Hawaiian Airlines, Inc. owner, Hawaiian Holdings Inc. (HA) reported second-quarter 2014 GAAP net income of $27.3 million or 43 cents per share compared with $11.3 million or 21 cents per share in the prior-year quarter. Meanwhile, adjusted earnings per share stood at 35 cents as against 24 cents in the prior-year quarter. Such solid growth in bottom line is mainly attributable to strong demand and implementation of cost control measures.
Quarterly revenues moved up 7.8% year over year to $575.7 million. Also, on a year-over-year basis, Passenger revenues increased 4.1% while operating revenues per available seat mile rose 6.7%.
Operating Statistics
Importantly, revenue passenger miles fell 0.4% year over year to 3.39 billion in the second quarter. On the other hand, capacity or available seat miles hiked 1.2% year over year to 4.26 billion, while load factor (percentage of seats filled with passengers) dropped 130 basis points year over year to 79.6%. Revenue per available seat mile (RASM) increased 4.1% year over year to 11.90.
Operating Expenses & Operating Income
In the second quarter, operating income increased to $51.6 million from $37.4 million in the year-ago quarter. Total operating expenses rose 5.6% year over year to $524.1 million. Average fuel price (economic) stood at $3.09 per gallon, up 0.7% year over year. Cost per available seat mile (CASM), excluding fuel and special items, increased 5.8%.
Liquidity
At the end of the second quarter, Hawaiian Holdings had $564 million of unrestricted cash and cash equivalents and $1,071 million debt in its balance sheet.
Q2 Guidance
The company expects CASM (exclusive of fuel cost) to grow in the range of 1% to 4% while operating revenue per ASM is projected to increase 3% to 5%. Likewise, ASM is expected to inch up 1% to 3% and jet fuel usage is likely to expand in the band of 0.5–2.5%.
FY14 Guidance
CASM (exclusive of fuel cost) is anticipated to increase in the band of 3–5% from last year. Meanwhile, ASM is likely to rise between 1% and 3%.
Other Airline Releases
Delta Air Lines Inc. (DAL) is scheduled to report its second-quarter results before the opening bell on Jul 23 while both United Continental Holdings Inc. (UAL) and Southwest Airline Co. (LUV) will release earnings before the market opens on Jul 24.
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