Hawaiian Airlines May Traffic Rises, Q2 RASM View Increased
Zacks Investment Research | Jun 06, 2017 09:52PM ET
Hawaiian Airlines, the wholly owned subsidiary of Hawaiian Holdings (NASDAQ:HA) , posted a impressive traffic results for May. Traffic- measured in Revenue Passenger Miles or RPMs – climbed 8% to around 1.37 billion in May 2017. Meanwhile, Available Seat Miles (ASMs: a measure of capacity) expanded 5% to 1.58 billion.
Load factor (the percentage of seats filled by passengers) increased 240 basis points (bps) to 86.7% in May 2017 as traffic growth outpaced capacity expansion. The carrier further said it attracted 966,179 passengers on its flights during the month, thereby representing a 5.1% year-over-year increase.
On a year-to-date basis, Hawaiian Airlines witnessed a 7.5% rise in RPMs to approximately 6.5 billion. Also, ASMs improved 4.1% to 7.61 billion. As a result, the load factor increased 270 bps to 84.8%. Passenger count in the first five months of 2017 grew 3.2%.
Apart from releasing its traffic report, the carrier raised its second quarter projection pertaining to operating revenue per ASM (RASM: a key measure of unit revenue) due to better-than-expected yields mainly in the domestic network among other factors. The company now expects this key metric to grow in the band of 7.5% to 10.5% (earlier projection had called for a rise in the range of 5.5% to 8.5%). The bullish RASM view pleased investors. As a result, the stock gained in after-market trading on Jun 6.
Additionally, fuel cost per gallon (economic) is now projected in the band of $1.6-$1.7 (earlier range was tuned at $1.65–$1.75) in the second quarter of 2017.
Price Performance
Shares of Hawaiian Holdings have performed well so far in the current quarter, outperforming the Zacks categorized Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.