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Fuel costs add to first-quarter loss for Hawaiian Holdings | The Honolulu Advertiser | Hawaii's Newspaper
Posted on: Tuesday, May 9, 2006

Fuel costs add to first-quarter loss for Hawaiian Holdings

Advertiser Staff

Losses at Hawaiian Airlines' parent company sharply increased during the first quarter of 2006, despite an 11 percent rise in revenues.

THE NUMBERS

Net loss: $12.3 million, up 486.7 percent from year ago

Net loss per share: 27 cents, up 285.7 percent from year ago

Revenue: $210 million, up 11 percent from year ago

Passenger revenue: $189.6 million, up 11.7 percent from year ago

Expenses: $214.3 million, up 17.1 percent from a year ago

REASONS

  • Revenues and passenger traffic rose, but much of that was wiped out by higher fuel costs, which soared 48.6 percent during the first quarter of 2006 to $56.9 million.

  • Hawaiian, which emerged from bankruptcy protection in June 2005, refinanced $135 million of its debt in March under more attractive terms.

  • The airline said in February it is buying four Boeing 767-300 jets from Delta for $31.8 million.

    WHAT THEY ARE SAYING

    "The first quarter of 2006 was a difficult one for Hawaiian. While part of the challenge is attributable to this being a seasonally weaker period of the year ... intense competition and the rising price of fuel have undermined our financial performance as well."

    Mark Dunkerley
    CEO of Hawaiian Holdings Inc.

    WHAT'S NEXT

  • The airline recently announced plans to add 21 round-trip flights to the West Coast a week, expanding the number of Mainland flights to 116 a week. The airline also plans to recall 22 furloughed pilots and hire 100 new flight attendants for the new flights.

  • Hawaiian faces new competition in the interisland market from Mesa Air Group Inc., which will launch its new local carrier, go!, in June.
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