Hawaiian airline island air has filed for Chapter 11 bankruptcy protection as it seeks to protect its operations from legal action brought by lessors.

The airline was recently “very surprised” during renegotiations with lessors when it was hit with notices of termination demanding return of the aircraft.

Although revenues have grown at Island Air since its acquisition by Ohana Airline Holdings in January 2016, hitting $12.5m for the second quarter of 2017, the airline has been unable to post a profit.

However modernisation and restructuring works are ongoing alongside fleet upgrades, and the airline remains confident that its financial position will improve.

“Island Air will continue to hold our customers and employees, as well as our invaluable vendors, as our main priorities during this reorganization process,” said David Uchiyama, Island Air president and CEO.

“Once we have completed the reorganization process, Island Air expects to emerge as a stronger airline with a solid financial structure that will allow us to continue to meet the demands of Hawai‘i’s dynamic interisland market, while positioning us for future growth and expansion.”