Benefiting from its recent cost-cutting efforts, Aloha Airlines Inc. posted a $2.5 million operating profit in May.

Aloha, which filed for bankruptcy reorganization in December, reversed a $3.8 million operating loss in April and lowered its year-to-date losses to $4.7 million from $7.2 million in April, according to a bankruptcy court filing made public yesterday.

The May results came on revenues of $38.5 million, which was up $3.5 million from April's $35 million.

"These numbers indicate that Aloha's reorganization plan is on course," said company spokes-man Stu Glauberman.

In its latest filing, Aloha said its overall expenses dropped to about $36 million in May from the previous month's $38.8 million.

The privately held airline said its monthly fuel costs dropped to about $9 million from April's $9.4 million while its salary expenses for management and rank-and-file employees fell to $5.6 million from about $8.4 million in the previous month.

The lower payroll figures include a recent 20 percent cut in executive salaries and wage concessions from its unionized employees.

One union, the pilots, said it agreed to concessions of up to $12 million over the next two years. Those cuts were on top of another $12 million in concession that the union granted from 2003 to 2005.

Meanwhile, the annual pay for top executives dropped to a range of $123,000 to $202,500 from a range of $151,000 to $250,000.

According to its filing in bankruptcy court, Aloha's reorganization costs swelled last month. Aloha's 30 law firms, accountants and consulting firms have charged the airline about $3.3 million in May, which was up from $2 million in April. The reorganization costs are not included in the monthly profit-loss statement.

Since filing for bankruptcy, the airline has paid nearly $6.3 million in attorney and professional fees, including $1.1 million to its top bankruptcy law firm, Florida-based Berger Singerman.

The May turnaround comes at a critical period for Aloha, the state's second-largest airline with more than 3,600 employees and annual revenues of about $400 million.

The airline, which obtained $65 million in debtor-in-possession financing in March to cover daily operations and pay down debt, is seeking permanent financing or an equity investment that would allow it to emerge from bankruptcy protection.