Hawaiian Airlines Posts Net Loss for Quarter

Hawaii's airlift scene has increased in leaps and bounds this year, but the skies aren't completely cloudless. Hawaiian Holdings, Inc., parent company of Hawaiian Airlines, Inc., has reported consolidated net loss for the three months ended June 30, 2011 of $50 million, or $0.99 per basic and diluted share, on total operating revenue of $395 million, including the impact of a non- recurring pre-tax lease termination expense of $70 million ($42 million after-tax) related to the purchase of 15 Boeing 717-200 aircraft previously operated under lease agreements. Excluding the lease termination charge, the Company reported an adjusted net loss of $8 million or $0.16 per basic and diluted share for the three months ended June 30, 2011, compared to net income of $9 million, or $0.17 per diluted share, on total operating revenue of $315.9 million for the three months ended June 30, 2010.

Reflecting economic fuel expense and excluding the impact of the lease termination costs, the Company reported an adjusted net income of $0.1 million, or $0.00 per basic and diluted share, compared to adjusted net income of $11 million, or $0.21 per diluted share, in the prior year period.

Mark Dunkerley, the Company’s president and chief executive officer, commented that, “In the second quarter we shared the industry’s frustration of seeing the benefits of strong demand undone by the high cost of fuel. The silver lining to these results is that demand of our US domestic services remains healthy and the recovery in bookings from Japan continues to impress having returned to pre-earthquake levels.”

“A couple of weeks ago we inaugurated daily service between Honolulu and Osaka, our third new international route in the past eight months. These new routes solidify our position as the leading business in Hawaii tourism. We are working to control costs to mitigate the impact of higher oil prices while seeking opportunities to raise revenues further as the second half unfolds,” Dunkerley concluded .

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