Hawaiian Holdings, Inc
.’s (HA - Free Report
) wholly owned subsidiary, Hawaiian Airlines, has issued an updated outlook for first-quarter 2018 and the full year. Moreover, as of Jan 1, this year, the company adopted a new accounting standard, affecting the company’s accounting for frequent flyer mileage sales, passenger revenues, other operating revenues as well as selling costs. Q1 Projection
The company has raised guidance for first-quarter operating revenue per available seat mile (RASM) owing to better-than-expected passenger revenue performance in each of its geographies as well as higher cargo demand across the network. It now expects RASM to increase 3-5%, up from its previous prediction of a decline of 0.5% to a rise of 2.5%.
The airline now projects operating cost per available seat mile (CASM) excluding fuel and special items to grow between 4% and 6% in the period under review. Prior view was an increase in the range of 3.5-6.5%.
Additionally, the company has altered its view for available seat miles (ASMs) as well as fuel consumption partly due to adjustments pertaining to aircraft deployments. It now anticipates ASMs to climb between 4% and 5%. Former outlook had called for an ascent of 3-5% in the metric. While fuel consumption is estimated to expand between 5% and 7%, above the past forecast of 4-6% improvement.
The company has increased its expectation for CASM excluding aircraft fuel and special items and lowered the same for ASMs due to delays in aircraft delivery. The carrier now anticipates CASM excluding aircraft fuel and special items to inch up between 1% and 4%. Earlier view was a decline of 0.5% to a rise of 2.5%. Meanwhile, ASMs are assumed to appreciate between 4% and 7% in the concerned quarter, lower than the preceding forecast of 5-8% increase.
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