HONOLULU - Jonathan Ornstein, chairman and chief executive of Mesa Air Group Inc., said that subsidiary go! airlines "continues to move toward profitability."

Go! has offered fares as low as $1 since it began flying in Hawaii last year.

"We continue to develop the business," Ornstein said in an earnings conference call.

He said go! likely filled more seats in July than any previous month, with the load factor on its five 50-seat aircraft exceeding 80 percent.

The company's planes were 72 percent filled in June and 63 percent in May.

"We had to do a lot of work in understanding the (Hawaii) market, and in only one year, look at what we're carrying," Ornstein said. "We still believe we're carrying double our share in the local market and we don't have any connecting opportunities and no code-shares (with mainland carriers). Our view is we keep chipping away as we move toward profitability."

Phoenix-based Mesa, which also operates regional air service, said its third-quarter profit dropped 76 percent on higher maintenance costs, expenses related to returning airplanes and other items.

For the three months ended June 30, earnings fell to $2.6 million, or 8 cents per share, from $10.9 million, or 25 cents per share, in the prior-year period. Excluding $1.4 million in costs related to the early return of some aircraft and other special items, Mesa said its adjusted earnings per share fell to 15 cents from 26 cents.

Wall Street, on average, expected quarterly earnings of 15 cents per share, according to a Thomson Financial analyst survey.

Revenue rose to $355.9 million from $329 million, but that was offset by an $11 million rise in maintenance costs to $71.8 million and other items.

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Information from: Honolulu Star-Bulletin, http://www.starbulletin.com