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Low Fuel Costs Aid Hawaiian Holdings (HA), Low Revenues Ail

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We recently issued an updated report on Hawaiian Holdings HA.

Amid dwindling air-travel demand due to coronavirus, low fuel prices are helping the carrier partly offset the adversities as fuel expenses comprise a major chunk of airline expenditures. With majority of the fleet grounded, gallons of jet fuel consumed declined 60.7% in 2020 leading to lower expenses on aircraft fuel (down 70.3% in 2020).

To combat the current air-travel demand woes, the carrier undertook several cost-cutting measures to support the bottom line and preserve cash. For instance, it halted hiring (except for critical and essential posts) and deferred non-critical capital expenses. The carrier also suspended dividend payments and share buybacks.

Alike other airlines, Hawaiian Holdings has been taking a significant hit from the coronavirus pandemic. The demand scenario, which started deteriorating in late January 2020, began to worsen in mid-March. Due to declining passenger revenues (down 74.4% in 2020), the carrier reported wider-than-expected loss in each of the four quarters of 2020.

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the broader Zacks Transportation sector include Kansas City Southern KSU, Triton International Limited TRTN and Herc Holdings Inc. HRI. Kansas City Southern carries a Zacks Rank #2 (Buy), while Triton and Herc Holdings sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term (three to five years) expected earnings per share growth rate for Kansas City Southern, Triton and Herc Holdings is projected at 15%, 10% and 31.2%, respectively.

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Kansas City Southern (KSU) : Free Stock Analysis Report
 
Triton International Limited (TRTN) : Free Stock Analysis Report
 
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