Hawaiian Airlines warns volcanic eruption hurt bookings; shares tumble

Key Points
  • Hawaiian Airlines trims its revenue estimate for the second quarter.
  • The airline says volcanic eruption are hurting bookings.
  • Hawaiian is also facing higher fuel costs.
Hawaiian Airlines plane
Louis Nastro | Reuters

Shares of Hawaiian Airlines' parent company tumbled Tuesday after the airline warned a volcanic eruption in Hawaii has dented bookings and revenue in the second quarter.

A powerful eruption at Hawaii's Kilauea volcano started early last month, forcing evacuations of nearby residents. Hundreds of homes have been destroyed.

Late Monday, Hawaiian warned second-quarter revenue for each seat it flies a mile, a key industry metric, will come in 0.5 percent lower to 1.5 percent higher than it did a year ago. The airline previously estimated revenue would be flat to up as much as 3 percent.

Hawaiian Holdings shares were down nearly 5 percent in early afternoon trading Tuesday, more than the carrier's peers.

The airline also said it is facing higher-than-expected fuel costs, an issue that has hit the airline industry broadly.

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