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The Honolulu Advertiser

Posted on: Wednesday, July 21, 2004

Hawaiian Airlines' profit falls in June

By Dan Nakaso
Advertiser Staff Writer

Hawaiian Airlines' operating profit fell 17 percent in June as fuel costs rose 42 percent.

Josh Gotbaum

Hawaiian said it had $8.9 million in operating profit last month, compared with $10.7 million in June 2003. Hawaiian paid an average of 36 cents more per gallon for fuel in June, which added $3.3 million to its costs for the month.

"All things considered, June was a good month," said Josh Gotbaum, Hawaiian's bankruptcy trustee. "We had more customers and higher loads, but the high cost of fuel worries us."

Sales in June, the first month of the peak summer season, were up 11 percent at $70 million, compared with $63.1 million in June 2003. Net income in June was $4.7 million, compared with $9.6 million in June 2003. The drop in net income was mostly due to a $3.4 million income tax charge last month, the airline said.

Hawaiian said wage and benefit costs increased, including employee profit-sharing bonuses and additional management bonuses that were approved by the U.S. bankruptcy court last week.

For the first half of the year, the airline reported $35.4 million in operating profit on revenue of $376.9 million. For the first half of 2003, Hawaiian had $13.8 million in operating profit on revenue of $324.7 million. The 2003 figures included a one-time special credit of $17.5 million as part of the federal government's Emergency Wartime Act.

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