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Hawaiian Holdings (HA) Q1 Earnings Top, Revenues Miss Mark

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Hawaiian Holdings, Inc.’s first-quarter 2019 earnings (excluding 8 cents from non-recurring items) of 67 cents outpaced the Zacks Consensus Estimate by a penny. However, the bottom line declined year over year. Quarterly revenues of $656.8 million also missed the Zacks Consensus Estimate of $660.3 million and dipped 1.3% year over year as well.

The revenue miss and its year-over-year decline perhaps displeased investors, causing the stock to shed 2.1% of value in after-hours trading on Apr 23.

Passenger revenues accounting for bulk (91.6%) of the top line slipped 1.7% year over year. Airline traffic, measured in revenue passenger miles, inched up 2.4% year over year to 4.13 billion in the quarter under review. Capacity or available seat miles (ASMs) expanded 2.5% to 4.85 billion. Load factor (percentage of seats filled by passengers) contracted 10 basis points to 85.1% in the reported quarter.

Meanwhile, operating revenue per available seat mile (RASM: a key measure of unit revenue) in the quarter slid 3.7% year over year. Average fuel cost per gallon rose 2% to $2 in the first quarter while non-fuel unit costs increased 1.4%.

Hawaiian Holdings, Inc. Price, Consensus and EPS Surprise

 

Hawaiian Holdings, Inc. Price, Consensus and EPS Surprise | Hawaiian Holdings, Inc. Quote


Q2 & 2019 Outlook

The company anticipates capacity to increase 1.5-3.5% in the second quarter. RASM is projected to decline 2-5% in the current quarter. Non-fuel unit costs are expected to either decrease 0.5% or increase up to 2.5% in the ongoing quarter. Economic fuel costs are envisioned to be $2.19 per gallon in the same time period.

Capacity for the full year is expected to rise in the 1.5-4.5% band. Non-fuel unit costs are predicted to be either flat or rise up to 3% in the current year. Additionally, fuel costs are estimated at $2.16 per gallon in 2019.

Liquidity

As of Mar 31, 2019, this Zacks Rank #3 (Hold) company’s unrestricted cash, cash equivalents and short-term investments totaled $532 million. While outstanding debt and capital lease obligations were $613 million during the same time frame. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Investors interested in the Zacks Transportation sector are keenly awaiting first-quarter 2019 earnings reports from key players like Southwest Airlines Co. (LUV - Free Report) , Canadian National Railway Company (CNI - Free Report) and Genesee & Wyoming, Inc. . While Southwest and Canadian National will report first-quarter financial numbers on Apr 25 and Apr 29, respectively, Genesee & Wyoming will announce the same on Apr 30.

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