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Hawaiian Holdings' (HA) Loss Wider Than Estimates in Q2

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Hawaiian Holdings, Inc.’s (HA - Free Report) second-quarter 2020 loss (excluding $1.48 from non-recurring items) of $3.81 per share was wider than the Zacks Consensus Estimate of a loss of $3.72. Moreover, quarterly revenues of $60 million declined 91.6% year over year and missed the Zacks Consensus Estimate of $61 million.

Thanks to COVID-19 pandemic induced massive drop in travel demand, passenger revenues (contributing 49.6% of the top line) declined 95.4% year over year. Airline traffic, measured in revenue passenger miles, fell 97.9% year over year to 95.1 million in the quarter under review. Capacity (measured in available seat miles) contracted 92.1% to 409.5 million. Load factor (percentage of seats filled by passengers) deteriorated 6390 basis points to 23.2% in the reported quarter as capacity contraction outweighed traffic plunge.

Operating revenue per available seat mile (RASM: a key measure of unit revenues) in the quarter rose 6.1% year over year. Average fuel cost per gallon (economic) dropped 41.1% to $1.26 in the second quarter, while non-fuel unit costs rose more than 100%.

Hawaiian Holdings, Inc. Price, Consensus and EPS Surprise

Hawaiian Holdings, Inc. Price, Consensus and EPS Surprise

Hawaiian Holdings, Inc. price-consensus-eps-surprise-chart | Hawaiian Holdings, Inc. Quote

Liquidity

As of June 30, 2020, Hawaiian Holdings’ unrestricted cash, cash equivalents and short-term investments totaled $761 million. Outstanding debt and finance lease obligations were $1,006 million.

Zacks Rank

Hawaiian Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Outlook

Due to COVID-19 pandemic uncertainties, Hawaiian Holdings is unable to provide its detailed guidance for September-end quarter2020.

However, ASM for July 2020 is expected to be approximately 86% below its year-ago period’s capacity. The company expects August 2020 capacity to plunge 85% compared with the year-ago period’s tally. Operating expenses are expected to decline at a slower pace than capacity.

Sectorial Snapshot

Let’s take a look into some other Zacks Transportation sector companies’ second-quarter earnings.

Canadian National’s (CNI - Free Report) second-quarter 2020 earnings (excluding 36 cents from non-recurring items) of 92 cents per share (C$0.77) were in line with the Zacks Consensus Estimate. However, the bottom line declined 28.7% year over year. Quarterly revenues of $2,315 million (C$3,209 million) missed the Zacks Consensus Estimate of $2,407.6 million and fell 21.8% year over year.

J.B. Hunt Transport (JBHT - Free Report) , carrying a Zacks Rank #3 (Hold), reported second-quarter earnings of $1.14 per share that surpassed the Zacks Consensus Estimate by 31 cents. Total revenues of $2,145.6 million beat the Zacks Consensus Estimate of $2,060.9 million.

Kansas City Southern’s second-quarter earnings (excluding a penny from non-recurring items) of $1.15 per share beat the Zacks Consensus Estimate of $1.12. This Zacks Rank #3 (Hold) company’s total revenues of $547.9 million lagged the consensus mark of $550.2 million.

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