Hawaiian Holdings Bearish on Q3 RASM, Revises 2018 View
Hawaiian Holdings, Inc.’s HA wholly owned subsidiary Hawaiian Airlines has issued an update on the third quarter of 2018 and the full year.
Bleak Q3 Guidance
The carrier has trimmed projections for operating revenue per available seat mile (RASM) due to adversities arising from Hurricane Lane late in August, which disrupted operations and induced soft bookings on account of passengers cancelling flights. The airline now anticipates RASM in the range of -2 to 0% (year-over-year change). Earlier outlook was in the band of -1.5 to 1.5% (year-over-year change).
Hawaiian Holdings, Inc. Price
Hawaiian Holdings, Inc. Price | Hawaiian Holdings, Inc. Quote
2018 Outlook
The company will cease its thrice-weekly nonstop operation between Honolulu's Daniel K. Inouye International Airport and Beijing Capital International Airport from mid-October. Consequently, the carrier has slashed guidance for full-year capacity and gallons of jet fuel consumed. It now expects capacity to expand between 5% and 7% compared with the previous projection of a rise in the range of 5.5-7.5%. Additionally, gallons of jet fuel consumed are estimated to rise in the band of 3.5-5.5%, lower than the past forecast of 4-6% increase.
Zacks Rank & Key Picks
Hawaiian Holdings carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are SkyWest, Inc SKYW, C.H. Robinson Worldwide, Inc. CHRW and Trinity Industries, Inc. TRN. While C.H. Robinson holds a Zacks Rank #2 (Buy), SkyWest and Trinity sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of SkyWest, C.H. Robinson and Trinity have rallied more than 73%, 32% and 25%, respectively, in a year.
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