sets records

The bankrupt airline reported
its best operating results for
March and its first quarter

Looking up

Hawaiian Airlines reported a solid first quarter

First quarter revenue: $183M
Operating profit: $17.4M
Net income: $8.2M

Source: Hawaiian Airlines

Hawaiian Airlines' trip through reorganization bankruptcy reached another milestone yesterday when the carrier reported its best operating results ever for both the month of March and for the first quarter of the year.

The company posted its 12th consecutive month of operating profits with operating income of $9.5 million on revenue of $66.5 million. A year earlier, Hawaiian had a net operating loss of $774,000 on revenue of $56.2 million.

Hawaiian has posted operating profits every month since filing for bankruptcy on March 21, 2003.

"At a time when many airlines continue to struggle and report loss after loss, Hawaiian is thriving," Hawaiian Airlines trustee Joshua Gotbaum said. "But we are not resting on our laurels. With the launch next month of our Australia route, Hawaiian will bring its unique service to even more travelers."

Hawaiian's net income last month was $4.3 million compared with a net loss of $2.7 million a year earlier.

In the first quarter, Hawaiian swung to an operating profit of $17.4 million from an operating loss of $13.5 million a year ago. Revenue in the quarter rose 16.5 percent to $183 million from $157.1 million.

Net income in the quarter was $8.2 million compared with a net loss of $15.4 million a year ago.

"In the past, the first quarter was a tough time for Hawaiian," Gotbaum said. "There were fewer travelers and fewer profits. It was at the end of the first quarter last year that the airline had to file for bankruptcy. Now the first quarter is a chance to show how far Hawaiian has come."

Hawaiian said its 18.3 percent increase in revenue last month came from the airline's continued ability to attract customers and meet strengthening consumer demand for travel.

Hawaiian's available seat miles increased by 3.8 percent last month from a year ago and revenue per available seat mile jumped by 14.1 percent. Hawaiian said its cost per available seat mile declined by 3.5 percent.

The airline said its operating expenses in March remained constant at $57 million compared with a year ago despite a $600,000 increase in fuel costs. For the quarter, Hawaiian said operating expenses improved by $5 million as costs for maintenance decreased by $4.1 million and aircraft rent expenses fell by $2.9 million. Fuel expense rose $2.5 million in the quarter.

Hawaiian said scheduled passenger revenue improved by $30.7 million in the quarter to offset a $9.9 million decline in charter revenue.

"It's been a tremendous start to 2004 and we're confident of even brighter days ahead," Gotbaum said.

Other financial figures, such as the airline's latest unrestricted cash total, were unavailable.


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