Fitch ups Hawaiian Airlines

Fitch Ratings said it upgraded Hawaiian Airlines, Inc. and its parent company, Hawaiian Holdings, Inc., to BB- from B+.

The outlook is stable.

The agency affirmed Hawaiian’s 2013-1 class A certificates at A- and upgraded its 2013-1 class B certificates to BBB- from BB+.

Fitch said the upgrade is supported by continued solid financial performance since its last review.

“Hawaiian produced healthy revenue growth and solid operating margins in 2017 despite absorbing higher labor costs and increased jet fuel prices. As a result, total adjusted debt/EBITDAR sits at 2.8x as of March 31, 2018, down from the mid-5x range as recently as 2013,” the agency said in a news release.

“Fitch expects Hawaiian’s credit metrics to deteriorate moderately in 2018 due to higher fuel costs and increased competition but to remain supportive of the BB- rating.”

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