Hawaiian Airlines: Q4 profit, full year loss - Hawaii News Now - KGMB and KHNL

Hawaiian Airlines: Q4 profit, full year loss

By Howard Dicus - bio | email

HONOLULU (HawaiiNewsNow) - Hawaiian Airlines reports a profit for the fourth quarter - and a loss for the full year that turns into a profit if one dials out the cost of breaking aircraft leases to buy the affected planes outright.

Rapid expansion by Hawaii's hometown carrier led to 26 percent higher revenue for the quarter and for the year, while revenue per available seat mile, a good measure of revenue management and cost controls, was up almost 10 percent for the quarter and 8 percent for the year.

The fourth quarter profit was $21 million or $16 million depending on whether the fuel bill is counted with or without hedging. Revenue was $434 million.

For the full year, the company posted a small loss, under $3 million, which changes to a $43 million profit if economic fuel expenses are substituted and if the cost of breaking aircraft leases is dialed out. Revenue was $1.65 billion.

The company ended the year with more than $304 million in unrestricted cash and cash equivalents.

"Good cost control and fare increases enabled us to offset the 35 percent increase in the price of fuel," CEO Mark Dunkerley said in a statement. "It is particularl noteworthy that these results were posted during a period in which our operations grew rapidly."

Hawaiian Airlines capacity in the fourth quarter was 3.1 billion available seat miles, 17 percent more than a year earlier. Traffic almost kept up: load factor fell 1.6 percentage points, though it was still above 84 percent.

Fourth quarter fuel costs were 48 percent greater than a year earlier, accounting for a third of all operating expenses, but operating cost per available seat might was up only 6.5 percent, and without fuel costs it fell 1.3 percent.

Hawaiian in 2011 expanded service to Japan, Korea and Australia, added West Coast flights to Maui, increases interisland flight frequency (buying leased jets used in the service outright) and announced plans for June 2012 flights between Honolulu and New York JFK.

 

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