Coupled with the recent sale of Island Air, its commuter airline subsidiary, the latest numbers from the closely held company reflect the airline's efforts at repositioning itself to better compete against Hawaiian Airlines and rival national carriers.

The $11 million profit for the three months ended Sept. 30 compares favorably to earnings of less than $700,000 in the third quarter of 2002. It is the largest quarterly gain for the airline since its proposed merger with Hawaiian Airlines was called off in April 2002.

"We're very pleased with the third-quarter results, which reflected an improved revenue environment, including both our West Coast and interisland services," said Aloha chief executive Glenn Zander.

The gain came after many quarters of difficulty in the airline industry and at Aloha. Aloha posted a $12.9 million loss in the first quarter and a $6.3 million gain in the second quarter of this year. It also reported a $29.8 million loss in the fourth quarter of 2002 following losses in the first and second quarters and marginal profits in the third.

For the third quarter this year, the airline earned $12 million in operations, compared with $1.6 million in operating profit a year ago, according to figures released by the federal Bureau of Transportation Statistics.

Total operating revenue in the third quarter was $113.1 million while the airline's operating expenses came to $101.1 million. That compared with $90.1 million in operating revenue and $88.5 million in operating expenses in the same period last year.

Aloha, a private company, is not required to report earnings to the U.S. Securities and Exchange Commission but does file income statements with the bureau.

This month, Aloha announced lower interisland online fares after meeting with legislators concerned with the high cost of interisland travel and insufficient flights on some routes.

Aloha's parent, Aloha Airgroup Inc., also announced this month that it is selling its commuter airline subsidiary Island Air.

Zander said the company wanted to expand Island Air, but decided selling the airline could "position Island Air for growth in markets that can be better served by its fleet."