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Hawaiian Holdings (HA) Posts Wider-Than-Expected Q1 Loss

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Hawaiian Holdings, Inc.’s (HA - Free Report) first-quarter 2022 loss (excluding 15 cents from non-recurring items) of $2.54 per share was wider than the Zacks Consensus Estimate of a loss of $2.51. HA reported a loss of $3.85 in the year-ago quarter.

Moreover, quarterly revenues of $477.2 million surged more than 100% year over year but missed the Zacks Consensus Estimate of $482.1 million.

Despite omicron-led crisis, passenger revenues (contributing 84.7% to the top line) surged 193.9% year over year to $404 million. Scheduled airline traffic, measured in revenue passenger miles, rose 182.2% year over year to 2,974.35 million in the quarter under review. Scheduled capacity (measured in available seat miles) increased 72% to 4,242.5 million. Load factor (percentage of seats filled by passengers) improved 2740 basis points to 70.1% in the reported quarter as traffic surge outweighed capacity expansion. Passenger revenue per ASM (PRASM) soared 70.9% to 9.52 cents.

Operating revenue per available seat mile (RASM: a key measure of unit revenues) in the quarter rose 52.5% year over year to 11.19 cents for total operations. Average fuel cost per gallon (economic) increased 78% to $2.83 in the first quarter. Gallons of jet fuel consumed surged 78.4% in the March quarter with more flights in operation.

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 Mar 31, 2022, Hawaiian Holdings’ unrestricted cash, cash equivalents and short-term investments totaled $1.6 billion. Outstanding debt and finance lease obligations were $1.9 billion.

Q2 Outlook

Capacity (or ASMs) is projected to decline 11.5-14.5% from second-quarter 2019 levels.  

Total revenues are anticipated to plunge 8-12% from second-quarter 2019 levels.

Costs per ASM (excluding fuel & non-recurring items) are expected to rise 16.5-19.5% from second-quarter 2019 numbers.  

Gallons of jet fuel consumed are expected to fall 14.5-17.5% from second-quarter 2019 level.

Adjusted EBITDA is expected between a negative $50 million and $10 million.

The effective tax rate is anticipated at 21% in the second quarter.

Fuel price per gallon is expected to be $3.59 in second-quarter 2022.

Suspended 2022 Outlook

HA withdrew its full-year guidance due to continued uncertainty surrounding the timing of the full resumption of its international network on account of foreign government travel restrictions.

Zacks Rank

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.

Earnings Snapshots

Within the broader Transportation sector, J.B. Hunt Transport Services (JBHT - Free Report) , CSX Corporation (CSX - Free Report) and United Airlines (UAL - Free Report) recently reported first-quarter 2022 results.

J.B. Hunt reported better-than-expected first-quarter 2022 earnings numbers. Quarterly earnings of $2.29 per share surpassed the Zacks Consensus Estimate of $1.91. The bottom line surged 67.2% year over year on the back of higher revenues across all segments.

Total operating revenues of $3,488.6 million also outperformed the Zacks Consensus Estimate of $3,260.5 million. The top line jumped 33.3% year over year. JBHT currently carries a Zacks Rank #3 (Hold).

CSX Corp’s first-quarter 2022 earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny despite the decrease in overall volumes as supply-chain issues continue to dent results. The bottom line improved 25.81% year over year owing to higher revenues, aided by increased shipping rates.

Total revenues of $3,413 million outperformed the Zacks Consensus Estimate of $3291.2 million. The top line increased 21.33% year over year. CSX carries a Zacks Rank of 3 at present.

United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss reported by UAL as coronavirus woes continue to dwindle air-travel demand.  

Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million. UAL is presently Zacks #3 Ranked.