HONOLULU –- Hawaiian Airlines reported an operating loss in February of $435,000 on revenue of $56.8 million. In February 2004, by comparison, the airline reported an operating profit of $1.9 million on revenue of $54.3 million.
Joshua Gotbaum, Hawaiian's Trustee, noted, “In February we increased revenue by $2.5 million over last year only to see our earnings decrease by nearly the same amount. It shows how tough competition is becoming. Nonetheless, Hawaiian is more than up to the challenge.”
February marked the seventh consecutive month in which Hawaiian's earnings dropped year-over-year, despite increasing revenue in six of those months (December 2004 the only exception). From August 2004 through February 2005, Hawaiian generated an unaudited operating profit of $21.5 million ($15.0 million in August alone) on revenue of $437.4 million, compared to an operating profit of $54.9 million on revenue of $420.9 million for the same seven-month period the year prior.
In February 2005, Hawaiian increased overall revenue by 4.7 percent and improved its total labor costs by nearly two percent, which was not enough to offset a 9.4 percent increase in overall expenses to $57.2 million. Not surprisingly, the single biggest factor was higher fuel costs, which increased by 36.2 percent, or $3.1 million.
Fuel's effect on Hawaiian's profitability was also reflected as Revenue Per Available Seat Mile (RASM) in February improved by 1.4 percent, while Cost Per Available Seat Mile (CASM) increased by nearly six percent year-over-year. However, when fuel expenses are excluded, CASM increased by less than one percent.
Hawaiian reported a net loss of $1.9 million in February 2005. In contrast, the airline recorded net income of $596,000 for February of last year.
The monthly financial reporting is required as part of Hawaiian's Chapter 11 status. The complete financial report for February is available online at HawaiianAirlines.com.
About Hawaiian Airlines
Hawaiian Airlines, the nation's number one on-time carrier, is recognized as one of the best airlines in America. Readers of two prominent national travel magazines, Condé Nast Traveler and Travel + Leisure, have both rated Hawaiian as the top domestic airline serving Hawaii in their most recent rankings, and the fifth best domestic airline overall.
Celebrating its 76th year of continuous service, Hawaiian is Hawaii's biggest and longest-serving airline, and the second largest provider of passenger air service between Hawaii and the U.S. mainland. Hawaiian offers nonstop service to Hawaii from more U.S. gateway cities than any other airline. Hawaiian also provides approximately 100 daily jet flights among the Hawaiian Islands, as well as service to Australia, American Samoa and Tahiti.
Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (AMEX and PCX: HA). Since the appointment of a bankruptcy trustee in May 2003, Hawaiian Holdings has had no responsibility for the management of Hawaiian Airlines and has had limited access to information concerning the airline. Additional information is available at www.HawaiianAir.com.