Moody's stabilizes Hawaiian Airlines view

Moody's Investor's Service said it changed the outlooks to stable from negative on Hawaiian Holdings, Inc., Hawaiian Airlines, Inc. and the HawaiianMiles Loyalty Ltd. program.

Concurrently, the agency affirmed Hawaiian Holdings’ B1 corporate family and B1-PD probability of default ratings Moody's also affirmed the Ba3 rating assigned to the series 2013-1 class A enhanced equipment trust certificates and the Ba3 rating assigned to the $1.2 billion of senior secured notes due in January 2026 issued by HawaiianMiles Loyalty. The company's HawaiianMiles loyalty program and brand secure the notes, which are also guaranteed by Hawaiian. The company's speculative grade liquidity rating is unchanged at SGL-1.

"The ratings affirmations and stable outlook reflect Moody's expectation that earnings and operating cash flows will continue their recovery towards 2019 levels through 2023, as Hawaiian restores service on its international routes," said, Jonathan Root, Moody's lead analyst, in a press release.

"Hawaiian's strong liquidity, with $1.7 billion of cash and about $200 million of net debt at the end of 2021 also support the ratings affirmation and stable outlook," said Root.

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