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The Honolulu Advertiser

Posted at 11:42 a.m., Tuesday, August 27, 2002

Aloha Airlines reports $6.8 million loss

By Andrew Gomes
and Kelly Yamanouchi
Advertiser Staff Writers

Aloha Airlines posted a $6.8 million loss in the second quarter as it continues to feel the effects of sluggishness in air travel business.

The loss for the quarter ended June 30 compares with a $162,412 loss in the same quarter a year ago.

Airline spokesman Stu Glauberman said he could not immediately comment on the company's second-quarter financial report, released today by the federal Bureau of Transportation Statistics.

Despite the second-quarter loss, the report ­ the first look at the airline's finances this year since the breakup of its planned merger with Hawaiian Airlines earlier this year ­ shows that Hawai'i's second-largest airline has continued to improve its bottom line over the past nine months.

The loss was lower than the carrier's $12 million loss in last year's fourth quarter, and slightly better than its $7.1 million net loss during the first three months of this year.

For the second quarter, the airline had a $9.9 million loss from operations, on $78.8 million in revenues. Total operating expenses came to $88.8 million.

Aloha announced new daily nonstop service between Honolulu and Burbank, Calif., and between Honolulu and Vancouver in April. Both of the new routes started in June using new aircraft. The airline has said it plans to leave its flight schedule unchanged for the fall.

It is unclear how Aloha's schedule of roughly 850 weekly interisland flights would change under a plan by the airline to coordinate schedules and share passenger revenue, for a limited time, with competitor Hawaiian Airlines under a requested antitrust exemption.

The request is pending before the federal Department of Transportation.

Aloha and Hawaiian have said they have lost money on interisland service for several years. Earlier this year, both airlines told the Securities and Exchange Commission that they were losing as much as $270,000 a day after the Sept. 11 attacks.

In its report released today, Aloha reported having $18 million in cash on hand, down from $30 million at the end of last year. The airline has asked the federal government for a five-year, $45 million loan ­ $40.5 million of which would be guaranteed. That request is pending.

Earlier this month, Hawaiian Airlines' parent company reported a loss of $31.1 million for the second quarter, attributing some of it to the lingering effects on travel of the Sept. 11 terrorist attacks.