We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hawaiian Holdings' (HA) Q3 View Dims on Delta Variant-Led Woes
Read MoreHide Full Article
With the rapid spread of the highly contagious Delta variant of the coronavirus, Hawaiian Holdings recently trimmed its outlook for the third quarter of 2021. This bearish view adds to the carrier’s woes, shares of which have declined 29.1% over the past three months, worse than its industry’s 14.4% contraction in the same time period.
Image Source: Zacks Investment Research
Q3 Outlook in Detail
The Delta-variant spread slowed down bookings at this carrier, which currently carries a Zacks Rank #3 (Hold). Moreover, accelerated ticket cancellations are believed to be primarily due to the Governor of Hawaii's public comments, which suggested that it is not the appropriate time to visit the island.
All comparisons are with respect to the third-quarter 2019 (pre-COVID) reported figures.
Against this grim backdrop, Hawaiian Holdings expects its total revenues for the September quarter to decline in the 34-37% band from the third-quarter 2019 actuals (earlier guidance hinted at a 28-33% decrease). Capacity is still expected to drop in the 20-33% band.
Operating expenses (excluding non-recurring items) are now projected to increase in the 13-15% range against the prior estimate of a 10-14% reduction. The increase in fuel costs as oil prices move north, however, do not bode well. Fuel costs per gallon are now expected to be $2.06 (earlier guidance: $2.04). Interest expenses and the effective tax rate are still expected to be $30 million and roughly 21%, respectively, in the third quarter.
Primarily due to the softness in revenues, the adjusted EBITDA forecast worsened and is currently expected between a negative $20 million and a negative $40 million (earlier guidance was between a negative $20 million and a positive $20 million).
Hawaiian Holdings is not the only carrier to have issued a tepid guidance for the September quarter due to the Delta variant-led woes. Other airline companies like Delta Air Lines (DAL - Free Report) , Southwest Airlines (LUV - Free Report) and United Airlines (UAL - Free Report) too have walked the same path.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Hawaiian Holdings' (HA) Q3 View Dims on Delta Variant-Led Woes
With the rapid spread of the highly contagious Delta variant of the coronavirus, Hawaiian Holdings recently trimmed its outlook for the third quarter of 2021. This bearish view adds to the carrier’s woes, shares of which have declined 29.1% over the past three months, worse than its industry’s 14.4% contraction in the same time period.
Image Source: Zacks Investment Research
Q3 Outlook in Detail
The Delta-variant spread slowed down bookings at this carrier, which currently carries a Zacks Rank #3 (Hold). Moreover, accelerated ticket cancellations are believed to be primarily due to the Governor of Hawaii's public comments, which suggested that it is not the appropriate time to visit the island.
All comparisons are with respect to the third-quarter 2019 (pre-COVID) reported figures.
Against this grim backdrop, Hawaiian Holdings expects its total revenues for the September quarter to decline in the 34-37% band from the third-quarter 2019 actuals (earlier guidance hinted at a 28-33% decrease). Capacity is still expected to drop in the 20-33% band.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Operating expenses (excluding non-recurring items) are now projected to increase in the 13-15% range against the prior estimate of a 10-14% reduction. The increase in fuel costs as oil prices move north, however, do not bode well. Fuel costs per gallon are now expected to be $2.06 (earlier guidance: $2.04). Interest expenses and the effective tax rate are still expected to be $30 million and roughly 21%, respectively, in the third quarter.
Primarily due to the softness in revenues, the adjusted EBITDA forecast worsened and is currently expected between a negative $20 million and a negative $40 million (earlier guidance was between a negative $20 million and a positive $20 million).
Hawaiian Holdings is not the only carrier to have issued a tepid guidance for the September quarter due to the Delta variant-led woes. Other airline companies like Delta Air Lines (DAL - Free Report) , Southwest Airlines (LUV - Free Report) and United Airlines (UAL - Free Report) too have walked the same path.