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Hawaiian Holdings (HA) Arm Banks on Low Debt Amid High Fuel Cost
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Hawaiian Holdings, Inc. (HA - Free Report) banks on its efforts to reduce debt and improving air travel demand (with increased vaccination programs).
With improving air travel demand, the carrier is making constant efforts to expand its network. Evidently, the carrier has started operating non-stop flights connecting the Austin-Bergstrom International Airport with Honolulu’s Daniel K. Inouye International Airport. The airline has also announced that it will resume non-stop service between Oakland and Kona on the Island of Hawaii (last operated in the summer of 2016).
The carrier's efforts to reduce its debt load is encouraging. Evidently, in 2021, the airline cleared approximately $440.9 million in future debt obligations.
The current scenario of rising fuel costs does not bode well for the airline. Evidently, average fuel cost per gallon (economic) surged 81.4% to $2.34 in fourth-quarter 2021. Fuel price per gallon is expected to increase further to $2.53 in the March quarter. Fuel consumption has also increased (up 69% in 2021) with more flights in operation.
Zacks Rank & Stocks to Consider
Hawaiian Holdings currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Transportation sector are Expeditors International of Washington, Inc. (EXPD - Free Report) , Old Dominion Freight Line, Inc. (ODFL - Free Report) and Triton International Limited .
Expeditors has an earnings surprise of 34.2%, having surpassed the Zacks Consensus Estimate in the past four quarters. Expeditors is being aided by the uptick in airfreight revenues. We are optimistic about the company’s buyout of Fleet Logistics’ Digital Platform. The acquisition has boosted Expeditors’ online LTL shipping platform, Koho. The move is in line with the company's focus on Digital Solutions.
The long-term expected earnings per share (EPS) (three to five years) growth rate for Old Dominion is pegged at 16%. Old Dominion is benefiting from the strong performance of the LTL segment owing to improved freight conditions. In 2021, revenues from the LTL services segment increased 30.7% on a year-over-year basis.
Driven by the tailwinds, the stock has rallied 33.4% in the past year. ODFL currently carries a Zacks Rank #2 (Buy).
The long-term expected EPS (three to five years) growth rate for Triton is pegged at 10%. Gradual increases in trade volumes and container demand bode well for the company. With easing coronavirus-led restrictions in the United States and Europe, the company saw a strong rebound in its business in the third and the fourth quarter of 2020 as well as in each of the quarters of 2021.
Driven by the positives, the stock has risen 28.2% in the past year. TRTN currently carries a Zacks Rank #2.
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Hawaiian Holdings (HA) Arm Banks on Low Debt Amid High Fuel Cost
Hawaiian Holdings, Inc. (HA - Free Report) banks on its efforts to reduce debt and improving air travel demand (with increased vaccination programs).
With improving air travel demand, the carrier is making constant efforts to expand its network. Evidently, the carrier has started operating non-stop flights connecting the Austin-Bergstrom International Airport with Honolulu’s Daniel K. Inouye International Airport. The airline has also announced that it will resume non-stop service between Oakland and Kona on the Island of Hawaii (last operated in the summer of 2016).
The carrier's efforts to reduce its debt load is encouraging. Evidently, in 2021, the airline cleared approximately $440.9 million in future debt obligations.
The current scenario of rising fuel costs does not bode well for the airline. Evidently, average fuel cost per gallon (economic) surged 81.4% to $2.34 in fourth-quarter 2021. Fuel price per gallon is expected to increase further to $2.53 in the March quarter. Fuel consumption has also increased (up 69% in 2021) with more flights in operation.
Zacks Rank & Stocks to Consider
Hawaiian Holdings currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Transportation sector are Expeditors International of Washington, Inc. (EXPD - Free Report) , Old Dominion Freight Line, Inc. (ODFL - Free Report) and Triton International Limited .
Expeditors has an earnings surprise of 34.2%, having surpassed the Zacks Consensus Estimate in the past four quarters. Expeditors is being aided by the uptick in airfreight revenues. We are optimistic about the company’s buyout of Fleet Logistics’ Digital Platform. The acquisition has boosted Expeditors’ online LTL shipping platform, Koho. The move is in line with the company's focus on Digital Solutions.
EXPD currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term expected earnings per share (EPS) (three to five years) growth rate for Old Dominion is pegged at 16%. Old Dominion is benefiting from the strong performance of the LTL segment owing to improved freight conditions. In 2021, revenues from the LTL services segment increased 30.7% on a year-over-year basis.
Driven by the tailwinds, the stock has rallied 33.4% in the past year. ODFL currently carries a Zacks Rank #2 (Buy).
The long-term expected EPS (three to five years) growth rate for Triton is pegged at 10%. Gradual increases in trade volumes and container demand bode well for the company. With easing coronavirus-led restrictions in the United States and Europe, the company saw a strong rebound in its business in the third and the fourth quarter of 2020 as well as in each of the quarters of 2021.
Driven by the positives, the stock has risen 28.2% in the past year. TRTN currently carries a Zacks Rank #2.