Hawaiian Holdings (HA - Free Report) posted fourth-quarter 2023 loss (excluding 41 cents from non-recurring items) of $2.37 per share, wider than the Zacks Consensus Estimate of a loss of $2.35. In the year-ago quarter HA posted a loss of $1.06.
Quarterly revenues of $669.1 million fell 8.5% year over year but met the Zacks Consensus Estimate. Quarterly revenues were hurt by a devastating wildfire in Lahaina in West Maui, which, in turn, affected traffic.
Notably, passenger revenues accounted for 89.9% of the top line in fourth-quarter 2023.
Scheduled airline traffic (measured by revenue passenger miles) increased 5.9% year over year, lower than our anticipation of 16.2%. Scheduled capacity (measured in available seat miles or ASM) rose 3.4% year over year to 5.1 billion, lower than our projection of 4.2%. Passenger load factor (percentage of seats filled by passengers) improved to 82.7% from 80.8% reported a year ago. The actual jump was smaller than our forecast of 90.1%.
Passenger revenue per ASM or PRASM decreased to 11.79 cents, witnessing a year-over-year fall of 10.7%. Operating revenue per ASM (RASM) fell by 11.4% on a year-over-year basis.
Average fuel cost per gallon (economic) decreased 10% year over year to $2.98 in the fourth quarter. Operating cost per ASM or CASM, excluding aircraft fuel and non-recurring items, inched down 1% year over year to 15.30 cents at fourth-quarter 2023 end.
Liquidity
As of Dec 31, 2023, the company had unrestricted cash, cash equivalents and short-term investments of $0.9 billion, and outstanding debt and finance lease obligations of $1.7 billion.
Q1 2024 Outlook
RASM is expected to go down to 1-2% from first-quarter 2023 figures.
Capacity is anticipated to increase 2.5-5.5% from the year-ago levels.
Costs per ASM (excluding fuel & non-recurring items) are suggested to climb 8-11% (non-GAAP figures) from the prior-year levels.
Gallons of jet fuel consumed are forecast to rise 4-7% from the year-earlier levels.
The effective tax rate is envisioned to be around 21%.
Fuel price per gallon is expected to be $2.71 by the end of first-quarter 2024.
2024 Outlook
The below expectations are in comparison with full-year 2023 actuals.
Gallons of jet fuel consumed are now suggested to increase 4-7%.
Fuel price per gallon is anticipated to be $2.59.
ASMs are now expected to improve 6-9%.
Capital Expenditure is still projected in the range of $500-$550 million.
Hawaiian Holdings currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q4 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2023 earnings of $1.47 per share missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70 million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenues, fell 6% year over year.
Delta Air Lines (DAL - Free Report) reported fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
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Hawaiian Holdings (HA - Free Report) posted fourth-quarter 2023 loss (excluding 41 cents from non-recurring items) of $2.37 per share, wider than the Zacks Consensus Estimate of a loss of $2.35. In the year-ago quarter HA posted a loss of $1.06.
Quarterly revenues of $669.1 million fell 8.5% year over year but met the Zacks Consensus Estimate. Quarterly revenues were hurt by a devastating wildfire in Lahaina in West Maui, which, in turn, affected traffic.
Notably, passenger revenues accounted for 89.9% of the top line in fourth-quarter 2023.
Scheduled airline traffic (measured by revenue passenger miles) increased 5.9% year over year, lower than our anticipation of 16.2%. Scheduled capacity (measured in available seat miles or ASM) rose 3.4% year over year to 5.1 billion, lower than our projection of 4.2%. Passenger load factor (percentage of seats filled by passengers) improved to 82.7% from 80.8% reported a year ago. The actual jump was smaller than our forecast of 90.1%.
Passenger revenue per ASM or PRASM decreased to 11.79 cents, witnessing a year-over-year fall of 10.7%. Operating revenue per ASM (RASM) fell by 11.4% on a year-over-year basis.
Average fuel cost per gallon (economic) decreased 10% year over year to $2.98 in the fourth quarter. Operating cost per ASM or CASM, excluding aircraft fuel and non-recurring items, inched down 1% year over year to 15.30 cents at fourth-quarter 2023 end.
Liquidity
As of Dec 31, 2023, the company had unrestricted cash, cash equivalents and short-term investments of $0.9 billion, and outstanding debt and finance lease obligations of $1.7 billion.
Q1 2024 Outlook
RASM is expected to go down to 1-2% from first-quarter 2023 figures.
Capacity is anticipated to increase 2.5-5.5% from the year-ago levels.
Costs per ASM (excluding fuel & non-recurring items) are suggested to climb 8-11% (non-GAAP figures) from the prior-year levels.
Gallons of jet fuel consumed are forecast to rise 4-7% from the year-earlier levels.
The effective tax rate is envisioned to be around 21%.
Fuel price per gallon is expected to be $2.71 by the end of first-quarter 2024.
2024 Outlook
The below expectations are in comparison with full-year 2023 actuals.
Gallons of jet fuel consumed are now suggested to increase 4-7%.
Fuel price per gallon is anticipated to be $2.59.
ASMs are now expected to improve 6-9%.
Capital Expenditure is still projected in the range of $500-$550 million.
Hawaiian Holdings currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q4 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) fourth-quarter 2023 earnings of $1.47 per share missed the Zacks Consensus Estimate of $1.74 and declined 23.4% year over year.
JBHT’s total operating revenues of $3,303.70 million surpassed the Zacks Consensus Estimate of $3,236.2 million but fell 9.5% year over year. Total operating revenues, excluding fuel surcharge revenues, fell 6% year over year.
Delta Air Lines (DAL - Free Report) reported fourth-quarter 2023 earnings (excluding $1.88 from non-recurring items) of $1.28 per share, which comfortably beat the Zacks Consensus Estimate of $1.17. Earnings, however, declined 13.51% on a year-over-year basis due to high labor costs.
Revenues of $14,223 million surpassed the Zacks Consensus Estimate of $14,069.5 million and increased 5.87% on a year-over-year basis driven by strong holiday-air-travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $13,661 million, up 11% year over year.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
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