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Hawaiian Holdings Unit Releases Solid July Traffic Data

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Hawaiian Holdings, Inc.’s wholly owned subsidiary, Hawaiian Airlines, reported impressive traffic figures for July. Traffic (measured in Revenue Passenger Miles or RPMs) increased 5.1% to around 1.55 billion.

Available Seat Miles (ASMs) also climbed 5% to 1.78 billion in the month. Load factor (percentage of seats filled by passengers) inched up 10 basis points (bps) to 87.4% as traffic growth outpaced capacity expansion.

In the first seven months of 2018, Hawaiian Airlines witnessed a 5.8% rise in RPMs to 9.92 billion. Also, ASMs rose 5.3% to 11.53 billion. As a result, load factor increased 40 bps to 86%. Additionally, passenger count grew 5.3% to 7 million in the period.


This Zacks Rank #3 (Hold) company recently reported second-quarter financial numbers wherein earnings surpassed estimates but revenues missed the same. While earnings per share declined, revenues improved on a year-over-year basis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

For the third quarter, Hawaiian Airlines anticipates operating revenue per available seat mile to be down 1.5% to up 1.5% on a year-over-year basis. While capacity expansion is projected between 7.5% and 9.5%. Unit costs excluding fuel are estimated to rise significantly, primarily owing to escalating labor costs. Fuel cost per gallon (economic) is predicted in the band of $2.10-$2.20 for the current quarter.

Key airline players, namely American Airlines Group Inc. (AAL - Free Report) , Southwest Airlines Co. (LUV - Free Report) and Alaska Air Group, Inc. (ALK - Free Report) also recently posted their second-quarter financial figures. Each of the carriers beat on earnings but missed on revenues.

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