Hawaiian Holdings’ Arm Posts Drop in September Load Factor
Hawaiian Holdings, Inc.’s HA wholly owned subsidiary Hawaiian Airlines reported traffic figures for September. Simultaneously, the company has revised its third-quarter 2018 outlook pertaining to a few metrics.
Traffic (measured in Revenue Passenger Miles or RPMs) increased 5.8% to 1.45 billion in the month. Available Seat Miles (ASMs) also climbed 9.6% to 1.73 billion in the period. Load factor (percentage of seats filled by passengers) contracted 300 basis points (bps) to 83.6% as traffic growth was outpaced by capacity expansion.
During the first nine months of 2018, the carrier recorded a 6% rise in RPMs while ASMs rose 6.3%. As a result, load factor slipped 30 bps. Additionally, passenger count increased 4.2% on a year-to-date basis, while the same inched up 0.6% in September.
Hurricane Olivia and Typhoon Jebi disrupted the carrier’s operations this September, leading to passenger cancellations and hampering bookings in turn. Consequently, the airline trimmed its projections for third-quarter operating revenue per available seat mile (RASM). RASM is now anticipated to decline between 1.5% and 2.5%. Earlier, the metric was expected in the range of -2 to 0% (year-over-year change).
Additionally, the company increased forecast for gallons of jet fuel consumed due to higher fuel burn in the quarter. Gallons of jet fuel consumed are now anticipated to expand 7-8% in the period compared with the earlier expectation of 5-7%increase.
However, on a positive note, unit costs (excluding fuel and special items) are now estimated to rise 1-2%, lower than the past forecast of a 0.5-3.5% increase.
Zacks Rank & Key Picks
Hawaiian Holdings carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Spirit Airlines, Inc. SAVE, Southwest Airlines Co. LUV and United Continental Holdings, Inc. UAL. While Spirit sports a Zacks Rank #1 (Strong Buy), Southwest and United Continental hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Spirit, Southwest and United Continental have gained more than 25%, 5% and 29%, respectively, in a year.
Today’s Stocks from Zacks’ Hottest Strategies
It’s hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 – 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we’re willing to share their latest stocks with you without cost or obligation.
See Them Free>>
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
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research