Published on 27 Mar 2024 on Zacks via Yahoo Finance
Here's Why Hawaiian Holdings (HA) Can Grace Your Portfolio
Hawaiian Holdings HA benefits from increased air travel demand, with strong passenger revenues driving expansion efforts. However, high fuel and labor costs, along with unfavorable liquidity, pose a significant challenge.
Factors Favoring HA
Air travel demand recovery benefits Hawaiian Holdings. In 2023, scheduled airline traffic (measured by revenue passenger miles) increased 12.9% year over year. Scheduled capacity (measured in available seat miles or ASM) rose 8.4% year over year. Passenger load factor (percentage of seats filled by passengers) improved to 83.5% from 80.1%. For the first quarter of 2024, HA predicts a 2.5-5.5% rise in ASM, while for the full year 2024, the company anticipates a 6-9% capacity increase, with our estimate at 8.8%.