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Hawaiian Airlines earnings sink 70.4%

By Dave Segal

LAST UPDATED: 01:30 p.m. HST, Jan 31, 2012

The earnings of Hawaiian Airlines’ parent plunged 70.4 percent in the fourth quarter as rising fuel costs continued to eat into profits.

Hawaiian Holdings Inc. reported today net income of $20.9 million, or 40 cents a share, compared with $70.6 million, or $1.36 a share, a year ago, when the company had $56.9 million in nonrecurring tax benefits.

Revenue jumped 26.2 percent to $434 million from $343.8 million.

Fuel costs jumped 47.8 percent to $132.5 million from $89.7 million.

Adjusted for economic fuel expense and non-recurring tax benefits, the company had net income of $16.3 million, or 31 cents a share, compared with $11.3 million, or 21 cents a share, a year ago

“We are pleased with the fourth-quarter results, which continue the trend of improvement that began midyear,” Hawaiian President and CEO Mark Dunkerley said. “Good cost control and fare increases enabled us to offset the 35 percent increase in the price of fuel. It is particularly noteworthy that these results were posted during a period in which our operations grew rapidly.”

For the year, Hawaiian lost $2.6 million, or 5 cents a share, compared with a profit of $110.3 million, or $2.10 a share, in 2010. The loss includes a pretax lease termination charge of $70 million taken in the second quarter tied to the purchase of 15 Boeing 717-200 interisland aircraft that Hawaiian had been leasing.

Revenue, though, rose 26 percent to $1.7 billion from $1.3 billion.

Fuel costs for the year increased 58.9 percent $513.3 million from $323 million.

Hawaiian’s stock closed up 14 cents to $6.96 today on the Nasdaq Stock Market to bring its gain for the year to 20 percent. The earnings were announced after the market closed.

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1local wrote:
sell more make less - soon Chapter 11 will follow. The CEO has done all he can to get his bonus and will soon be cashing in and leaving someone holding the debt load...
on January 31,2012 | 11:31AM
butinski wrote:
HAL is expanding too fast in a short period of time. It should stick to what they do best - selected Pacific and West Coast routes plus local destinations.
on January 31,2012 | 12:27PM
syhud wrote:
Agreed! They're getting to big for their britches.
on January 31,2012 | 06:14PM
pacific_travler wrote:
HAL is following Aloha Airlines with expansion. I agree they are moving too fast for the good of the company and loyal customers. Keep it up and the Aloha spirit on airlines will disappear forever.
on January 31,2012 | 01:28PM
frontman wrote:
Use some of the $150 change fee and the baggage fee to offset your loes..........NO ONE feels sorry for you, NO ONE.
on January 31,2012 | 01:50PM
shshimizu wrote:
Don/'t be suprised when they increase baggage fees, and end meal service on their mainland flights.
on January 31,2012 | 01:54PM
steveoctober wrote:
Great, watch those interisland fares jump again while the mainland fares stay the same or go even cheaper to justify having a plane load of passengers.! Way to go to screw your local loyal customers.
on January 31,2012 | 05:22PM
UHFAN1984 wrote:
on January 31,2012 | 06:42PM
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