Posted on: Saturday, August 21, 2004

Hawaiian Air's profit at $10 million in July

By Dan Nakaso
Advertiser Staff Writer

Hawaiian Airlines said its revenue rose 14 percent in July, but rising fuel costs capped the gain in operating profits at 10 percent for the usually busy summer month.

Hawai'i's largest airline, which is trying to emerge from federal bankruptcy protection, saw fuel costs rise 50 percent above July 2003.

Revenue rose from $70.6 million in July 2003 to $80.7 million last month. But operating income increased only $1.7 million to $18.6 million, the company reported in its monthly filing to the bankruptcy court.

Hawaiian saw an additional $8.4 million in operating costs in July — $4 million from fuel and $2.4 million in wages and benefits.

"Travel to and within Hawai'i remains strong and Hawaiian continues to be the airline of choice, which is terrific because fuel and other costs are rising," said Joshua Gotbaum, the airline's bankruptcy trustee. "We will need to continue to provide the best in service and value, because travel declines and competition gets more intense in the fall."

Hawaiian reported net income of $10.1 million for July. That included an income tax expense of $7.2 million. In July 2003, Hawaiian had net income of $15.7 million, which did not include a tax expense.

Revenue per available seat-mile increased by 13 percent, while costs per available seat-mile increased by 14 percent.

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