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Hawaiian Air earnings ease; operating revenue rises | The Honolulu Advertiser | Hawaii's Newspaper
Posted on: Thursday, November 2, 2006

Hawaiian Air earnings ease; operating revenue rises

Advertiser Staff

Hawaiian Holdings Inc., the parent of Hawaiian Airlines, reported earnings fell slightly and operating revenue rose in the three months ended Sept. 30 compared with the same period a year earlier. The airline faced greater competition with the entry of go! airlines this year.

THE NUMBERS

Operating revenue: $229.8 million, up 2.5 percent from a year ago

Net income: $7.76 million, down 1 percent from a year ago

Earnings per share: 16 cents, unchanged from a year ago

Operating expenses: $217.1 million, up 5.3 percent from a year ago

Total assets: $732.9 million, up 10 percent from a year ago

REASONS

  • The airline faced its first full quarter of competition from go! airlines, which brought new competition and discounting to the market.

  • High fuel prices have offset management's efforts to cut costs.

  • The first of four new Boeing 767 aircraft was put into service during the quarter.

    WHAT THEY ARE SAYING

    "Heavy promotional activity and discounting by our competitors have taken their toll but we are encouraged that, despite the intensity of this competition, Hawaiian had a profitable quarter. "

    Mark Dunkerley
    President and chief executive officer

    WHAT'S NEXT

  • Fuel prices began to decline at the end of September, turning in Hawaiian's favor.

  • Three new aircraft will be flying by year's end.

  • Hawaiian has purchased futures contracts for about 39 percent of its jet fuel requirements in the fourth quarter and 21 percent in the first quarter.

  • The company has about $162.5 million in unrestricted cash.
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