What's In Store For Hawaiian Holdings (HA) In Q4 Earnings?
Zacks Investment Research | Jan 26, 2020 10:07PM ET
Hawaiian Holdings, Inc. (NASDAQ:HA) is slated to release fourth-quarter 2019 results on Jan 30, after the market opens.
The Zacks Consensus Estimate for fourth-quarter earnings has been revised downward by 2 cents in the past 60 days.
Let’s take a look at the factors that might have induced this bleak outlook.
Hawaiian Holdings has been witnessing pricing pressure in its primary market of Hawaii ever since Southwest Airlines (NYSE:LUV) began operations to Hawaii on Mar 17, 2019. As has been the case over the last few quarters, this is likely to have affected passenger revenues (accounting for more than 90% of the top line) in the fourth quarter.
Further, Southwest Airlines’ entry in Hawaii hurt Hawaiian Holdings’ inter-island travel demand. This, in turn, is expected to have hampered operating revenues per available seat miles (RASM: a key measure of unit revenues). The Zacks Consensus Estimate for RASM indicates a 1.9% dip from the year-ago reported figure. Additionally, the company anticipates RASM to have slipped 0.5-3.5% in the soon-to-be-reported quarter due to pressures related to average fares in its domestic markets.
However, with fuel expenses comprising a major chunk of airline expenditures, low fuel prices are expected to have driven the bottom line. The Zacks Consensus Estimate for average fuel cost per gallon suggests a 7.6% decline from that reported in fourth-quarter 2018. The airline expects economic fuel costs to have been $2.04 per gallon in the December quarter, implying an 8.1% decrease from the prior-year reported number.
Hawaiian Holdings, Inc. Price and EPS Surprise
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