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Hawaiian Airlines' Traffic & Load Factor Increase in July

Zacks Equity Research

Hawaiian Holdings' HA wholly owned subsidiary Hawaiian Airlines reported decent traffic figures for July. Traffic (measured in Revenue Passenger Miles or RPMs) increased 2.2% to 1.58 billion in the month. Available Seat Miles (ASMs) inched up 0.1% to 1.77 billion in the period. With traffic growth outpacing capacity expansion, load factor (percentage of seats filled by passengers) improved 190 basis points (bps) to 89.3%. However, passenger count declined 1.9% in the month to approximately 1.1 million.

During the first seven months of 2019, the carrier recorded 2.9% rise in RPMs while ASMs increased 2.2%. As a result, load factor was up 60 bps to 86.6%. However, passenger count slipped 2.1% on a year-to-date basis.

Disappointing Price Performance

Shares of Hawaiian Holdings have shed 2.6% of their value on a year-to-date basis against its industry's growth of 6.5% in the same timeframe.

The below-par price performance is mainly due to the fact that the company is struggling as a result of increased competition in its primary market, Hawaii, following Southwest Airlines’ LUV entry. The decline in passenger count on a year-to-date basis can be attributed to the increased competition.

Zacks Rank & Key Picks

Hawaiian Holdings carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Copa Holdings CPA and Delta Air Lines DAL, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Copa Holdings and Delta have rallied 29% and 9%, respectively in a year’s time.

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Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report
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