Back to top

Image: Bigstock

Hawaiian Holdings' (HA) Revenue Outlook for Q2 Improves

Read MoreHide Full Article

Citing strong demand for air travel in its markets across North America, Hawaiian Holdings (HA - Free Report) provided an improved outlook for second-quarter 2021 revenues. The carrier, currently carrying a Zacks Rank #3 (Hold), expects second-quarter revenues to decline in the 42-46% range from the second-quarter 2019 actuals. The fresh guidance is better than the previous forecast of a 45-50% decline.

Owing to a better revenue scenario, the company now predicts adjusted EBITDAAR (Earnings before interest, taxes, depreciation, amortization and restructuring or rent costs) between a negative $40 million and a negative $10 million compared with its prior anticipation of a negative $70 million and a negative $20 million.

Capacity for the current quarter is still expected to be down in the 30-33% range from the second-quarter 2019 finals. Effective tax rate projection is reaffirmed at 21% for the June quarter. With increasing oil prices, the guidance for fuel cost per gallon is increased to $1.87 from $1.75.

The company anticipates higher fuel costs to be offset by lower-than-expected expenses in some other categories. The second-quarter 2021 projection for operating expenses excluding non-recurring items is intact. The metric is likely to decline 24% from the second-quarter 2019 final reading.

Notably, Hawaiian Holdings is not the only carrier to be aided by the uptick in travel demand. The overall optimism is also benefiting other airline companies like Alaska Air (ALK - Free Report) , Spirit Airlines (AAL - Free Report) and Southwest Airlines (LUV - Free Report) .

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities

In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.

Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.

Click here to download this report FREE >>