Hawaiian Airlines, Inc. - a subsidiary of Hawaiian Holdings, Inc.HA - posted a significant rise in air traffic for the month of June this year. Traffic - measured in revenue passenger miles (RPMs) - came in at 1.29 billion, up 5.8% from 1.22 billion recorded in the comparable month a year ago.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 4.5% to stand at 1.53 billion. Moreover, the load factor or percentage of seats filled by passengers increased to 84.2% from 83.1% in Jun 2014.
For the first six months of 2015, Hawaiian Airlines generated RPMs of 6.93 billion (up 4.7% from the corresponding period last year) and ASMs of 8.67 billion (up 4.5% year over year). Meanwhile, load factor increased by 20 basis points year over year to 80%.
Increased travel demand and continuous route expansion were the prime factors driving air traffic. Hence, we believe that such positives will continue to drive the carrier's performance.
Meanwhile, Hawaiian Airlines expects operating revenue per ASM to decline between 4% and 5% year over year in second-quarter 2015. Furthermore, the carrier expects fuel price to increase between $2.21 and $2.26 per gallon from the previously set guidance of $2.10-$2.20 in the second quarter.
Stocks to Consider
Hawaiian Holdings currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same space include Deutsche Lufthansa Aktiengesellschaft DLAKY , SkyWest Inc. SKYW and China Eastern Airlines Corp. Ltd. CEA . All the three companies carry a Zacks Rank #2 (Buy).
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