Hawaiian Airlines’ net income plunged 35 percent in the fourth quarter after taking a $12.7 million expense for losses on hedging contracts that protect against higher fuel prices.

The state’s largest carrier reported earnings Thursday of $11.1 million, or 17 cents a share, compared with $17.1 million, or 31 cents a share, in the year-earlier quarter. Since accounting rules require airlines to take as an expense the value of the fuel that is hedged going forward, those contracts had a large impact on Hawaiian’s net income. But excluding that noncash charge  and $2.3 million that was used to pay down aircraft debt and a portion of convertible notes, Hawaiian’s adjusted income more than doubled to $26.1 million from $12 million. 

Revenue rose 8.1 percent to $574.8 million from $531.9 million.

Hawaiian said its aircraft fuel expense, including taxes and delivery, fell 13.2 percent to $150.8 million from $173.8 million in the year-earlier quarter while its fuel costs per gallon declined 9.3 percent to $2.84 from $3.13.