Hawaiian Air’s
new planes add to
loss in quarter

The carrier posts higher
revenues but loses
$20.4 million

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By Russ Lynch
Star-Bulletin

Hawaiian Airlines Inc. posted a $20.4 million loss in the last quarter of 2000, equal to 59 cents a share and down from a loss of $34.2 million, or 83 cents a share, in the fourth quarter of 1999.

However, the company said operating revenues were up year-over-year, business was strong and the main reason for the loss was the cost of its fleet replacement program.

The report was issued after the stock markets closed and in trading through yesterday, before the report, Hawaiian's shares jumped more than 25 percent to close at $3.25, up 66 cents and the highest level since the end of 1998. The company said it had no explanation for the stock market activity.

Hawaiian said its fourth-quarter operating revenues were up 20 percent from the same quarter of 1999. The company reported $146.7 million for the latest reported three months, compared to $122.4 million in the fourth quarter of 1999.

The loss from operations was $17.9 million in the latest quarter, down from a loss of $52.6 million in the 1999 quarter.

Fourth-quarter 2000 operating expenses of $164.6 million included a $2.1 million charge for restructuring its McDonnell Douglas DC9 fleet as it geared up to introduce the new Boeing 717 in the interisland market. There was also a $7.6 million loss on assets in connection with the sale and leaseback of some DC10 aircraft Hawaiian uses on its longer hauls.

For the 1999 quarter, the company had a $47 million accounting charge related to the DC9 replacement.

The airline said that its fourth-quarter passenger revenue was up 15.7 percent over the year-earlier quarter, to $112.4 million.

For all of 2000, Hawaiian posted a net loss of $18.6 million, or 48 cents a share, down from a loss of $29.3 million, or 70 cents a share, in 1999. Full-year revenues last year were $475.5 million, up 18.8 percent from $400.3 million in 1999.