Please ensure Javascript is enabled for purposes of website accessibility

Hawaiian Holdings, Inc. Stock Up 14% on Strong Earnings: Here's What You Need to Know

By Jason Hall - Jan 27, 2016 at 12:31PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Hawaiian Airlines parent continues to benefit from low fuel prices and strong demand.

Hawaiian Holdings is in steady growth mode. Source: Hawaiian Airlines. 

What: Shares of Hawaiian Airlines parent company Hawaiian Holdings (HA -2.97%) are up more than 13% at 1 p.m. EST on January 27, following the after-hours release of the company's fourth-quarter and full-year 2015 financial results yesterday afternoon. With today's big gain, the company's stock is up nearly 4% this year after tumbling with the rest of the market to start 2016. 

HA Chart

HA data by YCharts.

So what: Hawaiian Holdings reported net income per share of $2.98 for fiscal 2015, a 59% jump from the $1.88 per share the company reported the year before. The fourth quarter's profit increased 34% to $0.49 per share. 

The small airline also finished the year with a strong balance sheet, with $772 million in total debt and $560 million in cash and equivalents, having repaid nearly $200 million in debt in 2015. The company also gave some guidance for 2016 on its costs and capacity expectations for 2016:

Source: Hawaiian Holdings press release.

Management wouldn't give further guidance on expected revenues or earnings, but CEO Peter Ingram did say that foreign exchange -- which has weighed on Hawaiian Airlines over the past year or so -- is on track to improve, particularly in Japan early this year, and later in the year in Australia and New Zealand. If that does indeed play out, it could be a boost to the company's profit this year, especially if fuel prices stay low. 

Now what: Hawaiian Holdings has a solid balance sheet, operates in a relatively strong demand environment, and is slowly growing its fleet to take advantage of growing demand for travel to and from the markets it serves. Furthermore, air travel in general is in a strong cyclical growth phase right now, and Hawaiian Holdings is positioned well to take advantage of that. 

If you're looking for a well-run airline with solid growth potential, Hawaiian Holdings should be on your short list -- even after today's big jump.

Jason Hall has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Hawaiian Holdings, Inc. Stock Quote
Hawaiian Holdings, Inc.
$16.00 (-2.97%) $0.49

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/10/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.