Market Overview

Hawaiian Holdings Tumbles 27%, Most Airline Stocks Fall


Shares of Hawaiian Holdings, Inc. (NASDAQ: HA) were pummeled Friday, collapsing over 27 percent to $19.17 after the company missed Q4 earnings expectations and guided Q1 operating revenue lower by 3.5 to 6.5 percent.

Investors may have assumed that lower fuel prices would benefit all airlines. Hawaiian Holding's lower revenue estimates could have been a surprise as the company’s projected operating costs will rise despite lower fuel costs. Overall, many airline stocks fell approximately 3 percent following the news.

Delta Air Lines, Inc. (NYSE: DAL) traded at $48.67, down 3.07 percent, following the news from Hawaiian Holdings. Delta reported its Q4 earnings on January 20 and beat expectations.

American Airlines Group Inc (NASDAQ: AAL) traded at $50.92, down 2.52 percent. American Airlines reported Q4 results on January 27 and beat EPS estimates by $0.01, but fell short of revenue expectations.

Alaska Air Group, Inc. (NYSE: ALK) also fell amid the news and traded at $69.22, down 2.60 percent. Alaska Air reported Q4 results on January 22 and beat both revenue and EPS estimates.

Spirit Airlines Incorporated (NASDAQ: SAVE) will report Q4 earnings on February 10. Its stock recently traded at $76.63, down 3.97 percent.

SkyWest, Inc. (NASDAQ: SKYW) was down 3.23 percent to $13.18 and will report Q4 results on February 12.

Virgin America Inc (NASDAQ: VA) shares were also hit hard on Friday and recently traded at $34.76, down 4.28 percent. Virgin America is expected to release Q4 and full year 2014 results on February 18.

Republic Airways Holdings Inc. (NASDAQ: RJET) traded at $14.12, down 3.22 percent amid the news and will report Q4 results on February 25.

Southwest Airlines Co (NYSE: LUV) showed signs of relative resilience as the stock fell only 1.75 percent to $46.17 by Friday afternoon.  Southwest reported strong Q4 results on January 22 and estimated that Q1 fuel savings would come out to be approximately $500 million in Q1.

Allegiant Travel Company (NASDAQ: ALGT) stood out among the airlines on Friday, however. The company’s shares were down Friday morning but recovered and recently traded at $183.20, up 1.39 percent. Allegiant reported strong Q4 results on January 28 with Q4 EPS of $1.83 versus estimates of $1.72 and revenues of $279 million versus estimates of $276 million.


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