Hawaiian grows international revenue
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."
Email the Travel Weekly team at traveldesk@travelweekly.com.au
airlines ha hawaiian airlines peter ingramLatest News
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 […]
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 […]
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 […]
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 […]
Nothing Bonza can do to prevent loss of planes, ACCC concerned by latest aviation developments
There is nothing Bonza can do hold onto its aircraft, a court has heard today, with the embattled low-cost carrier standing staff down for ‘at least another week’. The hearing today was told the five Boeing 737 MAX 8 aircraft Bonza uses to fly are not in the possession of the airlines after AIP Capital […]
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 […]
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 […]
Get ready to roll the marketing dice with Susan Coghill: Travel DAZE EXEC 2024
It's heating up in Cairns and we're not talking about the weather! Get ready for a marketing masterclass with Susan.
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 […]
Cebu Pacific campaign aims to boost Aussie trips to the Philippines
Cebu Pacific's bouncy singalong ad campaign 'Fly to Happy, Fly to the Philippines’ aims to get more bums on seats.
Tauck’s new river and small ship ocean cruises, plus increased Seine capacity
Tauck adding itineraries like it's going out of fashion, which cruising certainly isn't.
Railbookers and La Dolce Vita Orient Express partner up for new luxury Italian itineraries
Fancy a luxurious trip through Italy? Who are we kidding, we know you do. Start your daydream here.
Luxury Travel Collection’s Nikki Glading spills all on member network perks: Travel Weekly TV
We urge you to enjoy this in true LTC style and lift a glass of bubbles with lunch today.
Auckland’s new domestic terminal comes with all the modern gadgets
We're not talking about drones or VR goggles, but these updates will change the game in Auckland.
Air New Zealand crew sign up for Sign Language Week
Have you signed up for Sign Language Week? Let this be your sign to do so!
Holland America Line gives one lucky winner the Ultimate Alaskan Cruise Experience
There's only one winner, so it's sort of like the Hunger Games of cruise prizes... but no one gets hurt.
TAG’s Byron Carr excited about K-Pop induced Asia expansion
Carr to go all Gangnam Style with TAG's Asian expansion
CATO celebrates 25 years with anniversary dinner
CATO's putting on a fancy spread to celebrate 25 years as other 25 year olds celebrate their HECS debt being cut.
Fiji Tourism Exchange 2024 opens with a vibrant ceremony at Sofitel Fiji Resort, Denarau
Two days in Fiji! If you didn't attend this conference we're sure you've got FOMO.
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 […]
Seabourn’s two new value-add offers for 2024-25
Seabourn's doing a two for one deal. Kind of like a fast-food promo but its luxury cruising.
PONANT commercial team expands to meet growing demand in APAC
Can't remember that Ponant contact you met at a networking event? Good chance they're included in this update.
Gen Z and millennials on track for rise in Europe rail trips, says TruTravels
Despite what you think, Gen Z and Millennials are not 'off the rails', but instead want a fast track to Europe.
$230m joint Novotel & ibis Styles Melbourne Airport hotel prepares to open
Dear all business travellers, you're Melbourne experience just got a whole lot better.
Envoyage premieres Worldwide 2024 in Santiago
There has been a warm reception for 300 attendees at Envoyage's gabfest in Santiago, Chile.
Disney Destinations launches epic Aussie agent incentive
Everyone needs a bit of Disney in their life (apparently) and agents can get their next dose for free here.
IPW 2024: 960,000 Aussies took the trek to the Land of the Free last year
Nearly 6,000 travel industry reps descend on LA. Thankfully for all of their bosses, it's not in Vegas.
Nauru Airlines offers new direct flights from Brisbane to Palau on ‘Paradise Express’
No more island hopping to Palau as Nauru Airlines hits this boundary six.
Etihad Airways boosts connectivity with five interline partnerships
Etihad high fives itself with interline partnerships announcing a handful of new airlines, including Rex.
Discover the enchantment of India – A tale of timeless cities
Whether you're game enough to test out the street food or not, we recon India should be top of your list.
Qantas cops $100m penalty with passengers to get $20m back over cancelled flights
Qantas cops a $100m civil penalty, passengers to get back $20m over cancelled flights to resolve ACCC court battle.
Body found off Sydney Heads suspected to be missing cruiser
Tragic developments onboard Pacific Adventure this morning.
Wendy Wu Tours ‘Wonderlust Sale’ offers the wonders of the world for less
More for less... Great news for all apart from Wendy's wallet.
Booking.com launches AI Trip Planner in Australia and New Zealand
Booking.com launches new AI feature in Aus. We're hoping AI never gets the nuance involved with writing these jokes.
Voyages celebrates 40 years at Uluru with two new immersive experiences
No plans for celebrating your 40th this year? Here's a hot tip from us.
SkyDeck: The inflight entertainment you could never have imagined
Forget those external cameras you can live stream while in the air... With SkyDeck you can check it out for yourself.