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Hawaiian Holdings' (HA) Loss Wider Than Estimates in Q4

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Hawaiian Holdings, Inc.’s HA fourth-quarter 2020 loss (excluding 21 cents from non-recurring items) of $3.71 per share was wider than the Zacks Consensus Estimate of a loss of $3.38. Moreover, quarterly revenues of $149.7 million declined 78.9% year over year and missed the Zacks Consensus Estimate of $151.4 million.

Thanks to the COVID-19 pandemic, travel demand dropped massively in the December quarter. Notably, passenger revenues (contributing 61.3% to the top line) declined 85.9% year over year to $91.8 million. Airline traffic, measured in revenue passenger miles, fell 87.4% year over year to 569.6 million in the quarter under review. Capacity (measured in available seat miles) contracted 72.7% to 1,431.7 million. Load factor (percentage of seats filled by passengers) deteriorated 4640 basis points to 39.8% in the reported quarter as traffic plunge outweighed capacity contraction. Passenger revenue per ASM (PRASM) plunged 48.2% to 6.41 cents.

Operating revenue per available seat mile (RASM: a key measure of unit revenues) in the quarter plunged 23.5% year over year to 10.3 cents for total operations. Average fuel cost per gallon (economic) dropped 37.1% to $1.29 in the fourth quarter. With majority of the fleet grounded, gallons of jet fuel consumed declined 69% in the December-end quarter.

Hawaiian Holdings, Inc. Price, Consensus and EPS Surprise

Hawaiian Holdings, Inc. Price, Consensus and EPS Surprise
Hawaiian Holdings, Inc. Price, Consensus and EPS Surprise

Hawaiian Holdings, Inc. price-consensus-eps-surprise-chart | Hawaiian Holdings, Inc. Quote

Liquidity

As of Dec 31, 2020, Hawaiian Holdings’ unrestricted cash, cash equivalents and short-term investments totaled $864 million. Outstanding debt and finance lease obligations were $1.3 billion.

Outlook

Capacity (or ASMs) is anticipated to fall 50% compared with first-quarter 2019 levels. For the current year, the company expects its capital expenditures to be approximately $50-$70 million.

Zacks Rank

Hawaiian Holdings currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Sectorial Snapshots

Let’s take a look at some of the other recently released earnings reports from companies within the Zacks Transportation sector.

United Airlines UAL incurred a loss (excluding 6 cents from non-recurring items) of $7 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $6.56. Further, operating revenues of $3,412 million lagged the Zacks Consensus Estimate of $3,420.4 million.

J.B. Hunt Transport Services JBHT reported earnings of $1.44 per share, beating the Zacks Consensus Estimate of $1.27. Total operating revenues of $2,737.7 million also surpassed the Zacks Consensus Estimate of $2,514.3 million.

Delta Air Lines DAL incurred a loss (excluding $1.34 from non-recurring items) of $2.53 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $2.43. Total revenues of $3,973 million topped the Zacks Consensus Estimate of $3,754.5 million.

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