Posted on: Saturday, February 19, 2005

Hawaiian Airlines' profit down from 2004

By Dan Nakaso
Advertiser Staff Writer

Hawaiian Airlines generated $3.7 million in operating profit for January, a 38 percent decline from the same month a year earlier.

It was the second straight month of operating profits for Hawaiian following losses in September, October and November. Before then, Hawaiian had a string of 17 straight profitable months.

Hawaiian's $3.7 million in operating profit came on revenue of $62.9 billion. In January 2004, Hawaiian had $6 million in operating profit on revenue of $59.9 million.

Hawaiian cited a 31 percent jump in fuel costs as the largest factor for its drop in operating profits from the previous year. The result was net income of $588,000 for January, or an 82 percent drop from the $3.3 million in net income for January 2004.

In December, Hawaiian generated $6.2 million in operating profit on revenue of $66.5 million.

Hawaiian filed for Chapter 11 bankruptcy protection in March 2003.

The airline has negotiated new contracts with four of its six labor unions.

The International Association of Machinists District Lodge 142 was the latest to adopt a new contract, ratifying a three-year pact to cover 376 employees.

Still negotiating are flight attendants and pilots. Bankruptcy trustee Josh Gotbaum has said the company needs new contracts with all its unions to emerge from bankruptcy protection.

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