Challenges Abound at Hawaiian Airlines. What's Next?

Challenges Abound at Hawaiian Airlines. What’s Next?

Hawaiian had a quarterly earnings call this week. We listened and it was certainly disheartening. That was followed by multiple stories regarding the company’s rapid downsizing. Hawaiian is currently operating only 15% of its normal flight schedule. CEO Peter Ingram hopes to see Hawaiian Airlines, “being a smaller airline by about 15% to 25% next summer compared to 2019 levels.”

Here’s why in 5 bullet points.

1. Ongoing Hawaii quarantine and uncertainty about the reopening of Hawaii travel. That before all of the other considerations of safe travel in this unfortunate new era.

2. Revenue was down 92% in the past quarter compared with the prior year. Nothing unexpected there, with Hawaiian now losing $3 million every day.

3. Significantly reduced staffing ahead.

Hawaiian issued notices to labor unions that it could need to furlough 2,000+ union employees soon. That’s about one-third of its 6,200 unionized staff.  Hawaiian is first trying early retirements and voluntary reductions before resorting to involuntary separation. If there is any further government support, that too could help.

Non-union staff will see more cuts too, with 8% of those employees already having accepted voluntary layoff packages.

“None of this is the fault of any of our employees, who continue to do a terrific job every day… I just feel terrible that we’ve come to this point. But it is really important that we take some steps to preserve the company for the long term as we try to weather this coronavirus storm.” — Peter Ingram, Hawaiian Airlines CEO.

4. Dreamliners on a one to two-year delay. Hawaiian was to begin delivery of its newest fleet starting early next year. Peter Ingram said this week, “We don’t expect to put the first two 787s into service until 2022 or 2023.”

5. Reinstitution of inter-island quarantine possible. Inter-island flights may return to a quarantine status, at least for the time being, since Hawaii’s cases have been at all-time highs. Yesterday, there was a report of a Kauai resident becoming infected as a result of inter-island travel.

Beat of Hawaii © photo at Lihue Airport, Kauai.

19 thoughts on “Challenges Abound at Hawaiian Airlines. What’s Next?”

  1. Hi my name is Julie M
    I got to fly to Hawaii in August I did my two weeks of quarantine. Do to coronavirus not much of the big island
    was open I’m so sorry for the local small business.
    I would have loved to see more of the culture and the local
    business. I support small businesses.
    I’m writing to say I got the pleasure of flying Hawaiian airline
    From Honolulu to Hilo I flew handicap disabled. I do want to
    Compliment the airline and staff they did a excellent job they
    took really good care of me. I had to take Alaska airline from
    Medford to Seattle to Honolulu. (They did a great job to )
    Hawaiian airline staff came to my gate in Honolulu when I arrived on Alaska airline and took me to my flight on Hawaiian airline to Hilo.And they did the same thing on my return flight when I returned October 3rd I thought that was the best from a airline .
    I just want to thank the great people who work hard and did
    a wonderful job Thank you for taking care of me and making
    Sure I got to my flights safe and on time. It was a pleasure flying Hawaiian airline Thank you airline staff
    The only bummer part is with coronavirus
    There was no food and service and beverages where minimal
    Not even Alaska long flight. so pack Snacks
    Thank you Julie

  2. Sorry to hear of more troubles. You now have the worst of both Worlds. Virus transmission and economy shut down. Pick one but both?? A shame and it’s not going to get better with the same strategy. We are in Mexico as promised spending our vacation on the now open beaches. Masks required, Temps taken and sanitizer everywhere. But open for business. Aloha

    1. You mean it would be a good idea to gather groups of people on a boat for a couple hours to go inter island
      rather then the efficient system Hawaiian has set up in the Hawaiian Air terminal? 🙂

  3. Maybe Hawaiian Airlines (and the State of Hawaii) could think a bit out of the box and try some innovative ways to facilitate trans-Pacific travel.

    Using the rapid, inexpensive paper tests to detect potential travelers who are actually infective would be one way.

    And how about using man’s best friend to sniff out those with the virus? This article indicates it is possible-

    https://www.medscape.com/viewarticle/934876

    The current testing mess almost seems contrived. All these months and the same issues continue to occur. Time to try something different.

    Release the hounds!

    1. Mike has the right idea here with the cheaper paper tests. I saw a video or read recently that this very well could be the way to go with testing. You get your own results in minutes. It is not as accurate as a swab of the throat or nasal but cheaper and can do frequently. I bet the science will also improve the accuracy of the cheaper sliva test too.

  4. Please any insight you might have would be super helpful – I have tickets to take my kids to meet my BFF who lives in Honolulu – for Labor day weekend – which was already a re-schedule from our Hawaiian airlines canceled Memorial day weekend trip –
    Is Hawaii going to open September 1st?

    1. Hi Julie.

      We simply do not know. Hopefully, there will be more information by mid-August.

      Aloha.

  5. Aloha Guys
    All airlines face a “troubling future”, I think a case could be made that Hawaiian is going to be better off then most.
    Delta/UAL/AA all have large route structures throughout the world, much of their international flying will be slower to recover
    then Hawaii. It’s not if, but when Hawaii recovers. When it does Hawaiian has the perfect fleet to right size whatever the market does. Also, Hawaii to Japan will recover quicker then Europe, Hawaiian is very strong in the Japan/Korea market.
    The A330’s and A321 NEO’s are perfect to add whatever seats the market needs.
    I’m also guessing that Hawaii will be viewed by the traveling public as a relatively safe travel destination compared to many other places, another plus for Hawaii to recover sooner then many.
    When Hawaii recovers so does Hawaiian, Sad that they have to lay off employees but world wide pandemics do have a tendency to undermine an airlines growth.
    I think they may be back sooner then later as the big three airlines apparently have plans to reduce their direct to the outer island flights and Hawaiian , Alaska and probably SWA will be quicker in reinstating that flying.

  6. Hawaiian should consider investing in setting up and managing a testing protocol. I’m in Maui and was able to get tested here. The sample was a swab of my throat and it was overnighted to Honolulu lab. And I got the call the next am.
    I don’t understand why this hasn’t been done on a Island wide basis. Instead of just sitting back and losing money while complaining about losing money, take the initiative to resolve the roadblock. IMO. Mahalo

    1. Hi Jim.

      Thanks. Jeff had a test and got results in 12 hours, but it was for medical reasons. Lab said they were not doing testing for travel.

      Aloha.

      1. Your comment is Right On, and that is all the more reason why the Airline(s) should invest in setting up their own lab(s). Instead of complaining!. Start a business consortium among the hotels, airlines, and rental car fleets to do it. Just saying that would be a proactive approach to the problem.

        1. I agree with the thought of having the Airlines provide testing as part of their service. An example of this might be, Columbia University has developed a 30 minute color change test that they are getting fast tracked by the FDA. If this happens you could have testing stations set up at airports ( or even on the airplane ) and have the test done while waiting for your luggage ( or lay over or while in flight ). Cost would be part of your ticket, results in 30 min.
          Just a thought.

          Thanks

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