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The Honolulu Advertiser
Posted on: Saturday, September 10, 2005

Aloha profit doubles in July

By Rick Daysog
Advertiser Staff Writer

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Aloha Airlines' operating profits doubled in July, marking the third straight month of higher earnings.

Aloha, which filed for bankruptcy reorganization in December, said its operating profit for July increased to $6.9 million from June's $3.4 million.

The results came on revenues of $45.4 million, which was up from June's $40.4 million.

Year-to-date, the company posted an operating loss of $5.6 million.

David Banmiller, Aloha's chief executive officer, said that the results were "remarkable" given that the airline's fuel costs have risen by $16 million since last year.

The higher fuel costs offset $16 million in cost savings that the airline has implemented since last year.

As a result of the airline's efforts to cut costs and boost revenues, Banmiller said that a number of investment groups have continued expressed an interest in Aloha.

In its latest filing, Aloha said its overall costs totaled $38.4 million in July. Of that, fuel accounted for $9.8 million while payroll costs for its entire workforce was $8.4 million.

The company also paid nearly $1 million last month in legal and professional fees stemming from its reorganization efforts.

Aloha, the state's second largest airline with more than 3,600 employees, filed for bankruptcy in December after fuel costs surged last year.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.