The parent of Hawaiian Airlines reported earnings of $54.3 million during a tumultuous second quarter that saw the collapse of Aloha Airlines, higher airfares and settlement of the company's legal battle with Mesa Air Group.

Hawaiian Holdings Inc. said yesterday that it netted $1.09 per share during the three months ending June 30, 2008, which compares with a net loss of 8 cents per share, or a $3.9 million loss, during the year-earlier quarter.

Hawaiian announced its results after the close of the stock market yesterday. Shares of Hawaiian dropped $1.28, or 13.8 percent, to $8.11 on the Nasdaq stock market yesterday. But in after-hours trading, Hawaiian's shares rose 19 cents to $8.30.

"Our second-quarter results are the consequence of unprecedented changes in our business as well as the $52.5 million receipt of our settlement with Mesa," Hawaiian's CEO Mark Dunkerley said in a news release.

Excluding the Mesa settlement, Hawaiian said it would have earned $1.8 million, or 4 cents per share, during the second quarter. Hawaiian sued Mesa, alleging that the Phoenix-based company misappropriated confidential business records to launch interisland carrier go! in 2006.

Hawaiian said its operating revenues rose by $75 million, or 30.7 percent, during the second quarter to $319.2 million.

The company said the twin shutdowns of Aloha and ATA Airlines in April boosted Hawaiian's passenger counts by 21 percent as the carrier added flights on its interisland and trans-pacific routes.

The airline also raised its lowest interisland fares to $64 and increased prices on Mainland flights in wake of increased fuel prices.

But higher fuel prices and costs associated with the expanded service increased the company's operating expenses by 10.6 percent to $270.7 million from $244.8 million in the year-earlier quarter.

Hawaiian said it paid $123.4 million for fuel during the quarter, a $55.2 million, or 81 percent, increase from the year-earlier quarter. The company was able to recoup $8.3 million of those added costs through its fuel hedging activities.

The rising costs prompted Hawaiian yesterday to match a $15 fee charged by some of its Mainland competitors for passengers' first piece of checked baggage on all Mainland flights after Oct. 1. Interisland passengers will continue to be allowed to take their first checked bag free of charge.

Hawaiian already charges $25 for a second piece of checked luggage on Mainland flights and $17 for a second checked piece on interisland flights.

Hawaiian said it also will charge ticketing fees for all flights booked by phone and not online. Starting Sept. 1, customers booking by phone will be charged $10 for interisland flights and $20 for Mainland flights, the company said.