Hawaiian Holdings (HA) recently released its financial results for the first quarter of 2023, reporting a wider-than-expected loss of $2.77 per share on revenue of $645.6 million. Despite the loss, revenue exceeded market estimates of $629.2 million. The company’s operational performance showed signs of improvement, with revenue passenger miles increasing by 1.1% compared to the same period last year. Additionally, passenger revenue per available sale mile experienced a 3.5% increase. However, the company’s operating cost per available seat mile (CASM) rose by 5.9% to $0.1572.
Excluding fuel and non-recurring items, CASM increased by 7.1% to $0.1182. The company’s merger with Alaska Air Group (ALK) continues to progress, with Hawaiian Holdings shareholders approving the transaction. Furthermore, a timing agreement has been reached with the Department of Justice, outlining a 90-day timeframe for the merger’s completion after both parties demonstrate substantial compliance with the Department’s requirements.
Looking ahead, Hawaiian Holdings expects non-GAAP CASM to increase by 5%-8% in the second quarter, while available seat miles are projected to grow by 3.5%-6.5%. Operating revenue per ASM is forecasted to fluctuate within a range of -1.5% to 1.5%. For the full year 2024, the company revised its non-GAAP CASM guidance upwards to 1.0%-4.0%, from the previous estimate of flat to 3.0%. Available seat miles are now anticipated to increase by 4.5%-7.5%, adjusting from the earlier guidance of 6.0%-9.0%. Capital expenditure estimates remain unchanged at $500 million to $550 million. In premarket trading on Tuesday, Hawaiian Holdings shares exhibited a 0.6% increase.
