ALK - Hawaiian Holdings rallies after the close on strong Japan demand

2023-07-25 17:32:27 ET

Hawaiian Holdings ( NASDAQ: HA ) rallied after the close as international demand buoyed results and the carrier beat estimates for the second quarter. Shares rose more than 5% postmarket.

The airline reported revenue of $706.9M compared to the average analyst expectations of $698.8M and EPS of -$0.47 was better than the estimated -$.068.

"Demand remains strong throughout our network, and we have recently seen a significant increase in bookings by travelers in Japan, an important geography that has trailed in the recovery of the overall market," Hawaiian Airlines President and Chief Executive Officer Peter Ingram said in a statement.

"Against the backdrop of improving operations and robust demand, I am excited about the major initiatives we're on track to deliver in the second half of the year."

Leisure demand remains historically high, the carrier said.

Hawaiian's North America load factor of 90.4% was the highest second quarter load factor for its North America routes since 2017, and Neighbor Island load factor of 75.3% was the highest for the quarter since 2015.

International demand has been strong across airlines and HA is no exception. Japan-originating traffic increased on Hawaiian's international routes, contributing to an overall 16.2 point increase in international load factor year over year.

International revenue increased 160% from the second quarter of 2022 on a 141% increase in capacity.

HA lowered capital expenditures for the year from a previously expected $330M to $380M to $265M to $295M. Available Seat Miles (ASMs) for the third quarter should increase 4.5% to up 7.5%.

Earlier, Alaska Air Group, Inc. ( ALK ) reported a forecast for revenue that came in under expectations as fare prices have been dropping.

Shares of HA are down 29% over the past 12 months.

More on airlines:

• Hawaiian Holdings Non-GAAP EPS of -$0.47 beats by $0.21, revenue of $706.9M beats by $8.09M
• Airline stocks fly high after strong results from Delta Air Lines
• Airline fares fall 19% in June from a year ago

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