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Hawaiian Holdings (HA) Traffic Increases in March, Stock Up
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Hawaiian Holdings, Inc. (HA - Free Report) – the parent company of Hawaiian Airlines – saw its shares rise 5.25% to $48.15 at the close of business as on Apr 10, following the release of its traffic report for the month of March. The company witnessed a 7.2% rise in traffic, which is measured in revenue passenger miles (RPMs), to 1.32 billion from 1.23 billion reported a year ago.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 4.5% to 1.55 billion. Moreover, the load factor or percentage of seats filled by passengers increased to 85.0% from 82.9% in Mar 2016 as traffic growth outpaced capacity expansion.
For the first three months of 2017, the carrier registered a 7.2% rise in RPMs to 3.79 billion, while ASMs inched up 3.5% to 4.52 billion, both on a year-over-year basis. Also, load factor increased by 290 basis points year over year to 84.0%. Moreover, passenger count (PAX) for Mar 2017 and the first three months of the year grew 2.6% and 2.2%, respectively.
Hawaiian Holdingsalso revised itsexpectations for the first quarter of 2017 (detailed results should be out on Apr 20). Operating revenue per ASM is expected to rise between 6.5–8% (old guidance had called for an increase in the band of 4% to 7%). This upward revision was made on the back of the company’s better-than-expected load factor and yield from the domestic market. Fuel cost per gallon (economic) is still expected in the band of $1.6 to $1.7.
The carrier raised its expectations for cost per ASM (CASM), excluding fuel and special items, from the original 3–6% to 6–8%. The guidance was revised following the recently ratified contract between pilots and the company. We remind investors that the company had inked three deals with various labor groups in 2016.
In fact, labor deals are in vogue in the airline space. Not only Hawaiian Holdings, but other players in the space like United Continental Holdings (UAL - Free Report) , Delta Air Lines (DAL - Free Report) and Southwest Airlines (LUV - Free Report) too have inked deals with various labor groups over the past few months.
Price Performance
On a month-to-date basis, Hawaiian Holdings’ shares gained 3.66%, outperforming the Zacks categorized Transportation-Airline industry’s gain of 1.35%.
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Hawaiian Holdings (HA) Traffic Increases in March, Stock Up
Hawaiian Holdings, Inc. (HA - Free Report) – the parent company of Hawaiian Airlines – saw its shares rise 5.25% to $48.15 at the close of business as on Apr 10, following the release of its traffic report for the month of March. The company witnessed a 7.2% rise in traffic, which is measured in revenue passenger miles (RPMs), to 1.32 billion from 1.23 billion reported a year ago.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 4.5% to 1.55 billion. Moreover, the load factor or percentage of seats filled by passengers increased to 85.0% from 82.9% in Mar 2016 as traffic growth outpaced capacity expansion.
For the first three months of 2017, the carrier registered a 7.2% rise in RPMs to 3.79 billion, while ASMs inched up 3.5% to 4.52 billion, both on a year-over-year basis. Also, load factor increased by 290 basis points year over year to 84.0%. Moreover, passenger count (PAX) for Mar 2017 and the first three months of the year grew 2.6% and 2.2%, respectively.
Hawaiian Holdingsalso revised itsexpectations for the first quarter of 2017 (detailed results should be out on Apr 20). Operating revenue per ASM is expected to rise between 6.5–8% (old guidance had called for an increase in the band of 4% to 7%). This upward revision was made on the back of the company’s better-than-expected load factor and yield from the domestic market. Fuel cost per gallon (economic) is still expected in the band of $1.6 to $1.7.
The carrier raised its expectations for cost per ASM (CASM), excluding fuel and special items, from the original 3–6% to 6–8%. The guidance was revised following the recently ratified contract between pilots and the company. We remind investors that the company had inked three deals with various labor groups in 2016.
In fact, labor deals are in vogue in the airline space. Not only Hawaiian Holdings, but other players in the space like United Continental Holdings (UAL - Free Report) , Delta Air Lines (DAL - Free Report) and Southwest Airlines (LUV - Free Report) too have inked deals with various labor groups over the past few months.
Price Performance
On a month-to-date basis, Hawaiian Holdings’ shares gained 3.66%, outperforming the Zacks categorized Transportation-Airline industry’s gain of 1.35%.
Zacks Rank
Hawaiian Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>