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Why is Hawaiian Holdings (HA) Up 0.3% Post Q4 Earnings report

Shares of Hawaiian Holdings HA have seen an uptick of a mere 0.3% in its share price since it released the fourth quarter 2022 earnings on 31 Jan. The uptick, even though marginal, may be owing to the narrower- than-expected loss posted by the company in fourth-quarter 2022.

Hawaiian Holdings, (HA) posted a fourth-quarter 2022 loss (excluding 49 cents from non-recurring items) of 49 cents per share which was narrower than the Zacks Consensus Estimate of a loss of 71 cents. Moreover, the quarterly loss was narrower than the year-ago loss of $1.37.

Quarterly revenues of $731 million surged 47.8% year over year but missed the Zacks Consensus Estimate of $737.6 million.  The year-over-year growth was primarily owing to the 53.9% rise in passenger revenues owing to upbeat air-travel demand. Notably, passenger revenues accounted for 89% of the top line in fourth-quarter 2022.

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

 

Scheduled airline traffic (measured by revenue passenger miles (RPM)) increased 33.6% year over year. Scheduled capacity (measured in available seat miles or ASM) increased 17% year over year to 4931.7 million. The passenger load factor (% of seats filled by passengers) increased to 80.8% in comparison to 70.8% reported a year ago. Passenger revenue per ASM or PRASM increased to 13.20 cents, witnessing a year-over-year uptick of 31.3%.Operating revenue per ASM (RASM) grew by 26.7% on a year-over-year basis. Average fuel cost per gallon (economic) increased 41.4% to $3.31 in the fourth quarter as compared to the year-ago reported figure.  Operating cost per ASM or CASM excluding aircraft fuel and non-recurring items increased 4% year over year to 10.89 cents at the end of the fourth quarter of 2022.

Liquidity

As of December 31, 2022 the company had in its balance sheet unrestricted cash, cash equivalents and short-term investments of $1.4 billion along with outstanding debt and finance lease obligations of $1.7 billion.

Q1’ 2023 Outlook

Operating Revenue per ASM (RASM) is expected to increase up to 7.5-10.5% from the first-quarter 2022 figures.

Capacity (or ASMs) is anticipated to increase 14% to 17% from first-quarter 2022 levels.

Costs per ASM (excluding fuel & non-recurring items) are expected to either decrease 1% or increase up to 2% up from first-quarter 2022 levels.

Gallons of jet fuel consumed are expected to increase 17-20% from first-quarter 2022 level.

The effective tax rate is anticipated to be around 21% during the first quarter.

Fuel price per gallon is expected to be at $3.10 by the end of first-quarter 2023.

2023 Full-Year Outlook

The below expectations are in comparison to full-year 2022.

For the current year, the company projects capital expenditures of approximately $330-$380 million.

ASM is anticipated to increase by 9.5 to 12.5%.

Costs per ASM (excluding fuel & non-recurring items) are expected to move up 1-5%

Gallons of jet fuel consumed are expected to increase 10.5-13.5%.

The fuel price per gallon is anticipated to be $2.92.

Hawaiian Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Below are some stocks from the Zacks Airline industry, that have reported fourth-quarter 2022 earnings beat.

Delta Air Lines’ DAL fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29 per share. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.

In the fourth quarter of 2022, passenger revenues, accounting for 81% of the total revenues, increased 6% to $10,889 million from the levels recorded in the comparable quarter of 2019. In fourth-quarter 2022, 75% of the total passenger revenues came from the domestic markets. Domestic and international passenger revenues in the December quarter increased 7% and 5%, respectively, from fourth-quarter 2019 actuals.

Alaska Air Group ALK reported mixed fourth-quarter 2022 results, wherein earnings outperformed the Zacks Consensus Estimate but revenues missed the same. Quarterly earnings of 92 cents per share beat the Zacks Consensus Estimate of 90 cents. The bottom line surged more than 100% year over year.

Operating revenues of $2,479 million missed the Zacks Consensus Estimate of $2,504.4 million. The top line jumped 31% year over year, with passenger revenues accounting for 91.3% of the top line and increasing 32% owing to continued recovery in air-travel demand.

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