Hawaiian Airlines earnings rose just over 1 percent during the second quarter, buoyed by strong vacation demand, low fuel prices and moderate industry capacity.
Hawaiian Holdings Inc., parent company of the state’s largest carrier, reported Tuesday that it had net income of $80.4 million, or $1.50 per share, compared with $79.6 million, or $1.48 per share, in the same period a year ago. Revenue rose 13.6 percent to just over $675 million from nearly $595 million in the second quarter of 2016.
“We are extremely pleased with our second-quarter results and our performance year-to-date,” Mark Dunkerley, Hawaiian Airlines president and CEO, said during a Tuesday conference call.
SECOND-QUARTER NET
$80.4 million
YEAR-EARLIER NET
$79.6 million
|
It was a good report for a company that has experienced a wild couple of months. Hawaiian Holdings’ stock price increased by double digits in early June after it said it increased its estimate for second-quarter revenue and reduced the fuel cost estimate. On June 7 the stock price reached $59.35. However, a few days later, United Airlines announced it would add more than 400,000 seats to the islands in 2018, and Hawaiian’s stock fell below the $50 mark.
Shares closed Tuesday at $44.20, down 1.3 percent from the prior day. The earnings report came out after the market closed.
Peter Ingram, Hawaiian Airlines vice president and chief commercial officer, said the company was pleased to close the quarter at the high end of its expected range.
Hawaiian Airlines’ second-quarter passenger counts increased 4.7 percent from the year-ago quarter to nearly 2.9 million while its load factor, or percentage of seats filled, rose 2.1 percentage points to 6.6 percent. During the same period the airline’s revenue passenger miles, calculated by multiplying revenue-paying passengers by distance traveled, rose 6.6 percent to nearly 4.1 million.
The carrier capitalized on Southern California demand by turning seasonal service between Los Angeles and Lihue into a permanent daily flight during the second quarter. It also brought back nonstop daily flights from Oakland, Calif., to Lihue and thrice-weekly flights from Los Angeles to Kona as part of a summer schedule running through early September.
During the second quarter, lower-than-expected fuel costs helped offset ongoing investments in people and organizational capabilities, said Shannon Okinaka, Hawaiian Airlines executive vice president and chief financial officer.
“We turned in another solid performance in the second quarter that gives us good reason to be confident about the future while growing long-term value for our shareholders,” Okinaka said.
Into the year, comparisons get tougher as Hawaiian Airlines faces increased competition while lapping some of last year’s highlights like the introduction of its Narita-to-Honolulu service, Dunkerley said. Still, he said, “trends for the back half of the year continue to look positive.”
Hawaiian is expected to announce additional routes between the fourth quarter of 2017 and 2020 as it brings on 18 Airbus A321neo jets. The carrier said Monday that it would utilize the A321neo jets to add direct routes in early 2018 between Portland, Ore., and Maui; Oakland and Kauai; and Los Angeles and Kona.
Ingram said Hawaiian also expects continued benefits from value-added revenue per passenger and strong cargo demand. Later this year the carrier will look to launch its neighbor island cargo service, he said.