STAR-BULLETIN FILE Hawaiian net Hawaiian Holdings Inc., the parent company of Hawaiian Airlines, had a third-quarter net profit of $6.4 million, or 23 cents a share, a drop of 43.4 percent from the year-earlier quarter net of $11.3 million, or 33 cents a share.
income down 43%
More job cuts at the
airline could be comingStar-Bulletin staff
Operating revenues were up 4.5 percent at $179.2 million for the quarter ending Sept. 30, compared to $171.5 million in the year-earlier quarter. Operating expenses rose 13.5 percent year-over-year to reach $172.9 million in the latest quarter, compared to $152.3 million in the third quarter of 2001.
However, the 2001 quarter's expenses were reduced by $8.5 million because of a federal grant under emergency airline stabilization legislation that followed the Sept. 11 hijackings. If that was not counted, Hawaiian's third-quarter operating expenses would be up by 7.5 percent.
Hawaiian had an operating profit of $6.4 million in the latest quarter, about one-third of the operating profit of $19.2 million in the third quarter of 2001.
John W. Adams, the airline's chairman, chief executive officer and president, said the third quarter of the year is the airline's busiest time and a profit was expected.
"However, we continue to face serious revenue challenges as a result of sluggish travel demand," he said. "We expect the resulting weak yield and revenue environment that has prevailed throughout 2002 to continue in the current quarter and result in losses for the fourth quarter and full year of 2002," Adams said.
At the end of October, Hawaiian announced plans to reduce its work force over the next few months by about 150 employees, or 4 percent of its total employment of 3,538. The company said it also got about 60 flight attendants to agree to take unpaid leave. Hawaiian also put part-time workers on reduced work schedules and opted to leave some vacant positions unfilled.
Adams said yesterday that the airline needs to have "increased productivity or additional staff reductions."
After a stockholder vote Aug. 23, the airline shifted to a holding company structure and changed the corporate name to Hawaiian Holdings Inc. with Hawaiian Airlines Inc. as a subsidiary. At that time, the company shifted its corporate registration to Delaware from Hawaii.
