HONOLULU, Aug. 14, 1996 -- Hawaiian Airlines, Inc. (ASE and PSE: HA) today reported an operating profit of $3.1 million and net profit of $1.5 million for the second quarter of 1996. The results are consistent with the expected results announced earlier by the company and compare favorably to the company's 1995 second quarter operating profit of $431,000 and net loss of $451,000.
The 1996 second quarter results represent Hawaiian's fifth consecutive quarter of operating profits and the strongest second quarter results in the company's history.
Operating revenues for the second quarter of 1996 were $96.0 million, an increase of 12.3 percent from $85.5 million in the second quarter of 1995. Operating expenses for the second quarter of 1996 were $92.9 million, an increase of 9.3 percent from $85.0 million in the second quarter of 1995.
For the six months ended June 30, 1996, the company recorded an operating profit of $3.5 million and a net profit of $956,000 on operating revenues of $190.1 million. This compares favorably to the company's operating loss of $7.0 million and net loss of $8.7 million for the first six months of 1995 on operating revenues of $161.0 million.
Net income for the second quarter of 1996 and the first six months of 1996 includes an extraordinary gain of $340,000 for the early retirement of approximately $4.5 million of debt. Operating results for the first six months of 1996 include one-time non-cash charges to pre-tax earnings of $964,000, which were incurred primarily in connection with the company's January 31, 1996 sale of 18.2 million shares of its common stock to Airline Investors Partnership, L.P.
Hawaiian Airlines, Inc. President and Chief Executive Officer Bruce R. Nobles said, "Next month, Hawaiian's improved performance will be matched by improved liquidity with the expected completion of our investor and rights offerings."
Yesterday, the company announced that, in connection with the company's shareholder rights offering and investor offering now in progress, it had entered into stock purchase agreements with certain investors pursuant to which the investors severally agreed, subject to certain conditions, to purchase newly issued shares of common stock from the company, thereby generating a minimum of $25 million in gross proceeds to the company.
In systemwide operations, Hawaiian Airlines carried 1.3 million revenue passengers during the second quarter of 1996, an increase of 4.9 percent from 1.2 million carried during the same period in 1995. Second quarter revenue passenger miles increased 9.2 percent, while available seat miles rose 11.3 percent over the year-ago period. Average systemwide load factor decreased 1.5 points to 77.0 percent.
For the first six months of 1996, Hawaiian carried 2.6 million revenue passengers systemwide, an increase of 8.3 percent from 2.4 million during the same period in 1995. Revenue passenger miles increased 16.6 percent from those recorded for the first six months of 1995, while available seat miles rose 16.8 percent. Average systemwide load factor decreased 0.2 point to 76.3 percent.
Hawaiian Airlines provides scheduled and charter air transportation of passengers, cargo and mail among the islands of Hawaii and between Hawaii and five West Coast gateway cities and two destinations in the South Pacific.