Hawaiian Holdings, Inc.’s (NASDAQ:HA) wholly owned subsidiary, Hawaiian Airlines, reported traffic figures for April. Traffic (measured in Revenue Passenger Miles or RPMs) increased 7.1% to around 1.39 billion in April.
Available Seat Miles (ASMs) also climbed 7.3% to 1.63 billion in the month. However, load factor (percentage of seats filled by passengers) declined 10 basis points (bps) to 85.2% as capacity expansion outweighed traffic growth.
In the first four months of 2018, the carrier registered a 6.4% rise in RPMs while ASMs rose 5.3%. As a result, load factor improved 90 bps. Additionally, passenger count increased 6.8% while the same rose 6.3% in April.
The company was also in news last week when its shares declined significantly following fears of competition intensifying in Hawaii as Southwest Airlines Co. (NYSE:LUV) announced a detailed plan to offer flights connecting Hawaii with California. As Hawaiian Holdings draws a bulk of its revenues from inter-island flights, it is only natural that the stock price of this Honolulu County, HI-based company was significantly hurt due to worries over a likely drop in the company’s market share.
Zacks Rank & Key Picks
Hawaiian Holdings carries a Zacks Rank #3 (Hold). Two better-ranked stocks in the airline space are SkyWest, Inc. (NASDAQ:SKYW) and Cathay Pacific Airways Ltd. (OTC:CPCAY) . While SkyWest sports a Zacks Rank #1 (Strong Buy), Cathay Pacific Airways carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of SkyWest and Cathay Pacific Airways have rallied more than 54% and 13%, respectively, in a year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Southwest Airlines Co. (LUV): Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
Cathay Pacific Airways Ltd. (CPCAY): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
Original post