HONOLULU -- Aloha Airlines cargo operations will continue operating at least through Monday, officials determined during bankruptcy court proceedings.

Bankruptcy lawyers reached an agreement on using $1.2 million of cash collateral to keep the cargo unit afloat.

Aloha's main lender, General Motors Acceptance Corp., plans to auction off the profitable cargo side of the airline business.

Meanwhile, the pilots union is still trying to work out a deal to keep its most senior pilots working the cargo runs.

The two sides exchanged proposals and the hope is a settlement can be reached by the next court date, which is Monday.