Hawaiian Air shows small profit
Advertiser Staff Writer
Hawaiian Airlines posted a small profit during the first quarter of this year, an improvement over last year's losses made possible by an accounting adjustment.
Hawaiian reported net income of $216,000, or 1 cent a share, for the quarter ended March 31, compared with a loss of $2.6 million, or 6 cents a share, during the same period last year.
The airline attributed the first-quarter gain largely to an accounting adjustment of $3.6 million that was previously recorded as part of a restructuring charge for the estimated impact of returning DC-9 leases. The airline began replacing its aging DC-9 fleet with factory-fresh Boeing 717 aircraft in March.
Without this adjustment, Hawaiian executives said in a statement, the company would have shown a net loss of $3.2 million, or 10 cents a share for the first quarter, $600,000 more than during the same period a year earlier.
Operating expenses were up 4.9 percent to $147.3 million, compared with $140.5 million in the year-earlier period. A 10 percent increase in charter operations, coupled with a less effective hedging program for fuel during the first quarter, contributed to the increased expenses.
Maintenance costs shrank $3.2 million, or 11.4 percent, over the same period last year as the airline began phasing out its maintenance-intensive DC-9 fleet.
Hawaiian has taken delivery of three 717s, two of which are in regular service. The third is used for training and as a spare, said Hawaiian spokesman Keoni Wagner.