Hawaiian Airlines concedes 787 delays may impact recovery

Hawaiian Airlines (HA, Honolulu) has admitted that the suspension of B787 deliveries due to recently discovered manufacturing issues may impact its recovery plans.

“We have been planning to welcome our first two B787s at the end of the next year… B787 deliveries are currently delayed, as Boeing works through comprehensive inspections and rework on undelivered aircraft. This will now affect our delivery timeline. We are going to be discussing delivery schedule adjustment with Boeing in the weeks ahead. Based on the outcome of these discussions, we expect some revisions to the pace of our entry into service activities and the associated cost,” Chief Executive Peter Ingram said during an investors’ day presentation.

Senior Vice-President (Revenue Management & Network Planning) Brent Overbeek added that the airline did not expect any contribution to its capacity in 2022 from the B787s, even if they are delivered by the end of the year. Instead, it plans to focus on training, certification, and other readiness activities.

As deliveries are renegotiated, some readiness expenses may shift to 2023. Hawaiian has plans to spend USD365-385 million in capital expenditures in 2022, with approximately 85% of the total sum going to aircraft purchases. Chief Financial Officer Shannon Okinaka added that the airline will, next year, begin pre-delivery payments (PDP) for three B787-9s due to arrive in 2024.

Hawaiian Airlines has ten B787-9s on order from Boeing (including five via Boeing Capital). Two deliveries are slated for 2022, three for 2024, three for 2025, and the final two for 2027.

American Airlines (AA, Dallas/Fort Worth) recently announced that it will trim its 2022 network owing to B787 production line issues.