Posted on: Tuesday, September 23, 2003

Hawaiian posts profit of $20.3M in August

By Dan Nakaso
Advertiser Staff Writer

Hawaiian Airlines ended the busy summer travel season with its best month of the year, earning $20.3 million in net income.

For the first eight months of the year, Hawaiian generated $43.7 million, according to the monthly operating report the company files with the federal bankruptcy court. Hawaiian, the state's largest airline, filed for Chapter 11 bankruptcy protection in March.

The strong showing was Hawaiian's fourth consecutive profitable month and followed July's net income of $15.7 million.

Hawaiian had $22.4 million in operating income for August, bringing its eight-month total to $53 million.

The earnings generated strong reactions from the pilots' union, which is fighting Hawaiian trustee Josh Gotbaum's efforts to postpone payments to the pilots' pension fund.

Gotbaum did not make a $4.25 million payment to the pension fund that was due on Sept. 15 and now has until Oct. 24 to renegotiate an arrangement with the pilots or explain to the bankruptcy court why it can't make the payment.

Hawaiian "made more than $20 million in profits last month — more than the company expected — and yet claimed it didn't have enough funds to make a $4.25 million pension payment," Capt. Jim Giddings, chairman of the Hawaiian Pilots' Master Executive Council, said in a statement. "It's ridiculous and insulting."

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.