Despite over a million onboard passengers in May, a record for the month, Hawaiian Airlines revised its guidance for second-quarter revenue downward, citing “a reduction in the pace of domestic bookings following an increase in volcanic activity on the Big Island of Hawaii.”

Lava flows, volcanic explosions and earthquakes continue to plague the region surrounding Hawaii’s Kīlauea volcano since fissures and lava first appeared following a magnitude 6.9 earthquake May 4. With its reported—but unspecified—decline in domestic bookings, Hawaiian revised its 2Q 2018 operating revenue per available seat mile (RASM) guidance downward, to between a 0.5% drop to a 1.5% gain. In its previous 2Q guidance, Hawaiian forecast 2Q RASM to be between flat and up 3%, compared to 2Q 2017. Such forward-looking statements include, without limitation, the Company's expectations regarding operating revenue per available seat mile, cost per available seat mile, cost per available seat mile excluding fuel and special items, gallons of jet fuel consumed, fuel cost per gallon, and economic fuel cost per gallon for the quarter ending June 30, 2018; and fuel cost per gallon and economic fuel cost per gallon for the year ending December 31, 2018 ; and statements as to other matters that do not relate strictly to historical facts or statements of assumptions underlying any of the foregoing. • lowered its expectations for operating revenue per available seat mile (RASM) primarily due to a reduction in the pace of domestic bookings following an increase in volcanic activity on the Big Island of Hawai'i;
• revised its expectations for operating cost per available seat mile (CASM) excluding fuel and special items associated primarily with two specific items: an unscheduled maintenance event for one of its A330-200 aircraft, and a one-time expense related to an interim agreement with one of its labor groups pertaining to the Company's intent to purchase Boeing 787-9 aircraft as announced on ;
• revised its expectations for gallons of jet fuel consumed; and
• revised its expectations for economic fuel cost per gallon. The Company also revised its expectations for economic fuel cost per gallon for the full year ending December 31, 2018, also previously provided on April 24, 2018, as noted in the table below. In May, Hawaiian’s total system traffic rose 5.6% YOY to 1.4 billion RPMs as capacity grew 6.5% to 1.7 billion ASMs, resulting in an 85.9% load factor for the month, down 0.8 point YOY.
Hawaiian Airlines warns that the eruption of Kīlauea may hurt bookings and trim revenues.