Why Hawaiian Holdings Is Flying Lower Today
After the closing bell Tuesday, Hawaiian Holdings (NASDAQ: HA) -- parent company of Hawaiian Airlines -- reported second-quarter results that basically met expectations. However, uncertainty remains about when flights on some of the airline's key international routes will be fully restored. Investors reacted to the report by heading for the exits, sending Hawaiian shares down by as much as 11.3% Wednesday morning. As of 12:40 p.m. ET, shares were still off by 6.6%.
Airline investors have faced a difficult few years due to the pandemic, and Hawaiian has had to navigate through more turbulence than most of its peers. The industry's recovery has been primarily fueled by domestic traffic as restrictions continued to limit more lucrative international travel.
That creates some unique issues for Hawaiian. Airline competitors that reduced the number of flights they were sending to Europe and Asia have redirected some of those planes to trans-Pacific flights to the islands, creating a difficult competitive environment. Hawaiian has historically compensated for the issues created by domestic competition by leaning heavily on its own flights to Asia, but with restrictions in place, it doesn't have that option.
Source Fool.com
