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Hawaiian Holdings' (HA) Q2 Revenue View Up on Uptick in Yields

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With continued recovery in air-travel demand, Hawaiian Holdings (HA - Free Report) improved its revenue guidance for the second quarter of 2022. It also revised guidance for certain other key metrics.

HA expects total revenues to decline approximately 4.5-7.5% from the second quarter of 2019 compared with the previous estimation of a decrease of around 8-12%. The improved guidance is due to an uptick in domestic yields.

Hawaiian Holdings now expects second-quarter capacity to decline approximately 11.5% to 13.5% from the comparable period in 2019. The previous view was a decrease of about 11.5-14.5%.


Due to reduced maintenance costs as well as improvements in other areas, the carrier now anticipates costs per available seat mile or CASM excluding fuel and non-recurring items to increase approximately 15.5-17.5% in the second quarter from the 2019 level compared with the previous expectation of a rise of approximately 16.5% to 19.5%. Adjusted EBITDA for the second quarter is estimated to be ($20)-$30 million compared with the previous expectation of ($50)-$10 million. With rising oil prices, HA now estimates fuel price per gallon to be $3.76 compared with the previous view of $3.59.

Hawaiian Holdings continues to expect effective tax rate of around 21% in the second quarter. Gallons of jet fuel consumed are still estimated to decline 14.5-17.5%.

Zacks Rank & Key Picks

Hawaiian Holdings carries a Zacks Rank #3 (Hold).

Some better-ranked stocks within the broader Transportation sector are as follows:

Golar LNG Limited (GLNG - Free Report) flaunts a Zacks Rank #2 (Buy). The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters and missing once, the average surprise being 42.1%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Shares of Golar LNG have rallied more than 94% in a year.

Star Bulk Carriers (SBLK - Free Report) carries a Zacks Rank #2. The company's earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed the same once, the average surprise being 7.1%.

Shares of Star Bulk have gained more than 99% in a year.


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Hawaiian Holdings, Inc. (HA) - free report >>

Star Bulk Carriers Corp. (SBLK) - free report >>

Golar LNG Limited (GLNG) - free report >>