Hawaiian Holdings is providing an update to its outlook for the third quarter of 2023 and full year 2023 based on changes since its prior outlook disclosed on July 25, the company stated in a regulatory filing. The filing stated: “As noted during the company’s second quarter 2023 results conference call on July 25, 2023, the company’s guidance did not include the impact from RTX’s, parent company of Pratt & Whitney, disclosure regarding accelerated inspections of their Geared Turbofan, or ‘GTF,’ engines. Although the situation continues to evolve, the impact to capacity, as currently estimated by the company, is incorporated in the updated guidance. Additionally, on August 8, 2023, the town of Lahaina in West Maui was tragically devastated by a wildfire. Hawaiian continues to support its Maui-based employees and the community’s recovery. The State of Hawaii is currently discouraging non-essential travel to West Maui through October 17, 2023, but notes that other areas of Maui – including Kahului, Wailuku, Kihei, Wailea, Makena, Paia and Hana – remain open to tourism. Third quarter revenue had been trending positively but was reversed due to the West Maui wildfire. The updated guidance reflects an estimate of the impact on third quarter 2023 revenue due primarily to reduced travel demand to Maui from the U.S. Mainland and Neighbor Islands. The company continues to closely monitor both events as they continue to evolve. The updated guidance includes the company’s current best estimates of the impact of these events to capacity, revenue, and costs. The company now expects its capacity, as measured in available seat miles, ASMs, for the quarter ending September 30, 2023 to be up approximately 4.0% to 5.5% compared to the third quarter of 2022, whereas the company’s prior guidance was for third quarter 2023 capacity to be up approximately 4.5% to 7.5% compared to the third quarter of 2022. This decrease is primarily due to the accelerated inspections of Pratt & Whitney’s GTF engines. The company now expects its operating revenue per ASM, RASM, for the quarter ending September 30, 2023 to be down 4.0% to 7.0% compared to the third quarter of 2022, whereas the company’s prior guidance was for third quarter 2023 RASM to be down approximately 2.0% to 5.0% compared to the third quarter of 2022. This change is primarily due to reduced travel demand following the Maui wildfires. The company now expects its gallons of jet fuel consumed for the quarter ending September 30, 2023 to be up 7.5% to 9.5% compared to the third quarter of 2022, whereas the company’s prior guidance was for third quarter 2023 jet fuel consumed to be up approximately 8.0% to 11.0% compared to the third quarter of 2022.”
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See the top stocks recommended by analysts >>
Read More on HA:
- Largest borrow rate increases among liquid names
- RTX’s Pratt & Whitney Engine Recalls Hit Global Airlines
- Hawaiian Holdings files to sell 1.13M shares of common stock for holders
- Trouble in the Skies as Airline Stocks Sink
- Hawaiian Holdings lowers FY23 CapEx view to $265M-$295M from $330M-$380M
Questions or Comments about the article? Write to editor@tipranks.com