Hawaiian Holdings Incorporation is a company based in the United States. The company operates air service for both passengers and cargo in the United States. The company has hubs on the Hawaiian islands, like Honolulu, Maui, Kona, and many others. The company operates a fleet of 62 airplanes to domestic and international services. The company was founded in 1929.
Why You Should?
- Hawaiian Holdings stock will continue to rise because of COVID-19 vaccine optimism. This is because once people start getting vaccinated, they will start to travel once again. There might be a boom for leisure travel in the months following vaccination as people take time off in order to go to Hawaii. This will help Hawaiian Airlines to recover from this pandemic.
- Hawaiian Airlines is the flag carrier of Hawaii. They have hubs on the islands and offer flights to the United States, Australia, Japan, South Korea, and many others. Hawaii is a great leisure travel destination for millions of people. Hawaiian Airlines gets the bulk of its revenue through leisure travel, which makes it a good reopening play.
- Hawaii can only receive COVID-19 vaccines through air cargo. Hawaiian Airlines has the capability to transport vaccines from factories around the world to the population in Hawaii. This strong air cargo demand will benefit the company’s future growth and recovery from this pandemic. This will also benefit investors in the company.
- Hawaii has an extremely strong agricultural industry. The state also needs to receive a lot of products and goods from the mainland or other countries. In order to get these goods in a fast and timely manner, companies like Hawaiian Airlines use their facilities and airplanes in order to transport this cargo around the world. This strong cargo exposure will benefit the company and its investors.
Why You Should Not?
- Hawaiian Airlines faces tough competition from many other airlines around the world. The company competes with international carriers like ANA, Japan Airlines, Korean, and many others. Domestic carriers include Southwest, Delta, United, American, and Alaska. This tough competition might hurt the company in the future.
- The COVID-19 Pandemic has decimated the demand for leisure travel as people stay indoors to prevent getting infected with the virus. Government regulation has also prevented people from traveling to and from Hawaii. These impacts from the COVID-19 pandemic have hurt the company and might continue to do so in the short to mid-term. This has also hurt investors in the company.
- Hawaii is one of the United States which has one of the strictest COVID-19 rules and regulations in the nation. Hawaiian Airlines has had shut down a lot of its operations due to these rules. Passengers need to get tested or face a 14-day quarantine when visiting Hawaii. This has hurt the company and has also hurt investors in the company.
In my opinion, I think that there are better airline stocks to buy like Delta and Southwest. This is due to tough competition, impacts from the COVID-19 pandemic, and the lack of recovery. However, strong exposure to leisure and cargo travel, its ability to distribute a COVID-19 vaccine, and COVID-19 vaccine optimism can continue to drive the stock higher.