HONOLULU, May 4, 1999 -- Hawaiian Airlines, Inc. (AMEX and PCX: HA) today announced financial results for the first quarter ended March 31, 1999 that reflect continued substantial improvement in the company's financial performance.
For the first quarter of 1999, the company recorded an operating profit of $1.5 million, a $3.4 million improvement over the operating loss of $1.9 million reported in last year's first quarter. Net income for the first quarter also increased substantially to $780,000, or $0.02 per common share, compared to a 1998 first quarter net loss of $1.1 million, or $0.03 per common share.
Paul J. Casey, Hawaiian Airlines president and chief executive officer, said, "We are pleased with the Company's improved first quarter financial results. The improvement is attributable to a continuing growth in operating revenues and our favorable cost structure. We were able to achieve this growth by continuing our aggressive marketing programs and introducing additional capacity.
"The first quarter saw the beginning of our 1999 growth plan with a four percent increase in available seat miles. As the year progresses we will benefit from new revenue generators including our new Los Angeles-Maui-Kona route and a new charter contract with Renaissance Cruises for nonstop flights between Los Angeles and Tahiti. Together, the new services are expected to add nearly $65 million in annualized revenue and contribute to an overall increase in capacity of 20 percent in 1999. And as we look out on the year, we are encouraged by strong advance bookings for the second and third quarters," Casey said.
Total operating revenues in the 1999 first quarter increased by 9.7 percent to $110.0 million, as compared to $100.2 million in the first quarter of 1998. Operating expenses increased by 6.2 percent to $108.5 million, as compared to $102.2 million in the year-earlier period, a result of increased scheduled flying.
Total revenue per available seat mile (RASM) in the first quarter of 1999 increased 5.6 percent to 7.6+, reflecting an increased focus on generating revenue through a balanced management of available capacity and tactical pricing initiatives. System-wide yield during the first quarter of 1999 decreased 1.5 percent from the first quarter of 1998, due primarily to an increase in the share of long haul operations in the company's revenue mix.
Revenue passenger miles (RPMs) for system-wide operations increased to 1.1 billion RPMs, an 11.5 percent increase over 1998's first quarter. Total available seat miles (ASMs) rose 4.0 percent during the quarter to 1.5 billion ASMs.