Hawaiian Airlines generated more revenue and carried more passengers than any first quarter ever for the company despite competitors bringing more air seats to the islands.

The parent company of the state’s largest carrier, Hawaiian Holdings Inc., reported today that revenue rose 9.8 percent to $665.4 million while the number of passengers flown rose 6.9 percent to 2.9 million.

Hawaiian’s net income, however, fell 15.2 percent to $28.5 million, or 56 cents a share, from $33.6 million, or 62 cents a share, primarily due to a $35.3 million contract terminations expense involving the purchase of three previously leased Boeing 767 aircraft, as well as the cancellation of an order for six Airbus A330-800neo aircraft and the purchase rights for an additional six A330-800s.

In the year-earlier quarter, Hawaiian took an $18.7 million charge associated with 401(k) and vacation components of a new pilots contract.