Hawaiian Airlines’ stock soared more than 5 percent Monday after the company raised its revenue expectations for the first quarter.
The state’s largest carrier, which plans to release its financial results after the market closes April 20, said it now expects its operating revenue per available seat mile (one seat transported one mile) to be up 6 to 7 percent from the year-earlier period. In its previous guidance on Jan. 24, Hawaiian said it anticipated its revenue per ASM to increase 4 to 7 percent.
Hawaiian’s stock jumped $2.40, or 5.3 percent, to $48.15 on volume of 1.4 million shares. That was nearly double its average daily volume of 790,116 shares.
The airline also said a new pilots contract ratified March 24 will result in a charge of $7.5 million in the first quarter for a ratification bonus that is in addition to the $34 million special charge that Hawaiian took in the fourth quarter. The company also said it expects to record a special charge of about $20 million in the first quarter primarily related to a one-time lump sum payment for pilot benefits, which will have no impact on cost per ASM excluding fuel and special items.
The airline said the higher revenue forecast was “due to better-than-expected load factors (percentage of seats filled) and stronger yields primarily in the domestic network.”
Separately, Hawaiian said its passenger traffic rose 2.6 percent in March after offering more seats than the year-earlier period. The airline transported 943,363 passengers, up from 919,547, the percentage of seats filled rose 85 percent from 82.9 percent.
Revenue passenger miles, or one paying passenger transported one mile, gained 7.2 percent to 1.3 million from 1.2 million. Available seat miles increased 4.5 percent to 1.6 million from 1.5 million.