The COVID-19 pandemic hurt Hawaiian Holdings (NASDAQ: HA) even more than the average U.S. airline. Most of its industry rivals were able to tap into pockets of domestic leisure demand to generate revenue beginning around Memorial Day. Hawaiian Airlines wasn’t so lucky: Strict quarantine requirements for visitors arriving in Hawaii sapped demand in the airline’s markets.
However, Hawaii began to reopen for tourism last October, enabling Hawaiian to start selling more tickets. While the near-term outlook remains bleak, Hawaiian Holdings could become one of the better-performing airlines as the air travel demand recovery accelerates over the next year or two.
Quarantine requirements kept a lid on Hawaiian Airlines’ business in the third quarter, which is traditionally the peak season. Revenue plunged 90% year over year to $76 million, and the company logged an adjusted net loss of $173 million ($3.76 per share).