Second quarter unkind to Hawaiian Airlines
By Frank Cho
Advertiser Staff Writer
Hawaiian Airlines, the state's oldest and largest carrier, yesterday said second-quarter operating profits fell nearly 83 percent as consumers cut back on travel and new employee contracts increased labor costs.
Advertiser library photo • March 16, 2001
The Honolulu-based airline, which is switching to newer, more fuel-efficient airplanes, reported a profit from operations of $1.3 million, down from $7.5 million in the same year-earlier quarter.
Hawaiian Airlines is in the midst of replacing its aging fleet of 15 DC-9 aircraft with more fuel-efficient Boeing 717-200s. The airline has replaced seven of the aircraft and will receive six more by the end of the year.
When one-time expenses are excluded, Hawaiian said net income fell to $3 million, or 9 cents a share, down from $4.6 million, or 11 cents, in the same period a year ago.
"While other carriers have felt the effects of a steep decline in business travel, leisure travel to Hawai'i has been affected less severely," said Paul Casey, the airline's vice chairman and chief executive officer.
The carrier blamed the loss on aircraft rents, which increased 71 percent, and employee wages and benefit costs, which jumped 21 percent during the quarter.
Total operating revenues during the quarter rose 1 percent to $156 million, compared with $154.6 million in the same quarter last year. Total operating expenses rose 5.3 percent to $154.8 million, up from $147 million a year ago.
Casey said the company saved $7.7 million in aircraft maintenance expenses, related primarily to the retirement of its DC-9 aircraft.
For the first half of 2001, Hawaiian's net income rose 60 percent to $3.2 million, up from $2 million a year ago.
The airline is replacing its 15 DC-9 aircraft with Boeing 717-200s. The company has replaced seven so far and will receive another six by the end of the year.
Reach Frank Cho at fcho@honoluluadvertiser.com or 525-8088.
