Hawaiian Holdings, Inc. (Amex: HA; PCX) ("Holdings" or "the Company"), parent company of Hawaiian Airlines, Inc. ("Hawaiian"), today reported a consolidated net loss for the three months ended December 31, 2005 of $19.5 million, or $0.43 per basic and diluted share, on total operating revenue of $210.3 million. For the full-year 2005, Holdings reported a consolidated net loss of $12.4 million, or $0.31 per basic and diluted share, on total operating revenue of $504.3 million. The Company's fourth quarter and annual results were both negatively impacted by an unusually high provision for income taxes (discussed below in more detail) which resulted in an effective tax rate of 218% for the year. Before income taxes the Company reported earnings of $10.5 million for the full year and a loss of $11.6 million for the fourth quarter.
Mark Dunkerley, President and Chief Executive Officer commented, "In 2005 Hawaiian Airlines successfully emerged from Chapter 11 bankruptcy, posted the industry's highest scores for punctuality, load factors, the avoidance of cancellations and the prompt delivery of baggage and achieved profitability for the full year on an operating and pre-tax basis despite difficult industry conditions. Although our income tax provision resulted in a net loss, the achievement of pre-tax earnings put us in rare company in 2005. This good news does not, however, disguise our disappointment at not having been able to earn profits at a level our shareholders should rightfully expect."
Mr. Dunkerley continued, "The year was a challenging one, as high fuel costs and intense competition curtailed our profitability and resulted in a loss for the fourth quarter. These factors have continued in 2006, but we continue to make progress towards our goals of increasing operating revenue and controlling expenses, and have a focused team executing our strategies. In addition, during the past month we acquired four 767-300 aircraft and were also pleased to announce that we have refinanced and expanded our term lending facilities, which will give us the flexibility to redeem the Convertible Notes that were issued by Holdings upon our emergence from bankruptcy in 2005."
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Mark Dunkerley, President and Chief Executive Officer commented, "In 2005 Hawaiian Airlines successfully emerged from Chapter 11 bankruptcy, posted the industry's highest scores for punctuality, load factors, the avoidance of cancellations and the prompt delivery of baggage and achieved profitability for the full year on an operating and pre-tax basis despite difficult industry conditions. Although our income tax provision resulted in a net loss, the achievement of pre-tax earnings put us in rare company in 2005. This good news does not, however, disguise our disappointment at not having been able to earn profits at a level our shareholders should rightfully expect."
Mr. Dunkerley continued, "The year was a challenging one, as high fuel costs and intense competition curtailed our profitability and resulted in a loss for the fourth quarter. These factors have continued in 2006, but we continue to make progress towards our goals of increasing operating revenue and controlling expenses, and have a focused team executing our strategies. In addition, during the past month we acquired four 767-300 aircraft and were also pleased to announce that we have refinanced and expanded our term lending facilities, which will give us the flexibility to redeem the Convertible Notes that were issued by Holdings upon our emergence from bankruptcy in 2005."
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