Hawaiian profit
run continuesThe bankrupt local carrier has
its best November ever due
to cost cutting, rising revenue
Hawaiian Airlines, capitalizing on a stronger-than-expected rebound in the airline industry, enjoyed its best November ever with its eighth straight profitable month.
CORRECTION
Wednesday, Dec. 24, 2003>> Hawaiian Airlines generated $57.4 million in revenue during November and the airline's year-to-date revenues were $635.6 million. The airline's year-to-date operating profit through November was $64.1 million, which includes the $17.5 million federal Emergency Wartime Act credit. The numbers were misrepresented in a story that ran on Page C1 Saturday.
The Honolulu Star-Bulletin strives to make its news report fair and accurate. If you have a question or comment about news coverage, call Editor Frank Bridgewater at 529-4791 or email him at fbridgewater@starbulletin.com.The carrier, which filed its monthly operating report yesterday with U.S. Bankruptcy Court, posted an operating profit of $4.2 million in November to boost its year-to-date net income to $57.4 million.
The net income for November contrasts with an operating loss of $2.4 million on revenues of $54.8 million last year.
Joshua Gotbaum, trustee for Hawaiian Airlines, said Hawaiian's performance during the past eight months has been crucial to re-establishing the company's financial stability and setting the stage for it to emerge successfully from bankruptcy.
"Increasing travel is important and the company is doing many things right," Gotbaum said. "However, in the airline business there are no guarantees and tomorrow is always another day."
The positive turnaround for November resulted primarily from a combination of cost reductions in two key areas, as well as revenue improvements resulting from passenger load factors.
In November, Hawaiian's revenue passenger miles increased 6.2 percent. A revenue passenger mile is one paying passenger carried one mile.
The airline's average load factor was 84.7 percent in November, a year-over-year increase of 13.4 percentage points. The load factor is the percentage of seats that are filled.
Aircraft maintenance expense decreased approximately 49 percent year-over-year as a direct result of the company's introduction of new B767-300 aircraft in its transpacific and South Pacific operations.
Hawaiian's distribution costs were 66 percent lower in November as a result of increased online and direct sales.
Hawaiian, which filed for Chapter 11 reorganization bankruptcy on March 21, had operating income last month of $64.1 million to boost its total to $635.6 million for the year.
This compares favorably with an operating loss of $46.2 million on revenues of $570.3 million for the same period in the year before.
