Hawaiian Airlines Has a Way to Avoid the 'Brexit' Impact - Don't Fly to the U.K.

For the second straight day, shares of U.S. airlines registered steep declines as a result of Great Britain's vote last week to leave the European Union. But there was one significant exception.

Shares in Hawaiian Airlines (HA) rose $1.22, or 3%, to close Monday at $36.84. The stock has risen 4% year to date.

Credit Hawaiian for totally avoiding any impact from "Brexit," which is a result of not having a single route to Great Britain or the European Union.

Meanwhile, shares in American (AAL) closed at $25.27, down $1.78 on Monday, down 17% since Thursday's close, and down 40% year to date. American has 5.3% of its capacity in the U.K.

Delta (DAL) shares closed at $33.36, down $1.82 on Monday, down 13% since Thursday's close and down 34% year to date. Delta has 2.8% of its capacity in the U.K., or 6.7% if given credit for half of partner Virgin Atlantic's capacity.

United shares closed at $37.75, down $3.31 on Monday, down 16% since Thursday's close and down 34% year to date. United has 5.4% of its capacity in the U.K.

The recognition of Hawaiian's Brexit immunity and the rise of its shares was triggered by an upgrade from Deutsche Bank analyst Mike Linenberg.

In a report issued Monday, Linenberg upgraded Hawaiian to buy from hold. Linenberg, who has a price target of $41, listed a half dozen reasons for the upgrade.

No. 6: "Exogenous risks such as Brexit and/or Zika likely to have no impact on travel to/from Hawaii."

Additionally, Linenberg said, Hawaii-U.S. capacity is likely to decline for the remainder of the year, the yen is rising, and 13% to 15% of Hawaiian tickets are bought in Japan. The analyst also said international fuel surcharges have reached a low point, Hawaiian has fuel hedges in place that will protect it from fuel cost increases, and free cash flow should be close to $440 million, the same as in 2015.

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