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Hawaiian Holdings (HA) Loses 41.7% in a Year: What's Ailing It?

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·2 min read
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Shares of Hawaiian Holdings’ HA have fallen 41.7% in the past year, primarily due to escalating operating cost and rising fuel prices.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Reasons for Downside

The current scenario of rising fuel costs does not bode well for the airline. Average fuel cost per gallon (economic) surged 78% to $2.83 in first-quarter 2022. Fuel price per gallon is expected to increase further to $3.59 in the June quarter. Fuel consumption also increased (up 78.4% in the March quarter) with more flights in operation.

Operating expenses escalated more than 100% in first-quarter 2022 with aircraft fuel (including taxes and delivery) expenses, and wages and benefits rising in triple digits and double digits, respectively, in the same time period. Such steep expenses are hurting bottom-line growth.

Unfavorable Estimate Revisions

Induced by the above headwinds, the Zacks Consensus Estimate for current-year loss has widened from $2.58 per share to $3.95 in the past 60 days.

Zacks Rank & Stocks to Consider

Hawaiian Holdings’ currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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

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% owing to favorable truckload pricing for customers and handsome profits in ocean freight.

Driven by the positives, the stock has rallied 7.7% in the past year.  CHRW currently carries a Zacks Rank #2 (Buy).

GATX has a trailing-four quarter surprise of 40.1%, on average, with its earnings having surpassed the Zacks Consensus Estimate on all occasions. The gradual improvement in the North American railcar leasing market is a huge positive for GATX.

Driven by the upsides, the stock has risen 8.5% in the past year.  GATX currently has a Zacks Rank of 2.


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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
 
GATX Corporation (GATX) : Free Stock Analysis Report
 
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Zacks Investment Research