Hawaiian Air Reports $13.3-Million Loss

The parent company of Hawaiian Airlines, a troubled firm part-owned by former Olympic organizer Peter V. Ueberroth, said Monday that it defaulted on some aircraft leases and on a loan from Security Pacific Bank.

The defaults came amid continued losses at HAL Inc. HAL said Monday that it lost $13.3 million for the third quarter, bringing its loss to $56.3 million for the first nine months of 1990. Revenue for the third quarter was $101.5 million.

The loss wiped out the company’s net worth, which now stands at negative $50.1 million.

HAL’s default on its bank loan is surprising, since it came less than two weeks after Security agreed to give the firm an additional $20 million. The fresh financing brought HAL out of default on a $111-million loan, also from Security.

As previously reported, HAL at that time granted Security warrants that could make the bank its biggest shareholder. Federal regulations, however, prevent Security from exercising most of the warrants. Banking industry analysts have said that Security could possibly sell the warrants at a profit if the airline ever works out its problems.

HAL said that during September and October it failed to pay $3.3 million on leases for 17 aircraft and is in default on those leases. Glen Stewart, senior vice president-finance, said the firm has negotiated new leases with five aircraft lessors and is attempting to negotiate new agreements with others.

Hawaiian leases all but two of the 36 aircraft in its fleet.

Stewart said the company hopes to save $2 million a year by negotiating either lower lease payments or the postponement of payments. Stewart said HAL, with $12.5 million in cash at the end of the third quarter, had funds needed to make the lease payments.