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Background:

Based in Honolulu, Hawaiian Holdings Inc (NASDAQ:HA), the holding company for Hawaiian Airlines may be of interest to investors looking to capitalize on the condensing airline industry. The 11th largest airline within the United States, Hawaiian Airlines offers service to destinations including west coast cities of the United States, New York, Asia, and Australia. Announcements of expansion plans of both the fleet and route network should give investors reason to consider HA. Presently shares of HA are trading around 5.60. This is well off the 52 week high of 7.30 and moderately above the 52 week low of 4.96. HA currently pays no dividends to shareholders.

Investor Value:

Investors need to look to the following information as rationale for considering a position within HA:

  • HA has stated its plans for rapid, global growth. Nothing is more telling of these intentions than the airline's recent announcement that it would be purchasing 16 Airbus A321neo aircraft.

  • HA has stated that the company's rapid expansion plans would result in the hiring of 1,000 additional employees. Presently HA employs 4,906 people.

  • HA has recently announced new routes to mainland China. The company intends to operate flights from Honolulu to Beijing in 2014 on Airbus A330 aircraft.

  • HA has selected the Pratt & Whitney PurePower 1133G-JM to power their newly purchased A321neo aircraft. These modern engines will offer the company savings as a result of fuel efficiency and a reduced carbon footprint.

  • HA has demonstrated significant improvements in revenues, profits, and net incomes as represented in the chart below:

    Date

    Revenues*

    Profits*

    Net Income*

    Dec 2011

    $1,650,459.00

    $699,746.00

    -$2,649.00

    Dec 2012

    $1,962,353.00

    $858,826.00

    $53,237.00

    *Numbers in thousands

Conclusion:

HA was able to increase its financial position year over year by improving passenger revenues by over 19%. This increase was in part due to HA maintaining its status as number one for on time performance in 10 out of the 11 months that the statistic was reported during the year 2012. HA is serious about large scale global expansion. In the past year alone the company has opened routes to Brisbane, Seoul, New York, and Sapporo (Japan). Expansion plans, while ambitious, have worked thus far. With the help of newer, more fuel efficient aircraft, HA should be able to soar to new heights.

Source: Hawaiian Airlines Set To Soar To New Heights

Additional disclosure: Investors should perform their own due diligence before making investment decisions.