Hawaiian Holdings, Inc.’s (HA - Free Report) fourth-quarter 2021 loss (excluding 44 cents from non-recurring items) of $1.37 per share was narrower than the Zacks Consensus Estimate of a loss of $1.69. Notably, the company reported a loss of $3.71 in the year-ago quarter.
Moreover, quarterly revenues of $494.7 million surged more than 100% year over year and beat the Zacks Consensus Estimate of $493.4 million.
Despite omicron-led crisis, passenger revenues (contributing 85.5% to the top line) surged 361% year over year to $423.12 million. Scheduled airline traffic, measured in revenue passenger miles, rose 423.1% year over year to 2,979.8 million in the quarter under review. Scheduled capacity (measured in available seat miles) increased 194% to 4,210.1 million. Load factor (percentage of seats filled by passengers) improved 3100 basis points to 70.8% in the reported quarter as traffic surge outweighed capacity expansion. Passenger revenue per ASM (PRASM) surged 56.8% to 10.05 cents.
Operating revenue per available seat mile (RASM: a key measure of unit revenues) in the quarter rose 13.4% year over year to 11.68 cents for total operations. Average fuel cost per gallon (economic) increased 81.4% to $2.34 in the fourth quarter. With the majority of the fleet grounded, gallons of jet fuel consumed surged 147.1% in the December-end quarter.
Liquidity
As of Dec 31, 2021, Hawaiian Holdings’ unrestricted cash, cash equivalents and short-term investments totaled $1.7 billion. Outstanding debt and finance lease obligations were $1.9 billion.
Q1 Outlook
Capacity (or ASMs) is anticipated to decline 10-13% from first-quarter 2019 levels.
Total revenues are anticipated to plunge 31-35% from first-quarter 2019 levels.
Costs per ASM (excluding fuel & non-recurring items) is expected to rise 10-13% from first-quarter 2019 numbers.
Gallons of jet fuel consumed are expected to fall 18-21% from first-quarter 2019 level.
Adjusted EBITDA is expected to fall $150-$90 million.
The effective tax rate is anticipated to be at 21% in the first quarter.
Fuel price per gallon is expected to be at $2.53 in first-quarter 2022.
2022 Outlook
Below expectations are in comparison to full-year 2019.
For the current year, the company projects capital expenditures of approximately $105-$125 million (prior guidance: $365-$385 million).
ASM is anticipated between negative 3% and positive 1% from 2019 levels (prior guidance: flat to up 4%).
Costs per ASM (excluding fuel & non-recurring items) is expected to move up 3.5-7.5% (prior guidance: up 2-6%)
Gallons of jet fuel consumed is expected to fall 4.5-8.5% (prior guidance: up 0.5% to down 3.5%).
Fuel price per gallon is anticipated to be $2.42 (prior guidance: $2.09).
Zacks Rank
Hawaiian Holdings currently carries a Zacks Rank #4 (Sell).
Sectorial Snapshot
Within the broader Transportation sector, J.B. Hunt Transport Services (JBHT - Free Report) , United Airlines (UAL - Free Report) and Delta Air Lines (DAL - Free Report) recently reported fourth-quarter 2021 results.
J.B. Hunt Transport Services, sporting a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2021 earnings of $2.28 per share. The figure surpassed the Zacks Consensus Estimate of $1.99. The bottom line surged 58.3% year over year on the back of higher revenues across all segments. You can see the complete list of today’s Zacks #1 Rank stocks here.
J.B. Hunt’s operating revenues of $3,497 million also outperformed the Zacks Consensus Estimate of $3,287.8 million. The top line increased 27.7% year over year. Total operating revenues, excluding fuel surcharges, rose 21.7% year over year.
United Airlines, carrying a Zacks Rank #4, incurred a loss (excluding 39 cents from non-recurring items) of $1.60 per share in fourth-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of $2.23. The amount of loss narrowed 77.1% year over year.
United Airlines’ operating revenues of $8,192 million also outperformed the Zacks Consensus Estimate of $7,930.9 million. The top line surged more than 100% year over year, with passenger revenues contributing 84% to the top line and surging 185.4% to $6,878 million.
Delta, carrying a Zacks Rank #5 (Strong Sell), reported fourth-quarter 2021 earnings (excluding 86 cents from non-recurring items) of 22 cents per share, outpacing the Zacks Consensus Estimate of 15 cents. The bottom line improved from the year-ago quarter’s loss of $2.53 per share. Strong holiday travel demand and favorable pricing aided the December quarter’s results.
Delta’s revenues came in at $9,470 million, beating the Zacks Consensus Estimate of $9,232.1 million and soaring more than 100% year over year. The upside can be attributed to people resorting to air travel during the holidays.
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Hawaiian Holdings, Inc.’s (HA - Free Report) fourth-quarter 2021 loss (excluding 44 cents from non-recurring items) of $1.37 per share was narrower than the Zacks Consensus Estimate of a loss of $1.69. Notably, the company reported a loss of $3.71 in the year-ago quarter.
Moreover, quarterly revenues of $494.7 million surged more than 100% year over year and beat the Zacks Consensus Estimate of $493.4 million.
Despite omicron-led crisis, passenger revenues (contributing 85.5% to the top line) surged 361% year over year to $423.12 million. Scheduled airline traffic, measured in revenue passenger miles, rose 423.1% year over year to 2,979.8 million in the quarter under review. Scheduled capacity (measured in available seat miles) increased 194% to 4,210.1 million. Load factor (percentage of seats filled by passengers) improved 3100 basis points to 70.8% in the reported quarter as traffic surge outweighed capacity expansion. Passenger revenue per ASM (PRASM) surged 56.8% to 10.05 cents.
Operating revenue per available seat mile (RASM: a key measure of unit revenues) in the quarter rose 13.4% year over year to 11.68 cents for total operations. Average fuel cost per gallon (economic) increased 81.4% to $2.34 in the fourth quarter. With the majority of the fleet grounded, gallons of jet fuel consumed surged 147.1% in the December-end quarter.
Liquidity
As of Dec 31, 2021, Hawaiian Holdings’ unrestricted cash, cash equivalents and short-term investments totaled $1.7 billion. Outstanding debt and finance lease obligations were $1.9 billion.
Q1 Outlook
Capacity (or ASMs) is anticipated to decline 10-13% from first-quarter 2019 levels.
Total revenues are anticipated to plunge 31-35% from first-quarter 2019 levels.
Costs per ASM (excluding fuel & non-recurring items) is expected to rise 10-13% from first-quarter 2019 numbers.
Gallons of jet fuel consumed are expected to fall 18-21% from first-quarter 2019 level.
Adjusted EBITDA is expected to fall $150-$90 million.
The effective tax rate is anticipated to be at 21% in the first quarter.
Fuel price per gallon is expected to be at $2.53 in first-quarter 2022.
2022 Outlook
Below expectations are in comparison to full-year 2019.
For the current year, the company projects capital expenditures of approximately $105-$125 million (prior guidance: $365-$385 million).
ASM is anticipated between negative 3% and positive 1% from 2019 levels (prior guidance: flat to up 4%).
Costs per ASM (excluding fuel & non-recurring items) is expected to move up 3.5-7.5% (prior guidance: up 2-6%)
Gallons of jet fuel consumed is expected to fall 4.5-8.5% (prior guidance: up 0.5% to down 3.5%).
Fuel price per gallon is anticipated to be $2.42 (prior guidance: $2.09).
Zacks Rank
Hawaiian Holdings currently carries a Zacks Rank #4 (Sell).
Sectorial Snapshot
Within the broader Transportation sector, J.B. Hunt Transport Services (JBHT - Free Report) , United Airlines (UAL - Free Report) and Delta Air Lines (DAL - Free Report) recently reported fourth-quarter 2021 results.
J.B. Hunt Transport Services, sporting a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2021 earnings of $2.28 per share. The figure surpassed the Zacks Consensus Estimate of $1.99. The bottom line surged 58.3% year over year on the back of higher revenues across all segments. You can see the complete list of today’s Zacks #1 Rank stocks here.
J.B. Hunt’s operating revenues of $3,497 million also outperformed the Zacks Consensus Estimate of $3,287.8 million. The top line increased 27.7% year over year. Total operating revenues, excluding fuel surcharges, rose 21.7% year over year.
United Airlines, carrying a Zacks Rank #4, incurred a loss (excluding 39 cents from non-recurring items) of $1.60 per share in fourth-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of $2.23. The amount of loss narrowed 77.1% year over year.
United Airlines’ operating revenues of $8,192 million also outperformed the Zacks Consensus Estimate of $7,930.9 million. The top line surged more than 100% year over year, with passenger revenues contributing 84% to the top line and surging 185.4% to $6,878 million.
Delta, carrying a Zacks Rank #5 (Strong Sell), reported fourth-quarter 2021 earnings (excluding 86 cents from non-recurring items) of 22 cents per share, outpacing the Zacks Consensus Estimate of 15 cents. The bottom line improved from the year-ago quarter’s loss of $2.53 per share. Strong holiday travel demand and favorable pricing aided the December quarter’s results.
Delta’s revenues came in at $9,470 million, beating the Zacks Consensus Estimate of $9,232.1 million and soaring more than 100% year over year. The upside can be attributed to people resorting to air travel during the holidays.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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