Hawaiian Airlines posted a net loss of $17.1 million in the first quarter, reversed from a $7.26 million net profit in the year-ago quarter.

First-quarter revenue rose 12.7% year-over-year to $490.8 million while expenses were up 19% to $502.7 million, producing an operating loss of $11.9 million.

President and CEO Mark Dunkerley said the results were “disappointing but unsurprising. Our performance was undermined by an extraordinary increase in total industry capacity between Hawaii and the US West Coast and in certain international markets during what is traditionally the weakest quarter of the year. However, good cost control and an improvement in our Neighbor Island segment helped offset some of the impact during the period.”

First-quarter scheduled traffic increased 21.9% year-over-year to 3.21 billion RPMs on a 26.1% rise in capacity to 3.96 billion ASMs, producing a load factor of 80.9%, down 2.9 points. Yield decreased 7.7% to 13.72 cents. CASM lowered 5.7% to 12.68 cents. CASM ex-fuel fell 7.9% to 8.28 cents.

Looking ahead, Dunkerley said, “Published schedules show capacity beginning to decline in the [2013] second half, which should improve the operating environment.”

During the first quarter, Hawaiian finalized an order for 16 Airbus A321neos, plus nine options, which are scheduled for delivery between 2017 and 2020. The aircraft will be used on long-haul flights between Hawaii and the US West Coast.