HA - Hawaiian Airlines stock slips after announcing accounting error

Hawaiian Airlines ( NASDAQ: HA ) shares slipped on Monday after disclosing an accounting error that rendered previous quarterly guidance unreliable.

The correction included a loss $0.21 greater than previously reported for the first quarter of 2022 and a $0.20 larger loss for the second quarter. The specific error cited was $19.4M in net unrealized losses from equity securities which was miscategorized in the earnings reports.

“In connection with the restatement, management has concluded that a material weakness exists in internal control over financial reporting with respect to controls over the accounting for unrealized gains and losses on equity securities,” an 8-K filing said. “Management is developing a remediation plan for the material weakness that will be implemented in the fourth quarter of 2022. Additionally, management reevaluated the effectiveness of the Company’s disclosure controls and procedures as of March 31, 2022, and June 30, 2022 and concluded that the Company’s disclosure controls and procedures were not effective as of March 31, 2022, and June 30, 2022 due to this material weakness.”

Shares of the Honolulu-based air carrier fell over 3% shortly after the announcement before moderating losses slightly in premarket trading on Monday.

Read more on the airline’s latest agreement with Amazon .

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