Special items ground Hawaiian Airlines’ earnings
COURTESY PHOTO / 2012
Hawaiian Airlines Airbus A330.
Hawaiian Airlines matched analysts’ adjusted earnings estimates but saw its net income fall 71.9 percent in the fourth quarter after accounting for $95.1 million in special items.
The parent company of the state’s largest carrier reported today that net income declined to $10.6 million, or 20 cents a share, from $37.9 million, or 66 cents a share, in the year-earlier period. Analysts’ adjusted earnings estimate, which didn’t include the special items, was $1.28 a share.
Revenue rose 10.2 percent to $633 million from $574.2 million.
Hawaiian Holdings Inc.’s special items included a $70 million charge related to the airline’s accretive long-term fleet strategy to dispose of its Boeing 767s early and replace them with A321neos, $20 million related to ongoing labor contract negotiations with its pilots and a $5 million profit-sharing payment to employees for their service in prior years. The $70 million charge included a $49 million non-cash impairment charge on the Boeing 767 aircraft it owns and a $21 million charge to terminate early an agreement with a maintenance vendor.
For the year, net income rose 33.7 percent to $244.1 million from $182.6 million. Revenue increased 5.7 percent to $2.45 billion from $2.32 billion as Hawaiian carried a record 11.1 million passengers during 2016.
4 responses to “Special items ground Hawaiian Airlines’ earnings”
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Hawaiian, when are you dropping baggage fees? You started the fees to offset fuel cost………Fuel prices are down but you continue to screw over passengers.
They won’t drop the baggage fee until people start flying less and letting the airlines know the reason they stopped flying was due to all the extra fees. As long as people continue flying they have no reason to get rid of the fee. Basic supply and demand principle of any business.
If you don’t like the baggage fee, then don’t check in bags! It’s pretty simple. If they drop the baggage fees, then they slightly raise all ticket prices. Why should everyone subsidize your need to check in a bag?
FLEW ON ONE OF THEIR NEW AIRBUS AIRCRAFT TO JAPAN AND IT WAS BAD. I EVEN HAD UPGRADED FOR MORE LEG SPACE BUT THE SEATS WERE UNCOMFORTABLE; TV – ENTERTAINMENT UNIT WAS DIFFICULT TO USE; CHEAPLY MADE; ON THE POSITIVE SIDE, THEIR INFLIGHT SERVICE/ PERSONEL WERE GREAT. THEY SHOULD USE BOEING AIRCRAFT FOR BETTER QUALITY.