Island Air’s turnaround continued in the third quarter, as it posted its smallest loss in three years.

The state’s second-largest carrier, whose majority interest was acquired by Honolulu venture capitalist Jeffrey Au and other investors in early February, narrowed its loss to $2.1 million in the July-September period, its second full quarter under the new owners, according to data released Monday by the U.S. Department of Transportation.

It was the 14th straight quarterly loss for the airline, but $3.7 million less than the $5.8 million loss incurred in the third quarter of 2015, when the airline was owned by billionaire Larry Ellison.

“The Island Air team is continuing to make major strides in improving our financial performance as we redefine our operation and implement our long-term plans for growth and expansion,” Island Air President and CEO David Uchiyama said in an email. “We appreciate that all of our customers are taking note and taking advantage of the alternative option we provide in interisland travel. Their confidence in Island Air is reflected in our latest quarterly financial results.”

Island Air’s quarterly loss was the lowest since Au and the other investors took over and the lowest since the company lost $1.9 million in the third quarter of 2013.

The airline lost $5.1 million in the second quarter of this year, and lost $4.3 million in the first quarter when the new owners were in a period of transition.

“This past quarter showed the major progress we have made in turning our operation and efforts in the marketplace, and we are optimistic this will positively impact our revenues in the new year and position us for continued growth,” Uchiyama said.

In the third quarter, Island Air’s revenue of $10.6 million was up 33 percent, or by $2.6 million, from the second quarter; and up 92 percent, or by $5.1 million, from the year-earlier quarter. The airline’s $12.6 million in third-quarter expenses was down 2 percent from the second quarter but up by 12 percent from the year- earlier period.

“The third quarter was bolstered by the fact that it was the first full quarter that Island Air has flown to all four of the major Hawaiian islands, following the start of service to Kona in mid-June and resumption of service to Lihue in March,” Uchiyama said.

Island Air, which offers 238 flights a week on its five 64-seat ATR 72 turboprop aircraft, had 6 percent of the interisland passenger market through August, according to the most recent data from the state Department of Transportation.

The airline has expanded its workforce to 368 from 256 in February at the time of the sale announcement.