Could a Legal Fight Send Hawaii Travel Prices Skyrocketing?

If Hawaii travel expenses haven’t been volatile enough, an ongoing legal battle brewing could raise airfares and other expenses for island-bound travelers. The case stems from allegations by Honolulu that oil companies knowingly contributed to climate change and could be headed to the U.S. Supreme Court.

There’s a real possibility that the costs of travel, via fuel—could rise significantly. But what does this mean for your next Hawaii vacation? That’s complex.

Ka’anapali, Maui shoreline

What’s going on with the Hawaii lawsuit?

In late 2023, the Hawaii Supreme Court told the City of Honolulu to proceed with its lawsuit against major oil companies. The claim is that these companies allegedly misled the public for decades about the environmental impact of fossil fuels. As a result, the city argues that Hawaii has suffered environmental damage from climate change, particularly rising sea levels, which could cost billions in adaptation and repairs.

Honolulu seeks financial compensation to cover these damages, but the oil companies are fighting back. They argue that any climate change regulation should fall under federal jurisdiction, not state law, and that a decision in Honolulu’s favor could lead to a messy, state-by-state patchwork of related lawsuits.

While at this point, it may seem like a legal technicality, how this case evolves could have a widespread impact, especially on the price of your next flight to Hawaii.

The relationship with razor-thin airfare profit margins.

So, how does a lawsuit affect Hawaii travel costs? Fuel accounts for 20-30% of your airline ticket and almost 30% of operating costs. If the case goes forward and Honolulu prevails, the oil companies could face massive financial penalties.

Airlines typically operate on thin profit margins, so even a small increase in fuel prices can raise ticket prices. Given Hawaii’s distance from the mainland, fuel is already a major factor in the cost of flights to the islands.

IATA recently said, “Earning just $6.14 per passenger is an indication of just how thin our profits are—barely enough for a coffee in many parts of the world.”

Mike G., a frequent visitor to Hawaii, shared his thoughts with us. “My Hawaii flights are already more expensive this year, so if fuel costs go up, I’m guessing I’ll be paying even more for travel.”

However, not everyone is convinced this lawsuit will lead to skyrocketing travel costs. There’s always talk of rising prices, but I think airlines will absorb most of the costs, said one reader, while another told us, “It’s in airlines’ best interest to keep flights affordable and Hawaii visitors coming.”

How Hawaii visitors can prepare.

While we await the courts’ decisions on the future of this case, we can all keep this in mind when planning future travel to Hawaii.

If there’s an odd light at the end of the tunnel, it’s this. If fuel prices rise, there are still ways to minimize the impact on your travel budget. And with the soaring costs of accommodations, Hawaii airfares have taken a back seat to the cost of hotels.

First, consider booking flights earlier than you might otherwise.

Flight prices are increasing more than normal as the departure date approaches, and with the potential for rising fuel costs, locking in a price now could save money later.

Many readers have confirmed a valuable tip for budget-conscious travelers, which is using flight price tracking apps to find the best deals. You’d be surprised how much you can save if you’re flexible with your dates. BOH uses Google Flights for that.

Another tip is to stay flexible with your travel dates. Mid-week flights are often cheaper than weekend departures, although not always, and avoiding peak seasons can help you find better Hawaii airfare deals.

While the impact of rising fuel costs can’t be entirely avoided, savvy travelers can still find ways to make their dream vacation to Hawaii somewhat more affordable.

Could this case go to the U.S. Supreme Court?

It’s uncertain whether the U.S. Supreme Court will take up the case. In June 2024, the Court asked the Solicitor General for input. The oil companies argue that federal law, particularly the Clean Air Act, preempts state-level lawsuits like Honolulu’s. If the case reaches the Supreme Court, it could set a precedent that limits the ability of states to hold corporations accountable for such issues.

This case raises a big question about federal vs. state authority. And therein lies much uncertainty. If the City of Honolulu is allowed to proceed, the legal landscape could shift dramatically, potentially leading to higher airfare costs to Hawaii and across the nation.

The bigger picture for Hawaii’s future.

Beyond the immediate impact on travel costs, this lawsuit highlights some of the broader challenges Hawaii faces as rising sea levels and other climate changes continue to affect the islands. Without a doubt, the costs of adaptation will likely grow in the years ahead.

While travelers might feel the impact of higher prices in the short term, Hawaii’s long-term sustainability is on the other side of the token. Start with coastal erosion and sea level rise, the state must find ways to balance our tourism industry with the need to protect the natural environment. The sea level at Hilo has risen about 10 inches since 1950. That pace is said to have accelerated over the past decade and is now increasing by an inch every four years. Hawaii is a beautiful place, but clearly it’s also fragile.

Final thoughts: what should Hawaii travelers do?

For now, it’s simply about staying informed and being prepared. If you’re planning a trip to Hawaii, keep an eye on airfare trends and consider booking sooner rather than later.

The outcome and time frame of this lawsuit are still uncertain. While no one wants to pay more for a Hawaii vacation, the potential for rising fuel costs is very real.

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11 thoughts on “Could a Legal Fight Send Hawaii Travel Prices Skyrocketing?”

  1. The solution is easy. Two factors affect airlines fuel and people costs.
    Your vote matters in such affairs. Choose carefully but vote.

  2. It’s a move of Desperation. All that they are interested in is Money. If the Oil Companies are Smart, which they are, they would give in to the crazy arguments and leave Oahu without Any Fuel! Just say NO, leaving the entire County high and dry. As absurd as it sounds, their lawsuits certainly are. They are hoping to go to court in Hawaii where “sympathetic ears” would be more “understanding.” I’m Certain that anyone subverting a Fuel Embargo would find themselves included. They should perform the EMBARGO anyway, maybe that would make real and lasting change in Hawaiian Voters, although highly doubtful, Nothing else has!

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  3. I wonder how quickly Hawaii would surrender if those ships from Alaska quit dropping anchor off Barber’s Point to offload their cargoes of oil?

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  4. This is not an appropriate lawsuit, especially from a unit of government. The climate impacts caused by aircraft is unsettled. Even the IPCC acknowledges that climate models are inaccurate due to uncertainties of impacts of water vapor in the atmosphere. The same unknowns apply to the impact of cirrus clouds and contrails.

    Honolulu is a City that is highly dependent on aviation, posturing on unsettled science, to the detriment of its constituents to cause travel costs to increase. Who is in charge in Honolulu? And who is behind this strategy of eco terrorism?

    Meanwhile, I note the sea gauges do not show increase in the rate of sea level rise, and the NOAA shows Kahului experienced the last ten months each below temperature average.

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  5. The merits of the case are undeniable. Fossil fuel emissions are definitely contributing to climate change. But this is the wrong approach. An isolated monetary settlement for one state might bring in some temporary cash, but it won’t eliminate the problem. Federal court is the more appropriate venue, but even that is pointless. This is a global problem. Until the entire world dramatically reduces fossil fuel emissions, the problems are only going to get worse. A much bigger solution needs to be sought. Hawaii, along with island nations and many coastal areas are in serious trouble unless humanity finds the will to make and implement more intelligent choices.

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    1. Hawaii can be the First State in the Nation to mandate the use of Electric Cars Only. Here’s a good question, one that is bound to come up in Court: What has Oahu, specifically, done to curb the problem? Fossil Fuels include the use of Propane.

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    2. Drew808, SAF (Sustainable Aircraft Fuel) is becoming readily available but it costs 4x what petroleum based jet fuel costs. SAF’s Carbon footprint is supposedly slightly less than petroleum but if the people pushing it are true to form, they are likely leaving out the pollution caused by the farmers when they produce the crops needed to make it. So pushing for it will simply raise ticket prices. Unless someone invents a nuclear aircraft engine, SAF is probably the best we can do. I agree with everything else in your post except I believe today’s contribution to global warming by aviation is tiny and impossible to measure.

  6. It’s a real stretch to prove that burning petroleum-based jet fuel is causing measurable global warming. Environmental groups are quite willing to accept plant-based jet fuel. It’s being used every day. So it must be thought by them to cause less global warming? Really??? This smells like a simple money grab attempt. BTW, there’s no question that the earth is changing. Including temperature and sea level. But proving it’s man-made is very difficult.

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    1. The problem with plant based fuels of All Types is that it Clogs the Injectors, Can anyone imagine losing engines in the middle of the Pacific! That’s one way to cut back on Emissions, human and plane. You are Exactly Correct, Proving isn’t as Easy as Saying It’s So, and Believing Scientists that are being Paid, or Coerced, is Ridiculous to say the least!

    1. Lots of Luck with that. If it’s not the ticket prices going up, it’s certainly the Hawaiian Government finding new ways to Increase Prices one way or another. Anyone going to Hawaii will probably get it from Both Ends!

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