79
The parent of Hawaiian Airlines posted an eightfold increase in first-quarter earnings today as the state’s largest carrier saw strong demand from its long-haul services.
Hawaiian Holdings Inc. had net income of $7.3 million, or 14 cents a share, compared with $855,000, or 2 cents a share, a year ago. The airline’s profit increase was aided by a $5.8 million net gain from fuel-hedging activity. Fuel hedging is a calculated bet against the future price of fuel and allows the company to lock in the price in advance of fuel it will need in the future.
Adjusted for the fuel hedging, Hawaiian had net income of $3.3 million, or 6 cents a share. That beat analysts’ consensus estimate of a loss of 2 cents a share. In the year-earlier period, Hawaiian had an adjusted loss of $3.2 million, or 6 cents a share.
Revenue jumped 19.1 percent to $435.5 million from $365.6 million a year earlier.
Hawaiian’s fuel costs rose 28.3 percent to $140.3 million from $109.4 million a year ago and represented 33.2 percent of operating expenses.
The company’s stock rose 3 cents to $5.05 today on the Nasdaq Stock Market. Earnings were announced after the market closed.
