Hawaiian’s First Quarter Net Profit Dips
Hawaiian Airlines released its first quarter financial results on Thursday showing net income down 28 percent as fuel and staff costs increased.
Operating revenue for the quarter to March 31 rose 11.4 percent to USD$614.2 million, but costs jumped 20.4 percent to $546.9 million. Fuel costs were up almost 50 percent at $103.6 million, while wages and benefits rose 17.5 percent to $151 million.
Hawaiian flew 2.7 million passengers in the quarter, a 2.2 percent increase on 1Q16. Passenger traffic in revenue passenger miles (RPM) was up 7.2 percent on an available seat miles (ASM) capacity increase of 3.5 percent. The resulting passenger load factor rose 2.9 percentage points to 84 percent. Unit revenue (PRASM) was up 7.7 percent at 11.89 cents.
“The year has started extremely well. Strong demand coupled with benign industry capacity growth in our geographies have given us a robust operating environment sufficient to more than offset the impact of the rising price of fuel,” Hawaiian chief executive Mark Dunkerley said.
Looking forward, Hawaiian said second quarter revenue per ASM would be up by between 5.5 and 8.5 percent, and cost per ASM (excluding fuel would rise by 4.5 to 7.5 percent.