Hawaiian Airlines, Inc. owner,
Hawaiian Holdings Inc.
) reported second-quarter 2014 GAAP net income of $27.3 million or
43 cents per share compared with $11.3 million or 21 cents per
share in the prior-year quarter. Meanwhile, adjusted earnings per
share stood at 35 cents as against 24 cents in the prior-year
quarter. Such solid growth in bottom line is mainly attributable to
strong demand and implementation of cost control measures.
Hawaiian Holdings Inc - Earnings Surprise |
Quarterly revenues moved up 7.8% year over year to $575.7
million. Also, on a year-over-year basis, Passenger revenues
increased 4.1% while operating revenues per available seat mile
Importantly, revenue passenger miles fell 0.4% year over year to
3.39 billion in the second quarter. On the other hand, capacity or
available seat miles hiked 1.2% year over year to 4.26 billion,
while load factor (percentage of seats filled with passengers)
dropped 130 basis points year over year to 79.6%. Revenue per
available seat mile (RASM) increased 4.1% year over year to
Operating Expenses & Operating Income
In the second quarter, operating income increased to $51.6
million from $37.4 million in the year-ago quarter. Total operating
expenses rose 5.6% year over year to $524.1 million. Average fuel
price (economic) stood at $3.09 per gallon, up 0.7% year over year.
Cost per available seat mile (CASM), excluding fuel and special
items, increased 5.8%.
At the end of the second quarter, Hawaiian Holdings had $564
million of unrestricted cash and cash equivalents and $1,071
million debt in its balance sheet.
The company expects CASM (exclusive of fuel cost) to grow in the
range of 1% to 4% while operating revenue per ASM is projected to
increase 3% to 5%. Likewise, ASM is expected to inch up 1% to 3%
and jet fuel usage is likely to expand in the band of 0.5-2.5%.
CASM (exclusive of fuel cost) is anticipated to increase in the
band of 3-5% from last year. Meanwhile, ASM is likely to rise
between 1% and 3%.
Other Airline Releases
Delta Air Lines Inc.
) is scheduled to report its second-quarter results before the
opening bell on Jul 23 while both
United Continental Holdings Inc.
Southwest Airline Co.
) will release earnings before the market opens on Jul 24.
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