Hawaiian Airlines sees gains in January

By Debbie Sokei
Advertiser Staff Writer

Bankrupt Hawaiian Airlines posted an operating profit for January, the airline reported yesterday.

Hawaiian Airlines had an operating profit of $6 million on revenues of $60.4 million for January, according to unaudited figures the company files monthly with the bankruptcy court. The airline's final results for January may vary depending on adjustments that may be necessary because of the 2003 year-end closing and audit process that is being conducted. The company expects to file its final audited financial results of 2003 by mid-March.

The January results represent an increase of $9.4 million compared with a loss of $3.4 million on revenues of $53.9 million at the same time last year.

Airline spokesman Keoni Wagner said operating improvements, including an $8.9 million increase in passenger revenues and a $2.3 million savings in aircraft maintenance expense, helped boost the profits. On a pre-tax basis, Hawaiian had a recorded income of $4.3 million, including nonoperating reorganization expenses of $1.8 million.

Mark Dunkerley, president and CEO of Hawaiian Airlines, credits company employees for the airline's performance.

"The turnaround Hawaiian has experienced over the past 10 months would not have been possible without our employees showing the pride and dedication to seeing the company succeed," Dunkerley said.

Hawaiian Airlines filed for Chapter 11 bankruptcy in March after John Adams, former CEO of the airline, could not renegotiate its aircraft leases with Boeing Capital Corp. Hawaiian is operating 11 717s and three 767s from Boeing under an extended lease.

Corporate Recovery Group LLC of Wilson, Wyo., filed a reorganization plan to take Hawaiian out of bankruptcy and invest $30 million into the company. Boeing and Bruce Nobles, former CEO of Hawaiian, back CRG's plan. Several more bids for Hawaiian Airlines are expected to be filed.

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