Hawaiian Airlines announced significant third-quarter losses today, but said it had taken actions so that it could begin recovery in the fourth quarter following the start of Hawaii’s pre-travel testing regime.

During an investor earnings call today, executives from the carrier’s parent company, Hawaiian Holdings Inc., reported a third-quarter net loss of $97.1 million, or $2.11 a share. In comparison, at this time last year Hawaiian’s net income was about $80.1 million, or $1.70 cents a diluted share.

The carrier’s adjusted third-quarter net income was a net loss of $172.7 million, or $3.76 cents a share. When adjusted for nonrecurring costs, third-quarter 2019 earnings were $1.72 per diluted share.

Revenue fell to just over $75.9 million, a nearly 90% drop from the $755 million-plus that it realized in the third quarter of 2019.

Hawaiian reported a third-quarter daily cash burn of about $2.6 million.

Peter Ingram, Hawaiian Airlines president and CEO, said during an earnings call today that the COVID-19 pandemic and Hawaii’s travel quarantines continued to have a dramatic effect on third-quarter business.

Ingram said the carrier’s third-quarter focus was on reducing expenses, preserving cash, and bolstering its liquidity and care for its guests.

Despite the results, Ingram said the carrier was encouraged that with the start of a pre-arrivals testing program in Hawaii that “ we’ve reached an inflection point from surviving the crisis to beginning the recovery.”

The carrier said demand for trans-Pacific travel to Hawaii is building slowly since the start of a pre-arrivals testing program on Oct. 15, just 12 days ago. But it hasn’t seen a comparable boost for interisland travel given the cost of the test for a shorter trip.

New COVID-19 cleaning and social-distancing protocols also were adopted and have cut into profits and changed how the carrier does business. Hawaiian has pledged through at least December to limit the capacity of available seats on all aircraft to no higher than 70% to allow for greater physical distancing.

By Oct. 1, the company had reduced its workforce by approximately 2,400 employees, or more than 32% of all employees, of which almost 2,100 were through voluntary means.

Prior to COVID-19, Hawaiian was one of the state’s largest employers and was enjoying a long growth period. From 2005 to March it had gone from about 3,500 to 7,500 employees, about 90% of whom were working in Hawaii.

The job reductions couldn’t be staved off even though, Hawaiian closed on approximately $421 million of new financing during the third quarter. It raised approximately $114 million through the sale and leaseback of two Airbus A321neo aircraft. Another $262 million came from the issuance of Enhanced Equipment Trust Certificates backed by two Airbus A330 aircraft and six Airbus A321neo aircraft.

During the third-quarter, Hawaiian also drew approximately $45 million of the $420 million that available through the Economic Relief Program loans offered under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.