Hawaiian Holdings Inc. sheds big chunk of its losses | The Honolulu Advertiser

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Hawaiian Holdings Inc. sheds big chunk of its losses | The Honolulu Advertiser | Hawaii's Newspaper

Posted on: Tuesday, July 31, 2007

Hawaiian Holdings Inc. sheds big chunk of its losses

Advertiser Staff

The parent of Hawaiian Airlines narrowed its losses during the second quarter of 2007 to $3.9 million from the year-earlier's $26.4 million.

THE NUMBERS

Revenue: $244.2 million, up 8.8 percent from a year ago.

Net loss: $3.9 million vs. loss of $26.4 million a year ago.

Loss per share: 8 cents per share vs. loss of 56 cents per share a year ago.

Year-to-date revenue: $459.4 million, up 5.9 percent from a year ago.

Year-to-date loss: $15.8 million vs. loss of $38.7 million a year ago.

REASONS

Competitors on the airline's West Coast-to-Hawai'i routes have increased capacity while the interisland market "remains awash with discounts" since the June 2006 entry of go!, the company said.

Fuel costs rose 15.1 percent to $68.2 million.

Comparisons are skewed by a $28 million, one-time charge that the company took during the second quarter of 2006 to redeem some of its debt.

WHAT THEY ARE SAYING

"Although revenue performance has firmed during the summer travel season, our financial results continue to reflect a turbulent competitive environment."

Mark Dunkerley
President and CEO

WHAT'S NEXT

With high fuel prices and low fares, analysts polled by Bloomberg News Service expect the company to lose 2 cents per share during the third quarter of 2007.

The company recently moved its call reservation operations to the Philippines. Customers have experienced long delays on customer service calls but Hawaiian said it is in the process of solving the problem. The outsourcing eventually will lead to significant cost savings.

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