Hawaiian grows international revenue

Hawaiian grows international revenue
By admin


International routes now account for 30% of Hawaiian Airlines revenue, up from 7% a few years ago, as the carrier continues to invest in growth markets in Asia.

The airline launched flights to Taiwan last month and will make its first foray into China next April when it touches down in Beijing.

The growth continues HA’s strategy to alter its mix of flying. Only a few years ago, international routes accounted for just 7% of total revenue while 60% was generated from its mainland US to Hawaii flights.

Now, less than 50% of revenue comes from US-Hawaii flights while revenue from its inter-island operations has fallen from around 30% to 25%.

“We have achieved our goal of diversification,” executive vice president and chief commercial officer Peter Ingram said.

HA’s international expansion has been rapid with the number of overseas ports now outnumbering the 11 it serves on the US mainland.

“We have five destinations in Japan, in mid 2010 we had zero,” Ingram said. “Our business has transformed.”

But while Japan is still the largest source market for Hawaii, other markets represent faster growth prospects for the carrier.

“That’s why you see us in places like Taiwan, Korea and from next year, Beijing,” Ingram told Travel Today. “These markets and even Australia, although Australia is a mature, developed economy, have higher growth rates.

“As we build our portfolio of international markets, we think it’s important to be in those markets that have prospects for growth over the next 10 years. We have a number of developing markets that are at different stages of maturity.”

The carrier is in the process of analysing potential destinations in 2014, he added.

But while international routes have become increasingly important, the largest part of HA’s network remains its domestic US operation. And recent heavy capacity growth has depressed yields and hit revenue, Ingram said.

But the outlook is improving.

“We’ve had a more modest period of growth in the quarter ending June and have seen revenue start to stabilise. We have a positive outlook for recovery in the back half of this year,” he said.

As ever, fuel remains one of the biggest headaches for the carrier. But Ingram said the industry has learned to cope with the perennially high cost of fuel, with the volatility of the price more problematic than the cost itself.

“As an industry we are able to adapt to fuel prices at any level. What is difficult to adapt to is the volatility because it’s hard to respond,” he explained. “You don’t know what you’re planning for when it’s up and down.

“If you had asked me a decade ago whether the airline industry could survive at US$50 or US$60 a barrel I’d have said we'd all be out of business.

“Yet we’ve been nearly double that level and we are seeing great resilience. In fact the US airline industry is enjoying a period of profitability and stability that we have not seen in 15 years.

“It’s remarkable when you are seeing that in an environment of US$100 a barrel of fuel.”

Consolidation has helped, he went on, along with prudent management which has kept an eye on long term profitability.

"We make sure the amount of capital we are investing will generate returns over the long term," Ingram said. "It's still a low margin business at the end of the day and the competitiveness will always dictate that remains the case.

"But if we can fluctuate between break even and 10% margin instead of between -10% and break even then we'll have a much healthier business and that ends up being better for consumers.

"If you've got a stable business you can invest in product and enhancements that you just can't do when you live hand to mouth and survive day by day."

Latest News

  • Destinations

Tropical North Queensland action-packed events calendar for adventure enthusiasts

Sporting enthusiasts and adventure seekers are gearing up for an action-packed year in Tropical North Queensland, with a lineup of sports events and adrenaline-pumping experiences set to take centre stage in 2024. Leading the charge is the highly-anticipated return of the Crankworx World Tour ‘Paradise Edition’ to Cairns from 22-26 May 2024. The mountain biking […]

  • Aviation
  • Sustainability

Singapore Airlines Group first to receive SAF from Neste as AU/NZ play catchup

Singapore Airlines (SIA) Group has signed an agreement with Neste to purchase 1,000 tonnes of neat Neste MY Sustainable Aviation Fuel TM. The purchase makes SIA and Scoot the first carriers to receive Sustainable Aviation Fuel (SAF) produced at Neste’s refinery in the country, at Singapore Changi Airport. The milestone will also mark the first […]

  • Aviation

Qantas Red Tail sale discounts more than 200,000 fares

Qantas has launched its latest International Red Tail sale, discounting more than 200,000 fares to Los Angeles, New York, Honolulu and other US destinations, plus Vancouver. The discounted seats are available to book either as a cash fare or as a reward seat using points. Thirty routes are on sale, including 10 for under $1,199 […]

  • Health & Wellness

Bannisters by the Sea unveils retreat style package for new mothers

Boutique hotel Bannisters by the Sea has revealed a brand-new package for new mothers – Bannisters Mummymoon – right in time for Mother’s Day. Designed to nurture and rejuvenate new mothers, this luxurious escape prioritises postpartum self-care and wellbeing in a serene coastal setting. Reconnecting and Recharging: The two-night Mummymoon allows mums to reconnect with […]

  • Destinations

APT offers destination incentives to enjoy the Best of Asia

APT Luxury Travel launches has launched its Asia Sale featuring 20 trips, with journeys through Vietnam and Cambodia as highlights, as well as opportunities to explore Japan, South Korea, India and Sri Lanka. It’s ‘Spiritual Cambodia and the Mekong’ land and river cruise tour for example takes guests on an all-inclusive 11-day journey through Vietnam […]

  • Travel Agents

Disney Days returns with Inside Out 2 showing in Sydney, Brisbane, Melbourne and Auckland

Time is running out for agents to register their Expression of Interest to an exclusive screening of the much-anticipated Disney and Pixar film, Inside Out 2, hosted by Disney Destinations Australia/New Zealand team and partner United Airlines. Places are limited and applications must be in by 17 May. In addition to the screening of the […]

  • Cruise

Aranui Cruises slashes prices with No Single Supplement and Half Price offers

French Polynesian cargo cruise line Aranui Cruises is slashing thousands off its 2025 Austral and Marquesas Islands cruises with an autumn sale offering 50 per cent off the second guest in a twin share room and no single supplement for solo travellers. On sale until June 21, 2024, Aranui’s 12-day roundtrip voyage from Papeete to […]

  • Destinations

Raes on Wategos celebrates 30th birthday and guests get the presents

World famous luxury boutique hotel Raes on Wategos, in Byron Bay, has launched its 30th birthday celebrations with a Raes Indulgent Escape package. Available for all stays of two nights or more, from June to August, the curated package offers an invitation to indulge in a shared celebration of Raes 30th birthday, whilst revelling in […]