Hawaii Aviation Update: Alaska, American, Hawaiian, United Airlines

Here’s important news for Hawaii visitors that comes from the major airlines flying to and from the U.S. mainland. They share updates about financials, new planes coming soon, and extra-premium business class planned.

Alaska Airlines’ resiliency despite the 737 MAX debacle.

Even following the Boeing MAX incident and subsequent grounding, the airline that is seeking to acquire Hawaiian has significantly exceeded financial forecasts. Alaska announced earnings projections for Q2 and the entire year, wherein it surpassed analysts’ expectations. The airline is being buoyed by a continued robust U.S. travel recovery.

Alaska Airlines obtained compensation of $162 million from Boeing for the MAX problem, and expects further settlements too. Despite the Boeing-related setback, Alaska reported a smaller first-quarter loss compared with last year. Alaska’s CEO also said he does expect an aircraft shortfall as a result of Boeing’s problems. He added, however, “Alaska needs Boeing, our industry needs Boeing, and our country needs Boeing to lead in airplane manufacturing.”

The good financial news should allow Alaska to focus on the work at hand in the attempted purchase of Hawaiian Airlines.

American Airlines Hawaii flights may feature new extra-premium business.

The airline is joining a large number of others who are offering an upgrade from regular business class suites. These will be seen on some of their Hawaii flights that use widebody aircraft.

As American joins the airline pack, eliminating first class entirely in favor of business class, the company will nonetheless add a new preferred seat option on some Dreamliner and Boeing 777 planes.

American says the new ultra-premium business will only be for seats at the very front of the new Flagship Suite business. These will offer upgraded amenities, plus extra space for Hawaii-bound and other travelers. With additional storage and space comes a mattress pad and pajamas, a throw blanket, a memory foam lumbar pillow, and an upgraded amenity kit.

We don’t know yet how much extra American may charge for these front-row premium seats.

Watch for an important Hawaiian Airlines earnings report next week.

On April 23, Hawaiian is expected to reveal a decline in earnings compared with last year despite a possible increase in revenue. That, according to financial analysts, Zacks Investment Research.

We always attend these earnings calls. We look forward to and will report on their earnings, as well as on the Hawaiian management’s comments, plus questions asked during the call. Zacks estimates the company will post a quarterly loss in spite of an increase of about 3% in revenue. They said that the analyst consensus of earnings has been revised down some 28% in the past 30 days.

Earnings calls have taken on a new importance during the critical phases of the attempted purchase of the company by Alaska Airlines. As we previously reported, “Hawaiian lost $100 million in the last quarter of 2023.” That was more than a million dollars a day.”

United Airlines expects a huge summer, plus new A321neo planes and enhanced business class are coming.

United said yesterday that in spite of the obstacles it has faced recently, with countless aircraft issues and the MAX grounding, it sees big improvements ahead. The Hawaii-centric carrier now plans to lease thirty-five new A321neo planes starting next year.

That largely given that it is dropping MAX 10 plans, at least for now. We expect to see those planes flying to Hawaii, largely replacing United’s old Boeing 757 planes, among others. That will allow United to plan better, given ongoing uncertainty about Boeing planes and their delivery. In total, United may fly as many as 200 A321neo planes, given the different orders they now have pending, plus those they have already received.

United is also planning on a new enhanced business class product that we should see flying to Hawaii on their widebody aircraft in the future. These seats will, like American’s, feature more room than the other Polaris-type business seats. We are awaiting more information on a possible offering that should also include more premium amenities.

United just reported a Q1 loss of $124 million, which was improved compared with last year’s $194 million Q1 loss. Revenue was up about 10%.