Hawaiian expects revenue and cost growth to slow in Q3

Washington DC
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Hawaiian Airlines expects revenue and cost growth to slow in the third and fourth quarters, after a better than expected second quarter.

Operating revenue will be up between 0.5% to down 0.5% year-on-year in the third quarter, says Scott Topping, chief financial officer at Hawaiian, during an earnings call today. The metric was up 22.7% to $484.6 million in the second quarter.

Passenger revenue per available seat mile will be up 1.5% to down 1.5% year-over-year during the third quarter, says Topping. Prasm increased 6.1% to 14.98 cents in the second quarter.

Costs per available seat mile ex-fuel will be down by between 0.5% and 3.5% year-over-year in the third quarter, he says. The metric was up 0.5% to 8.74 cents in the second quarter.

"Improvements of metrics will be more incremental in character," says Topping on the coming three months. The performance during the first half was stronger due to the high amount of start-up costs and pension expenses, he adds.

Hawaiian will continue to grow. Capacity is expected increase by between 27.9% and 29.5% year-over-year in the third quarter and by 21% to 24% for the year, says Topping. The launch of new services to Brisbane and Sapporo will drive the capacity increases during the second half.

"We look forward to further strengthening our business in the third quarter," says Mark Dunkerley, chief executive of Hawaiian, during the call.