Hawaiian Airlines, the state’s largest carrier, lost nearly $22 million of net income in the second quarter amid increasing competition, particularly from Southwest Airlines.

“We reported solid results in the context of an evolving competitive environment,” Peter Ingram, Hawaiian Airlines president and CEO, said during a Tuesday earnings call.

Ingram said although the carrier surpassed “(Wall) Street expectations,” results were “below where we were a few years ago.”

Still, “Hawaiian is built to compete and win,” he said.

Parent Hawaiian Holdings Inc. reported Tuesday that revenue dipped a scant 0.5% to nearly $712.2 million from the quarter’s $715.4 million a year ago. At the same time, the number of passengers flown dropped 2% to 2.96 million from 3.02 million in the second quarter of 2018.

Hawaiian’s net income fell 27% to $57.8 million, or $1.21 cents a share, from the year-earlier quarter’s $79.5 million, or $1.57 cents a share. When adjusted for nonrecurring costs, second-quarter 2019 earnings were $1.23 per share.

As of June 30 Hawaiian had $539 million in unrestricted cash, cash equivalents and short-term investments, but outstanding debt and finance lease obligations of $565 million.

Hawaiian beat Wall Street estimates this quarter. According to Zacks Investment Research, based on six analysts’ forecasts, the average earnings-per-share forecast for the quarter was $1.04. The consensus estimate of three analysts surveyed by Zacks forecast that revenues would drop to $707.52 million.

Hawaiian has returned $25.3 million to shareholders in the second quarter through share repurchases of $19.6 million and a dividend payment of $5.7 million.

The company’s board of directors has declared a quarterly cash dividend of 12 cents per share payable Aug. 30 to shareholders of record as of Aug. 16.

Hawaiian’s stock rose 25 cents, or 0.95%, to $26.69 during the regular trading session Tuesday but rose 31 cents, or nearly 1.2%, to $27 in after-hours trading following its release of the financial results.