HONOLULU -- Aloha Airlines said it was forced to take drastic measures but hopes to stay in business.

The Hawaii-based airline announced Thursday that it filed for Chapter 11 bankruptcy protection and seeks court approval to continue doing business. The move signals the second time in three years that the company has filed for bankruptcy protection.

The airline also said that it hopes to make arrangements for financing to protect its 3,500 local jobs, booked flights and mail deliveries.

Aloha Airlines blames its competitor go! Airlines for its troubles, saying it had to file for bankruptcy because it is unable to keep up with huge fuel price increases while matching low interisland fares.

Aloha said it faces a $71 million increase in fuel prices over the next year.

"It is a travesty and a tragedy that the illegal actions of a competitor and other factors completely beyond our control have forced us to take this action," said David A. Banmiller, Aloha's president and CEO.

"Through this filing, we hope to achieve a successful outcome that will protect the jobs of 3,500 dedicated employees who have made extraordinary sacrifices for Aloha, and to continue to earn the support of our loyal customers, business partners, vendors and financial backers," said Banmiller.

Aloha said all of its operations will continue as normal in bankruptcy, including its prices, schedule and Aloha Pass frequent flier miles program. So passengers should see no day-to-day difference, as long as a bankruptcy judge allows Aloha to keep operating.

Aloha employees already gave up roughly a quarter of their annual pay in concessions the last time Aloha filed for bankruptcy in 2004, and Aloha dissolved the pensions for three of its four unions back then.