Hawaiian reaps 14
consecutive months
of operating profits
Hawaiian Airlines, heading into the home stretch of its Chapter 11 reorganization, chalked up its 14th straight month of operating profits in May despite a 42.9 percent rise in fuel costs.
The company's operating income fell 87.2 percent to $2 million from $15.9 million a year ago because of a one-time $17.5 million federal credit that the airline received in May 2003. Excluding the credit, Hawaiian would have had an operating loss of $1.6 million in the year-ago period.
Hawaiian received the $17.5 million as part of $2.3 billion distributed under the Emergency Wartime Supplemental Appropriations Act. The act compensated carriers for the suspension of passenger security fees from June 1 through Sept. 30, 2002, and costs associated with installing strengthened flight deck doors and locks.
PROFITABLE MONTH Hawaiian Air posted its May financials:
» Operating income: $2 million
» Revenue: up 17.7% to $59.4 million
Hawaiian's revenues rose 17.7 percent last month to $59.4 million from $50.4 million due to flights that were 85 percent full compared with 75 percent a year ago.
Fuel costs climbed to $10.4 million from $7.3 million a year ago. The higher fuel prices pushed operating expenses up 10.1 percent to $57.3 million from $52 million, excluding the $17.5 million federal payment.
"Like the rest of the industry, Hawaiian Airlines is facing soaring fuel costs," Hawaiian Airlines trustee Joshua Gotbaum said. "Despite this, Hawaiian was able to turn a profit in May, which is a real credit to our management and employees."
Net income, which included $1.2 million in expenses for reorganization items, was $157,000 compared with $12.8 million a year ago. However, Hawaiian would have had a net loss of $4.7 million a year ago without the federal credit.
The airline's unrestricted cash was $117.4 million at the end of May compared with $104.5 million at the beginning of the month and $87.7 million at the start of the year.
Hawaiian, which has been in bankruptcy since March 21, 2003, will take a step closer next month to emerging from court protection when prospective investors file their reorganization plans by the July 29 deadline.