Kicking off the third quarter earnings season, Hawaiian Airlines posted USD25.6 million in net income for the quarter, down from the USD30.5 million posted in 3Q2010 on a higher tax rate. The tax rate was 46% compared with 26% in the earlier period, but looking ahead it should level out to between 37-40%, said the company.

Analysts, clearly worried that the optimistic reports about strong demand across the industry might abate, probed Hawaiian executives for any indication that demand was softening. But they were told forward bookings remain strong. The demand picture has been accompanied by a moderation in fuel, which improved profits over the summer months.