Hawaii just lost another affordable way in—and the budget squeeze is real. Airlines are quietly pulling back, and what’s left is increasingly reserved for premium-paying travelers.
One of the last low-cost international airlines flying to Hawaii, owned by Qantas, is walking away. After nearly two decades of service, the airline is ending its only U.S. route—Honolulu—this October. The move cuts off direct access from Australia at discount prices. Still, it also sends a louder message: Hawaii isn’t seen as a budget destination anymore, not even by the airlines that built their brand on affordability.
This may seem like a faraway story. But it is anything but. For U.S. travelers who have watched prices soar, it hits close to home. We’ve flown Jetstar between Hawaii and Australia and saw firsthand how it opened the islands to younger, value-focused travelers. If even budget airlines like Qantas’ economy brand are giving up on Hawaii, what does that mean for the future here?
A quiet shift with loud implications.
The airline’s final flight to Honolulu departs in October. It has served the Sydney-to-Honolulu route for nearly 20 years using Dreamliners, most recently flying multiple times per week. Often, it was the cheapest way to reach Hawaii from the South Pacific—especially during Australia’s winter months.
But the aircraft are being moved elsewhere. The airline is redeploying widebody capacity to new and expanding routes across Asia, with rising demand and better margins. Meanwhile, its full-service premium parent brand, Qantas, is increasing service to Hawaii with one extra weekly flight from Sydney.
That contrast tells the story: Hawaii is still worth serving—but only for travelers paying premium fares.
Why U.S. travelers should care.
This isn’t just about Australia. Airlines worldwide are recalibrating how they serve Hawaii, and budget carriers are being squeezed out. That means fewer routes, fewer deals, and more routes reserved for higher-paying passengers.
We’ve already seen this pattern across the U.S. mainland. Delta cut back on Hawaii capacity. United shifted resources toward higher-yield markets. Hawaiian Airlines is moving its most premium Dreamliners out of regular Hawaii service in favor of long-haul mainland and international routes from Seattle. Even Southwest has quietly pulled back on routes after earlier too-aggressive growth.
What’s happening isn’t random. It’s part of a broader shake-up that affects anyone trying to get to Hawaii affordably, from anywhere.
A retreat from value.
Hawaii was marketed—and booked—for many years as an accessible paradise. But increasingly, it’s falling into a premium-only category. That’s not just anyone’s perception. Hawaii Tourism Authority data shows the average visitor spend continues to climb, even as visitor arrivals don’t.
And for international travelers converting from weaker currencies, that jump becomes untenable. One reader from Oregon captured the sentiment perfectly: “When even budget airlines walk away, it’s time to admit Hawaii’s pricing itself out of reach.”
The numbers don’t lie.
According to current Google Flights data, airfares from Honolulu to Sydney on remaining carriers, like Hawaiian and Qantas, are often set to exceed $1,100 USD round-trip. That’s up from as low as $352 RT currently on the departing Jetstar Airways.
Closer to home, many U.S. travelers are seeing similar fare hikes. Average mainland-to-Hawaii round-trip flights have climbed steadily since late 2023. Add high hotel rates, 19% accommodation taxes, fees, transportation, and food, and the appeal of that so-called affordable island vacation continues to erode.
The Asia pivot.
So, where are the planes going? Qantas is sending its Jetstar Dreamliners to new and growing routes across Asia. That includes Perth to Manila and Brisbane to Cebu—destinations with rising demand, fewer operational costs, and lower risk.
It’s a shift toward efficiency. Southeast Asia is booming with tourism growth, and travelers there are more likely to book off-peak, spend locally, and pay fewer taxes and fees. That’s a very different proposition than flying to Hawaii, where operational costs are high and visitors increasingly push back on the value received.
One reader put it: “When you can go to Southeast Asia for a third of the cost of Hawaii and get better service, it’s not a hard choice.”
A one-way farewell.
Timing-wise, the airline chose a strategic moment. The final flight leaves just after the U.S. summer season and before the start of the high season for Australian travel. In other words, it’s one last chance to fill planes at good value and get out before profitability drops. This is more than a suspension; it’s a clean exit.
That exit is coming with no plans to return, and no low-cost replacement on the horizon. For many travelers in the U.S. used to watching budget carriers test and retreat from Hawaii, it’s an increasingly familiar pattern.
What we’re hearing from travelers.
Comments across platforms have been sharp. One traveler said: “That flight was always full. It’s not the seats—it’s what Hawaii has become. Expensive and too complicated.”
Another shared: “We used to come every other year. Now it’s every five. And even then, we think twice.” And a third added: “Change your name to Deathstar. You’ve killed off the last budget way to get there.”
One traveler bluntly said in an airline forum: “One night in a hotel now costs more than a Jetstar flight. The cheap airfare doesn’t matter when everything on the ground is overpriced.” Another added, “It’s not just about fewer flights. Hawaii simply isn’t for the JQ/Bali crowd anymore.”
These aren’t isolated reactions. They reflect a shift we’ve seen in dozens of reader comments on Beat of Hawaii over the past six months—comments that increasingly describe Hawaii as expensive, arguably less friendly, and harder to justify.
A preview of what’s next?
Currently, Qantas, Hawaiian, and Air New Zealand continue serving the Hawaii to Oceania market. But for how long? And which other Hawaii routes could be next?
Many in the industry are watching to see whether other low-yield Hawaii routes—especially long-haul or lower-frequency ones—get trimmed next.
Even airlines that say they’re committed to Hawaii are making tough decisions. These changes may not be the last.
If Alaska joins Qantas in a transpacific joint venture—as some predict—it could mean Hawaiian’s own flights to Australia get pulled. That would result in even fewer options and concentrate the market further under premium alliances. This continues a pattern we’re witnessing, as premium takes precedence over low-cost.
Final thoughts.
When a major international airline walks away from Hawaii, especially one built around low fares, it means something. It shows the math no longer works. It also means Hawaii has crossed a threshold not just in cost, but in how it’s valued by both carriers and travelers alike.
This time, the exit came from across the Pacific. But next time, it could be your flight that disappears. Would you still pay more to fly to Hawaii?
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Personally, I believe this total madness. My wife and I have enjoyed 6 holidays in Honolulu. Absolutely everything was marvellous, but how sad all this latest news is. Money, still the root of all evil. What a shame.
My biggest beef is resort fees that they spring on you at the last moment makes a big difference on the room price. Don’t want to deal with that anymore.
It’s not only tourist travelers being hit with higher flight costs, Hawaii residents who have to fly to the mainland for family, medical and other events which are many times unplanned or an emergency will really suffer from the lack of low fare flight options.
Hawaii is a wonderful place to live but it comes at a price and now getting to and from mainland when necessary, is getting too expensive. Especially for island families who may have to curtail family and medical visits.
Hawaii has been my adopted home for years, since my first visit 50 years ago, and my family was blessed enough to be able to travel to Hawaii, sometimes multiple times per year.
For the most part, the pool of premium passengers traveling to Hawaii is what it is.
When the value minded traveler can’t afford to go anymore, there won’t be an inrush of premium travelers to take their place. In the end, overall visitors will decline, I predict.
And, as was mentioned elsewhere, there are other options at less than half the price now.
And, Hawaii was a wedding destination, especially for the Asian market. Now, Japan is facing a decline in birthrate. Which means, in a couple of decades, fewer marriages.
Hawaii will feel no pain for the near term, as mass in motion tends to stay in motion. However, when the wheels of tourist dollars start slowing down, I believe the pain will be exponential, and potentially devastating.
I agree with Quantas airlines, Hawaii has become so very expensive and accomodations are getting so very Expensive, our last time there was 2023, we aren’t going back, we live San Diego, we’ve decided we rather go back to Cabo Mexico, we just got back from Roatan, Honduras weeks ago, it was so Affordable and fun, I love Maui, it’s just become to Costly and airfares to, airlines are pushing Premium and that’s not affordable. Sorry Hawaii…..
Honest question, I’ve been going to Hawaii between different islands for minimum the last 15 years staying anywhere between 2 weeks to a month once per year. When was it cheap? Like maybe in the ’70s or ’80s but it hasn’t been cheap since I’ve been going.
The article appears to view these developpments as negative. A less friendly welcome is certainly a negative, but the shift toward fewer, but higher-paying, customers can easily be viewed as positive.
Hawaii depends on tourism, yes, but unlike, say Indonesia, it is a very small place, in terms of both area and local population. Indeed, a good part of the reason for the less friendly welcome reported by some is undeniably the overwhelming number of tourists coming here.
The island’s economy depends on tourism, that’s a given, but by moving up the cost, the number of tourists can be reduced while continuing to support the local economy at the same level, thus reducing the stress put on locals and re-energizing the spirit of aloha.
The anti-haoles must be thrilled. Fewer people, paying more. What more could they want?
I have gone to Hawaii once a year, now I stopped due to Trump’s policies and the high.prices in Hawaii. Been there 18 times,.but no more. There are other beach vacations now.
Trump’s policies for what? Just say it’s too expensive. Stop making it political.
“Hawaii is still worth serving—but only for travelers paying premium fares.”. This is a big “so what?” to me. I don’t recall seeing “Trips to Hawaii Should be Accessible to All” on the Constitution or Bill of Rights. There are hundreds of places I’d like to visit around the world but can’t because they’re too expensive. What makes Hawaii any different? I personally have lived and been traveling to Hawaii for vacation for 40+ years but I think last year’s trip was my last, at least for a while. It’s not because I’ve been priced out of the market, it’s because I’ve been there so many times that I’ve seen and done just about everything available to a tourist. I do applaud Hawaii’s approach to cut down on tourism but make those that come pay significantly more. All that’s going to do is weed out the riff Raff that have no business going to Hawaii anyways.
And perhaps its related to this headline and fact and not anything too much about travel to Hawaii which is expensive but many OUS just are not going to come at this point in history.
“US to miss out on billions as Trump’s policies deter overseas tourists
The number of visitors sank by 11.6% in March as deportations and tariffs made the US a less appealing destination.”
My husband and I last visited Kauai in 2023, one of many trips our family has made over the past 40 years. During that trip I was struck by the irony of this idea that the Hawaiian people wanted the elite visitors over the families and visitors looking for an economical vacation. Our stay saw two separate conventions at our hotel: the first for water metering and pipe fitting personnel (engineers and blue collar workers) and the second for the medical community. For the first week, the group consisted of families who were polite, quiet, not demanding; the second week, saw loud, very demanding, entitled visitors but big spenders in the jewelry store onsite. As a recently retired medical provider myself, I found them embarrassing. That is who you will get with this transition to making the islands open only to wealthier travelers and it isn’t who you want — not based on that side-by-side comparison.
We’ ve been to HI more than we can count. I lived there and fell in Love with the islands for a long time. The resort fees and taxes for shody contruction (hurricane clips tax??),this ain’t right!
I don’t blame the airlines one bit. Hawaii, unfortunately, has become unaffordable in all aspects. The government as well as the hotels have been sucking in money for years like a uncontrolled vacuum cleaner, the government has run the cities, into the ground with it being next to total disrepair. The beaches, the roads, the sidewalks, the washrooms, and all the general amenities like water fountains and rinse-off stations require repair or need new ones. Most of the hotels in the area are reaching the 50-year mark, and you have let them go as well; you have made the front entrances of the hotels look half decent. But just wait till you get to your room, most of them needed a major update 20 years ago, they are in very rough shape, your amenities fees are also out of control. We have been coming to Hawaii for many years now from Canada, but this will no longer be the case. It’s so hard to believe that Hawaii has become an unappealing destination.
I remember Hawaii back in the sixties and seventies versus the unfortunate reality of its current tourism scene. Per my tastes at least, it’s too crowded and way too expensive. It’s sad really, like a beautiful woman who’s still beautiful, but now scarred by the effects of modern day tourism. I’d love to go back to 1960s Hawaii, but current day Hawaii is too depressing per my perspective. I wish her well, but I can’t come back.
19% tax and I think I read the state just increased it 1% to mitigate “Climate Change” impacts. Wise travelers know what things cost, and even if they can afford the high cost and taxes, don’t enjoy the feeling of being gouged. Hawaii relies heavily on tourism, and until the unaccountable bureaucrats and unions make it easier to do business here, that isn’t likely to change. Chasing away tourist, who for the most part spend their money and go home, is a fools errand, one for which all Hawaiians will pay the price.
The Nene are coming home to roost. I’ve been in HNL almost a week and it’s amazing how fast prices have shot up even since Jan when I was here last. I can’t believe ordinary people can stand much more of this. Folks in the stores literally pull out calculators for each item they put in their carts and very few have full carts, mostly just a few essentials.
Lot of prepared food being wasted because few can buy premium items such as sushi and sashimi at Donqi’s for example… The old folk are hit the worst. They literally squeeze every cent out of very basic purchases – 2 or 3 apple bananas, a loaf of bread. a bit of rice from the takeout section, one little piece of fish… It’s criminal.
I just bought tickets last night for two to return in Sept (have to). 2 PE inbound and 2 FC outbound tickets on AA – $4800. Breakfast at Denny’s $25 w/o tip, a beer, $10, takeout Asian -$45 , Lunch at a Local Drive In – $30.
This can’t go on…
Maui Mayor Bissen is helping to drive up transient taxes, lodging rates and drive away the middle class from Maui with his proposal to attack on and attempt to destroy the short term rental market.
If he is successful only the uber wealthy will go to Maui eating at resorts dining establishments. Grocery stores and local service establishments and restaurants will forced to close hurting the local service sector.
Covid, Fires, Bissen’s STR.
Why did I always get so darn excited about my annual trips to the islands since the 70’s? And now, I just get p.o’d with every article. SO sad.
When the risk out weighs the reward you bail out. Airlines have facilities,employee,port costs, insurance, and such wrapped into the ticket cost. Not that they don’t make any money but what percent of that Hawaii trip cost is reflected only by airfare? Non Mileage passengers. Maybe 30% and they hold all the risk. 2700 plus miles flying passengers over water and takeoff and landing. Add up what your hotel costs, food, rental car, activities, entertainment costs and taxes, surcharges and compare to the airlines total. Hawaii controls 70% of your Hawaii trip expense not the airline. I guess my point is if you are complaining about how expensive the airline ticket is then maybe you shouldn’t go. Hawaii is the one that should make Hawaii affordable not necessarily the airline because the airlines percent is quite a bit smaller. Hawaii also controls in their greed how many tourists choose to book flights that originate from other locations.
Expensive Hawaii is becoming more expensive, this article speaks mostly of tourism, our life blood, but what about us residents of Hawaii, this has terrible consequences as we are basically a service economy relying on tourism. Where will Hawaii derive its income from as our taxes climb?
Hawaii isn’t alone in its approach. Overall, a week-long family trip to Disney World can now cost over $7,000, making it one of the most expensive family vacation destinations in the U.S., even surpassing Hawaii in some comparisons. Rising costs for tickets, hotels, food, and add-ons like Genie+ have made Disney World less affordable for many families, mirroring the trend seen with Hawaii vacations
My relatives just booked a trip from Atlanta to Kahului for $365 one way. They are staying in a very nice condo in Kihei for $295 a night. These are cheaper than they were 6 years ago.
There are tons of good deals to be had right now. I don’t understand what the problem is.
The problem is that Hawaiians are trying to reduce tourism with a false narrative that everything is more expensive.
As a STR owner, I can tell you that our prices have never been lower (started in 2021).
The last time I went to Maui in March 2022, my round trip SW ticket was $350 and I paid $125 a night for a nice condo in Kehei near the beach. This was close to what I paid in Feb 2021. For budget travelers, what you are describing is double what I paid. These prices are just not available anymore
This doesn’t just affect tourists, there are many people that had to move away from Hawaii and fly home regularly. People like myself that were born and raised and have generations of family in Hawaii. I would rather stay in a STR so that my ohana can come and go according to their schedule and be able to be comfortable to spend time with them. A hotel does not do that for me.
And don’t forget the war on STR by the various local governments.
I was at a birthday party in Seattle a few weeks ago, couple dozen native Hawaiians, many forced to leave for a better economy. There was a certain sadness when they talked about home.
They can barely afford to go back to visit.
re: JetStar Ending Service. A real loss, not only for Australians flying north, but many Hawaii residents relied on JetStar for affordable seats southbound. I have Hawaii friends who would plan their annual vacations around super-inexpensive JetStar seats southbound in late March and cruise back to Hawaii in April, often snagging very inexpensive inside cabins to make the entire trip super affordable. But, no more. But still, AirAsia X may return for the KUL/KIX/HNL route which they dropped for the pandemic. They say the route is only “temporarily suspended” but who knows…..
Hawaii is looking for “quality, not quantity” (i.e. rich folk) for their tourism base. The actions associated with that will unfortunately affect both inbound and outbound flights, for visitors and local residents alike. Inter-island flights will also be affected.
Another “unintended consequence” that local residents will just have to gut it up and accept in their quest to remove the middle class from their economics.
Were we not warned of this? Oh, yes, that’s right, it would never happen, right?
We love Hawaii and it has a lot of history with our family. We used to be frequent visitors but with the accommodations doubling in cost we no longer spend our vacations in Hawaii. We miss it but are finding other places with nice beaches and diving elsewhere. More cost effective also. Thank you for all the good memories.
The travel industry like many others are reliant on a steady world economically. With all of the uncertainty in the world financial market’s businesses have to make these decisions. Bookings are down and the travel industry is just reacting to that.
My travel agent said she has never had so many cruise bookings but the cruises she is selling are mostly really inexpensive. Compared to last year when most of her booking were for higher priced cruises.
Jetstar as you know is one step away from flying on the wing.
Made this point a while back. Hawaii needs to get real, because the Islands are not a hub for any airline, anywhere.
Business and goods delivery? Greater than zero, but not by much. A couple of Costcos and Walmarts don’t mean much when a city like Los Angeles has, by itself, 16 Costcos. Major businesses: none, nothing, zip.
Daily trips and yearly flow are orders of magnitude greater on the mainland and in every major country on the planet. Hawaii had approximately 7.5 million visitors in 2024. Heathrow Airport alone in 2024: 84 million. DFW: 90 million.
Hawaii greatly overplaying its hand with all these taxes and fees. Watch as more service providers disappear. But this is what “locals” want. Congrats.
when it’s cheaper to fly 3500 miles to a tropical destination that is going to charge you more than that for a room for only one night it is time to change your destination and not feel everyone has a hand in your pocket. taxes taxes, surcharge surcharge, entrance fees entrance fees, resort fees resort fees, its time to vacation where you feel you are wanted.
Is there any place where overtourism of the modern kind is „wanted“ by the local population ? What‘s really in it for them?
For state and local government in Hawaii red warning lights should be flashing brightly as they did for certain parts of the intelligence agency part of the US government before 911. But tragically the critical parts of government that could have prepared for and/or prevented tragedy failed to pay attention. The same is true for Hawaii today. Airlines withdrawing flights from Hawaii, short-term rental bans, increasing visitor taxes and fees…many rail against the tourism economy but what other job producing multi billion dollar industry is there to take its place and produce jobs? Because bottom line, frankly if you don’t have a job do you need a house, affordable or otherwise? We are witnessing the slow economic starvation death of these islands.
Hawaii has become a destination that is no longer affordable for the average traveler. What it means to the tourist industry in Hawaii remains to be seen, but the leaders in Hawaii and their citizens do not seemed concerned with the outcome. Too bad, what use to be a great vacation destination is becoming an elite playground.
Maybe once the tourist industry collapses the people of Hawaii will realize what they have killed.
It was once my family’s dream to take a vacation in Hawaii each year ( more than 40 trips over the years),but no longer. We look forward to better more affordable vacations in other locations.
Good luck Hawaii, the “Aloha Spirit” is alive only for the rich and famous.
After vacationing in Hawaii in the first week of January for 20yrs, we bought a house on the Big Island and retired there. The change of perspective is stark. The tourist industry supports most of the population here, but few of the jobs it offers are pleasant or well paid. Working for big resorts means long hours and low pay for most; many others work in construction, landscaping and maintenance, also low-paying jobs. A number try to make a go with small businesses catering to tourists, but few succeed for long. The working population lives on the eastern side of the island, but the resorts are on the western side, adding hours of commute time each day.
What is playing here is common to most popular tourist destinations, but the small scale here leads to division of families in a culture that is based on it (the ohana).
So it may be time for Hawaii to move from inexpensive tourist paradise to a new model.