Earnings Preview: Hawaiian Holdings, Inc. (NASDAQ: HA) Third Quarter 2010
Wednesday, October 06, 2010 9:25 AM

Hawaiian Holdings, Inc. (NASDAQ: HA) is scheduled to release third-quarter earnings after the closing bell on Wednesday, October 20, 2010. Analysts, on average, expect the company to report earnings of 34 cents per share on revenue of $353.33 million. In the year-ago quarter, the company reported earnings of 20 cents per share on revenue of $305.63 million.

Hawaiian Holdings, Inc., through its subsidiary, Hawaiian Airlines, Inc., engages primarily in the scheduled air transportation of passengers and cargo in the United States. Hawaiian is engaged in the scheduled air transportation of passengers and cargo amongst the Hawaiian Islands (the interisland routes), between the Hawaiian Islands and certain cities in the Western United States (the transpacific routes), and between the Hawaiian Islands and the South Pacific, Australia and Asia (the South Pacific/Australia/Asia routes). In addition, Hawaiian also operates various charter flights. Hawaiian Airlines is the island state's largest carrier and the 13th-largest U.S. airline.
In the preceding second-quarter, the Honolulu, Hawaii-based company's net income was $9.0 million, or 17 cents per share, compared to $27.5 million, or 53 cents per share, in the year-earlier quarter. On an adjusted basis, the company earned 24 cents per share in the second quarter. Total operating revenue increased 8.2% to $315.9 million from 292.00 million in the same quarter last year. Analysts, on average, expected the company to report earnings of 18 cents per share on revenue of $318.25 million.

The company has benefited from an uptick in travel demand as well as a rebound in economic activity. Last month, Hawaiian Airlines, Inc., a subsidiary of Hawaiian Holdings, said that its August traffic surged 14.3% to 840.09 million revenue passenger miles or RPMs from 734.76 million RPMs last year.

In September, the company revised upward the lower end of its range of guidance for the third quarter for passenger unit revenue and available seat miles and lowered its guidance for the cost per available seat mile excluding fuel. The company now anticipates its passenger unit revenue to rise 5.5 percent to 7.5 percent. Previously, the company anticipated a gain of 4.5 percent to 7.5 percent. The company expects available seat miles to increase 8 percent to 9 percent. Earlier, Hawaiian Holdings anticipated available seat miles to rise 7 percent to 9 percent.  The carrier now expects cost per ASM to be flat to down 2% for the period.

The company is seeking to expand in Asia and has already received authorization from Japan's Ministry of Land, Infrastructure, Transport and Tourism to nonstop flights between Tokyo's Haneda Airport and Honolulu. The inaugural flight from Honolulu to Haneda is on November 17, with the inaugural departure from Haneda to Honolulu taking place November 19. The carrier plans to add nonstop service to Seoul-Incheon International Airport in January.

Among other developments, Hawaiian Airlines recently signed a code-share agreement with Delta Air Lines Inc. (NYSE: DAL) that will give its customers access to inter-island flights for the first time. Beginning Sept. 15, Hawaiian flights will connect Delta customers between Honolulu and Kahului, Lihue, Kona and Hilo, as well as between Kona and Kahului.

In terms of stock performance, Hawaiian Holdings shares have lost nearly 17% since the beginning of the year.
Disclosure: Author doesn't own any of the stocks discussed here.



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