Hawaiian Holdings (HA) Posts Narrower-Than-Expected Q4 Loss

Hawaiian Holdings, Inc.’s HA fourth-quarter 2021 loss (excluding 44 cents from non-recurring items) of $1.37 per share was narrower than the Zacks Consensus Estimate of a loss of $1.69. Notably, the company reported a loss of $3.71 in the year-ago quarter.

Moreover, quarterly revenues of $494.7 million surged more than 100% year over year and beat the Zacks Consensus Estimate of $493.4 million.

Hawaiian Holdings, Inc. Price, Consensus and EPS Surprise

Hawaiian Holdings, Inc. Price, Consensus and EPS Surprise

Hawaiian Holdings, Inc. price-consensus-eps-surprise-chart | Hawaiian Holdings, Inc. Quote

Despite omicron-led crisis, passenger revenues (contributing 85.5% to the top line) surged 361% year over year to $423.12 million. Scheduled airline traffic, measured in revenue passenger miles, rose 423.1% year over year to 2,979.8 million in the quarter under review. Scheduled capacity (measured in available seat miles) increased 194% to 4,210.1 million. Load factor (percentage of seats filled by passengers) improved 3100 basis points to 70.8% in the reported quarter as traffic surge outweighed capacity expansion. Passenger revenue per ASM (PRASM) surged 56.8% to 10.05 cents.

Operating revenue per available seat mile (RASM: a key measure of unit revenues) in the quarter rose 13.4% year over year to 11.68 cents for total operations. Average fuel cost per gallon (economic) increased 81.4% to $2.34 in the fourth quarter. With the majority of the fleet grounded, gallons of jet fuel consumed surged 147.1% in the December-end quarter.

Liquidity

As of Dec 31, 2021, Hawaiian Holdings’ unrestricted cash, cash equivalents and short-term investments totaled $1.7 billion. Outstanding debt and finance lease obligations were $1.9 billion.

Q1 Outlook

Capacity (or ASMs) is anticipated to decline 10-13% from first-quarter 2019 levels.

Total revenues are anticipated to plunge 31-35% from first-quarter 2019 levels.

Costs per ASM (excluding fuel & non-recurring items) is expected to rise 10-13% from first-quarter 2019 numbers.

Gallons of jet fuel consumed are expected to fall 18-21% from first-quarter 2019 level.

Adjusted EBITDA is expected to fall $150-$90 million.

The effective tax rate is anticipated to be at 21% in the first quarter.

Fuel price per gallon is expected to be at $2.53 in first-quarter 2022.

2022 Outlook

Below expectations are in comparison to full-year 2019.

For the current year, the company projects capital expenditures of approximately $105-$125 million (prior guidance: $365-$385 million).

ASM is anticipated between negative 3% and positive 1% from 2019 levels (prior guidance: flat to up 4%).

Costs per ASM (excluding fuel & non-recurring items) is expected to move up 3.5-7.5% (prior guidance: up 2-6%)

Gallons of jet fuel consumed is expected to fall 4.5-8.5% (prior guidance: up 0.5% to down 3.5%).

Fuel price per gallon is anticipated to be $2.42 (prior guidance: $2.09).

Zacks Rank

Hawaiian Holdings currently carries a Zacks Rank #4 (Sell).

Sectorial Snapshot

Within the broader Transportation sector, J.B. Hunt Transport Services JBHT, United Airlines UAL and Delta Air Lines DAL recently reported fourth-quarter 2021 results.

J.B. Hunt Transport Services, sporting a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2021 earnings of $2.28 per share. The figure surpassed the Zacks Consensus Estimate of $1.99. The bottom line surged 58.3% year over year on the back of higher revenues across all segments. You can see the complete list of today’s Zacks #1 Rank stocks here.

J.B. Hunt’s operating revenues of $3,497 million also outperformed the Zacks Consensus Estimate of $3,287.8 million. The top line increased 27.7% year over year. Total operating revenues, excluding fuel surcharges, rose 21.7% year over year.

United Airlines, carrying a Zacks Rank #4, incurred a loss (excluding 39 cents from non-recurring items) of $1.60 per share in fourth-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of $2.23. The amount of loss narrowed 77.1% year over year.

United Airlines’ operating revenues of $8,192 million also outperformed the Zacks Consensus Estimate of $7,930.9 million. The top line surged more than 100% year over year, with passenger revenues contributing 84% to the top line and surging 185.4% to $6,878 million.

Delta, carrying a Zacks Rank #5 (Strong Sell), reported fourth-quarter 2021 earnings (excluding 86 cents from non-recurring items) of 22 cents per share, outpacing the Zacks Consensus Estimate of 15 cents. The bottom line improved from the year-ago quarter’s loss of $2.53 per share. Strong holiday travel demand and favorable pricing aided the December quarter’s results.

Delta’s revenues came in at $9,470 million, beating the Zacks Consensus Estimate of $9,232.1 million and soaring more than 100% year over year. The upside can be attributed to people resorting to air travel during the holidays.

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