Aloha Air
loses $4.4 million despite
higher revenues

Expansion costs cut into earnings

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Star-Bulletin

Higher revenues but continued losses marked Aloha Airlines' first quarter as the cost of expanding and marketing mainland-Hawaii services cut into its performance.

Aloha had a loss of $4.4 million in the three months through March 31, 42.9 percent higher than its loss of $3.1 million in the first quarter of 2000, according to the airline's latest disclosure to the U.S. Department of Transportation.

First-quarter revenues of $70.9 million were up 9.1 percent from $65 million in the year-ago quarter, but operating expenses rose 11.5 percent to $77.5 million in the latest quarter, from a year-earlier $69.5 million.

Included in the operating expenses were fuel costs of $11.2 million in the latest period, up 7.7 percent from $10.4 million in the 2000 quarter.

New costs this year included preparing for the launch earlier this month of the airline's new service between Honolulu and John Wayne Airport in Orange County, near Disneyland. Losses in 2000 were due to starting up Honolulu-Oakland flights.

Aloha's federal filings do not include the results of Island Air, which flies between Honolulu and Hawaii's smaller airports.