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Hawaiian Holdings Q2 Earnings Rise on Strong Demand

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Hawaiian Airlines, Inc. owner, Hawaiian Holdings Inc. ( HA) reported second-quarter 2014 GAAP net income of $27.3 million or 43 cents per share compared with $11.3 million or 21 cents per share in the prior-year quarter. Meanwhile, adjusted earnings per share stood at 35 cents as against 24 cents in the prior-year quarter. Such solid growth in bottom line is mainly attributable to strong demand and implementation of cost control measures.


Hawaiian Holdings Inc - Earnings Surprise | FindTheBest

Quarterly revenues moved up 7.8% year over year to $575.7 million. Also, on a year-over-year basis, Passenger revenues increased 4.1% while operating revenues per available seat mile rose 6.7%. 


Operating Statistics


Importantly, revenue passenger miles fell 0.4% year over year to 3.39 billion in the second quarter. On the other hand, capacity or available seat miles hiked 1.2% year over year to 4.26 billion, while load factor (percentage of seats filled with passengers) dropped 130 basis points year over year to 79.6%. Revenue per available seat mile (:RASM) increased 4.1% year over year to 11.90.


Operating Expenses & Operating Income


In the second quarter, operating income increased to $51.6 million from $37.4 million in the year-ago quarter. Total operating expenses rose 5.6% year over year to $524.1 million. Average fuel price (economic) stood at $3.09 per gallon, up 0.7% year over year. Cost per available seat mile ( CASM), excluding fuel and special items, increased 5.8%.




At the end of the second quarter, Hawaiian Holdings had $564 million of unrestricted cash and cash equivalents and $1,071 million debt in its balance sheet. 


Q2 Guidance


The company expects CASM (exclusive of fuel cost) to grow in the range of 1% to 4% while operating revenue per ASM is projected to increase 3% to 5%. Likewise, ASM is expected to inch up 1% to 3% and jet fuel usage is likely to expand in the band of 0.5–2.5%.


FY14 Guidance


CASM (exclusive of fuel cost) is anticipated to increase in the band of 3–5% from last year. Meanwhile, ASM is likely to rise between 1% and 3%.


Other Airline Releases


Delta Air Lines Inc. ( DAL) is scheduled to report its second-quarter results before the opening bell on Jul 23 while both United Continental Holdings Inc. ( UAL) and Southwest Airline Co. ( LUV) will release earnings before the market opens on Jul 24.

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