Hawaiian Holdings, Inc.’s (NASDAQ:) wholly owned subsidiary, Hawaiian Airlines, has issued an updated outlook for first-quarter 2018 and the full year. Moreover, as of Jan 1, this year, the company adopted a new accounting standard, affecting the company’s accounting for frequent flyer mileage sales, passenger revenues, other operating revenues as well as selling costs.
Q1 Projection
The company has raised guidance for first-quarter operating revenue per available seat mile (RASM) owing to better-than-expected passenger revenue performance in each of its geographies as well as higher cargo demand across the network. It now expects RASM to increase 3-5%, up from its previous prediction of a decline of 0.5% to a rise of 2.5%.
The airline now projects operating cost per available seat mile (CASM) excluding fuel and special items to grow between 4% and 6% in the period under review. Prior view was an increase in the range of 3.5-6.5%.
Additionally, the company has altered its view for available seat miles (ASMs) as well as fuel consumption partly due to adjustments pertaining to aircraft deployments. It now anticipates ASMs to climb between 4% and 5%. Former outlook had called for an ascent of 3-5% in the metric. While fuel consumption is estimated to expand between 5% and 7%, above the past forecast of 4-6% improvement.
Full-Year Forecast
The company has increased its expectation for CASM excluding aircraft fuel and special items and lowered the same for ASMs due to delays in aircraft delivery. The carrier now anticipates CASM excluding aircraft fuel and special items to inch up between 1% and 4%. Earlier view was a decline of 0.5% to a rise of 2.5%. Meanwhile, ASMs are assumed to appreciate between 4% and 7% in the concerned quarter, lower than the preceding forecast of 5-8% increase.
Zacks Rank & Key Picks
Hawaiian Holdings carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the airline space are International Consolidated Airlines Group (LON:) SA (OTC:) , American Airlines Group, Inc. (NASDAQ:) and Delta Air Lines, Inc. (NYSE:) . While International Consolidated Airlines sports a Zacks Rank #1 (Strong Buy), American Airlines and Delta Air Lines carry a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.
Shares of International Consolidated Airlines, American Airlines and Delta Air Lines have rallied more than 28%, 37% and 21%, respectively, in a year.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis ReportHawaiian Holdings, Inc. (HA): Free Stock Analysis ReportAmerican Airlines Group, Inc. (AAL): Free Stock Analysis ReportInternational Consolidated Airlines Group SA (ICAGY): Free Stock Analysis ReportOriginal postZacks Investment Research
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