ATW Daily News

Hawaiian enjoys 'remarkable' $116.7 million 2009 profit

Friday February 5, 2010

Hawaiian Airlines concluded what President and CEO Mark Dunkerley called a "remarkable" 2009 with a $116.7 million profit, a more-than-fourfold improvement from the $28.6 million surplus posted in 2008.

"With lower prices and the hard work of everyone. . .we overcame the effects of an economic recession and the attentions of a new entrant on our inter-island routes to post our company's best-ever results," Dunkerley said. "Much work needs to be done to ensure that our 2009 results become the norm throughout the business cycle. This will remain management's focus."

In October, Mesa Air Group subsidiary go! and Mokulele Airlines entered into a joint venture to collaborate on inter-island service (ATWOnline, Oct. 15, 2009).

HA's full-year revenue slipped 2.3% to $1.18 billion and expenses were cut 3.9% to $1.08 billion. Operating income rose 17% to $107.5 million from $91.9 million in 2008. The company realized $40 million in tax benefits last year that helped boost the bottom line, as well as a 73.4% reduction in nonoperating costs to $10.3 million related primarily to a reduction in fuel hedge expense. Nonoperating income of $2.3 million related to hedges compared to a $16.1 million loss on a similar basis in 2008.

The airline flew 8.15 billion RPMs last year, up 3.7%, against a 2.2% increase in capacity to 9.72 billion ASMs. Load factor rose 1.3 points to 83.9%. Operating RASM fell 4.4% to 12.18 cents while unit cost dropped 5.9% to 11.07 cents.

HA posted a $35 million profit in the fourth quarter, reversed from an $11.9 million deficit in the three months ended Dec. 31, 2008. Operating profit declined 57.7% year-over-year to $16.1 million on a 1.2% fall in revenue to $297 million.

by Brian Straus

Other headlines: