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Hawaiian Holdings: Weak Q4 Driven By Fuel Hedging Losses Sends Stock Tumbling, But Creates Opportunity

Hawaiian Holdings (NASDAQ:HA), the holding company for Hawaiian Airlines, operates its domestic and international flight out of Honolulu International Airport and Kahului Airport in the 50th state and has performed well in recent quarters. Hawaiian Holdings was one of the airline industry's best performing stocks in 2014, rising by 174% in 2014. However, on Thursday afternoon the firm announced disappointing Q4 2014 financial results that sent its shares tumbling by 27% in Friday's trading session. The company's Q4 results were hampered by a nearly $35 million loss in Q4 on fuel derivative contracts as spot fuel prices tumbled in the quarter. While this non-operating loss has a large impact on the firm's bottom line, operating profit rose in Q4 and for the full year by 128.5% and 83.3%, respectively. The airline industry has gone through a particularly strong period recently on fuel price weakness that has decreased operating costs for players that have operated with little hedging. Historically, the airline industry has faced numerous troubles surrounding profitability due to the various and significant factors that affect their businesses that are out of individual firm's control. Nevertheless, Hawaiian Holdings has posted strong operational growth and with the tailwind of lower fuel prices, the firm should be able to continue to post strong results as existing hedges are matured and new lower prices are…