U.S. markets closed
  • S&P 500

    3,825.33
    +39.95 (+1.06%)
     
  • Dow 30

    31,097.26
    +321.86 (+1.05%)
     
  • Nasdaq

    11,127.84
    +99.14 (+0.90%)
     
  • Russell 2000

    1,727.76
    +19.77 (+1.16%)
     
  • Crude Oil

    108.43
    0.00 (0.00%)
     
  • Gold

    1,809.50
    +8.00 (+0.44%)
     
  • Silver

    19.78
    +0.11 (+0.57%)
     
  • EUR/USD

    1.0424
    -0.0002 (-0.02%)
     
  • 10-Yr Bond

    2.8890
    0.0000 (0.00%)
     
  • GBP/USD

    1.2110
    +0.0007 (+0.05%)
     
  • USD/JPY

    135.3810
    +0.2060 (+0.15%)
     
  • BTC-USD

    19,113.69
    -14.22 (-0.07%)
     
  • CMC Crypto 200

    412.43
    -7.71 (-1.83%)
     
  • FTSE 100

    7,233.40
    +64.75 (+0.90%)
     
  • Nikkei 225

    26,153.81
    +218.19 (+0.84%)
     

Hawaiian Holdings (HA) Posts Wider-Than-Expected Q1 Loss

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Hawaiian Holdings, Inc.’s HA first-quarter 2022 loss (excluding 15 cents from non-recurring items) of $2.54 per share was wider than the Zacks Consensus Estimate of a loss of $2.51. HA reported a loss of $3.85 in the year-ago quarter.

Moreover, quarterly revenues of $477.2 million surged more than 100% year over year but missed the Zacks Consensus Estimate of $482.1 million.

Despite omicron-led crisis, passenger revenues (contributing 84.7% to the top line) surged 193.9% year over year to $404 million. Scheduled airline traffic, measured in revenue passenger miles, rose 182.2% year over year to 2,974.35 million in the quarter under review. Scheduled capacity (measured in available seat miles) increased 72% to 4,242.5 million. Load factor (percentage of seats filled by passengers) improved 2740 basis points to 70.1% in the reported quarter as traffic surge outweighed capacity expansion. Passenger revenue per ASM (PRASM) soared 70.9% to 9.52 cents.

Operating revenue per available seat mile (RASM: a key measure of unit revenues) in the quarter rose 52.5% year over year to 11.19 cents for total operations. Average fuel cost per gallon (economic) increased 78% to $2.83 in the first quarter. Gallons of jet fuel consumed surged 78.4% in the March quarter with more flights in operation.

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 Mar 31, 2022, Hawaiian Holdings’ unrestricted cash, cash equivalents and short-term investments totaled $1.6 billion. Outstanding debt and finance lease obligations were $1.9 billion.

Q2 Outlook

Capacity (or ASMs) is projected to decline 11.5-14.5% from second-quarter 2019 levels.

Total revenues are anticipated to plunge 8-12% from second-quarter 2019 levels.

Costs per ASM (excluding fuel & non-recurring items) are expected to rise 16.5-19.5% from second-quarter 2019 numbers.

Gallons of jet fuel consumed are expected to fall 14.5-17.5% from second-quarter 2019 level.

Adjusted EBITDA is expected between a negative $50 million and $10 million.

The effective tax rate is anticipated at 21% in the second quarter.

Fuel price per gallon is expected to be $3.59 in second-quarter 2022.

Suspended 2022 Outlook

HA withdrew its full-year guidance due to continued uncertainty surrounding the timing of the full resumption of its international network on account of foreign government travel restrictions.

Zacks Rank

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.

Earnings Snapshots

Within the broader Transportation sector, J.B. Hunt Transport Services JBHT, CSX Corporation CSX and United Airlines UAL recently reported first-quarter 2022 results.

J.B. Hunt reported better-than-expected first-quarter 2022 earnings numbers. Quarterly earnings of $2.29 per share surpassed the Zacks Consensus Estimate of $1.91. The bottom line surged 67.2% year over year on the back of higher revenues across all segments.

Total operating revenues of $3,488.6 million also outperformed the Zacks Consensus Estimate of $3,260.5 million. The top line jumped 33.3% year over year. JBHT currently carries a Zacks Rank #3 (Hold).

CSX Corp’s first-quarter 2022 earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny despite the decrease in overall volumes as supply-chain issues continue to dent results. The bottom line improved 25.81% year over year owing to higher revenues, aided by increased shipping rates.

Total revenues of $3,413 million outperformed the Zacks Consensus Estimate of $3291.2 million. The top line increased 21.33% year over year. CSX carries a Zacks Rank of 3 at present.

United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. This is the ninth consecutive quarterly loss reported by UAL as coronavirus woes continue to dwindle air-travel demand.

Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million. UAL is presently Zacks #3 Ranked.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CSX Corporation (CSX) : Free Stock Analysis Report

United Airlines Holdings Inc (UAL) : Free Stock Analysis Report

J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report

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

To read this article on Zacks.com click here.

Zacks Investment Research