Hawaiian stock falls amid competition concerns

The stock of Hawaiian Airlines’ parent company sank Wednesday as much as 9.5%, the biggest decline since March 4, as analysts said concerns about competition and rising fuel costs overshadowed the company’s higher-than- expected first-quarter earnings.

Hawaiian Holdings Inc., which reported a 27.4% increase in earnings after the market closed on Tuesday, saw its stock on Wednesday fall 6.9%, or $2.10, at $28.34.

Among analysts’ comments:

>> Citi analyst Kevin Crissey (neutral rating, price target $32) has confidence that capacity and price in the West Coast markets will stabilize in the medium term, “but without clarity on the interisland business yet, we hesitate to get more positive on HA shares.” He cited concern over whether Southwest Airlines entering the interisland market will hurt a key segment for Hawaiian. He said headwinds likely will offset mostly positive trends in the Japan/Korea business, which is Hawaiian’s largest route by available seat miles.

>> Deutsche Bank analyst Michael Linenberg says a “challenging operating environment” is still weighing on earnings. He doesn’t see pricing pressure abating in the West Coast to Hawaii and interisland markets.

>> Wolfe analyst Hunter Keay (peer perform rating, no target price) says Hawaiian will be fine if it “continues to offer good service tailored to Hawaii locals and vacationers.” He warns against underestimating Hawaiian amid fierce competition and advocates for patience, betting it will come out “better and stronger.”

>> Cowen analyst Helane Becker (market perform rating, price target $31) says there will continue to be pressure on margins due to the rising cost of oil and falling ticket prices. She said Hawaiian indicated that unit revenue pressure is persisting into the current quarter.

Analysts who cover Hawaiian have four buy ratings, five hold ratings and four sell ratings on the company with an average 12-month price target of $31.

ON THE MOVE

Kaiser Permanente Hawaii has appointed Paige Down, RN, as the maternal child services director for Moanalua Medical Center. Her responsibilities are to oversee all staffing, planning and coordinating functions of maternal child services, including the neonatal intensive care unit, labor and delivery, the mother-baby unit as well as pediatrics. Down has 15 years of health care management experience and was recently a manager of women and children services at Providence Hood River Memorial Hospital, located in Hood River, Ore.