HONOLULU -- Hawaiian Airlines incurred more than $3 million in added fuel costs during May, limiting its earning power but not preventing the company from recording its 14th consecutive month of operating profits.
Hawaiian generated $2.0 million in operating profits on revenue of $59.4 million for May. This compares to operating profits of $15.9 million on revenue of $50.4 million in May 2003. However, last year's profits were the result of Hawaiian receiving a one-time special credit of $17.5 million from the federal government's Emergency Wartime Act.
Joshua Gotbaum, Trustee for Hawaiian Airlines, stated, “Like the rest of the industry, Hawaiian Airlines is facing soaring fuel costs. Despite this, Hawaiian was able to turn a profit in May, which is a real credit to our management and employees.”
Overall revenue increased year-over-year by nearly $9 million, or 18 percent, primarily due to a systemwide load factor of 85 percent, which was up 10 percentage points over May 2003. Excluding the special credit in 2003, operating expenses increased by $5.3 million year-over-year, most of which is attributed to increased fuel costs. Cost Per Available Seat Mile (CASM), when adjusted for high fuel costs and the special credit, increased by 4.4 percent.
Hawaiian's scheduled capacity in May, as measured by Available Seat Miles (ASMs), rose 2.8 percent, with Revenue Per Available Seat Mile (RASM) improving by 17.2 percent.
Hawaiian recorded net income of $157,000 in May, however, accounting for the special credit results in a year-over-year improvement of nearly $5 million.
Year To Date
Through May, Hawaiian had generated $26.5 million in operating profits on revenue of $306.9 million. Overall operating revenue increased by more than $45 million, or 17 percent, compared to last year.
Excluding the special credit in May 2003, overall operating expenses increased by $4.4 million in 2004, including nearly $9 million in additional fuel costs.
RASM increased by 17.7 percent, while CASM rose 8.8 percent. Adjusting for high fuel costs and the special credit, CASM actually decreased by 1.4 percent.
Through May 2004, the company recorded year-to-date net income of $10.8 million. This compares to a net loss of $20.9 million for the year prior, excluding the special credit.
Hawaiian's cash balance at the end of May was $198.6 million, comprised of $117.4 million in unrestricted cash and cash equivalents and $81.2 million in restricted cash, representing a $58.1 million increase since December 31, 2003.
The complete financial report is available at HawaiianAir.com.
About Hawaiian Airlines
Hawaiian Airlines, the nation's number one on-time carrier, is recognized as one of the best airlines in America. Business travelers recently surveyed byCondé Nast Traveler rated Hawaiian Airlines as having the best in-flight service and meals of any U.S. carrier. Hawaiian was recently ranked fourth best in the nation overall by Travel + Leisure.
Celebrating its 75th year of continuous service, Hawaiian Airlines is Hawaii's largest and longest-serving airline, and the second largest provider of passenger air service between Hawaii and the mainland U.S. Hawaiian offers nonstop service to Hawaii from more mainland U.S. gateways
than any other airline. Hawaiian also provides approximately 100 daily jet flights among the Hawaiian Islands, as well as service to Sydney, 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 on May 16, 2003, Hawaiian Holdings has had no involvement in the management of Hawaiian Airlines and has had limited access to information concerning the airline.
Additional information on Hawaiian Airlines is available at www.HawaiianAir.com.