On Friday, Hawaiian Airlines filed a new Form 8-K with the SEC correcting Q1 and Q2 accounting errors. As a result of the previously unreliable guidance, the airline’s shares dropped today.
In its first quarter filing, Hawaiian Airlines reported a loss of $154,824 before income taxes, and a net loss of $122,809. The filing on Friday was updated and now reflects a loss of $166,298 before taxes and a net loss of $133,278.
The second quarter numbers were also incorrect, and a slightly larger difference than the Q1 report. As previously reported, the airline suffered a loss of $200,758, and a net loss of $159,583. The recent filing reflects a loss of $220,152 before taxes and a net loss of $180,652.
On October 21, 2022, the Audit and Finance Committee of the Board of Directors of Hawaiian Holdings, Inc. concluded, after discussion with the Company’s management, that the Company’s consolidated unaudited financial statements as of and for the quarterly periods ended March 31, 2022 and June 30, 2022 included in the Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commissionfor the Non-Reliance Periods, should no longer be relied upon due to an error in accounting for net unrealized losses from equity securities, as further described below, and will require restatement. Similarly, any previously issued or filed reports, press releases, earnings releases, and investor presentations or other communications describing the Company’s consolidated unaudited financial statements and other related financial information covering the Non-Reliance Periods should no longer be relied upon.
During premarket trading today, Hawaiian Airlines’ shares fell more than 3%.
Amazon and Hawaiian Airlines
Last week, Amazon and Hawaiian Airlines entered into an agreement which will see Amazon acquire up to 15% of the airline’s shares in exchange for the operation of 10 Airbus A330-300 P2F aircraft.
As a result of the announcement, Hawaiian’s stock rose almost 9%. Although shares rose, shareholders took a small hit. Because of the way the purchase was made, with Amazon receiving a small discount on the shares, shareholders get diluted as warrants are vested.
Amazon has expanded significantly in recent years, and opening Prime Air has been a significant part of the company’s expansion. Amazon does not yet own or lease any aircraft; all of its air cargo operations are run through other airline partners. Prime Air is operated by Silver Airways, Atlas Air, Sun Country Airlines, ASL Airlines Ireland, Air Transport International, ABX Air, and Cargojet Airways.
According to planespotters.net, Prime Air’s fleet currently includes 89 aircraft, split between ATR 72s, Boeing 737s, and Boeing 767s. The data has not been updated to include the 10 new Airbus aircraft that will be operated by Hawaiian Airlines.
There are currently 52 Boeing 767-300s in operation for Amazon, 29 Boeing 737-800s, and 5 ATR 72s. Three Boeing 767 are currently parked.
Sources: planespotters.net; Seeking Alpha
- IATA/ICAO Code:
- Airline Type:
- Full Service Carrier
- Honolulu International Airport, Kahului Airport
- Year Founded:
- Peter Ingram
- United States