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Q1 profit for Hawaiian Airlines
27 April 2011
Hawaiian Holdings, parent company of Hawaiian Airlines, reports a profit for the first quarter of 2011 despite increasing operating costs and bookings down.
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Hawaiian Airlines
Hawaiian Holdings
Mark Dunkerley
Hawaiian Airlines has reported a net income of $855,000 compared with net income of $216,000 last year.
"In the first quarter, the company did a good job of mitigating the effects of the rising cost of fuel and the tragedy in Japan," says Mark Dunkerley, CEO, Hawaiian Airlines.
Total operating expenses for the first quarter of 2011 increased 26.6% with fuel costs increasing by 55.6% year-on-year representing 29.5% of operating expenses.
While the average cost per gallon of jet fuel increased 32.4% to $2.86 from the previous year, the airline's fuel hedging strategy allowed it to make $8.4 million in net gains.
"Fuel prices have climbed further since then, creating a substantial challenge for all airlines, including Hawaiian," says Dunkerley. "We will continue our focus on controlling those costs that lie within our grasp."
Other costs such as maintenance and lease rentals increased by 21.0% and 41.3%, respectively. The spike in lease rentals is primarily due to the delivery of three new A330-200s in April, May and November 2010.
The company had $323.7 million unrestricted cash at the end of March 31. The airline has borrowing capacity of $63.1 million under a revolving credit facility, $86.0 million outstanding under floating rate notes issued in conjunction with the acquisition of three 767-300 ERs acquired in December 2006 and $42 million of capital lease obligations primarily associated with four 717-200s.
In April 2011, Hawaiian entered into a $65.0 million 12-year secured loan agreement, to finance the purchase of one A330-200 aircraft acquired in the same month.