Hawaiian Airlines Parent Reports Larger Loss
Shares of Hawaiian Holdings Inc. (HA) tumbled 7.7% in after-hours trading on Tuesday, reaching a 12-year low. The parent company of Hawaiian Airlines revealed a third-quarter loss that exceeded expectations, accompanied by lower revenue. The company cited the severe impact of August wildfires in Lahaina, leading to a significant decline in traffic to Maui.
The net losses for the quarter amounted to $8.7 million, or 94 cents per share, compared to $9.3 million, or 18 cents per share, in the same period last year. After excluding one-time charges, the adjusted per-share loss stood at $1.06, missing the anticipated loss consensus of 94 cents according to FactSet.
Furthermore, revenue dropped by 1.8%, totaling $727.7 million, falling short of the FactSet consensus of $735.7 million. However, there was a positive note in terms of load factor, which increased from 83.0% to 86.1%, surpassing the expected consensus of 85.4%. This improvement was driven by an 8.2% rise in traffic to 4.45 billion revenue passenger miles and a capacity growth of 4.2% to 5.17 billion available seat miles.
Looking ahead to 2023, Hawaiian Airlines lowered its capacity growth guidance to a range of 7.5% to 8.5% from the previous estimate of 8.0% to 10.0%. Additionally, the company raised its fuel cost outlook to $2.89 per gallon from $2.78 per gallon.
Hawaiian Holdings stock has witnessed a substantial decline of 61.8% over the past three months, reaching its lowest levels since October 2011 during regular-session hours. In comparison, the S&P 500 experienced a 6.7% decrease during the same period.
All Rights Reserved © 2024
Post a comment