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Hawaiian Holdings' (HA) Arm Inks SAF Fuel Deal With Par Hawaii

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In a bid to decarbonize the airline industry in the United States, Hawaiian Holdings’ HA subsidiary Hawaiian Airlines announced plans to team up with Par Hawaii, an affiliate of Par Pacific Holdings PARR. This will enable HA to study the viability of replacing all or a certain percentage of the kerosene-based jet fuel with sustainable aviation fuels (SAF). SAF is a biofuel used in powering aircraft with a smaller carbon footprint than the traditional jet fuel. Par Pacific is the United States’ largest supplier of energy products. Headquartered in Houston (Texas), Par Pacific owns and operates market-leading energy, infrastructure and retail businesses.

Both companies signed a memorandum of understanding to determine the potential for converting two processing units at Par’s refinery in Kapolei to produce renewable fuels, including SAF.

Per Hawaiian Airlines president & CEO Peter Ingram, “This is the first step in what we hope will be a long and productive relationship that reflects both parties’ unwavering commitment to the environment and to these islands we call home. SAF is an integral part of decarbonizing aviation, and we hope to be able to make joint investments in SAF production here in Hawai??i, which will benefit both the environment and our economy”.

In 2019, Par Pacific invested $27 million in its Kapolei refinery to produce more jet fuel and ultra-low sulfur diesel. This relatively new processing unit and the refinery’s distillate hydrocracker are the two primary units considered for renewable fuel production.

Such eco-friendly moves by HA are highly commendable and are expected to reduce carbon emissions in the airline space.

Zacks Rank & Key Picks

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.

Some better-ranked stocks in the broader Zacks Transportation sector are Ryder System, Inc. R and C.H. Robinson Worldwide, Inc. CHRW.

Ryder has a trailing-four quarter surprise of 48.2%, on average, with its earnings having surpassed the Zacks Consensus Estimate in all the last four quarters. R is benefiting from improving economic and freight conditions in the United States. Revenues in all segments grew (on higher rental revenues, new business and favorable pricing) in first-quarter 2022.

Driven by the positives, the stock has inched up 3.9% in the past year. R currently sports a Zacks Rank #1.

The expected long-term (three-to-five years) earnings per share (EPS) growth rate for C.H. Robinson is pegged at 9%. Improving freight market conditions are aiding CHRW. In first-quarter 2022, the top line improved 41.8% on favorable truckload pricing for customers and substantial profits in ocean freight.

Driven by the positives, the stock has gained 4.6% in the past year.  CHRW currently flaunts a Zacks Rank of 1.


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Ryder System, Inc. (R) : Free Stock Analysis Report
 
C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
 
Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report
 
Par Pacific Holdings, Inc. (PARR) : Free Stock Analysis Report
 
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