Hawaiian reports operating profit

By Debbie Sokei
Advertiser Staff Writer

The airline said that its operating profit for last month was $9.5 million on revenue of $66.5 million. That was a recovery from an operating loss of $774,000 in March 2003 on $56.2 million in revenue. Net income was $4.3 million, compared with a net loss of $2.7 million a year ago.

Josh Gotbaum, trustee for Hawaiian Airlines, said the carrier is thriving at a time when other airlines are continuing to struggle.

"In the past, the first quarter was a tough time for Hawaiian," said Gotbaum. "There were fewer travelers and fewer profits.

"Now the first quarter is a chance to show how far Hawaiian has come."

For the quarter, Hawaiian had an operating profit of $17.4 million on revenue of $183 million. That compares with an operating loss of $13.5 million in the first quarter of 2003 on revenue of $157.1 million.

The company said fuel expense increased by $2.5 million in the first quarter, but it cut operating expenses by $5 million, including a drop of $4.1 million in maintenance expense.

Hawaiian said its increase in revenue is a result of the airline's ability to attract customers and an increase in demand for travel to and within Hawai'i.

Hawaiian filed for Chapter 11 bankruptcy in March 2003.

The company is expected to emerge from bankruptcy in September after the court selects among several investor groups interested in acquiring the carrier.

Reach Debbie Sokei at dsokei@honoluluadvertiser.com or 525-8064.