Aloha Airlines reports profits
By Kelly Yamanouchi
Advertiser Staff Writer
Aloha Airlines earned $693,616 in the third quarter, as it returned to profitability for the first time since its proposed merger with Hawaiian Airlines was called off.
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This is the first quarter of profitability since the breakup of Aloha's planned merger with the larger Hawaiian Airlines earlier this year. Aloha, the state's second-largest airline, posted a $12 million loss in last year's fourth quarter, a $7.1 million net loss during the first quarter of this year and a $6.8 million loss in the second quarter.
Aloha Airlines posted third-quarter profits, the company's first quarter of profitability since the proposed merger with Hawaiian Airlines failed earlier this year.
For the third quarter, the airline earned $1.6 million on operations, compared with a $1.25 million loss a year ago, according to figures released by the Bureau of Transportation Statistics.
Total operating revenue was $90.1 million, and the airline's operating expenses came to $88.5 million, including $34.4 million for salaries and benefits.
Aloha, a private company, is not required to report earnings to the SEC but does file income statements with the Bureau of Transportation Statistics.
Aloha has said it will reduce its interisland schedule by about 20 percent starting Dec. 2 under a plan to split capacity with Hawaiian Airlines on some routes.
Aloha recently was given a federal antitrust exemption to cooperate with Hawaiian on schedules. Both airlines have said they have lost money on interisland service.
To further reduce its costs, Aloha is asking its unions, representing some 3,000 employees, to take a 10 percent wage cut over the next three years.
The wage concessions, if agreed to by the unions, are expected to save the airline about $37 million over the three years.
Aloha said the pay cuts are part of its proposal for $40.5 million in loan guarantees that were given conditional approval by the Air Transportation Stabilization Board.
According to the report released yesterday, Aloha had $19.4 million in cash on hand, up from $18 million in the second quarter.
Reach Kelly Yamanouchi at 535-2470, or at kyamanouchi@honoluluadvertiser.com.
