- HA 4 months later:
Analyst Joseph DeNardi of Stifel Financial Corp. downgraded HA to a “sell” rating with a 12-month target price of $40, down from a "hold" rating and a $60 price target.
This downgrade follows news that United Airlines (UAL) will be offering more flights to Hawaii. They will send more flights from Chicago, Denver, Los Angeles and San Francisco. United stated that this change will give it “the most flights between the mainland and the Hawaiian Islands than any other carrier.”
Besides increasing its services on 11 routes, United Airlines is also changing their service quality. The airline says lie-flat seats will be added to four routes, including Hawaii to Denver, as they try to compete with rival airlines who have already added such seats to overnight flights.
DeNardi cited this move by United Airlines for HA’s downgrade. He told investors in a research note that competitive capacity is “finally coming.” The analyst said that United’s announcement shifts Hawaiian’s competitive capacity outlook as United increases their capacity by 20% next year.
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