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Hawaiian Airlines May Traffic Rises, Q2 RASM View Increased
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Hawaiian Airlines, the wholly owned subsidiary of Hawaiian Holdings (HA - Free Report) , posted a impressive traffic results for May. Traffic- measured in Revenue Passenger Miles or RPMs – climbed 8% to around 1.37 billion in May 2017. Meanwhile, Available Seat Miles (ASMs: a measure of capacity) expanded 5% to 1.58 billion.
Load factor (the percentage of seats filled by passengers) increased 240 basis points (bps) to 86.7% in May 2017 as traffic growth outpaced capacity expansion. The carrier further said it attracted 966,179 passengers on its flights during the month, thereby representing a 5.1% year-over-year increase.
On a year-to-date basis, Hawaiian Airlines witnessed a 7.5% rise in RPMs to approximately 6.5 billion. Also, ASMs improved 4.1% to 7.61 billion. As a result, the load factor increased 270 bps to 84.8%. Passenger count in the first five months of 2017 grew 3.2%.
Apart from releasing its traffic report, the carrier raised its second quarter projection pertaining to operating revenue per ASM (RASM: a key measure of unit revenue) due to better-than-expected yields mainly in the domestic network among other factors. The company now expects this key metric to grow in the band of 7.5% to 10.5% (earlier projection had called for a rise in the range of 5.5% to 8.5%). The bullish RASM view pleased investors. As a result, the stock gained in after-market trading on Jun 6.
Additionally, fuel cost per gallon (economic) is now projected in the band of $1.6-$1.7 (earlier range was tuned at $1.65–$1.75) in the second quarter of 2017.
Price Performance
Shares of Hawaiian Holdings have performed well so far in the current quarter, outperforming the Zacks categorized Transportation- Airline industry. The stock has appreciated 13.8% so far in the second quarter, above the industry’s gain of 10.3%.
Zacks Rank & Other Stocks to Consider
Hawaiian Holdings sports a Zacks Rank #1 (Strong Buy). Investors interested in airline space may also consider other top-ranked stocks like United Continental Holdings (UAL - Free Report) , Deutsche Lufthansa (DLAKY - Free Report) and Ryanair Holdings (RYAAY - Free Report) . All three flaunt the same bullish rank as the Hawaiian company. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Lufthansa, Ryanair and United Continental have expanded 61.6%, 30.7% and 11.5% respectively, on a year-to-date basis.
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By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>
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Hawaiian Airlines May Traffic Rises, Q2 RASM View Increased
Hawaiian Airlines, the wholly owned subsidiary of Hawaiian Holdings (HA - Free Report) , posted a impressive traffic results for May. Traffic- measured in Revenue Passenger Miles or RPMs – climbed 8% to around 1.37 billion in May 2017. Meanwhile, Available Seat Miles (ASMs: a measure of capacity) expanded 5% to 1.58 billion.
Load factor (the percentage of seats filled by passengers) increased 240 basis points (bps) to 86.7% in May 2017 as traffic growth outpaced capacity expansion. The carrier further said it attracted 966,179 passengers on its flights during the month, thereby representing a 5.1% year-over-year increase.
On a year-to-date basis, Hawaiian Airlines witnessed a 7.5% rise in RPMs to approximately 6.5 billion. Also, ASMs improved 4.1% to 7.61 billion. As a result, the load factor increased 270 bps to 84.8%. Passenger count in the first five months of 2017 grew 3.2%.
Apart from releasing its traffic report, the carrier raised its second quarter projection pertaining to operating revenue per ASM (RASM: a key measure of unit revenue) due to better-than-expected yields mainly in the domestic network among other factors. The company now expects this key metric to grow in the band of 7.5% to 10.5% (earlier projection had called for a rise in the range of 5.5% to 8.5%). The bullish RASM view pleased investors. As a result, the stock gained in after-market trading on Jun 6.
Additionally, fuel cost per gallon (economic) is now projected in the band of $1.6-$1.7 (earlier range was tuned at $1.65–$1.75) in the second quarter of 2017.
Price Performance
Shares of Hawaiian Holdings have performed well so far in the current quarter, outperforming the Zacks categorized Transportation- Airline industry. The stock has appreciated 13.8% so far in the second quarter, above the industry’s gain of 10.3%.
Zacks Rank & Other Stocks to Consider
Hawaiian Holdings sports a Zacks Rank #1 (Strong Buy). Investors interested in airline space may also consider other top-ranked stocks like United Continental Holdings (UAL - Free Report) , Deutsche Lufthansa (DLAKY - Free Report) and Ryanair Holdings (RYAAY - Free Report) . All three flaunt the same bullish rank as the Hawaiian company. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Lufthansa, Ryanair and United Continental have expanded 61.6%, 30.7% and 11.5% respectively, on a year-to-date basis.
3 Stocks to Ride a 588% Revenue Explosion
At Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold...
By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>