Hawaiian intra-island performance improves

Washington DC
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Hawaiian Airlines saw a turnaround in performance for its intra-island operations in the second quarter, after it reported poor results following the opening of a second hub in Maui in the first quarter.

Revenue was up 10.7% year-on-year (y-o-y) on an 11.7% increase in capacity on the Honolulu-based carrier's intra-island routes in the second quarter, says Mark Dunkerley, president and chief executive of Hawaiian, during an earnings call today.

Passenger revenue per available seat mile (PRASM) was down 0.7% y-o-y on the routes during the period, he adds.

Dunkerley says that the unsatisfactory performance of the operation during the first quarter was "all but eradicated" in the second.

Hawaiian's operations to North America remain its strongest. Dunkerley says that PRASM increased 6.9% y-o-y on a 1% increase in capacity during the second quarter.

In comparison, PRASM improved by 6.1% y-o-y overall at the airline during the period.

Hawaiian launched service to New York's John F. Kennedy airport in June.

Performance on its North American routes may slow in the third quarter as Hawaiian increases capacity by 9% y-o-y and overall market capacity increases by 14.8%, says Dunkerley. The airline's growth is the result of upgauging to Airbus A330-200s from Boeing 767-300ERs on some routes, launching new routes and the addition of connections through Maui.

International operations grew the most in the second quarter. Revenue was up 83.9% y-o-y on capacity growth of 61%, says Dunkerley. PRASM rose 17.6% y-o-y.

Hawaiian launched service to Fukuoka, Japan in April.

"We expect [international services] to continue as a major contributor to operational performance," says Dunkerley on the third quarter.