Hawaiian Airlines May Traffic Rises, Q2 RASM View Increased

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Hawaiian Airlines, the wholly owned subsidiary of Hawaiian HoldingsHA , posted a impressive traffic results for May. Traffic- measured in Revenue Passenger Miles or RPMs - climbed 8% to around 1.37 billion in May 2017. Meanwhile, Available Seat Miles (ASMs: a measure of capacity) expanded 5% to 1.58 billion.

Load factor (the percentage of seats filled by passengers) increased 240 basis points (bps) to 86.7% in May 2017 as traffic growth outpaced capacity expansion. The carrier further said it attracted 966,179 passengers on its flights during the month, thereby representing a 5.1% year-over-year increase.

On a year-to-date basis, Hawaiian Airlines witnessed a 7.5% rise in RPMs to approximately 6.5 billion. Also, ASMs improved 4.1% to 7.61 billion. As a result, the load factor increased 270 bps to 84.8%. Passenger count in the first five months of 2017 grew 3.2%.

Apart from releasing its traffic report, the carrier raised its second quarter projection pertaining to operating revenue per ASM (RASM: a key measure of unit revenue) due to better-than-expected yields mainly in the domestic network among other factors. The company now expects this key metric to grow in the band of 7.5% to 10.5% (earlier projection had called for a rise in the range of 5.5% to 8.5%). The bullish RASM view pleased investors. As a result, the stock gained in after-market trading on Jun 6.

Additionally, fuel cost per gallon (economic) is now projected in the band of $1.6-$1.7 (earlier range was tuned at $1.65-$1.75) in the second quarter of 2017.

Price Performance

Shares of Hawaiian Holdings have performed well so far in the current quarter, outperforming the Zacks categorized Transportation- Airline industry. The stock has appreciated 13.8% so far in the second quarter, above the industry's gain of 10.3%.

Zacks Rank & Other Stocks to Consider

Hawaiian Holdings sports a Zacks Rank #1 (Strong Buy). Investors interested in airline space may also consider other top-ranked stocks like United Continental Holdings UAL , Deutsche Lufthansa DLAKY and Ryanair Holdings RYAAY . All three flaunt the same bullish rank as the Hawaiian company. You can see the complete list of today's Zacks #1 Rank stocks here.

Shares of Lufthansa, Ryanair and United Continental have expanded 61.6%, 30.7% and 11.5% respectively, on a year-to-date basis.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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