Hawaiian Airlines parent Hawaiian Holdings reported a second-quarter net loss of $26.4 million, widened from a net loss of $1.67 million in the year-ago quarter.President and CEO Mark Dunkerley said the carrier's earnings were affected negatively by rising fuel costs and an "increase in competitor capacity" on both inter-island flights and transpacific routes. He acknowledged that Hawaiian's "progress in this quarter has lagged that of several of our competitors." The airline faced new competition during the quarter when Mesa Air Group launched its go! subsidiary on June 9.

Revenues for the quarter totaled $222.3 million, up 10.2% from the 2005 period. Year-ago figures combine those of Hawaiian Airlines and Hawaiian Holdings, which technically acquired the bankrupt carrier on June 2, 2005, and does not officially include Hawaiian Airlines results from April 1-June 1, 2005, as part of its earnings.

Operating expenses increased 5.8% to $213.3 million, including a 22.8% rise in fuel costs to $59.2 million. Operating income was $9 million, improved from $155,000 last year. Net income for the quarter was much lower because of a $28 million special charge related to the redemption of outstanding convertible notes and a $4.3 million tax provision, the company said.

Yield grew 7.1% to 12.17 cents as RPMs rose 2.6% to 1.66 billion. With capacity up 0.8% to 1.91 billion ASMs, load factor increased 1.5 points to 86.9%, pushing RASM up 9.4% to 11.43 cents while CASM excluding fuel costs fell 0.3% to 7.92 cents.

Dunkerley said the airline is looking forward to deploying four 767-300s it purchased in the first quarter and will take delivery of in the second half.