Hawaiian Air pares loss
in fourth quarter
The carrier says it made
By Russ Lynch
'meaningful progress' despite
the tourism slump
Star-BulletinHawaiian Airlines Inc. cut its 1997 fourth-quarter net loss to one-third of what it was in the 1996 final quarter.
In what it called significantly improved financial results, Hawaiian yesterday reported a loss of $1.27 million for the three months ending Dec. 31, compared with a loss of $3.86 million in the 1996 quarter.
Some of the difference in the net was due to special items, such as early debt retirement that added income in the 1996 period. Without counting special items, the latest quarter showed a loss of $818,000, about one-fifth of the $4.3 million net loss in fourth quarter 1996.
From operations alone, the latest quarter brought a loss of $246,000, just a fraction of the operating loss of $6.1 million in the 1996 quarter.
Fourth-quarter revenues of $95.2 million were up 2.1 percent from revenues of $93.2 million in the year-earlier period.
Paul J. Casey, president and chief executive officer, said Hawaiian managed to trim its cost of one available seat-mile to 7.3 cents from 7.7 cents in the 1996 quarter, a 5.2 percent cut. (One seat mile equals one passenger traveling one mile.)
Casey said the cost decline was due to a combination of lower fuel prices, reduced maintenance expenses and the state's waiver of airport landing fees.
"Hawaiian made meaningful progress during the year, despite a tourism slump in Hawaii that worsened as the year went on and continued into 1998," he said.
For all of 1997, Hawaiian reported a net loss of $1.02 million on revenues of $404.2 million, compared with a net loss of $1.53 million on revenues of $384.5 million in 1996.
The airline had an operating profit for 1997, $2.5 million compared with $2 million for 1996.
Nonoperating items in 1997, such as expenses of $2.4 million for interest and $729,000 for disposing of equipment, cut into the net, the airline said.
Casey said the airline, which flies Hawaii-mainland and Hawaii-South Pacific routes in addition to its interisland business, has been refocusing on marketing and revenue development and introducing new technology to be more efficient.
