Aloha, in a filing with the U.S. Transportation Department, reported a net loss of $18.8 million in the three months ended June 30. A year earlier the loss had been $2.81 million.

"It was really a rough quarter," said Stu Glauberman, spokesman for Aloha, the second-largest air carrier with headquarters in Honolulu.

"Fuel prices were way up and fares were down."

Aloha and Hawaiian Airlines, the largest airline based here, have faced pricing pressures since the June 2006 entry of go!, a low-cost interisland airline operated by Mesa Air Group of Arizona. The upstart operation has frequently offered $19 one-way promotional fares and a regular discount fare of $39 one-way that have been embraced by Hawai'i residents.

The offerings have pressed Aloha and Hawaiian to respond with their own discount fares. During the second quarter the parent company of Hawaiian Airlines reported a $3.94 million loss.

Hawaiian, in announcing its second quarter results on July 30, said it faced a "turbulent competitive environment" and that the interisland market was "awash with discounts."

The discount fares also weighed on Aloha's top line, which was $6.25 million lower than a year earlier at $96.3 million.

Founded in 1946, Aloha emerged from bankruptcy protection in February 2006 under new ownership led by California billionaire Ron Burkle's Yucaipa Cos. LLC.