Hawaiian Airlines matched analysts’ adjusted earnings estimates but saw its net income fall 71.9 percent in the fourth quarter after accounting for $95.1 million in special items.
The parent company of the state’s largest carrier reported today that net income declined to $10.6 million, or 20 cents a share, from $37.9 million, or 66 cents a share, in the year-earlier period. Analysts’ adjusted earnings estimate, which didn’t include the special items, was $1.28 a share.
Revenue rose 10.2 percent to $633 million from $574.2 million.
Hawaiian Holdings Inc.’s special items included a $70 million charge related to the airline’s accretive long-term fleet strategy to dispose of its Boeing 767s early and replace them with A321neos, $20 million related to ongoing labor contract negotiations with its pilots and a $5 million profit-sharing payment to employees for their service in prior years. The $70 million charge included a $49 million non-cash impairment charge on the Boeing 767 aircraft it owns and a $21 million charge to terminate early an agreement with a maintenance vendor.
For the year, net income rose 33.7 percent to $244.1 million from $182.6 million. Revenue increased 5.7 percent to $2.45 billion from $2.32 billion as Hawaiian carried a record 11.1 million passengers during 2016.