Hawaiian Airlines Suspends Q1 & 2020 View On Coronavirus Woes
Zacks Investment Research | Mar 24, 2020 12:06AM ET
Hawaiian Holdings’ (NASDAQ:HA) subsidiary Hawaiian Airlines withdrew its first-quarter 2020 and full-year guidance amid growing concerns of the coronavirus crisis.
Additionally, the airline plans to trim Neighbor Island schedule, beginning with the suspension of flights between Honolulu and Kapalua in West Maui effective Mar 25. This is in response to the quarantine order (effective Mar 26) from the Hawaii government asking travelers, who enter the state, to undergo a mandatory self-imposed quarantine of 14 days.
The carrier will, however, continue to operate a network, essential for customers traveling within the state. The usual interisland cargo services will also continue.
In the meantime, to help customers get back home, the airline will continue to operate its regular flight schedule through Mar 25. Thereafter, it will evaluate significant reductions in its domestic and international flight services. However, Hawaiian Airlines will continue to operate one daily nonstop flight between Honolulu (HNL) and Los Angeles (LAX) and its Thursday service between HNL and American Samoa (PPG) “in order to provide a baseline of out-of-state access.”
Shares of Hawaiian Holdings have plunged more than 68% since the beginning of February due to plummeting air-travel demand in the wake of the coronavirus crisis. The industry has declined 57.6% in the period.
As the coronavirus pandemic worsens and government imposed travel bans increase, airlines are making some dramatic capacity cuts. For instance, Copa Holdings (NYSE:CPA) has suspended all its operations effective Mar 22 through Apr 21. It became the first Latin American carrier to have enforced such a strict action against the outbreak.
Additionally, JetBlue Airways Corp. (NASDAQ:JBLU) will carry out a large number of flight cancelations this week and operate a schedule less than 50% its normal. The airline expects to cut flights even more in the coming month. Meanwhile, United Airlines’ (NASDAQ:UAL) international schedule will be reduced by approximately 90% in April.
Zacks Rank
Hawaiian Holdings carries a Zacks Rank #3 (Hold). You can see Zacks Investment Research
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