Hawaiian Holdings, Inc. (AMEX:HA), parent company of Hawaiian Airlines, today reported a net loss of $58.3 million (on operating revenues of $632 million) for 2002, or a net loss of $1.88 per share. The news comes the day before its stock is expected to return to active trading, after being temporarily halted last month following the airline’s bankruptcy filing.
“Our disappointing results for 2002 reflect the ongoing economic crisis in our industry,” said chairman and CEO John W. Adams. “The financial restructuring that we initiated several months ago is designed to help us meet these challenges with a more viable business model.”
The airline recorded about $18.9 million in charges related primarily to its retirement of eight leased DC-10 aircraft, including severance costs for about 150 DC-10 pilots.
The conversion to B-717 aircraft last year doubled rental expenses to $83.5 million from $43.5 million in 2001. On the other hand, benefits ranging from better fuel efficiency and lower maintenance costs led to savings of about $25 million compared to 2001.
Also on the positive side, a $30.8 million special credit resulting from grants received under the federal Air Transportation Safety and System Stabilization Act was recorded, as was a credit of $1.4 million for the sale of eight decommissioned DC-9 aircraft.
Today’s report includes figures for the fourth quarter of 2002, which showed net losses of $15 million. This is a bigger loss than the $10.7 million net loss reported for the same period in 2001.
For all of 2001, the company had reported net income of $5.1 million (on operating revenues of $611 million), generating $0.15 per share.
Hawaiian Holdings returns to the American Stock Exchange (AMEX) and the Pacific Exchange (PCX) following the filing of the company’s annual 10-K report with the Security and Exchange commission.
Hawaiian Holdings, Inc. is a Delaware-based holding company conducting operations through its subsidiary Hawaiian Airlines, Inc. Honolulu-based Hawaiian Airlines is Hawaii’s first and largest airline.