Posted on: Saturday, November 20, 2004

Hawaiian posts loss for October

By Dan Nakaso
Advertiser Staff Writer

Hawaiian Airlines saw its second consecutive month of operating losses in October after 17 straight months of profit, according to the airline's monthly filing with the U.S. Bankruptcy Court.

Hawaiian had a $169,000 operating loss on $58.7 million revenue for October.

Compared with October 2003, Hawaiian officials said they experienced a $5.1 million increase in fuel costs, $1.8 million bump in maintenance and additional $1.7 million labor costs.

Aircraft fuel, including taxes and oil, accounted for $12.7 million in operating expenses, according to Hawaiian's unaudited statement of operations.

Hawaiian officials blamed September's $2 million operating loss in part on increased fuel, aircraft maintenance and labor costs.

Hawaiian saw some positive signs in October, such as an 88.4 percent systemwide load factor. Capacity, measured by available seat miles, also was up 1.2 percentage points compared with October 2003.

Revenue per available seat mile also increased 3 percent but was offset by a 7 percent gain in cost per available seat mile.

"Operationally, Hawaiian's employees continue to excel," said Josh Gotbaum, Hawaiian's bankruptcy trustee. "... Our results for October in key areas like revenue and load factor were better than ever. Unfortunately, our costs are rising, too. If we don't control our costs, profitability will continue to suffer."

Airline officials are negotiating with union leaders on additional labor cost savings as a condition to emerging from bankruptcy protection early next year.

Year to date through October, Hawaiian had $66.8 million on revenue of $639.2 million.

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