,074 $ (116,929) Deferred Federal $ (49,646) $ (39,589) $ (52,824) State (2,556) (2,035) (19,364) $ (52,202) $ (41,624) $ (72,188) Income tax benefit $ (53,768) $ (40,550) $ (189,117) |
Schedule of Reconciliation Between Income Tax Expense and Amounts Computed at the Statutory Federal Income Tax Rate | The income tax benefit differed from amounts computed at the statutory federal income tax rate as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Income tax benefit computed at the statutory federal rate $ (61,709) $ (38,918) $ (147,012) Increase (decrease) resulting from: State income taxes, net of federal tax effect (11,186) (6,203) (22,508) Nondeductible meals 597 466 271 Goodwill impairment — — 22,399 Change in valuation allowance 17,805 4,445 7,070 CARES Act (NOL carryback) — — (45,417) Stock compensation 920 436 473 Other (195) (776) (4,393) Income tax benefit $ (53,768) $ (40,550) $ (189,117) |
Schedule of Components of Deferred Tax Asset and Liabilities | The components of the Company's deferred tax assets and liabilities were as follows: December 31, 2022 2021 (in thousands) Deferred tax assets: Accumulated pension and other postretirement benefits $ 35,384 $ 41,740 Operating leases liabilities 104,938 124,570 Finance leases 2,616 2,641 Air traffic liability and frequent flyer liability 84,723 118,005 Partnership deferred revenue 4,377 5,242 Federal and state net operating loss carryforwards 86,452 26,725 Accrued compensation 16,720 15,377 Other accrued assets 16,803 14,360 Capital losses 10,271 — Deferred interest under IRC Section 163(j) 34,132 18,956 Other assets 23,612 14,090 Total gross deferred tax assets 420,028 381,706 Less: Valuation allowance (31,867) (14,062) Net deferred tax assets $ 388,161 $ 367,644 Deferred tax liabilities: Intangible assets $ (3,205) $ (3,223) Property and equipment, principally accelerated depreciation (377,943) (394,207) Finance leases (787) (5,228) Operating lease right-of-use assets (115,765) (135,659) Other liabilities (20,861) (16,124) Total deferred tax liabilities (518,561) (554,441) Net deferred tax liability $ (130,400) $ (186,797) |
Schedule of 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: 2022 2021 2020 (in thousands) Balance at January 1 $ 3,771 $ 3,449 $ 6,263 Increases related to prior year tax positions (81) 11 104 Increases related to current year tax positions 568 672 562 Settlements with taxing authority — — (1,063) Effect of the expiration of statutes of limitation (513) (361) (2,417) Balance at December 31 $ 3,745 $ 3,771 $ 3,449 |
Special Items (Tables)
Special Items (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Schedule of Special Charges | Special ItemsSpecial items in the Consolidated Statements of Operations consisted of the following: Year Ended December 31, 2022 2021 2020 (in thousands) Operating special items: Contract termination fee (1) $ 12,500 $ — $ — Assets held-for-sale impairment (2) 6,303 — — Ohana by Hawaiian termination (3) — 8,983 — Collective bargaining agreement payment (4) — — 20,242 Goodwill impairment (5) — — 106,662 Long-lived asset impairment (6) — — 38,933 Capitalized software projects (6) — — 509 Severance and benefit costs (7) — — 17,765 Total Operating special items $ 18,803 $ 8,983 $ 184,111 Nonoperating special items: Other nonoperating special items: Special termination benefits (8) $ — $ — $ 5,258 Curtailment loss (8) — — 424 Total Other nonoperating special items $ — $ — $ 5,682 (1) In December 2022, the Company entered into a Memorandum of Understanding (MOU) with its third-party service provider to early terminate its Amended and Restated Complete Fleet Services (CFS) Agreement (Amended CFS). The Amended CFS was originally scheduled to run through December 2027, and will now terminate in April 2023. In connection with the MOU, the Company agreed to pay a total of $12.5 million in termination fees, which was recognized at execution as a Special item in the Consolidated Statements of Operations. (2) As discussed in Note 11, during the year ended December 31, 2022, the Company recognized impairment of $6.3 million related to its assets held-for-sale. (3) 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. (4) 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, 2020, 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. (5) As discussed in Note 1, the Company recognized a goodwill impairment charge of $106.7 million during the twelve months ended December 31, 2020. (6) As discussed in Note 1, the Company recognized an impairment of long-lived assets of $ 39.4 million (7) 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. (8) 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, 2022 | |
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: 2022 2021 Pension Other Pension Other (in thousands) Change in projected benefit obligations Benefit obligations, beginning of year $ (452,625) $ (165,729) $ (474,750) $ (171,480) Service cost — (9,568) — (11,744) Interest cost (13,101) (5,220) (12,216) (4,769) Actuarial gains 102,544 42,834 9,738 16,623 Benefits paid 25,637 6,728 24,603 5,641 Less: federal subsidy on benefits paid N/A — N/A — Plan amendments — (1,750) — — Benefit obligation at end of year (a) $ (337,545) $ (132,705) $ (452,625) $ (165,729) Change in plan assets Fair value of assets, beginning of year $ 405,366 $ 44,632 $ 382,846 $ 38,710 Actual return on plan assets (93,701) (6,879) 46,297 3,357 Employer contribution — 4,045 — 4,008 Benefits paid (24,813) (1,904) (23,777) (1,443) Fair value of assets at end of year $ 286,852 $ 39,894 $ 405,366 $ 44,632 Unfunded status at December 31 $ (50,693) $ (92,811) $ (47,259) $ (121,097) Amounts recognized in the statement of financial position consist of: Current benefit liability $ (789) $ (6,941) $ (800) $ (6,739) Noncurrent benefit liability (49,904) (85,870) (46,459) (114,358) $ (50,693) $ (92,811) $ (47,259) $ (121,097) Amounts recognized in accumulated other comprehensive loss Unamortized actuarial loss (gain) $ 106,906 $ (49,505) $ 94,537 $ (16,161) Prior service cost (credit) — 5,002 — 3,690 $ 106,906 $ (44,503) $ 94,537 $ (12,471) _______________________________________________________________________________ |
Schedule of Net Periodic Benefit Cost | The following table sets forth the net periodic benefit cost: 2022 2021 2020 Pension Other Pension Other Pension Other (in thousands) Components of Net Periodic Benefit Cost Service cost $ — $ 9,568 $ — $ 11,744 $ 12 $ 10,791 Other cost: Interest cost 13,101 5,220 12,216 4,769 14,639 5,167 Expected return on plan assets (23,809) (2,077) (23,327) (1,785) (23,418) (1,746) Recognized net actuarial loss (gain) 2,596 (533) 4,407 (212) 4,091 (43) Prior service cost — 438 — 370 — 288 Total other components of the net periodic benefit cost $ (8,112) $ 3,048 $ (6,704) $ 3,142 $ (4,688) $ 3,666 Special/contractual termination benefits — — — — — 5,258 Curtailment loss — — — — — 424 Net periodic benefit cost $ (8,112) $ 12,616 $ (6,704) $ 14,886 $ (4,676) $ 20,139 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss Current year actuarial (gain) loss $ 14,966 $ (35,051) $ (32,709) $ (16,989) $ 8,376 $ 3,409 Current year prior service cost — 1,750 — — — 3,260 Amortization of actuarial gain (loss) (2,596) 533 (4,407) 212 (4,091) 43 Amortization of prior service cost — (438) — (370) — (712) Settlement and curtailment loss — — — — — — Total recognized in other comprehensive loss $ 12,370 $ (33,206) $ (37,116) $ (17,147) $ 4,285 $ 6,000 Total recognized in net periodic benefit cost and other comprehensive loss $ 4,258 $ (20,590) $ (43,820) $ (2,261) $ (391) $ 26,139 |
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 2022 2021 2022 2021 2022 2021 Discount rate to determine net periodic benefit expense 2.98 % 2.63 % 3.02 % 2.62 % 3.03 % 2.67 % Discount rate to determine projected benefit obligation 5.58 % 2.98 % 5.57 % 2.99 % 5.52 % 3.03 % Expected return on plan assets 6.06 % ** 6.29 % N/A N/A 4.35 % ** 4.28 % 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 6.25 % 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 5 6 N/A N/A Health care trend rate to determine projected benefit obligation N/A N/A 6.75 % 6.25 % 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 8 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 7.25% in both 2022 and 2021). ** Expected return on plan assets used to determine the net periodic benefit expense for 2023 is 7.1% for Pension and 6.2% for Disability. |
Schedule of 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 2023 are as follows: Pension Other (in thousands) Actuarial (gain) loss $ 3,975 $ (2,345) Amortization of prior service cost — 497 To be recognized in net periodic benefit cost from accumulated other comprehensive (gain) loss $ 3,975 $ (1,848) |
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, 2022 are as follows: Asset Allocation for Pilots pension and VEBA Plans 2022 Target Equity securities 55 % 60 % Fixed income securities 41 % 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, 2022 2021 (in thousands) Pension Plan Assets: Equity index funds $ 158,580 $ 226,291 Fixed income funds 113,029 158,334 Real estate investment fund 12,844 18,614 Insurance company pooled separate account 2,399 2,127 Total $ 286,852 $ 405,366 Postretirement Assets: Common collective trust fund $ 39,716 $ 44,509 Money market fund 178 123 $ 39,894 $ 44,632 |
Schedule of 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) 2023 $ 26,886 $ 9,388 $ — 2024 27,424 8,935 — 2025 27,668 8,973 — 2026 27,760 9,701 — 2027 27,718 9,856 — 2028 - 2032 133,029 54,916 — $ 270,485 $ 101,769 $ — |
Capital Stock and Share-based_2
Capital Stock and Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 average grant date fair value Non-vested at January 1, 2020 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 Granted 143,849 18.51 Vested (101,125) 23.82 Forfeited (73,318) 31.03 Non-vested at December 31, 2022 415,029 $ 22.78 |
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 RSUs: Number of units Weighted average grant date fair value Non-vested at January 1, 2020 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 Granted 274,832 18.15 Vested (251,024) 24.03 Forfeited (11,002) 22.12 Non-vested at December 31, 2022 470,174 $ 19.74 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of 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) 2023 $ 290,808 $ 26,728 $ 317,536 2024 482,099 22,556 504,655 2025 493,090 12,657 505,747 2026 396,103 8,159 404,262 2027 230,126 6,036 236,162 Thereafter — 15,564 15,564 $ 1,892,226 $ 91,700 $ 1,983,926 |
Schedule of Firm Aircraft and Engine Orders and Purchase Rights | As of December 31, 2022, 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 12 8 Between 2023 and 2027 General Electric GEnx spare engines: B787-9 spare engines 3 1 Between 2023 and 2027 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 (in thousands) Cash payments for interest (net of amounts capitalized) $ 85,370 $ 91,927 $ 23,951 Cash payments (refunds) for income taxes 1,233 (23,123) (81,372) Investing and Financing Activities Not Affecting Cash: Property and equipment acquired through a finance lease — 8,121 939 Right-of-use assets acquired under operating leases 2,625 — 75,667 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 Parent Issuer / Subsidiary Issuer / Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Operating Revenue $ — $ 2,637,422 $ 45,924 $ (42,079) $ 2,641,267 Operating Expenses: Aircraft fuel, including taxes and delivery — 817,077 — — 817,077 Wages and benefits — 833,137 — — 833,137 Aircraft rent — 103,846 — — 103,846 Maintenance materials and repairs — 235,749 404 — 236,153 Aircraft and passenger servicing — 152,550 — — 152,550 Commissions and other selling 18 113,469 852 (496) 113,843 Depreciation and amortization — 136,169 — — 136,169 Other rentals and landing fees — 147,259 — (116) 147,143 Purchased services 224 127,873 1,517 (264) 129,350 Special items — 12,500 6,303 — 18,803 Other 6,821 198,610 (978) (41,203) 163,250 Total 7,063 2,878,239 8,098 (42,079) 2,851,321 Operating Income (Loss) (7,063) (240,817) 37,826 — (210,054) Nonoperating Income (Expense): Undistributed net loss of subsidiaries (233,288) (31,357) — 264,645 — Interest expense and amortization of debt discounts and issuance costs — (24,924) (73,891) 3,000 (95,815) Interest income 320 31,219 3,602 (3,000) 32,141 Capitalized interest — 4,244 — — 4,244 Other components of net periodic benefit cost — 5,065 — — 5,065 Losses on fuel derivatives — (3,041) — — (3,041) Loss on debt extinguishment — (8,568) — — (8,568) Losses on investments, net — (43,082) — — (43,082) Gains on foreign debt — 26,667 — — 26,667 Other, net (50) (1,356) — — (1,406) Total (233,018) (45,133) (70,289) 264,645 (83,795) Loss Before Income Taxes (240,081) (285,950) (32,463) 264,645 (293,849) Income tax benefit — (53,768) — — (53,768) Net Loss $ (240,081) $ (232,182) $ (32,463) $ 264,645 $ (240,081) Comprehensive Loss $ (253,409) $ (245,510) $ (32,463) $ 277,973 $ (253,409) Condensed Consolidating Statements of Operations and Comprehensive Loss Year Ended December 31, 2021 Parent Issuer / Subsidiary Issuer / Guarantor 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 extinguishment of debt — (38,889) — — (38,889) Gains on investments, net — 1,426 — — 1,426 Gains on foreign debt — 27,773 — — 27,773 Other, net — 1,619 — — 1,619 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 Issuer / Guarantor 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) Gains on investments, net — 271 — — 271 Losses on foreign debt — (14,913) — — (14,913) Other, net — 1,990 (5) — 1,985 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) |
Schedule of Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets December 31, 2022 Parent Issuer / Subsidiary Issuer / Guarantor Non-Guarantor Eliminations Consolidated ASSETS (in thousands) Current assets: Cash and cash equivalents $ 28,620 $ 151,357 $ 49,145 $ — $ 229,122 Restricted cash — — 17,498 — 17,498 Short-term investments — 1,147,193 — — 1,147,193 Accounts receivable, net — 106,321 25,785 (18,244) 113,862 Income taxes receivable — 70,204 — — 70,204 Spare parts and supplies, net — 36,875 — — 36,875 Prepaid expenses and other — 63,524 29 — 63,553 Total 28,620 1,575,474 92,457 (18,244) 1,678,307 Property and equipment at cost — 3,009,614 — — 3,009,614 Less accumulated depreciation and amortization — (1,135,262) — — (1,135,262) Property and equipment, net — 1,874,352 — — 1,874,352 Assets held for sale — 293 13,726 — 14,019 Operating lease right-of-use assets — 459,128 — — 459,128 Long-term prepayments and other — 99,801 1,200,516 (1,200,000) 100,317 Goodwill and other intangible assets, net — — 13,500 — 13,500 Intercompany receivable — 609,207 — (609,207) — Investment in consolidated subsidiaries 767,831 (57,699) 502 (710,634) — TOTAL ASSETS $ 796,451 $ 4,560,556 $ 1,320,701 $ (2,538,085) $ 4,139,623 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 630 $ 207,294 $ 617 $ (12,532) $ 196,009 Air traffic liability and current frequent flyer deferred revenue — 579,872 10,924 — 590,796 Other accrued liabilities — 172,190 15,558 (5,712) 182,036 Current maturities of long-term debt, less discount — 47,836 — — 47,836 Current maturities of finance lease obligations — 25,789 — — 25,789 Current maturities of operating leases — 77,858 — — 77,858 Total 630 1,110,839 27,099 (18,244) 1,120,324 Long-term debt — 1,599,330 1,184,559 (1,200,000) 1,583,889 Intercompany payable 462,556 — 146,651 (609,207) — Other liabilities and deferred credits: Noncurrent finance lease obligations — 75,221 — — 75,221 Noncurrent operating leases — 347,726 — — 347,726 Accumulated pension and other postretirement benefit obligations. — 135,775 — — 135,775 Other liabilities and deferred credits — 94,481 173 — 94,654 Noncurrent frequent flyer deferred revenue — 318,369 — — 318,369 Deferred tax liabilities, net — 130,400 — — 130,400 Total — 1,101,972 173 — 1,102,145 Shareholders' equity 333,265 748,415 (37,781) (710,634) 333,265 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 796,451 $ 4,560,556 $ 1,320,701 $ (2,538,085) $ 4,139,623 Condensed Consolidating Balance Sheets December 31, 2021 Parent Issuer / Subsidiary Issuer / Guarantor 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 |
Schedule of Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2022 Parent Issuer / Subsidiary Issuer / Guarantor Non-Guarantor Eliminations Consolidated (in thousands) Net Cash Used In Operating Activities: $ (5,401) $ (20,253) $ (32,098) $ — $ (57,752) Cash Flows From Investing Activities: Net payments to affiliates — (47,553) 34,335 13,218 — Additions to property and equipment, including pre-delivery deposits — (47,532) — — (47,532) Proceeds from disposition of property and equipment — 186 11,996 — 12,182 Purchases of investments — (859,833) — — (859,833) Sales of investments — 880,161 — — 880,161 Net cash provided by (used in) investing activities — (74,571) 46,331 13,218 (15,022) Cash Flows From Financing Activities: Proceeds from the issuance of common stock 13,218 — — (13,218) — Repayments of long-term debt and finance lease obligations — (184,306) — — (184,306) Debt issuance costs — (2,236) — — (2,236) Other — (1,892) — — (1,892) Net cash provided by (used in) financing activities 13,218 (188,434) — (13,218) (188,434) Net increase (decrease) in cash and cash equivalents 7,817 (283,258) 14,233 — (261,208) Cash and cash equivalents—Beginning of Period 20,803 434,615 52,410 — 507,828 Cash and cash equivalents—End of Period $ 28,620 $ 151,357 $ 66,643 $ — $ 246,620 Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2021 Parent Issuer / Subsidiary Issuer / Guarantor 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, cash equivalents, and restricted cash—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 Issuer / Guarantor 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 provided by (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, cash equivalents, and restricted cash—End of Period $ 24,088 $ 476,409 $ 9,142 $ — $ 509,639 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Expenses (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Equipment and Depreciation | |||||
Flight equipment | $ 2,492,722,000 | $ 2,482,686,000 | |||
Pre-delivery deposits on flight equipment | 83,034,000 | 83,034,000 | |||
Other property and equipment | 433,858,000 | 391,869,000 | |||
Property and equipment, gross | 3,009,614,000 | 2,957,589,000 | |||
Less accumulated depreciation and amortization | (1,135,262,000) | (999,966,000) | |||
Total property and equipment, net | 1,874,352,000 | 1,957,623,000 | |||
Accumulated amortization of aircraft and other finance leases | 171,300,000 | 147,800,000 | |||
Value of construction in progress | 55,500,000 | 42,400,000 | |||
Aircraft Maintenance and Repair Costs | |||||
Additional cost of repairing engines | 0 | ||||
Impairment of Long-Lived Assets | |||||
Long lived assets | 1,874,352,000 | 1,957,623,000 | |||
Impairment of assets | 0 | 0 | $ 38,933,000 | ||
Write-down of fleet | $ 6,300,000 | $ 6,400,000 | 6,303,000 | 0 | 0 |
Assets held for sale | 14,019,000 | 29,449,000 | |||
Cost s to Obtain or Fulfill a Contract | |||||
Costs to obtain or fulfill a contract | 13,200,000 | 13,900,000 | |||
Advertising Costs | |||||
Advertising expense | 22,600,000 | 20,200,000 | 15,300,000 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | |||||
Impairment of Long-Lived Assets | |||||
Assets held for sale | 29,500,000 | 14,019,000 | 29,449,000 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | 'Ohana by Hawaiian | |||||
Impairment of Long-Lived Assets | |||||
Write-down of fleet | 6,400,000 | ||||
Assets held for sale | 23,400,000 | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Commercial Real Estate | |||||
Impairment of Long-Lived Assets | |||||
Assets held for sale | $ 6,100,000 | 6,291,000 | 6,291,000 | ||
COVID-19 | ATR-42 And ATR-72 Fleets | |||||
Impairment of Long-Lived Assets | |||||
Impairment of assets | $ 6,300,000 | 6,400,000 | 39,400,000 | ||
Boeing 717-200 aircraft and engines | Minimum | |||||
Property, Equipment and Depreciation | |||||
Estimated useful lives | 15 years | ||||
Residual value | 5% | ||||
Boeing 717-200 aircraft and engines | Maximum | |||||
Property, Equipment and Depreciation | |||||
Estimated useful lives | 16 years | ||||
Residual value | 34% | ||||
Airbus A330-200 aircraft and engines | |||||
Property, Equipment and Depreciation | |||||
Estimated useful lives | 25 years | ||||
Residual value | 10% | ||||
Airbus A321neo aircraft and engines | |||||
Property, Equipment and Depreciation | |||||
Estimated useful lives | 25 years | ||||
Residual value | 10% | ||||
Major rotable parts | Minimum | |||||
Property, Equipment and Depreciation | |||||
Residual value | 10% | ||||
Major rotable parts | Maximum | |||||
Property, Equipment and Depreciation | |||||
Residual value | 15% | ||||
Furniture, fixtures and other equipment | |||||
Property, Equipment and Depreciation | |||||
Residual value | 0% | ||||
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 | $ 31,600,000 | 21,100,000 | |||
Residual value | 0% | ||||
Amortization expense | $ 12,300,000 | 13,100,000 | 15,700,000 | ||
Impairment of Long-Lived Assets | |||||
Long lived assets | $ 31,600,000 | 21,100,000 | |||
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 | $ 0 | 5,900,000 | |||
Fulfillment Services | |||||
Cost s to Obtain or Fulfill a Contract | |||||
Expenses related to costs to obtain or fulfill a contract | $ 83,100,000 | $ 45,100,000 | $ 24,600,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 USD ($) unit | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Intangible Assets | ||||
Number of reporting units | unit | 1 | |||
Goodwill impairment | $ 0 | $ 0 | $ 106,662 | |
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, 2021 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||||
Non-refundable ticket expiration period | 13 months | |||||
Extended ticket validity period | 24 months | |||||
Air traffic liability, revenue recognized | $ 0 | |||||
Passenger revenue, excluding frequent flyer | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Air traffic liability, revenue recognized | 436.5 | $ 184 | $ 254.8 | |||
Passenger revenue, excluding frequent flyer | Ticket Change Fee Revenue | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Air traffic liability, revenue recognized | $ 5.3 | $ 4.8 | $ 11.3 | |||
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Amounts reclassified from AOCI | |||
Revenue | $ (2,641,267) | $ (1,596,584) | $ (844,813) |
Nonoperating income (expense), other, net | 1,406 | (1,619) | (1,985) |
Other nonoperating special items | 0 | 0 | 5,682 |
Income tax benefit | (53,768) | (40,550) | (189,117) |
Total, net of tax | 240,081 | 144,773 | 510,935 |
Amount reclassified from accumulated other comprehensive loss | |||
Amounts reclassified from AOCI | |||
Total, net of tax | 18,427 | 2,310 | 2,329 |
Derivatives designated as hedging instruments under ASC 815 | Amount reclassified from accumulated other comprehensive loss | |||
Amounts reclassified from AOCI | |||
Total before tax | 0 | 0 | (7,020) |
Income tax benefit | 0 | 0 | 1,737 |
Total, net of tax | 0 | 0 | (5,283) |
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 | 0 | (3,945) |
Actuarial loss | Amount reclassified from accumulated other comprehensive loss | |||
Amounts reclassified from AOCI | |||
Nonoperating income (expense), other, net | 2,063 | 4,195 | 4,048 |
Prior service cost | Amount reclassified from accumulated other comprehensive loss | |||
Amounts reclassified from AOCI | |||
Nonoperating income (expense), other, net | 438 | 370 | 712 |
Special termination benefits | Amount reclassified from accumulated other comprehensive loss | |||
Amounts reclassified from AOCI | |||
Other nonoperating special items | 0 | 0 | 5,258 |
Curtailment loss | Amount reclassified from accumulated other comprehensive loss | |||
Amounts reclassified from AOCI | |||
Other nonoperating special items | 0 | 0 | 424 |
Amortization of defined benefit pension items | Amount reclassified from accumulated other comprehensive loss | |||
Amounts reclassified from AOCI | |||
Total before tax | 2,501 | 4,565 | 10,442 |
Income tax benefit | (640) | (1,103) | (2,309) |
Total, net of tax | 1,861 | 3,462 | 8,133 |
Short-term investments | Amount reclassified from accumulated other comprehensive loss | |||
Amounts reclassified from AOCI | |||
Total before tax | 21,994 | (1,531) | (689) |
Income tax benefit | (5,428) | 379 | 168 |
Total, net of tax | 16,566 | (1,152) | (521) |
Realized gain on sales of investments | (228) | (2,208) | (959) |
Realized loss on sales of investments, net | 22,222 | 677 | 270 |
Passenger | |||
Amounts reclassified from AOCI | |||
Revenue | (2,335,440) | (1,370,902) | (664,799) |
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 | $ 0 | $ (3,075) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Roll forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Roll forward of accumulated other comprehensive income (loss) | |||
Beginning balance | $ 569,086 | $ 600,157 | $ 1,081,796 |
Other comprehensive income (loss) before reclassifications, net of tax | (31,755) | 30,379 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 18,427 | 2,310 | |
Total Other Comprehensive Income (Loss) | (13,328) | 32,689 | (10,644) |
Ending balance | 333,265 | 569,086 | 600,157 |
Defined Benefit Pension Items | |||
Roll forward of accumulated other comprehensive income (loss) | |||
Beginning balance | (75,025) | (116,181) | |
Other comprehensive income (loss) before reclassifications, net of tax | 13,725 | 37,694 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 1,861 | 3,462 | |
Total Other Comprehensive Income (Loss) | 15,586 | 41,156 | |
Ending balance | (59,439) | (75,025) | (116,181) |
Short-term investments | |||
Roll forward of accumulated other comprehensive income (loss) | |||
Beginning balance | (6,813) | 1,654 | |
Other comprehensive income (loss) before reclassifications, net of tax | (45,480) | (7,315) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 16,566 | (1,152) | |
Total Other Comprehensive Income (Loss) | (28,914) | (8,467) | |
Ending balance | (35,727) | (6,813) | 1,654 |
Total | |||
Roll forward of accumulated other comprehensive income (loss) | |||
Beginning balance | (81,838) | (114,527) | (103,883) |
Total Other Comprehensive Income (Loss) | (13,328) | 32,689 | (10,644) |
Ending balance | $ (95,166) | $ (81,838) | $ (114,527) |
Earnings (Loss) Per Share - Nar
Earnings (Loss) Per Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 01, 2020 | |
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Potentially dilutive shares excluded (in shares) | 398,509 | 550,112 | |
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 |
Earnings (Loss) Per Share - Pot
Earnings (Loss) Per Share - Potential Dilution (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares excluded (in shares) | 398,509 | 550,112 | |
Numerator: | |||
Net Loss | $ (240,081) | $ (144,773) | $ (510,935) |
Denominator: | |||
Weighted average common shares outstanding—Basic (in shares) | 51,361,000 | 50,769,000 | 46,100,000 |
Dilutive effect of share-based awards and warrants (in shares) | 0 | 0 | 0 |
Weighted average common shares outstanding—Diluted (in shares) | 51,361,000 | 50,769,000 | 46,100,000 |
Net Loss Per Common Stock Share: | |||
Basic (in dollars per share) | $ (4.67) | $ (2.85) | $ (11.08) |
Diluted (in dollars per share) | $ (4.67) | $ (2.85) | $ (11.08) |
Amazon Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares excluded (in shares) | 8,183,451 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 USD ($) segment business | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Disaggregation of Revenue [Line Items] | |||||
Number of significant lines of business offered by company | business | 1 | ||||
Number of reportable segments | segment | 1 | ||||
Operating Revenue | $ 2,641,267 | $ 1,596,584 | $ 844,813 | ||
Air traffic liability, revenue recognized | $ 0 | ||||
Non-refundable ticket expiration period | 13 months | ||||
Extended ticket validity period | 24 months | ||||
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 | $ 2,152,536 | 1,264,059 | 616,214 | ||
Total Frequent flyer liability - ending balance | 414,500 | 448,200 | |||
Air traffic liability, revenue recognized | 436,500 | 184,000 | 254,800 | ||
Passenger revenue, excluding frequent flyer | Tickets Expired Unused After Receiving Extended Validity Date | |||||
Disaggregation of Revenue [Line Items] | |||||
Air traffic liability, revenue recognized | 151,900 | ||||
Passenger revenue, excluding frequent flyer | Advanced Ticket Breakage Excluding Tickets with Extended Validity Dates | |||||
Disaggregation of Revenue [Line Items] | |||||
Air traffic liability, revenue recognized | 100,500 | 51,400 | |||
Passenger revenue, excluding frequent flyer | Advanced Ticket Breakage | |||||
Disaggregation of Revenue [Line Items] | |||||
Air traffic liability, revenue recognized | $ 49,800 | $ 48,300 | $ 12,800 | ||
Geographic Concentration Risk | North America | Domestic Revenue Benchmark | |||||
Disaggregation of Revenue [Line Items] | |||||
Percent of domestic revenue from North American routes | 82% | 83% | 78% |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Operating revenue | $ 2,641,267 | $ 1,596,584 | $ 844,813 |
Air traffic liability (current portion of frequent flyer deferred revenue) | 590,796 | 631,157 | |
Noncurrent frequent flyer deferred revenue | $ 318,369 | 296,484 | |
Expected timing of satisfaction for future revenue | future revenue that is expected to be realized | ||
Air traffic liability, revenue recognized | $ 0 | ||
Passenger revenue, excluding frequent flyer | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenue | 2,152,536 | 1,264,059 | 616,214 |
Total frequent flyer liability | 414,500 | 448,200 | |
Air traffic liability, revenue recognized | 436,500 | 184,000 | 254,800 |
Frequent flyer revenue, transportation component | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenue | 182,904 | 106,843 | 48,585 |
Passenger Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenue | 2,335,440 | 1,370,902 | 664,799 |
Other revenue (e.g. cargo and other miscellaneous) | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenue | 182,468 | 126,349 | 94,187 |
Frequent flyer revenue, marketing and brand component | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenue | 123,359 | 99,333 | 85,827 |
Other Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenue | 305,827 | 225,682 | 180,014 |
Frequent Flyer Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Air traffic liability (current portion of frequent flyer deferred revenue) | 166,211 | 169,687 | |
Noncurrent frequent flyer deferred revenue | 318,369 | 296,484 | |
Total frequent flyer liability | 484,580 | 466,171 | 420,125 |
Domestic Destination | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenue | 2,304,522 | 1,504,151 | 640,153 |
Pacific Destination | |||
Disaggregation of Revenue [Line Items] | |||
Operating revenue | $ 336,745 | $ 92,433 | $ 204,660 |
Revenue Recognition - Rollforwa
Revenue Recognition - Rollforward of Frequent Flyer Deferred Revenue (Details) - Frequent Flyer Revenue - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Movement in Deferred Revenue [Roll Forward] | ||
Total Frequent flyer liability - beginning balance | $ 466,171 | $ 420,125 |
Miles awarded | 205,614 | 155,178 |
Travel miles redeemed (Passenger Revenue) | (182,904) | (106,843) |
Non-travel miles redeemed (Other Revenue) | (4,301) | (2,289) |
Total Frequent flyer liability - ending balance | $ 484,580 | $ 466,171 |
Short-Term Investments (Details
Short-Term Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Short-term Investments | ||
Amortized Cost | $ 1,219,556 | $ 1,249,927 |
Gross Unrealized Gains | 1,909 | 1,287 |
Gross Unrealized Losses | (74,272) | (9,462) |
Debt Securities, Available-for-Sale | 1,147,193 | 1,241,752 |
Fair value. less than 12 months | 520,914 | 683,979 |
Unrealized losses, less than 12 months | (22,932) | (6,845) |
Fair value, 12 months or greater | 305,111 | 137,436 |
Unrealized losses, 12 months or greater | (25,053) | (594) |
Fair Value | 826,025 | 821,415 |
Unrealized Losses | (47,985) | (7,439) |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Total | 1,147,193 | 1,241,752 |
Debt Securities | ||
Short-term Investments | ||
Debt Securities, Available-for-Sale | 956,569 | |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Under 1 Year | 103,631 | |
1 to 5 Years | 697,840 | |
Over 5 Years | 155,098 | |
Total | 956,569 | |
Corporate debt securities | ||
Short-term Investments | ||
Amortized Cost | 340,493 | 450,954 |
Gross Unrealized Gains | 139 | 277 |
Gross Unrealized Losses | (23,009) | (4,652) |
Debt Securities, Available-for-Sale | 317,623 | 446,579 |
Fair value. less than 12 months | 145,299 | 316,719 |
Unrealized losses, less than 12 months | (10,104) | (4,239) |
Fair value, 12 months or greater | 159,216 | 83,889 |
Unrealized losses, 12 months or greater | (12,905) | (413) |
Fair Value | 304,515 | 400,608 |
Unrealized Losses | (23,009) | (4,652) |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Under 1 Year | 2,794 | |
1 to 5 Years | 236,545 | |
Over 5 Years | 78,284 | |
Total | 317,623 | 446,579 |
U.S. government and agency securities | ||
Short-term Investments | ||
Amortized Cost | 467,049 | 374,113 |
Gross Unrealized Gains | 181 | 87 |
Gross Unrealized Losses | (12,341) | (1,893) |
Debt Securities, Available-for-Sale | 454,889 | 372,307 |
Fair value. less than 12 months | 314,790 | 291,949 |
Unrealized losses, less than 12 months | (8,097) | (1,716) |
Fair value, 12 months or greater | 98,653 | 52,501 |
Unrealized losses, 12 months or greater | (4,244) | (177) |
Fair Value | 413,443 | 344,450 |
Unrealized Losses | (12,341) | (1,893) |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Under 1 Year | 39,472 | |
1 to 5 Years | 406,126 | |
Over 5 Years | 9,291 | |
Total | 454,889 | 372,307 |
Other fixed income securities | ||
Short-term Investments | ||
Amortized Cost | 110,881 | 142,035 |
Gross Unrealized Gains | 23 | 62 |
Gross Unrealized Losses | (6,499) | (564) |
Debt Securities, Available-for-Sale | 104,405 | 141,533 |
Fair value. less than 12 months | 17,836 | 28,198 |
Unrealized losses, less than 12 months | (1,191) | (638) |
Fair value, 12 months or greater | 23,316 | 0 |
Unrealized losses, 12 months or greater | (5,308) | 0 |
Fair Value | 41,152 | 28,198 |
Unrealized Losses | (6,499) | (638) |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Under 1 Year | 60,884 | |
1 to 5 Years | 29,671 | |
Over 5 Years | 13,850 | |
Total | 104,405 | 141,533 |
Asset-backed securities | ||
Short-term Investments | ||
Amortized Cost | 30,205 | 19,372 |
Gross Unrealized Gains | 0 | 7 |
Gross Unrealized Losses | (2,039) | (71) |
Debt Securities, Available-for-Sale | 28,166 | 19,308 |
Fair value. less than 12 months | 11,155 | 16,949 |
Unrealized losses, less than 12 months | (755) | (67) |
Fair value, 12 months or greater | 14,435 | 1,046 |
Unrealized losses, 12 months or greater | (1,284) | (4) |
Fair Value | 25,590 | 17,995 |
Unrealized Losses | (2,039) | (71) |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Under 1 Year | 481 | |
1 to 5 Years | 18,238 | |
Over 5 Years | 9,447 | |
Total | 28,166 | 19,308 |
Collateralized loan obligations | ||
Short-term Investments | ||
Amortized Cost | 43,736 | 51,082 |
Gross Unrealized Gains | 130 | 32 |
Gross Unrealized Losses | (3,684) | (116) |
Debt Securities, Available-for-Sale | 40,182 | 50,998 |
Fair value. less than 12 months | 28,133 | 24,030 |
Unrealized losses, less than 12 months | (2,372) | (116) |
Fair value, 12 months or greater | 9,491 | 0 |
Unrealized losses, 12 months or greater | (1,312) | 0 |
Fair Value | 37,624 | 24,030 |
Unrealized Losses | (3,684) | (116) |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Under 1 Year | 0 | |
1 to 5 Years | 0 | |
Over 5 Years | 40,182 | |
Total | 40,182 | 50,998 |
Bank notes | ||
Short-term Investments | ||
Amortized Cost | 11,493 | 8,110 |
Gross Unrealized Gains | 3 | 0 |
Gross Unrealized Losses | (192) | (20) |
Debt Securities, Available-for-Sale | 11,304 | 8,090 |
Fair value. less than 12 months | 2,836 | 3,990 |
Unrealized losses, less than 12 months | (192) | (20) |
Fair value, 12 months or greater | 0 | 0 |
Unrealized losses, 12 months or greater | 0 | 0 |
Fair Value | 2,836 | 3,990 |
Unrealized Losses | (192) | (20) |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Under 1 Year | 0 | |
1 to 5 Years | 7,260 | |
Over 5 Years | 4,044 | |
Total | 11,304 | 8,090 |
Derivatives | ||
Short-term Investments | ||
Amortized Cost | 43 | 0 |
Gross Unrealized Gains | 1,433 | 821 |
Gross Unrealized Losses | (178) | (74) |
Debt Securities, Available-for-Sale | 1,298 | 747 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Total | 1,298 | 747 |
Equity securities | ||
Short-term Investments | ||
Amortized Cost | 213,569 | 202,068 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (26,109) | (2,023) |
Debt Securities, Available-for-Sale | 187,460 | 200,046 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Total | 187,460 | 200,046 |
Other investments measured at net asset value | ||
Short-term Investments | ||
Amortized Cost | 2,087 | 2,193 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (221) | (49) |
Debt Securities, Available-for-Sale | 1,866 | 2,144 |
Fair value. less than 12 months | 865 | 2,144 |
Unrealized losses, less than 12 months | (221) | (49) |
Fair value, 12 months or greater | 0 | 0 |
Unrealized losses, 12 months or greater | 0 | 0 |
Fair Value | 865 | 2,144 |
Unrealized Losses | (221) | (49) |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Total | $ 1,866 | $ 2,144 |
Short-Term Investments - Narrat
Short-Term Investments - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) position | Dec. 31, 2021 USD ($) position | |
Short-term Investments | ||
Number of unrealized losses from debt and equity securities generated | 496 | 451 |
Number of unrealized losses from debt and equity securities | 547 | 558 |
Unrealized gain (loss) on equity securities | $ | $ 26.3 | $ (2.1) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets measured at fair value | ||
Restricted cash | $ 17,498 | $ 17,267 |
Total short-term investments | 1,147,193 | 1,241,752 |
Recurring basis | ||
Assets measured at fair value | ||
Cash equivalents | 46,729 | 339,522 |
Restricted cash | 17,498 | 17,267 |
Total short-term investments | 1,147,193 | 1,241,752 |
Equity securities | 187,460 | 200,046 |
Other investments measured at net asset value | 1,866 | 2,144 |
Assets held for sale | 14,019 | 29,449 |
Total assets measured at fair value | 1,230,747 | 1,627,990 |
Recurring basis | Fuel derivative contracts | ||
Assets measured at fair value | ||
Derivative asset, fair value | 5,308 | |
Recurring basis | Level 1 | ||
Assets measured at fair value | ||
Cash equivalents | 46,535 | 239,912 |
Restricted cash | 17,498 | 17,267 |
Total short-term investments | 186,670 | 200,046 |
Equity securities | 186,670 | 200,046 |
Other investments measured at net asset value | 0 | 0 |
Assets held for sale | 0 | 0 |
Total assets measured at fair value | 250,703 | 457,225 |
Recurring basis | Level 1 | Fuel derivative contracts | ||
Assets measured at fair value | ||
Derivative asset, fair value | 0 | |
Recurring basis | Level 2 | ||
Assets measured at fair value | ||
Cash equivalents | 194 | 99,610 |
Restricted cash | 0 | 0 |
Total short-term investments | 929,467 | 1,025,484 |
Equity securities | 790 | 0 |
Other investments measured at net asset value | 0 | 0 |
Assets held for sale | 0 | 0 |
Total assets measured at fair value | 934,969 | 1,125,094 |
Recurring basis | Level 2 | Fuel derivative contracts | ||
Assets measured at fair value | ||
Derivative asset, fair value | 5,308 | |
Recurring basis | Level 3 | ||
Assets measured at fair value | ||
Cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Total short-term investments | 29,190 | 14,078 |
Equity securities | 0 | 0 |
Other investments measured at net asset value | 0 | 0 |
Assets held for sale | 14,019 | 29,449 |
Total assets measured at fair value | 43,209 | 43,527 |
Recurring basis | Level 3 | Fuel derivative contracts | ||
Assets measured at fair value | ||
Derivative asset, fair value | 0 | |
Corporate debt securities | Recurring basis | ||
Assets measured at fair value | ||
Total short-term investments | 317,623 | 446,579 |
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 | 309,450 | 446,579 |
Corporate debt securities | Recurring basis | Level 3 | ||
Assets measured at fair value | ||
Total short-term investments | 8,173 | 0 |
U.S. government and agency securities | Recurring basis | ||
Assets measured at fair value | ||
Total short-term investments | 454,889 | 372,307 |
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 | 454,889 | 372,307 |
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 | 104,405 | 142,280 |
Other fixed income securities | Recurring basis | Level 1 | ||
Assets measured at fair value | ||
Total short-term investments | 0 | 0 |
Other fixed income securities | Recurring basis | Level 2 | ||
Assets measured at fair value | ||
Total short-term investments | 104,405 | 142,280 |
Other fixed income securities | Recurring basis | Level 3 | ||
Assets measured at fair value | ||
Total short-term investments | 0 | 0 |
Asset-backed securities | Recurring basis | ||
Assets measured at fair value | ||
Total short-term investments | 28,166 | 18,561 |
Asset-backed securities | Recurring basis | Level 1 | ||
Assets measured at fair value | ||
Total short-term investments | 0 | 0 |
Asset-backed securities | Recurring basis | Level 2 | ||
Assets measured at fair value | ||
Total short-term investments | 19,133 | 14,558 |
Asset-backed securities | Recurring basis | Level 3 | ||
Assets measured at fair value | ||
Total short-term investments | 9,033 | 4,003 |
Collateralized loan obligations | Recurring basis | ||
Assets measured at fair value | ||
Total short-term investments | 40,182 | 50,998 |
Collateralized loan obligations | Recurring basis | Level 1 | ||
Assets measured at fair value | ||
Total short-term investments | 0 | 0 |
Collateralized loan obligations | Recurring basis | Level 2 | ||
Assets measured at fair value | ||
Total short-term investments | 37,624 | 47,676 |
Collateralized loan obligations | Recurring basis | Level 3 | ||
Assets measured at fair value | ||
Total short-term investments | 2,558 | 3,322 |
Bank notes | Recurring basis | ||
Assets measured at fair value | ||
Total short-term investments | 11,304 | 8,090 |
Bank notes | Recurring basis | Level 1 | ||
Assets measured at fair value | ||
Total short-term investments | 0 | 0 |
Bank notes | Recurring basis | Level 2 | ||
Assets measured at fair value | ||
Total short-term investments | 1,878 | 1,337 |
Bank notes | Recurring basis | Level 3 | ||
Assets measured at fair value | ||
Total short-term investments | 9,426 | 6,753 |
Derivatives | Recurring basis | ||
Assets measured at fair value | ||
Total short-term investments | 1,298 | 747 |
Derivatives | Recurring basis | Level 1 | ||
Assets measured at fair value | ||
Total short-term investments | 0 | 0 |
Derivatives | Recurring basis | Level 2 | ||
Assets measured at fair value | ||
Total short-term investments | 1,298 | 747 |
Derivatives | Recurring basis | Level 3 | ||
Assets measured at fair value | ||
Total short-term investments | $ 0 | $ 0 |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures - Narrative (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Fair Value Disclosures [Abstract] | |
Restricted cash | $ 17.5 |
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) - Short-term Investments - Recurring basis - Level 3 $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 14,078 |
Purchases | 19,582 |
Proceeds from sale | (122) |
Redemptions and paydowns | (3,742) |
Amortization and accretion, net | 144 |
Realized and unrealized gains (losses), net | (750) |
Ending balance | 29,190 |
Asset-backed securities | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 4,003 |
Purchases | 5,449 |
Proceeds from sale | 0 |
Redemptions and paydowns | (143) |
Amortization and accretion, net | 98 |
Realized and unrealized gains (losses), net | (374) |
Ending balance | 9,033 |
Bank notes | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 6,753 |
Purchases | 3,440 |
Proceeds from sale | 0 |
Redemptions and paydowns | (747) |
Amortization and accretion, net | 9 |
Realized and unrealized gains (losses), net | (29) |
Ending balance | 9,426 |
Collateralized loan obligations | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 3,322 |
Purchases | 2,100 |
Proceeds from sale | (122) |
Redemptions and paydowns | (2,852) |
Amortization and accretion, net | (10) |
Realized and unrealized gains (losses), net | 120 |
Ending balance | 2,558 |
Corporate debt securities | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 0 |
Purchases | 8,593 |
Proceeds from sale | 0 |
Redemptions and paydowns | 0 |
Amortization and accretion, net | 47 |
Realized and unrealized gains (losses), net | (467) |
Ending balance | $ 8,173 |
Fair Value Measurement - Asset
Fair Value Measurement - Asset Held For Sale Activity (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Fair Value Measurements | |
Beginning balance as of January 1, 2022 | $ 29,449 |
Ending balance as of December 31, 2022 | 14,019 |
Disposal Group, Held-for-sale, Not Discontinued Operations | |
Fair Value Measurements | |
Beginning balance as of January 1, 2022 | 29,449 |
Additions | 0 |
Proceeds from sale | (12,580) |
Impairment charge | (6,303) |
Realized gains | 3,460 |
Realized losses | (7) |
Ending balance as of December 31, 2022 | 14,019 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ATR Aircraft | |
Fair Value Measurements | |
Beginning balance as of January 1, 2022 | 23,158 |
Additions | 0 |
Proceeds from sale | (12,580) |
Impairment charge | (6,303) |
Realized gains | 3,460 |
Realized losses | (7) |
Ending balance as of December 31, 2022 | 7,728 |
Disposal Group, Held-for-sale, Not Discontinued Operations | Commercial Real Estate | |
Fair Value Measurements | |
Beginning balance as of January 1, 2022 | 6,291 |
Additions | 0 |
Proceeds from sale | 0 |
Impairment charge | 0 |
Realized gains | 0 |
Realized losses | 0 |
Ending balance as of December 31, 2022 | $ 6,291 |
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, 2022 | Dec. 31, 2021 |
Fair Value Measurements | ||
Carrying Amount | $ 1,631,725 | $ 1,838,954 |
Fair Value | 1,356,561 | 1,808,530 |
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 | $ 1,356,561 | $ 1,808,530 |
Financial Derivative Instrume_3
Financial Derivative Instruments - Realized and Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative instrument | |||
Gains (losses) on fuel derivatives recorded as nonoperating income (expense) | $ (3,041) | $ 217 | $ (6,930) |
Not Designated as Hedging Instrument | Commodity Contract | |||
Derivative instrument | |||
Losses realized at settlement | (401) | (165) | (9,035) |
Prior period unrealized amounts | 0 | 382 | 2,487 |
Unrealized gains (losses) that will settle in future periods | (2,640) | 0 | (382) |
Gains (losses) on fuel derivatives recorded as nonoperating income (expense) | $ (3,041) | $ 217 | $ (6,930) |
Financial Derivative Instrume_4
Financial Derivative Instruments - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative instrument | |||
Net derivative position | $ 6,600,000 | $ 0 | |
Collateral posted with counterparties | 0 | 0 | |
Derivatives | |||
Derivative instrument | |||
Net asset position | 1,300,000 | 700,000 | |
Unrealized gain and loss | $ 5,100,000 | $ 100,000 | $ 0 |
Financial Derivative Instrume_5
Financial Derivative Instruments - Derivative Positions (Details) € in Thousands, gal in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) gal | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 USD ($) | |
Fair Value of Derivatives | |||
Net derivative position | $ 6,600 | $ 0 | |
Not Designated as Hedging Instrument | Commodity Contract | |||
Fair Value of Derivatives | |||
Notional Amount (volume) | gal | 57,288 | ||
Gross fair value of assets, current | $ 5,308 | ||
Gross fair value of (liabilities), current | 0 | ||
Net derivative position | 5,308 | ||
Not Designated as Hedging Instrument | Foreign currency derivatives | |||
Fair Value of Derivatives | |||
Notional amount | € | € 36,426 | ||
Gross fair value of assets, current | 1,254 | ||
Gross fair value of (liabilities), current | (46) | ||
Net derivative position | 1,208 | ||
Not Designated as Hedging Instrument | Interest rate contracts | |||
Fair Value of Derivatives | |||
Notional amount | 32,891 | ||
Gross fair value of assets, current | 190 | ||
Gross fair value of (liabilities), current | (100) | ||
Net derivative position | $ 90 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2021 | Feb. 28, 2021 | |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,660,436 | |||
Unamortized debt discount and issuance costs | (28,711) | $ (37,560) | ||
Total debt | 1,631,725 | 1,801,394 | ||
Less: Current maturities of long-term debt | (47,836) | (97,096) | ||
Long-term debt | 1,583,889 | 1,704,298 | ||
Enhanced Equipment Trust Certificates (EETC) | Class A EETC-13 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 184,572 | 196,338 | ||
Stated interest rate | 3.90% | |||
Enhanced Equipment Trust Certificates (EETC) | Class B EETC-13 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | 45,090 | ||
Stated interest rate | 4.95% | |||
Enhanced Equipment Trust Certificates (EETC) | Class A EETC-20 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | 48,245 | ||
Stated interest rate | 7.375% | 7.375% | ||
Enhanced Equipment Trust Certificates (EETC) | Class B EETC-20 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | 19,504 | ||
Stated interest rate | 11.25% | 11.25% | ||
1.05% Japanese Yen Denominated Debt, Due May 2030 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 23,524 | 30,213 | ||
Stated interest rate | 1.05% | |||
1.01% Japanese Yen Denominated Debt, Due June 2030 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 20,350 | 26,271 | ||
Stated interest rate | 1.01% | |||
0.65% Japanese Yen Denominated Debt, Due May 2030 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 64,276 | 91,041 | ||
Stated interest rate | 0.65% | |||
0.76% Japanese Yen Denominated Debt, Due June 2030 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 55,731 | 70,269 | ||
Stated interest rate | 0.76% | |||
Payroll Support Program | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 60,278 | 60,278 | ||
Stated interest rate | 1% | |||
Payroll Support Program | Secured overnight financing rate | ||||
Debt Instrument [Line Items] | ||||
Margin | 2% | |||
Payroll Support Program Extension | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 27,797 | 27,797 | ||
Stated interest rate | 1% | |||
Payroll Support Program Extension | Secured overnight financing rate | ||||
Debt Instrument [Line Items] | ||||
Margin | 2% | |||
Payroll Support Program 3 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 23,908 | 23,908 | ||
Stated interest rate | 1% | |||
Payroll Support Program 3 | Secured overnight financing rate | ||||
Debt Instrument [Line Items] | ||||
Margin | 2% | |||
Senior Notes | 5.750% Senior Secured Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,200,000 | $ 1,200,000 | ||
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, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2013 trust aircraft | Jun. 30, 2022 USD ($) | Jan. 31, 2022 USD ($) | Aug. 31, 2020 USD ($) aircraft | |
Debt Instrument [Line Items] | ||||||||
Number of pass-through trusts | trust | 2 | |||||||
Loss on extinguishment of debt | $ 8,568 | $ 38,889 | $ 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 | $ 8,600 | ||||||
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% | ||||||
Debt instrument, repurchase amount | $ 62,400 | |||||||
Enhanced Equipment Trust Certificates (EETC) | Class B EETC-20 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 11.25% | 11.25% | ||||||
Debt instrument, repurchase amount | $ 62,400 | |||||||
Enhanced Equipment Trust Certificates (EETC) | Class B EETC-13 | ||||||||
Debt Instrument [Line Items] | ||||||||
Total principle sum of note | $ 45,100 | |||||||
Stated interest rate | 4.95% |
Debt - Foreign Denominated Fina
Debt - Foreign Denominated Financing (Details) $ in Thousands, ¥ in Billions | 12 Months Ended | ||||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) aircraft agreement | Dec. 31, 2018 USD ($) agreement | Dec. 31, 2019 JPY (¥) aircraft | Dec. 31, 2018 JPY (¥) | |
Debt Instrument [Line Items] | |||||||
Long-term debt, book value | $ 1,631,725 | $ 1,801,394 | |||||
Foreign currency debt remeasurement (gain) loss | $ 26,196 | $ 27,593 | $ (14,760) | ||||
Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Total principle sum of note | $ 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 | ||||||
Long-term debt, book value | $ 382,700 | ||||||
Minimum | Secured Debt | Japanese Yen Denominated Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt, duration of loan | 5 years 6 months | ||||||
Debt, fixed installment coupon rate | 0.76% | 1.01% | 0.76% | 1.01% | |||
Maximum | Secured Debt | Japanese Yen Denominated Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt, duration of loan | 12 years | ||||||
Debt, fixed installment coupon rate | 0.65% | 1.05% | 0.65% | 1.05% | |||
A321neo aircraft | Secured Debt | Japanese Yen Denominated Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, collateral, number of aircraft | aircraft | 2 | 2 | |||||
A330-200 aircraft | Secured Debt | 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) | 1 Months Ended | 12 Months Ended | ||||||||
Feb. 04, 2021 USD ($) | Aug. 31, 2022 USD ($) | Feb. 28, 2021 USD ($) | Jan. 31, 2021 USD ($) $ / shares shares | Apr. 30, 2020 USD ($) $ / shares shares | Mar. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) | Sep. 30, 2021 USD ($) borrowing | |
Line of Credit Facility [Line Items] | ||||||||||
Government grant recognition | $ 0 | $ 320,645,000 | $ 240,648,000 | |||||||
Financial assistance | $ 673,300,000 | |||||||||
Warrants issued (in shares) | shares | 800,000 | |||||||||
Long-term debt | $ 1,660,436,000 | |||||||||
Loss on extinguishment of debt | 8,568,000 | $ 38,889,000 | 0 | |||||||
Restricted cash | $ 17,500,000 | |||||||||
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 | |||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 11.82 | |||||||||
Adjustments to additional paid in capital, warrant issued | $ 6,700,000 | |||||||||
Payroll Support Program Extension Warrants | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Warrants issued (in shares) | shares | 200,000 | |||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 17.78 | |||||||||
Warrants expiration term | 5 years | |||||||||
Payroll Support Program Extension Warrants | Common Stock | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Warrants issued (in shares) | shares | 156,340 | |||||||||
Adjustments to additional paid in capital, warrant issued | $ 4,000,000 | |||||||||
Payroll Support Program 3 Warrants | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Warrants issued (in shares) | shares | 100,000 | 87,670 | ||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 27.27 | |||||||||
Adjustments to additional paid in capital, warrant issued | $ 1,800,000 | |||||||||
Economic Relief Program Warrants | Common Stock | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Adjustments to additional paid in capital, warrant issued | 3,100,000 | |||||||||
Payroll Support Program | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Maximum financial assistance | 372,400,000 | |||||||||
Government grant recognition | 320,600,000 | |||||||||
Financial assistance | 300,900,000 | $ 300,900,000 | ||||||||
Total principle sum of note | 60,300,000 | |||||||||
Fair value of warrants and notes | $ 53,600,000 | |||||||||
Long-term debt | $ 60,278,000 | 60,278,000 | ||||||||
Stated interest rate | 1% | |||||||||
Payroll Support Program Extension | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Government grant recognition | 164,900,000 | |||||||||
Financial assistance | $ 192,700,000 | 192,700,000 | ||||||||
Total principle sum of note | 27,800,000 | |||||||||
Fair value of warrants and notes | $ 23,800,000 | |||||||||
Debt, duration of loan | 10 years | |||||||||
Long-term debt | $ 27,797,000 | 27,797,000 | ||||||||
Stated interest rate | 1% | |||||||||
Payroll Support Program 3 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Maximum financial assistance | 179,700,000 | |||||||||
Government grant recognition | 155,800,000 | |||||||||
Financial assistance | $ 179,700,000 | |||||||||
Total principle sum of note | 23,900,000 | |||||||||
Fair value of warrants and notes | $ 22,100,000 | |||||||||
Debt, duration of loan | 10 years | |||||||||
Long-term debt | $ 23,908,000 | $ 23,908,000 | ||||||||
Stated interest rate | 1% | |||||||||
Economic Relief Program Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Maximum barrowing capacity | 622,000,000 | |||||||||
Fair value of warrants and notes | $ 41,900,000 | |||||||||
Long-term debt | $ 45,000,000 | |||||||||
Number of subsequent borrowings | borrowing | 2 | |||||||||
Repayments of long-term debt | $ 45,000,000 | |||||||||
Loss on extinguishment of debt | 4,000,000 | |||||||||
Senior Notes | 5.750% Senior Secured Notes | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Total principle sum of note | $ 1,200,000,000 | |||||||||
Long-term debt | $ 1,200,000,000 | $ 1,200,000,000 | ||||||||
Stated interest rate | 5.75% | 5.75% | ||||||||
Revolving Credit Facility | Line of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Draw down on revolving loans | $ 235,000,000 | |||||||||
Repayments of lines of credit | $ 235,000,000 | |||||||||
Maximum barrowing capacity | $ 235,000,000 | |||||||||
Minimum liquidity | $ 300,000,000 | |||||||||
Undrawn on revolving loans | $ 235,000,000 | |||||||||
Secured overnight financing rate | Payroll Support Program | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Margin | 2% | |||||||||
Secured overnight financing rate | Payroll Support Program Extension | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Margin | 2% | |||||||||
Secured overnight financing rate | Payroll Support Program 3 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Margin | 2% | |||||||||
Secured overnight financing rate | Revolving Credit Facility | Line of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Margin | 3% | |||||||||
Certain Market Rates | Revolving Credit Facility | Line of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Margin | 2% |
Debt - Payroll Support Program
Debt - Payroll Support Program Activity (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2020 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) 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 | 100,000 | 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 | $ 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, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 49,118 |
2024 | 46,978 |
2025 | 60,697 |
2026 | 1,339,518 |
2027 | 12,065 |
Thereafter | 152,060 |
Total long-term debt | $ 1,660,436 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2022 engine contract aircraft | Dec. 31, 2020 transaction | |
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 | 64 | |
Number of aircraft under finance lease | 4 | |
Number of aircraft under operating leases | 17 | |
Aircraft | Minimum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term | 1 year | |
Aircraft | Maximum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term | 10 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 | 3 years | |
Engines | Maximum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term | 4 years | |
Flight Simulator | ||
Operating Leased Assets [Line Items] | ||
Finance lease, remaining lease term | 3 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 | 27 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 | 4 years | |
Cargo and maintenance hangar | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term | 29 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 | 3 years |
Leases - Leases Related Assets
Leases - Leases Related Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Operating lease assets | $ 459,128 | $ 536,154 |
Finance lease assets | 90,847 | 114,376 |
Total lease assets | 549,975 | 650,530 |
Current | ||
Operating | 77,858 | 79,158 |
Finance | 25,789 | 24,149 |
Noncurrent | ||
Operating | 347,726 | 423,293 |
Finance | 75,221 | 100,995 |
Total lease liabilities | $ 526,594 | $ 627,595 |
Weighted-average remaining lease term | ||
Operating leases | 10 years 4 months 24 days | 10 years 4 months 24 days |
Finance leases | 6 years 10 months 24 days | 7 years 2 months 12 days |
Weighted-average discount rate | ||
Operating lease | 5.72% | 5.63% |
Finance leases | 4.30% | 4.37% |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Amortization of right-of-use assets | $ 23,265 | $ 23,339 | $ 23,197 |
Interest of lease liabilities | 4,963 | 6,022 | 6,887 |
Operating lease cost | 105,445 | 110,864 | 108,505 |
Short-term lease cost | 2,650 | 2,909 | 981 |
Variable lease cost | 142,894 | 112,475 | 68,212 |
Total lease cost | $ 279,217 | $ 255,609 | $ 207,782 |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating cash flows for operating leases | $ 105,021 | $ 110,286 | $ 113,585 |
Operating cash flows for finance leases | 4,948 | 5,997 | 6,887 |
Financing cash flows for finance lease | $ 24,137 | $ 23,040 | $ 22,295 |
Leases - Operating and Finance
Leases - Operating and Finance Lease Maturity Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finance Leases | ||
Less: current maturities of lease obligations | $ (25,789) | $ (24,149) |
Noncurrent finance lease obligations | 75,221 | 100,995 |
Operating Leases | ||
Less: current maturities of lease obligations | (77,858) | (79,158) |
Long-term lease obligations | 347,726 | $ 423,293 |
Aircraft | ||
Finance Leases | ||
2023 | 22,972 | |
2024 | 16,669 | |
2025 | 11,941 | |
2026 | 11,047 | |
2027 | 11,047 | |
Thereafter | 27,400 | |
Total minimum lease payments | 101,076 | |
Less: amounts representing interest | (12,240) | |
Present value of future minimum lease payments | 88,836 | |
Less: current maturities of lease obligations | (19,602) | |
Noncurrent finance lease obligations | 69,234 | |
Operating Leases | ||
2023 | 86,467 | |
2024 | 77,497 | |
2025 | 56,045 | |
2026 | 49,734 | |
2027 | 34,772 | |
Thereafter | 60,233 | |
Total minimum lease payments | 364,748 | |
Less: amounts representing interest | (58,918) | |
Present value of future minimum lease payments | 305,830 | |
Less: current maturities of lease obligations | (70,537) | |
Long-term lease obligations | 235,293 | |
Other | ||
Finance Leases | ||
2023 | 6,564 | |
2024 | 1,175 | |
2025 | 974 | |
2026 | 236 | |
2027 | 236 | |
Thereafter | 6,170 | |
Total minimum lease payments | 15,355 | |
Less: amounts representing interest | (3,180) | |
Present value of future minimum lease payments | 12,175 | |
Less: current maturities of lease obligations | (6,187) | |
Noncurrent finance lease obligations | 5,988 | |
Operating Leases | ||
2023 | 13,154 | |
2024 | 13,249 | |
2025 | 12,084 | |
2026 | 10,127 | |
2027 | 6,072 | |
Thereafter | 148,767 | |
Total minimum lease payments | 203,453 | |
Less: amounts representing interest | (83,699) | |
Present value of future minimum lease payments | 119,754 | |
Less: current maturities of lease obligations | (7,321) | |
Long-term lease obligations | $ 112,433 |
Income Taxes Significant Compon
Income Taxes Significant Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||
Federal | $ (1,073) | $ 1,522 | $ (113,010) |
State | (493) | (448) | (3,919) |
Current income tax expense (benefit) | (1,566) | 1,074 | (116,929) |
Deferred | |||
Federal | (49,646) | (39,589) | (52,824) |
State | (2,556) | (2,035) | (19,364) |
Deferred income tax expense (benefit) | (52,202) | (41,624) | (72,188) |
Income tax benefit | $ (53,768) | $ (40,550) | $ (189,117) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit computed at the statutory federal rate | $ (61,709) | $ (38,918) | $ (147,012) |
Increase (decrease) resulting from: | |||
State income taxes, net of federal tax effect | (11,186) | (6,203) | (22,508) |
Nondeductible meals | 597 | 466 | 271 |
Goodwill impairment | 0 | 0 | 22,399 |
Change in valuation allowance | 17,805 | 4,445 | 7,070 |
CARES Act (NOL carryback) | 0 | 0 | (45,417) |
Stock compensation | 920 | 436 | 473 |
Other | (195) | (776) | (4,393) |
Income tax benefit | $ (53,768) | $ (40,550) | $ (189,117) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||
CARES Act (NOL carryback) | $ 0 | $ 0 | $ (45,417) |
Deferred tax assets realized capital loss carryforwards | 16,700 | ||
Federal and state net operating loss carryforwards | 86,452 | 26,725 | |
Valuation allowance | 31,867 | 14,062 | |
Capital losses | 10,271 | 0 | |
Realized capital losses | 4,100 | ||
Unrealized capital losses | 6,200 | ||
Uncertain tax position decrease | 800 | ||
Income tax penalties and interest expense (benefit) | 0 | 0 | $ (700) |
Accrued interest and penalties | 100 | 200 | |
Research Tax Credit Carryforward | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforwards | 3,900 | ||
Federal | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 236,000 | ||
State and Local | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 708,000 | ||
Federal and state net operating loss carryforwards | 37,000 | 25,600 | |
Valuation allowance | $ 21,600 | $ 14,100 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Accumulated pension and other postretirement benefits | $ 35,384 | $ 41,740 |
Operating leases liabilities | 104,938 | 124,570 |
Finance leases | 2,616 | 2,641 |
Air traffic liability and frequent flyer liability | 84,723 | 118,005 |
Partnership deferred revenue | 4,377 | 5,242 |
Federal and state net operating loss carryforwards | 86,452 | 26,725 |
Accrued compensation | 16,720 | 15,377 |
Other accrued assets | 16,803 | 14,360 |
Capital losses | 10,271 | 0 |
Deferred interest under IRC Section 163(j) | 34,132 | 18,956 |
Other assets | 23,612 | 14,090 |
Total gross deferred tax assets | 420,028 | 381,706 |
Less: Valuation allowance | (31,867) | (14,062) |
Net deferred tax assets | 388,161 | 367,644 |
Deferred tax liabilities: | ||
Intangible assets | (3,205) | (3,223) |
Property and equipment, principally accelerated depreciation | (377,943) | (394,207) |
Finance leases | (787) | (5,228) |
Operating lease right-of-use assets | (115,765) | (135,659) |
Other liabilities | (20,861) | (16,124) |
Total deferred tax liabilities | (518,561) | (554,441) |
Net deferred tax liability | $ (130,400) | $ (186,797) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits Related to Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 3,771 | $ 3,449 | $ 6,263 |
Increases related to prior year tax positions | (81) | ||
Increases related to prior year tax positions | 11 | 104 | |
Increases related to current year tax positions | 568 | 672 | 562 |
Settlements with taxing authority | 0 | 0 | (1,063) |
Effect of the expiration of statutes of limitation | (513) | (361) | (2,417) |
Ending balance | $ 3,745 | $ 3,771 | $ 3,449 |
Assets Held-For-Sale (Details)
Assets Held-For-Sale (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) aircraft | Jun. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Assets held for sale | $ 14,019 | $ 29,449 | ||||
Write-down of fleet | $ 6,300 | $ 6,400 | 6,303 | 0 | $ 0 | |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other | |||||
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 | 14,019 | 29,449 | |||
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 | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Assets held for sale | $ 6,100 | $ 6,291 | $ 6,291 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of aircraft sold | aircraft | 3 | |||||
Gain on disposal | $ 2,600 |
Special Items (Details)
Special Items (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Apr. 03, 2020 | Mar. 31, 2020 | Sep. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating special items: | |||||||
Contract termination fee | $ 12,500 | $ 0 | $ 0 | ||||
Assets held-for-sale impairment | $ 6,300 | $ 6,400 | 6,303 | 0 | 0 | ||
Ohana by Hawaiian termination | $ (2,600) | 0 | 8,983 | 0 | |||
Collective bargaining agreement payment | 0 | 0 | 20,242 | ||||
Goodwill impairment | 0 | 0 | 106,662 | ||||
Impairment of assets | 0 | 0 | 38,933 | ||||
Capitalized software projects | 0 | 0 | 509 | ||||
Severance and benefit costs | 0 | 0 | 17,765 | ||||
Total Operating special items | 18,803 | 8,983 | 184,111 | ||||
Other nonoperating special items: | |||||||
Special/contractual termination benefits | 0 | 0 | 5,258 | ||||
Curtailment loss | $ 0 | $ 0 | $ 424 | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other, net | Other, net | Other, net | ||||
Total Other nonoperating special items | $ 0 | $ 0 | $ 5,682 | ||||
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 | ||||||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Special items | ||||||
Reduction in workforce, percent | 32% | ||||||
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) | 12 Months Ended | ||
Jan. 01, 2008 | Dec. 31, 2022 USD ($) plan | Dec. 31, 2021 USD ($) | |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in plan assets | |||
Employer contribution | $ 0 | $ 0 | |
Amounts recognized in the statement of financial position consist of: | |||
Noncurrent benefit liability | (135,775,000) | (160,817,000) | |
Amounts recognized in accumulated other comprehensive loss | |||
Accumulated pension benefit obligation | 337,500,000 | 452,600,000 | |
Pension | |||
Change in projected benefit obligations | |||
Benefit obligations, beginning of year | (452,625,000) | (474,750,000) | |
Service cost | 0 | 0 | $ (12,000) |
Interest cost | (13,101,000) | (12,216,000) | (14,639,000) |
Actuarial gains | 102,544,000 | 9,738,000 | |
Benefits paid | 25,637,000 | 24,603,000 | |
Plan amendments | 0 | 0 | |
Benefit obligation at end of year | (337,545,000) | (452,625,000) | (474,750,000) |
Change in plan assets | |||
Fair value of assets, beginning of year | 405,366,000 | 382,846,000 | |
Actual return on plan assets | (93,701,000) | 46,297,000 | |
Employer contribution | 0 | 0 | |
Benefits paid | (24,813,000) | (23,777,000) | |
Fair value of assets at end of year | 286,852,000 | 405,366,000 | 382,846,000 |
Unfunded status at December 31 | (50,693,000) | (47,259,000) | |
Amounts recognized in the statement of financial position consist of: | |||
Current benefit liability | (789,000) | (800,000) | |
Noncurrent benefit liability | (49,904,000) | (46,459,000) | |
Total recognized in the statement of financial position | (50,693,000) | (47,259,000) | |
Amounts recognized in accumulated other comprehensive loss | |||
Unamortized actuarial loss (gain) | 106,906,000 | 94,537,000 | |
Prior service cost (credit) | 0 | 0 | |
Total reflected in other comprehensive loss | 106,906,000 | 94,537,000 | |
Other | |||
Change in projected benefit obligations | |||
Benefit obligations, beginning of year | (165,729,000) | (171,480,000) | |
Service cost | (9,568,000) | (11,744,000) | (10,791,000) |
Interest cost | (5,220,000) | (4,769,000) | (5,167,000) |
Actuarial gains | 42,834,000 | 16,623,000 | |
Benefits paid | 6,728,000 | 5,641,000 | |
Less: federal subsidy on benefits paid | 0 | 0 | |
Plan amendments | (1,750,000) | 0 | |
Benefit obligation at end of year | (132,705,000) | (165,729,000) | (171,480,000) |
Change in plan assets | |||
Fair value of assets, beginning of year | 44,632,000 | 38,710,000 | |
Actual return on plan assets | (6,879,000) | 3,357,000 | |
Employer contribution | 4,045,000 | 4,008,000 | |
Benefits paid | (1,904,000) | (1,443,000) | |
Fair value of assets at end of year | 39,894,000 | 44,632,000 | $ 38,710,000 |
Unfunded status at December 31 | (92,811,000) | (121,097,000) | |
Amounts recognized in the statement of financial position consist of: | |||
Current benefit liability | (6,941,000) | (6,739,000) | |
Noncurrent benefit liability | (85,870,000) | (114,358,000) | |
Total recognized in the statement of financial position | (92,811,000) | (121,097,000) | |
Amounts recognized in accumulated other comprehensive loss | |||
Unamortized actuarial loss (gain) | (49,505,000) | (16,161,000) | |
Prior service cost (credit) | 5,002,000 | 3,690,000 | |
Total reflected in other comprehensive loss | $ (44,503,000) | $ (12,471,000) |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components of Net Periodic Benefit Cost | |||
Special/contractual termination benefits | $ 0 | $ 0 | $ 5,258 |
Curtailment loss | 0 | 0 | 424 |
Pension | |||
Components of Net Periodic Benefit Cost | |||
Service cost | 0 | 0 | 12 |
Interest cost | 13,101 | 12,216 | 14,639 |
Expected return on plan assets | (23,809) | (23,327) | (23,418) |
Recognized net actuarial loss (gain) | 2,596 | 4,407 | 4,091 |
Prior service cost | 0 | 0 | 0 |
Total other components of the net periodic benefit cost | (8,112) | (6,704) | (4,688) |
Special/contractual termination benefits | 0 | 0 | 0 |
Curtailment loss | 0 | 0 | 0 |
Net periodic benefit cost | (8,112) | (6,704) | (4,676) |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss | |||
Current year actuarial (gain) loss | 14,966 | (32,709) | 8,376 |
Current year prior service cost | 0 | 0 | 0 |
Amortization of actuarial gain (loss) | (2,596) | (4,407) | (4,091) |
Amortization of prior service cost | 0 | 0 | 0 |
Settlement and curtailment loss | 0 | 0 | 0 |
Total recognized in other comprehensive loss | 12,370 | (37,116) | 4,285 |
Total recognized in net periodic benefit cost and other comprehensive loss | 4,258 | (43,820) | (391) |
Other | |||
Components of Net Periodic Benefit Cost | |||
Service cost | 9,568 | 11,744 | 10,791 |
Interest cost | 5,220 | 4,769 | 5,167 |
Expected return on plan assets | (2,077) | (1,785) | (1,746) |
Recognized net actuarial loss (gain) | (533) | (212) | (43) |
Prior service cost | 438 | 370 | 288 |
Total other components of the net periodic benefit cost | 3,048 | 3,142 | 3,666 |
Special/contractual termination benefits | 0 | 0 | 5,258 |
Curtailment loss | 0 | 0 | 424 |
Net periodic benefit cost | 12,616 | 14,886 | 20,139 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss | |||
Current year actuarial (gain) loss | (35,051) | (16,989) | 3,409 |
Current year prior service cost | 1,750 | 0 | 3,260 |
Amortization of actuarial gain (loss) | 533 | 212 | 43 |
Amortization of prior service cost | (438) | (370) | (712) |
Settlement and curtailment loss | 0 | 0 | 0 |
Total recognized in other comprehensive loss | (33,206) | (17,147) | 6,000 |
Total recognized in net periodic benefit cost and other comprehensive loss | $ (20,590) | $ (2,261) | $ 26,139 |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted Average Actuarial Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
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 | 6.20% | |
Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate to determine net periodic benefit expense | 2.98% | 2.63% |
Discount rate to determine projected benefit obligation | 5.58% | 2.98% |
Expected return on plan assets | 6.06% | 6.29% |
Expected return on plan assets used to determine net periodic benefit expense | 7.10% | |
Postretirement | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate to determine net periodic benefit expense | 3.02% | 2.62% |
Discount rate to determine projected benefit obligation | 5.57% | 2.99% |
Health care trend rate to determine net periodic benefit expense | 6.25% | 6.50% |
Ultimate trend rate | 4.75% | 4.75% |
Years to reach ultimate trend rate | 5 years | 6 years |
Health care trend rate to determine projected benefit obligation | 6.75% | 6.25% |
Ultimate trend rate | 4.75% | 4.75% |
Years to reach ultimate trend rate | 8 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 | 3.03% | 2.67% |
Discount rate to determine projected benefit obligation, Disability | 5.52% | 3.03% |
Expected return on plan assets, Disability | 4.35% | 4.28% |
Career progression | Pension | Minimum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Assumed rate of compensation increases | 2% | |
Career progression | Pension | Maximum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Assumed rate of compensation increases | 7.25% |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Assumptions and Estimates (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actuarial (gain) loss | $ 3,975 |
Amortization of prior service cost | 0 |
To be recognized in net periodic benefit cost from accumulated other comprehensive (gain) loss | 3,975 |
Postretirement | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actuarial (gain) loss | (2,345) |
Amortization of prior service cost | 497 |
To be recognized in net periodic benefit cost from accumulated other comprehensive (gain) loss | $ (1,848) |
Employee Benefit Plans - Plan A
Employee Benefit Plans - Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset allocation, actual | 100% | |
Asset allocation, target | 100% | |
Benefit plan assets excluding cash and receivables | $ 39,894 | $ 44,632 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Benefit plan assets excluding cash and receivables | 286,852 | 405,366 |
Expected Future Benefit Payments | ||
2023 | 26,886 | |
2024 | 27,424 | |
2025 | 27,668 | |
2026 | 27,760 | |
2027 | 27,718 | |
2028 - 2032 | 133,029 | |
Expected future benefit payments | 270,485 | |
Other Benefits | ||
Expected Future Benefit Payments | ||
2023 | 9,388 | |
2024 | 8,935 | |
2025 | 8,973 | |
2026 | 9,701 | |
2027 | 9,856 | |
2028 - 2032 | 54,916 | |
Expected future benefit payments | 101,769 | |
Expected Federal Subsidy | ||
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028 - 2032 | 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 | 55% | |
Asset allocation, target | 60% | |
Benefit plan assets excluding cash and receivables | $ 158,580 | 226,291 |
Fixed income securities | Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset allocation, actual | 41% | |
Asset allocation, target | 35% | |
Benefit plan assets excluding cash and receivables | $ 113,029 | 158,334 |
Real estate investment trusts | Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Asset allocation, actual | 4% | |
Asset allocation, target | 5% | |
Benefit plan assets excluding cash and receivables | $ 12,844 | 18,614 |
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 | 2,399 | 2,127 |
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 | 39,716 | 44,509 |
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 | $ 178 | $ 123 |
Employee Benefit Plans - Defi_3
Employee Benefit Plans - Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Contributions to the defined contribution plans | $ 57 | $ 47.3 | $ 43.6 |
Amazon Agreement (Details)
Amazon Agreement (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Oct. 20, 2022 USD ($) aircraft $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 01, 2020 $ / shares | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Number of aircraft, authorized for initial operation | aircraft | 10 | |||
Noncurrent frequent flyer deferred revenue | $ 318,369 | $ 296,484 | ||
Amortized into revenue | $ 0 | |||
Warrants issued (in shares) | shares | 800,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |
Amazoncom Services L L C | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Services agreement term (in years) | 8 years | |||
Customer extension term (in years) | 2 years | |||
Additional extension term (in years) | 3 years | |||
Noncurrent frequent flyer deferred revenue | $ 11,500 | |||
Warrants issued (in shares) | shares | 9,442,443 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||
Revenue over the vesting period | $ 82,500 | |||
Aggregate qualified payments | $ 1,800,000 | |||
Amazoncom Services L L C | First Tranche | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Warrants issued (in shares) | shares | 6,294,962 | |||
Exercise price of warrants (in dollars per share) | $ / shares | $ 14.71 | |||
Exercise price (in dollars per share) | $ / shares | $ 14.71 | |||
Risk free interest rate | 4.28% | |||
Dividend yield rate | 0% | |||
Expected life (in years) | 9 years | |||
Expected volatility rate | 54% | |||
Amazoncom Services L L C | Second Tranche | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Warrants issued (in shares) | shares | 3,147,481 | |||
Redemption of warrants trading days | 30 days | |||
Amazoncom Services L L C | Warrant | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Warrants vested (in shares) | shares | 1,258,992 | |||
Warrant shares, valued | $ 11,600 |
Capital Stock and Share-based_3
Capital Stock and Share-based Compensation - Common Stock and Special Preferred Stock (Details) | 12 Months Ended | |
Dec. 31, 2022 vote class director $ / shares shares | Dec. 31, 2021 $ / 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) $ in Thousands | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Equity [Abstract] | |
Cash payment for dividends | $ 5,514 |
Capital Stock and Share-based_5
Capital Stock and Share-based Compensation - Stock Repurchase Program (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
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 | |||
Number of shares repurchased (in shares) | 0 | 0 | 300,000 |
Capital Stock and Share-based_6
Capital Stock and Share-based Compensation - At-the-Market Offering Program (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Mar. 05, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 01, 2020 | |
Class of Stock [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
ATM Offering | ||||
Class 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 | ||||
Class 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||
Share-based compensation expense recognized | $ 7.9 | $ 8.6 | $ 4.9 |
Share-based compensation expense related to unvested stock options and other stock awards | $ 5.8 | ||
Weighted average period related expense will be recognized | 1 year 6 months | ||
Non-employee directors | |||
Class of Stock [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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted, before performance based metric (in shares) | 143,849 | 141,473 | 204,589 |
Maximum payout (in shares) | 254,530 | 212,210 | 406,916 |
Vesting period | 3 years | 3 years | 3 years |
Intrinsic value | $ 2.7 | $ 3 | |
Number of units | |||
Non-vested at the beginning of the period (in shares) | 445,623 | 441,953 | 301,583 |
Granted (in shares) | 143,849 | 141,473 | 216,369 |
Vested (in shares) | (101,125) | (67,695) | (61,073) |
Forfeited (in shares) | (73,318) | (70,108) | (14,926) |
Non-vested at the end of the period (in shares) | 415,029 | 445,623 | 441,953 |
Weighted average grant date fair value | |||
Non-vested at the beginning of the period (in dollars per share) | $ 25.76 | $ 30.98 | $ 33.40 |
Granted (in dollars per share) | 18.51 | 21.52 | 25.71 |
Vested (in dollars per share) | 23.82 | 37.20 | 43.62 |
Forfeited (in dollars per share) | 31.03 | 39.09 | 33 |
Non-vested at the end of the period (in dollars per share) | $ 22.78 | $ 25.76 | $ 30.98 |
Fair value of vested awards | $ 2.4 | $ 1.9 | $ 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted (in shares) | 274,832 | 270,282 | 353,538 |
Number of units | |||
Non-vested at the beginning of the period (in shares) | 457,368 | 447,831 | 233,282 |
Granted (in shares) | 274,832 | 270,282 | 353,538 |
Vested (in shares) | (251,024) | (248,432) | (129,297) |
Forfeited (in shares) | (11,002) | (12,313) | (9,692) |
Non-vested at the end of the period (in shares) | 470,174 | 457,368 | 447,831 |
Weighted average grant date fair value | |||
Non-vested at the beginning of the period (in dollars per share) | $ 23.09 | $ 23.09 | $ 31.80 |
Granted (in dollars per share) | 18.15 | 21.65 | 19.71 |
Vested (in dollars per share) | 24.03 | 21.75 | 29.20 |
Forfeited (in dollars per share) | 22.12 | 20.12 | 27.18 |
Non-vested at the end of the period (in dollars per share) | $ 19.74 | $ 23.09 | $ 23.09 |
Fair value of vested awards | $ 6 | $ 5.4 | $ 2.8 |
Employees and Non-employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted (in shares) | 274,832 | ||
Number of units | |||
Granted (in shares) | 274,832 | ||
First Tranche | Employees and Non-employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Second Tranche | Employees and Non-employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
Share-based Compensation Award, Tranche Three | Employees and Non-employee Directors | |||
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, 2022 USD ($) |
Long-term Purchase Commitment [Line Items] | |
2023 | $ 317,536 |
2024 | 504,655 |
2025 | 505,747 |
2026 | 404,262 |
2027 | 236,162 |
Thereafter | 15,564 |
Total contractual obligation | 1,983,926 |
Aircraft and aircraft related | |
Long-term Purchase Commitment [Line Items] | |
2023 | 290,808 |
2024 | 482,099 |
2025 | 493,090 |
2026 | 396,103 |
2027 | 230,126 |
Thereafter | 0 |
Total contractual obligation | 1,892,226 |
Other | |
Long-term Purchase Commitment [Line Items] | |
2023 | 26,728 |
2024 | 22,556 |
2025 | 12,657 |
2026 | 8,159 |
2027 | 6,036 |
Thereafter | 15,564 |
Total contractual obligation | $ 91,700 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Orders and Purchase Rights (Details) - Aircraft and aircraft related | 12 Months Ended |
Dec. 31, 2022 order purchaseRight | |
B787-9 spare engines | |
Long-term Purchase Commitment [Line Items] | |
Firm Orders | order | 3 |
Purchase Rights | purchaseRight | 1 |
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 | 12 |
Purchase Rights | purchaseRight | 8 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jul. 01, 2022 | Feb. 28, 2022 USD ($) | Oct. 31, 2018 purchaseRight order | Jul. 31, 2018 aircraft | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Long-term Purchase Commitment [Line Items] | |||||||
Percentage of employees represented by unions | 81.30% | ||||||
Signing bonus | $ 2,100,000 | ||||||
CBA expenses | $ 2,600,000 | ||||||
Transport Workers Union | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Percentage of employees represented by unions | 14.20% | ||||||
Credit card processing agreements | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Restricted cash | $ 0 | $ 0 | |||||
Maximum amount that holdback could increase | 100% | ||||||
B787-9 aircraft | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Number of aircrafts under purchase agreement | aircraft | 10 | ||||||
Number of aircrafts with purchase rights under purchase agreement | aircraft | 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |||
Cash payments for interest (net of amounts capitalized) | $ 85,370 | $ 91,927 | $ 23,951 |
Cash payments (refunds) for income taxes | 1,233 | (23,123) | (81,372) |
Investing and Financing Activities Not Affecting Cash: | |||
Property and equipment acquired through a finance lease | 0 | 8,121 | 939 |
Right-of-use assets acquired under operating leases | $ 2,625 | $ 0 | $ 75,667 |
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, 2022 USD ($) trust | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2013 trust | |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ||||
Number of pass-through trusts | trust | 2 | |||
Operating Revenue: | ||||
Operating Revenue | $ 2,641,267 | $ 1,596,584 | $ 844,813 | |
Operating Expenses: | ||||
Aircraft fuel, including taxes and delivery | 817,077 | 363,003 | 161,363 | |
Wages and benefits | 833,137 | 698,101 | 628,558 | |
Aircraft rent | 103,846 | 109,476 | 103,890 | |
Maintenance materials and repairs | 236,153 | 170,048 | 121,571 | |
Aircraft and passenger servicing | 152,550 | 105,675 | 58,016 | |
Commissions and other selling | 113,843 | 72,512 | 46,297 | |
Depreciation and amortization | 136,169 | 138,299 | 151,665 | |
Other rentals and landing fees | 147,143 | 116,772 | 73,808 | |
Purchased services | 129,350 | 103,213 | 99,050 | |
Special items | 18,803 | 8,983 | 184,111 | |
Government grant recognition | 0 | (320,645) | (240,648) | |
Other | 163,250 | 113,711 | 104,743 | |
Total | 2,851,321 | 1,679,148 | 1,492,424 | |
Operating Loss | (210,054) | (82,564) | (647,611) | |
Nonoperating Income (Expense): | ||||
Undistributed net loss of subsidiaries | 0 | 0 | 0 | |
Other nonoperating special items | 0 | 0 | (5,682) | |
Interest expense and amortization of debt discounts and issuance costs | (95,815) | (110,431) | (40,439) | |
Interest income | 32,141 | 8,603 | 8,731 | |
Capitalized interest | 4,244 | 3,357 | 3,236 | |
Other components of net periodic benefit cost | 5,065 | 3,566 | 1,300 | |
Gains (losses) on fuel derivatives | (3,041) | 217 | (6,930) | |
Loss on debt extinguishment | (8,568) | (38,889) | 0 | |
Gains (losses) on investments, net | (43,082) | 1,426 | 271 | |
Gains (losses) on foreign debt | 26,667 | 27,773 | (14,913) | |
Other, net | (1,406) | 1,619 | 1,985 | |
Total | (83,795) | (102,759) | (52,441) | |
Loss Before Income Taxes | (293,849) | (185,323) | (700,052) | |
Income tax benefit | (53,768) | (40,550) | (189,117) | |
Net Loss | (240,081) | (144,773) | (510,935) | |
Comprehensive Loss | (253,409) | (112,084) | (521,579) | |
Eliminations | ||||
Operating Revenue: | ||||
Operating Revenue | (42,079) | (31,324) | (12,652) | |
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 | (1,277) | |
Aircraft and passenger servicing | 0 | 0 | 0 | |
Commissions and other selling | (496) | (200) | (56) | |
Depreciation and amortization | 0 | 0 | 0 | |
Other rentals and landing fees | (116) | (121) | (113) | |
Purchased services | (264) | (4,622) | (11,189) | |
Special items | 0 | 0 | 0 | |
Government grant recognition | 0 | 0 | ||
Other | (41,203) | (26,381) | (17) | |
Total | (42,079) | (31,324) | (12,652) | |
Operating Loss | 0 | 0 | 0 | |
Nonoperating Income (Expense): | ||||
Undistributed net loss of subsidiaries | 264,645 | 175,822 | 505,131 | |
Other nonoperating special items | 0 | |||
Interest expense and amortization of debt discounts and issuance costs | 3,000 | 2,713 | 0 | |
Interest income | (3,000) | (2,713) | 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 | 0 | ||
Gains (losses) on investments, net | 0 | 0 | 0 | |
Gains (losses) on foreign debt | 0 | 0 | 0 | |
Other, net | 0 | 0 | 0 | |
Total | 264,645 | 175,822 | 505,131 | |
Loss Before Income Taxes | 264,645 | 175,822 | 505,131 | |
Income tax benefit | 0 | 0 | 0 | |
Net Loss | 264,645 | 175,822 | 505,131 | |
Comprehensive Loss | 277,973 | 143,133 | 515,775 | |
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 | 18 | 8 | (6) | |
Depreciation and amortization | 0 | 0 | 0 | |
Other rentals and landing fees | 0 | 0 | 0 | |
Purchased services | 224 | 2,033 | 1,361 | |
Special items | 0 | 0 | 0 | |
Government grant recognition | 0 | 0 | ||
Other | 6,821 | 6,289 | 6,007 | |
Total | 7,063 | 8,330 | 7,362 | |
Operating Loss | (7,063) | (8,330) | (7,362) | |
Nonoperating Income (Expense): | ||||
Undistributed net loss of subsidiaries | (233,288) | (136,478) | (505,131) | |
Other nonoperating special items | 0 | |||
Interest expense and amortization of debt discounts and issuance costs | 0 | 0 | 0 | |
Interest income | 320 | 35 | 15 | |
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 | 0 | ||
Gains (losses) on investments, net | 0 | 0 | 0 | |
Gains (losses) on foreign debt | 0 | 0 | 0 | |
Other, net | (50) | 0 | 0 | |
Total | (233,018) | (136,443) | (505,116) | |
Loss Before Income Taxes | (240,081) | (144,773) | (512,478) | |
Income tax benefit | 0 | 0 | (1,543) | |
Net Loss | (240,081) | (144,773) | (510,935) | |
Comprehensive Loss | $ (253,409) | (112,084) | (521,579) | |
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 | $ 2,637,422 | 1,593,058 | 843,197 | |
Operating Expenses: | ||||
Aircraft fuel, including taxes and delivery | 817,077 | 363,003 | 161,363 | |
Wages and benefits | 833,137 | 698,101 | 628,558 | |
Aircraft rent | 103,846 | 109,476 | 103,898 | |
Maintenance materials and repairs | 235,749 | 169,977 | 117,210 | |
Aircraft and passenger servicing | 152,550 | 105,675 | 58,016 | |
Commissions and other selling | 113,469 | 71,171 | 46,262 | |
Depreciation and amortization | 136,169 | 136,752 | 145,712 | |
Other rentals and landing fees | 147,259 | 116,893 | 73,894 | |
Purchased services | 127,873 | 103,749 | 107,776 | |
Special items | 12,500 | 4,648 | 148,355 | |
Government grant recognition | (320,645) | (240,648) | ||
Other | 198,610 | 131,842 | 96,844 | |
Total | 2,878,239 | 1,690,642 | 1,447,240 | |
Operating Loss | (240,817) | (97,584) | (604,043) | |
Nonoperating Income (Expense): | ||||
Undistributed net loss of subsidiaries | (31,357) | (39,344) | 0 | |
Other nonoperating special items | (5,682) | |||
Interest expense and amortization of debt discounts and issuance costs | (24,924) | (46,329) | (40,439) | |
Interest income | 31,219 | 8,555 | 8,716 | |
Capitalized interest | 4,244 | 3,357 | 3,236 | |
Other components of net periodic benefit cost | 5,065 | 3,566 | 1,300 | |
Gains (losses) on fuel derivatives | (3,041) | 217 | (6,930) | |
Loss on debt extinguishment | (8,568) | (38,889) | ||
Gains (losses) on investments, net | (43,082) | 1,426 | 271 | |
Gains (losses) on foreign debt | 26,667 | 27,773 | (14,913) | |
Other, net | (1,356) | 1,619 | 1,990 | |
Total | (45,133) | (78,049) | (52,451) | |
Loss Before Income Taxes | (285,950) | (175,633) | (656,494) | |
Income tax benefit | (53,768) | (40,550) | (179,970) | |
Net Loss | (232,182) | (135,083) | (476,524) | |
Comprehensive Loss | (245,510) | (102,394) | (487,168) | |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Operating Revenue: | ||||
Operating Revenue | 45,924 | 34,850 | 14,268 | |
Operating Expenses: | ||||
Aircraft fuel, including taxes and delivery | 0 | 0 | 0 | |
Wages and benefits | 0 | 0 | 0 | |
Aircraft rent | 0 | 0 | (8) | |
Maintenance materials and repairs | 404 | 71 | 5,638 | |
Aircraft and passenger servicing | 0 | 0 | 0 | |
Commissions and other selling | 852 | 1,533 | 97 | |
Depreciation and amortization | 0 | 1,547 | 5,953 | |
Other rentals and landing fees | 0 | 0 | 27 | |
Purchased services | 1,517 | 2,053 | 1,102 | |
Special items | 6,303 | 4,335 | 35,756 | |
Government grant recognition | 0 | 0 | ||
Other | (978) | 1,961 | 1,909 | |
Total | 8,098 | 11,500 | 50,474 | |
Operating Loss | 37,826 | 23,350 | (36,206) | |
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 | (73,891) | (66,815) | 0 | |
Interest income | 3,602 | 2,726 | 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 | 0 | ||
Gains (losses) on investments, net | 0 | 0 | 0 | |
Gains (losses) on foreign debt | 0 | 0 | 0 | |
Other, net | 0 | 0 | (5) | |
Total | (70,289) | (64,089) | (5) | |
Loss Before Income Taxes | (32,463) | (40,739) | (36,211) | |
Income tax benefit | 0 | 0 | (7,604) | |
Net Loss | (32,463) | (40,739) | (28,607) | |
Comprehensive Loss | $ (32,463) | $ (40,739) | $ (28,607) |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||||
Cash and cash equivalents | $ 229,122 | $ 490,561 | ||
Restricted cash | 17,498 | 17,267 | ||
Short-term investments | 1,147,193 | 1,241,752 | ||
Accounts receivable, net | 113,862 | 92,888 | ||
Income taxes receivable | 70,204 | 71,201 | ||
Spare parts and supplies, net | 36,875 | 34,109 | ||
Prepaid expenses and other | 63,553 | 66,127 | ||
Total | 1,678,307 | 2,013,905 | ||
Property and equipment at cost | 3,009,614 | 2,957,589 | ||
Less accumulated depreciation and amortization | (1,135,262) | (999,966) | ||
Total property and equipment, net | 1,874,352 | 1,957,623 | ||
Assets held for sale | 14,019 | 29,449 | ||
Operating lease right-of-use assets | 459,128 | 536,154 | ||
Long-term prepayments and other | 100,317 | 80,489 | ||
Goodwill and other intangible assets, net | 13,500 | 13,500 | ||
Intercompany receivable | 0 | 0 | ||
Investment in consolidated subsidiaries | 0 | 0 | ||
Total Assets | 4,139,623 | 4,631,120 | ||
Current liabilities: | ||||
Accounts payable | 196,009 | 114,400 | ||
Air traffic liability and current frequent flyer deferred revenue | 590,796 | 631,157 | ||
Other accrued liabilities | 182,036 | 165,050 | ||
Current maturities of long-term debt, less discount | 47,836 | 97,096 | ||
Current maturities of finance lease obligations | 25,789 | 24,149 | ||
Current maturities of operating leases | 77,858 | 79,158 | ||
Total | 1,120,324 | 1,111,010 | ||
Long-term debt | 1,583,889 | 1,704,298 | ||
Intercompany payable | 0 | 0 | ||
Other liabilities and deferred credits: | ||||
Noncurrent finance lease obligations | 75,221 | 100,995 | ||
Noncurrent operating leases | 347,726 | 423,293 | ||
Accumulated pension and other postretirement benefit obligations. | 135,775 | 160,817 | ||
Other liabilities and deferred credits | 94,654 | 78,340 | ||
Noncurrent frequent flyer deferred revenue | 318,369 | 296,484 | ||
Deferred tax liabilities, net | 130,400 | 186,797 | ||
Total | 1,102,145 | 1,246,726 | ||
Shareholders' equity | 333,265 | 569,086 | $ 600,157 | $ 1,081,796 |
Total Liabilities and Shareholders' Equity | 4,139,623 | 4,631,120 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Accounts receivable, net | (18,244) | (13,569) | ||
Income taxes receivable | 0 | 0 | ||
Spare parts and supplies, net | 0 | 0 | ||
Prepaid expenses and other | 0 | 0 | ||
Total | (18,244) | (13,569) | ||
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 | 0 | ||
Operating lease right-of-use assets | 0 | 0 | ||
Long-term prepayments and other | (1,200,000) | (1,200,000) | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Intercompany receivable | (609,207) | (571,096) | ||
Investment in consolidated subsidiaries | (710,634) | (981,809) | ||
Total Assets | (2,538,085) | (2,766,474) | ||
Current liabilities: | ||||
Accounts payable | (12,532) | (10,857) | ||
Air traffic liability and current frequent flyer deferred revenue | 0 | 0 | ||
Other accrued liabilities | (5,712) | (2,712) | ||
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 | (18,244) | (13,569) | ||
Long-term debt | (1,200,000) | (1,200,000) | ||
Intercompany payable | (609,207) | (571,096) | ||
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 | (710,634) | (981,809) | ||
Total Liabilities and Shareholders' Equity | (2,538,085) | (2,766,474) | ||
Parent Issuer / Guarantor | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 28,620 | 20,803 | ||
Restricted cash | 0 | 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 | 0 | 21 | ||
Total | 28,620 | 20,824 | ||
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 | 0 | ||
Operating lease right-of-use assets | 0 | 0 | ||
Long-term prepayments and other | 0 | 50 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Intercompany receivable | 0 | 0 | ||
Investment in consolidated subsidiaries | 767,831 | 1,007,650 | ||
Total Assets | 796,451 | 1,028,524 | ||
Current liabilities: | ||||
Accounts payable | 630 | 422 | ||
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 | 630 | 422 | ||
Long-term debt | 0 | 0 | ||
Intercompany payable | 462,556 | 459,016 | ||
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 | 333,265 | 569,086 | ||
Total Liabilities and Shareholders' Equity | 796,451 | 1,028,524 | ||
Subsidiary Issuer / Guarantor | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 151,357 | 434,615 | ||
Restricted cash | 0 | 0 | ||
Short-term investments | 1,147,193 | 1,241,752 | ||
Accounts receivable, net | 106,321 | 85,109 | ||
Income taxes receivable | 70,204 | 71,201 | ||
Spare parts and supplies, net | 36,875 | 34,109 | ||
Prepaid expenses and other | 63,524 | 66,084 | ||
Total | 1,575,474 | 1,932,870 | ||
Property and equipment at cost | 3,009,614 | 2,957,589 | ||
Less accumulated depreciation and amortization | (1,135,262) | (999,966) | ||
Total property and equipment, net | 1,874,352 | 1,957,623 | ||
Assets held for sale | 293 | 926 | ||
Operating lease right-of-use assets | 459,128 | 536,154 | ||
Long-term prepayments and other | 99,801 | 79,953 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Intercompany receivable | 609,207 | 571,096 | ||
Investment in consolidated subsidiaries | (57,699) | (26,344) | ||
Total Assets | 4,560,556 | 5,052,278 | ||
Current liabilities: | ||||
Accounts payable | 207,294 | 122,437 | ||
Air traffic liability and current frequent flyer deferred revenue | 579,872 | 617,685 | ||
Other accrued liabilities | 172,190 | 153,423 | ||
Current maturities of long-term debt, less discount | 47,836 | 97,096 | ||
Current maturities of finance lease obligations | 25,789 | 24,149 | ||
Current maturities of operating leases | 77,858 | 79,158 | ||
Total | 1,110,839 | 1,093,948 | ||
Long-term debt | 1,599,330 | 1,724,631 | ||
Intercompany payable | 0 | 0 | ||
Other liabilities and deferred credits: | ||||
Noncurrent finance lease obligations | 75,221 | 100,995 | ||
Noncurrent operating leases | 347,726 | 423,293 | ||
Accumulated pension and other postretirement benefit obligations. | 135,775 | 160,817 | ||
Other liabilities and deferred credits | 94,481 | 78,188 | ||
Noncurrent frequent flyer deferred revenue | 318,369 | 296,484 | ||
Deferred tax liabilities, net | 130,400 | 186,797 | ||
Total | 1,101,972 | 1,246,574 | ||
Shareholders' equity | 748,415 | 987,125 | ||
Total Liabilities and Shareholders' Equity | 4,560,556 | 5,052,278 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 49,145 | 35,143 | ||
Restricted cash | 17,498 | 17,267 | ||
Short-term investments | 0 | 0 | ||
Accounts receivable, net | 25,785 | 21,348 | ||
Income taxes receivable | 0 | 0 | ||
Spare parts and supplies, net | 0 | 0 | ||
Prepaid expenses and other | 29 | 22 | ||
Total | 92,457 | 73,780 | ||
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 | 13,726 | 28,523 | ||
Operating lease right-of-use assets | 0 | 0 | ||
Long-term prepayments and other | 1,200,516 | 1,200,486 | ||
Goodwill and other intangible assets, net | 13,500 | 13,500 | ||
Intercompany receivable | 0 | 0 | ||
Investment in consolidated subsidiaries | 502 | 503 | ||
Total Assets | 1,320,701 | 1,316,792 | ||
Current liabilities: | ||||
Accounts payable | 617 | 2,398 | ||
Air traffic liability and current frequent flyer deferred revenue | 10,924 | 13,472 | ||
Other accrued liabilities | 15,558 | 14,339 | ||
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 | 27,099 | 30,209 | ||
Long-term debt | 1,184,559 | 1,179,667 | ||
Intercompany payable | 146,651 | 112,080 | ||
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 | 173 | 152 | ||
Noncurrent frequent flyer deferred revenue | 0 | 0 | ||
Deferred tax liabilities, net | 0 | 0 | ||
Total | 173 | 152 | ||
Shareholders' equity | (37,781) | (5,316) | ||
Total Liabilities and Shareholders' Equity | $ 1,320,701 | $ 1,316,792 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Consolidating Financial Statements | |||
Net Cash Used In Operating Activities: | $ (57,752) | $ 251,338 | $ (310,708) |
Cash Flows From Investing Activities: | |||
Net payments to affiliates | 0 | 0 | 0 |
Additions to property and equipment, including pre-delivery deposits | (47,532) | (39,264) | (105,313) |
Proceeds from purchase assignment and sale leaseback transactions | 0 | 0 | 114,000 |
Proceeds from disposition of property and equipment | 12,182 | 755 | 0 |
Purchases of investments | (859,833) | (1,856,035) | (395,793) |
Sales of investments | 880,161 | 958,242 | 288,336 |
Net cash used in investing activities | (15,022) | (936,302) | (98,770) |
Cash Flows From Financing Activities: | |||
Proceeds from the issuance of common stock | 0 | 68,132 | 41,196 |
Long-term borrowings | 0 | 1,251,705 | 602,264 |
Repayments of long-term debt and finance lease obligations | (184,306) | (611,725) | (78,824) |
Dividend payments | 0 | 0 | (5,514) |
Repurchases of common stock | 0 | 0 | (7,510) |
Debt issuance costs | (2,236) | (24,776) | (4,975) |
Net payments from affiliates | 0 | 0 | |
Other | (1,892) | (183) | (576) |
Net cash provided by (used in) financing activities | (188,434) | 683,153 | 546,061 |
Net increase (decrease) in cash and cash equivalents | (261,208) | (1,811) | 136,583 |
Cash, cash equivalents, and restricted cash—Beginning of Year | 507,828 | 509,639 | 373,056 |
Cash, cash equivalents, and restricted cash—End of Year | 246,620 | 507,828 | 509,639 |
Eliminations | |||
Condensed Consolidating Financial Statements | |||
Net Cash Used In Operating Activities: | 0 | 0 | 0 |
Cash Flows From Investing Activities: | |||
Net payments to affiliates | 13,218 | (71,215) | 2,970 |
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 |
Net cash used in investing activities | 13,218 | (71,215) | 2,970 |
Cash Flows From Financing Activities: | |||
Proceeds from the issuance of common stock | (13,218) | 0 | 0 |
Long-term borrowings | 0 | 0 | |
Repayments of long-term debt and finance lease obligations | 0 | 0 | 0 |
Dividend payments | 0 | ||
Repurchases of common stock | 0 | ||
Debt issuance costs | 0 | 0 | 0 |
Net payments from affiliates | 71,215 | (2,970) | |
Other | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | (13,218) | 71,215 | (2,970) |
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 Used In Operating Activities: | (5,401) | (7,489) | 2,722 |
Cash Flows From Investing Activities: | |||
Net payments to affiliates | 0 | 2,725 | (5,900) |
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 |
Net cash used in investing activities | 0 | 2,725 | (5,900) |
Cash Flows From Financing Activities: | |||
Proceeds from the issuance of common stock | 13,218 | 68,132 | 41,196 |
Long-term borrowings | 0 | 0 | |
Repayments of long-term debt and finance lease obligations | 0 | 0 | 0 |
Dividend payments | (5,514) | ||
Repurchases of common stock | (7,510) | ||
Debt issuance costs | 0 | 0 | 0 |
Net payments from affiliates | (68,490) | (2,930) | |
Other | 0 | 1,837 | 796 |
Net cash provided by (used in) financing activities | 13,218 | 1,479 | 26,038 |
Net increase (decrease) in cash and cash equivalents | 7,817 | (3,285) | 22,860 |
Cash, cash equivalents, and restricted cash—Beginning of Year | 20,803 | 24,088 | 1,228 |
Cash, cash equivalents, and restricted cash—End of Year | 28,620 | 20,803 | 24,088 |
Subsidiary Issuer / Guarantor | Reportable Legal Entities | |||
Condensed Consolidating Financial Statements | |||
Net Cash Used In Operating Activities: | (20,253) | 277,635 | (315,245) |
Cash Flows From Investing Activities: | |||
Net payments to affiliates | (47,553) | 1,179,100 | 3,696 |
Additions to property and equipment, including pre-delivery deposits | (47,532) | (38,812) | (98,611) |
Proceeds from purchase assignment and sale leaseback transactions | 114,000 | ||
Proceeds from disposition of property and equipment | 186 | 228 | |
Purchases of investments | (859,833) | (1,856,035) | (395,793) |
Sales of investments | 880,161 | 958,242 | 288,336 |
Net cash used in investing activities | (74,571) | 242,723 | (88,372) |
Cash Flows From Financing Activities: | |||
Proceeds from the issuance of common stock | 0 | 0 | 0 |
Long-term borrowings | 51,705 | 602,264 | |
Repayments of long-term debt and finance lease obligations | (184,306) | (611,725) | (78,824) |
Dividend payments | 0 | ||
Repurchases of common stock | 0 | ||
Debt issuance costs | (2,236) | (112) | (4,975) |
Net payments from affiliates | 0 | 0 | |
Other | (1,892) | (2,020) | (1,372) |
Net cash provided by (used in) financing activities | (188,434) | (562,152) | 517,093 |
Net increase (decrease) in cash and cash equivalents | (283,258) | (41,794) | 113,476 |
Cash, cash equivalents, and restricted cash—Beginning of Year | 434,615 | 476,409 | 362,933 |
Cash, cash equivalents, and restricted cash—End of Year | 151,357 | 434,615 | 476,409 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||
Condensed Consolidating Financial Statements | |||
Net Cash Used In Operating Activities: | (32,098) | (18,808) | 1,815 |
Cash Flows From Investing Activities: | |||
Net payments to affiliates | 34,335 | (1,110,610) | (766) |
Additions to property and equipment, including pre-delivery deposits | 0 | (452) | (6,702) |
Proceeds from purchase assignment and sale leaseback transactions | 0 | ||
Proceeds from disposition of property and equipment | 11,996 | 527 | |
Purchases of investments | 0 | 0 | 0 |
Sales of investments | 0 | 0 | 0 |
Net cash used in investing activities | 46,331 | (1,110,535) | (7,468) |
Cash Flows From Financing Activities: | |||
Proceeds from the issuance of common stock | 0 | 0 | 0 |
Long-term borrowings | 1,200,000 | 0 | |
Repayments of long-term debt and finance lease obligations | 0 | 0 | 0 |
Dividend payments | 0 | ||
Repurchases of common stock | 0 | ||
Debt issuance costs | 0 | (24,664) | 0 |
Net payments from affiliates | (2,725) | 5,900 | |
Other | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 1,172,611 | 5,900 |
Net increase (decrease) in cash and cash equivalents | 14,233 | 43,268 | 247 |
Cash, cash equivalents, and restricted cash—Beginning of Year | 52,410 | 9,142 | 8,895 |
Cash, cash equivalents, and restricted cash—End of Year | $ 66,643 | $ 52,410 | $ 9,142 |
Schedule II-Valuation and Qua_2
Schedule II-Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Doubtful Accounts | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | $ 844 | $ 2,096 | $ 651 |
Charged to Costs and Expenses | 1,407 | 317 | 5,004 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (1,512) | (1,569) | (3,559) |
Balance at End of Year | 739 | 844 | 2,096 |
Allowance for Obsolescence of Flight Equipment Expendable Parts and Supplies | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 18,733 | 17,977 | 15,919 |
Charged to Costs and Expenses | 3,312 | 3,213 | 3,254 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (906) | (2,457) | (1,196) |
Balance at End of Year | 21,139 | 18,733 | 17,977 |
Valuation Allowance on Deferred Tax Assets | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 14,062 | 9,617 | 2,547 |
Charged to Costs and Expenses | 17,805 | 4,445 | 7,070 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | $ 31,867 | $ 14,062 | $ 9,617 |