Just weeks ago, Hawaiian Airlines extended its Boeing 787 Dreamliner service between Honolulu and New York. It was billed as the airline’s most advanced and luxurious experience, set to operate on its longest mainland route through late summer. Then, with no further public explanation, the Dreamliner was first extended a month, then vanished from the schedule starting in September.
The long-awaited aircraft, which debuted to fanfare and raised hopes for a bold new chapter at Hawaiian, is now mostly missing from future Hawaii routes. We do continue to find one daily Dreamliner flight from Los Angeles remaining after one is removed, plus two Seattle flights. If LAX remains on the Dreamliner, BOH editors plan to fly onboard and offer a review of the first-class experience.
This is just the latest in a string of not-yet-clear signals from the combined Alaska-Hawaiian Airlines operation. On the surface, everything is going great. At least, that’s what we were told during Alaska’s most recent investor call yesterday—an upbeat presentation that focused more on long-term promise than near-term turbulence.
But behind the curtain, things feel less clear, and given unknowns out of their control, perhaps less stable.
A promising NYC launch that quietly vanished.
The 10-hour, Dreamliner-appropriate JFK Dreamliner route was announced in January and launched in April. It was extended into September, suggesting either strong reservation performance or at least a vote of confidence in that route. But the extension didn’t last long.
Without fanfare or public statement, Hawaiian removed the Dreamliner from the New York schedule starting in September. Travelers checking their existing reservations saw their seat assignments scrambled and the aircraft changed, as reported to us, with a return to the older Airbus A330. The upgraded Dreamliner experience—complete with lie-flat suites and refreshed interiors—will then be absent from the very route many thought it was meant to transform.
This isn’t the only sign of potential shifting sands. While the aircraft had been marketed as the future of Hawaiian’s long-haul flying before the airline’s acquisition, it’s now increasingly set to be deployed out of Seattle. The airline is launching Dreamliner service from Seattle to Honolulu, with further expansion planned for September. That shift aligns with Alaska’s West Coast priorities, and those flights see the planes positioned in Seattle more than Hawaiian’s historic Hawaii-centered mission.
Three Dreamliners are now part of the fleet, with two more expected to arrive later this year. But their deployment pattern, with a focus on international travel from Seattle, for now, still raises questions going forward.
The Alaska investor call.
On paper, the airline just posted a $166 million quarterly loss. Hawaiian demand from Asia remains depressed due to the weakened yen, and global uncertainty is rising thanks to new tariffs and currency instability. There’s also talk on the call by Alaska of the potential for flight pullbacks this fall.
Yet the tone of Alaska’s earnings call sounded highly optimistic.
Executives repeatedly emphasized that everything is ahead of expectations. That loyalty will accelerate. That synergy is taking hold strongly for the airline, which now controls more than 50% of flights to the islands. One executive described the operation as “nimble” and “decisive,” although they did not yet offer specifics on how they will navigate the challenges ahead.
They also pointed to positive trends: a 26 percent growth in co-branded credit card sign-ups, premium revenue up 34 percent, and 29 percent of passengers now paying for either first-class or extra-legroom seats. Hawaiian’s premium revenue rose 17 percent. These are impressive figures—but they’re heavily weighted toward the front of the plane.
Economy class, by contrast, was described as the weakest link. And while premium sales are up, that reflects changing seat layouts and add-on fees as much as organic demand. That’s especially relevant when 787 routes suddenly disappear without warning.
One executive summed it up by calling Hawaiian a “durable premium brand” that will help Alaska expand its global presence through 2030. But there was little discussion of what’s happening now, especially for travelers booked on soon-to-be-changed flights this summer.
What role does Hawaiian actually play?
Hawaiian is said to be at the center of Alaska’s long-term premium strategy. At the same time, the company is betting heavily on Seattle, where it plans to launch a plethora of international widebody routes by the end of the decade.
That makes it hard to tell whether Hawaiian is meant to be a premium Hawaii-only brand or just a stepping stone in Alaska’s broader Pacific ambitions.
It’s also unclear how the two airlines will truly integrate. A single loyalty program is set to launch later this summer, with full passenger service (including reservations) system integration not expected until 2026. Labor negotiations are only just beginning. In other words, much of the synergy being advertised hasn’t happened yet.
In the meantime, Hawaiian’s traditional Asia routes are still struggling. And despite talk of nimbleness, the combined future route map remains in flux and is anxiously awaited. That includes the deployment of Dreamliners, of course.
What travelers are left with is confusion. For some, their upgraded Dreamliner experience is now gone. For others, the new routes from Seattle may offer an alternative, but it won’t feel very Hawaiian.
The airline is promising more premium experiences.
As Alaska continues to shift its focus more towards premium offerings, there remains uncertainty about what it will deliver for the rest of the plane, particularly in economy class. While there’s no shortage of emphasis on upgrading first class and premium offerings, including seat retrofits, the introduction of actual premium economy on widebodies, and the expansion of premium credit card programs, the future of the main cabin isn’t yet as clear. The airline has acknowledged that economy class remains at the weaker end of its offerings, raising questions about how it will address this segment in the future, especially as it focuses on more premium growth.
The airline’s plan to retrofit more than 200 of its Boeing 737 aircraft with additional premium seating over the next several years is a clear sign of where its priorities lie. However, with such a heavy focus on premium products, the remaining economy offerings may not receive the same level of investment, leaving some travelers wondering if the overall experience will still align with Hawaiian’s reputation for passenger comfort.
Alaska Airlines’ future: optimism amid uncertainty.
Right now, the picture is evolving as the airlines continue to come together. For now, we had a cheerful earnings call amid a $166 million loss, together with big promises about a future that still feels somewhat distant. While Alaska Airlines is touting strong premium growth and its expanding international presence, the integration of Hawaiian Airlines remains a work in progress, leaving travelers, employees and industry observers unsure of exactly what’s to come next. With a strong focus on Seattle and shifting routes, we must all await learning what Hawaiian’s role will be.
This mix of optimism and uncertainty has left some wondering whether the promises made will materialize or whether the airline’s future will look quite different from what was initially envisioned. As changes unfold, the road ahead is one we’ll be watching closely together.
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I honestly don’t think Alaska management really thought this through. They’ve been obsessed with trying to be one of the “Big 3” for years now, but in reality they’ll never be able to compete.
This whole deal with Alaskan airlines is a bust. You have an airline who was in financial trouble themselves and somehow got around that with the government?. ….
.They’re complete disregard for the West Coast outside of Seattle is beyond comprehension and financial suicide.
And there lack of any kind of communication is deplorable.
They’ve said nothing to over a million people who live in hawaiian islands. They have ruined a culture theHA made for those flying Hawaiian…..
Could care less about the Asia market from the Islands.
Now they’re kicking people out of a plane they already had bookings and seat assignments. Insanity……
Alaska is an airline who’s trying to cover their losses by buying HA and quite frankly, they don’t know what they’re doing. …
They ruined virgin america, and they’re gonna do the same thing to HA.
As a LAX-area based flyer, I have been pleased with Alaska’s service. I made a strategic decision to realign my loyalties toward Alaska – and quickly became MVP 75K. Because of my long-haul flying (mostly on AS partners and AA) I moved into 100K status.
I don’t use the AS BofA credit card as work requires the use of a corporate credit card.
AS knows it is not one of the “Big 3” – for me, they have made their offering very compelling. I appreciate the ability to instantly upgrade to first class at time of booking including Hawaii. This also extends to one companion.
AS provides good service to those in Saver/Basic Economy – you can bring a full-size carry-on at no charge – unlike United.
Airline business cycles go up and down. AS is positioned well to manage downturns to the economy unlike JetBlue, Spirit and Frontier.
If AS hadn’t come along, HA would be in bankruptcy.
@Franklin…you describe AS as having “complete disregard for the West Coast outside of Seattle.”. I don’t think that’s true. I suspect that AS flies to more airports in California than any other airline. They serve all 3 major Bay Area airports, 4 LA area airports (LAX, SNA, ONT, and BUR), Sacramento, San Diego, Santa Barbara, San Luis Obispo, Fresno, Monterey, and Santa Rosa. From some of these airports, you will have to change planes at least once to go any distance. If you live in Fresno and traveling to Europe or Asia, why would changing at SFO or LAX be any more convenient than at SEA or PDX?
While the headline for this piece does state that AS might not know where HA is headed, you make points that reinforce the idea that no one at Alaska Airlines can really predict the future, even for AS fights. Large financial losses at a time when the whole future of the economy (and air travel with it) is more uncertain than ever don’t bode well. The new long haul international routes that AS is launching and others it is considering from SEA are all highly competitive already. If interest from foreigners in visiting the US continues to decline, that could torpedo the best laid plans for expansion, not to mention the huge debt AS took on to acquire HA. There are no guarantees for any routes, including those to and from Hawaii.
The AS ELT has been really keeping tight lid on their go-forward plans for seat configuration on the A330’s and 787’s in Premium Economy and extra legroom seats – and how that service will differ from AS’s current Premium class on it’s 737 fleet.
In addition how/what will the regular coach seat configuration look like on the A321’s and A330’s?
Will the A321’s change to a 41″ pitch in first class to match the AS 737’s?
AS has a busy summer ahead with the Barclay accounts moving over to BofA and introduction of a re-vamped Mileage Plan.
All at the same time – AS management is busy planning and implementing strategies to take advantage of Southwest’s upcoming upheaval to its services.
Lot’s of “stuff’ going on over at the Eskimo.
I only see ETOPS 2 inspections for Hawaiian aircraft in Hawaii very soon.
Be aware, the Admirals Club at JFK Terminal 8 is a real let down as compared to the Alaska Lounge in T7, and for those who are lucky enough to be booked on the 787 in Business Class – you will have access to the Greenwich Lounge. If you’re on the A330 – the Admirals Club is where you’ll be going.
For AS and HA customers flying in domestic paid first class or an award in first class – there is no path to “upgrade” to the Greenwich, Chelsea and/or Soho lounges…you’ll be shuffled to the Admirals Club.
When I fly transcon SNA/LAX-JFK on AA in Flagship Business Class, I have access to the Greenwich Lounge. Showers are available as well as full meals from the buffet. It’s a nice lounge and probably has many more amenities than what would be offered by AA as it’s shared with British Airways.
I’ll be disappointed when the AS Lounge at JFK T7 closes. AA sorely needs to remodel and upgrade the Admirals Club at JFK T8.
Lie-flat is great, but it produces mord than twice as much carbon per passenger seat mile. While we are loosing our beaches and reefs to global warming, desperately putting wind farms and solar parks into what used to be a pristine island environment. What gives?
Hawaiian is really three airlines, or maybe 4. Interisland is one. Hawaii-mainland is a second. Hawaii-Asia/South Pacific is another. I think an argument could easily be made that Asia and South Pacific are really two separate airlines. South Pacific is a high-yield, high cost operation, while Asia is a low yield, high volume competitive leisure market.
I think AS will get HA’s interisland house in order first and foremost. The 717 went out of production 20 years ago next year and HA’s planes have taken a real beating with all the landings and takeoffs per mile flown. There is no real replacement available, which will force HA to reconsider what is the role of interisland to the combined AS/HA operation.
Embraer 195-E2 is darn near an exact replacement as far as capacity. The A220 would be a size increase but viable with a few less trips per day.
The EMB-195 would be about the same capacity as the 717, but it doesn’t have as much cargo capacity. More importantly, it doesn’t have the DC-9 legacy “overbuilt” qualities that has made it possible for HA to keep pounding the daylights out of their 717’s with so many landings and takeoffs per revenue flight hour.
Think of the cost of setting up a whole new heavy maintenance infrastructure for 20 planes.
Hawaiian had decades of DC-9 maintenance infrastructure in place before they transitioned to the “DC9-87.”
I just don’t think AS is going to introduce a completely aircraft type not just to HA, but to the United States for 20 or so planes. There is no supply chain set up here to deal with it.
But given that both HA’s and Southwest’s interisland business are supposedly both losing money due to overcapacity, I suspect whatever happens will be something that outsiders never saw coming.
It’s pretty simple, really. Just look at the numbers. The number of international routes Alaska has announced roughly corresponds to the number of 787’s needed to operate them that Hawaiian has on order. All this hoo-ha about 787’s and lie-flat seats in nonsense. Hawaii is a leisure market. HA ordered the 787’s when they were figuring that routes to Asia and the South Pacific would be a bigger part of their business over the 20-odd years they would operate the planes. That was already a risky proposition and Covid put that notion.
The 787’s will be based in Seattle. A few might do turnarounds to Hawaii, but most will eventually have eskimos on their tails as marketing London to Seattle on Hawaiian airlines would be quite a task.
The A330’s will continue to be based in Hawaii, flying the Asian/South Pacific. They will do turnarounds to the mainland until all the A321’s are back in service, at which time HA will drop any markets too far east for the A321’s.
I pretty much came to all of the same conclusions that you have fairly soon after the merger / acquisition was announced. Given Alaska’s decided preference for Boeing, it would be absolutely no surprise to me that they would very possibly re-paint the 787s into Alaska’s livery, while the A330s would continue to bear Hawaiian’s livery. The 787s would then be Alaska’s flagship aircraft type for its international flights out of Seattle, while the A330s would continue to serve U.S. Mainland-Hawai‘i routes (along with the A321s).
Yeah, and remember HA also operates Amazon-owned A330’s so they have the operations infrastructure in place for that.
Who knows? Maybe AS will do what they did with their own 737’s when they converted them into freighters and do the same with some HA A330’s. AS is the only US airline operating dedicated freighters. Perhaps they have identified a market niche.
In any case, HA hasn’t made a profit since 2019, has lost almost $1 billion since, and has no prospects of changing that if they just keep doing what they’ve been doing.
No matter what, HA needs to stay. If they go away (i.e. Virgin America) it would be very bad business for AAG
What bothers me isn’t the disappearance of the Dreamliner on one specific route—it’s the lack of seeing where we are heading. No announcement, no email, no acknowledgment. Just an aircraft swap and re-assigned seats. That’s not my definition of customer-focused. Hoping for good news ahead on this.
I’m not opposed in any way to premium growth, but when you start shrinking the economy cabin just to squeeze in more paid extras, you risk alienating the people who’ve kept you afloat for decades. Not everyone’s flying lie-flat, sorry to tell you. Some of us are just trying to get to family on the Big Island without paying double what we paid recently for a regular seat.
Honestly, this whole Seattle-first pivot is starting to feel like the early days of Virgin America all over again. Glossy promises, beautiful branding, but underneath it all, a network strategy that left core customers scratching their heads and moving on. What exactly is Hawaiian’s identity going to be now? Is it even still Hawaiian?
While the Virgin America brand did disappear, I would just point out that AS still has a very big presence at SFO, much of which came from that acquisition. AS has a flagship lounge at SFO and it didn’t go unnoticed that the new first class meal announcement excluded SEA completely. I think it’s way too early to assume that AS is somehow abandoning Hawaii.
You got that right. It’s not the whole Virgin America thing that was weird. It was the whole SFO thing that was weird. Now, instead of putting resources into SFO to make it a real, competitive hub with UA, they have basically turned it into point-to-point and are now doing the same in SAN.
The $166 million loss is concerning, but I get that this is a long-term play. My hope is they don’t forget the importance of interisland service and neighbor island access together with mainland economy while chasing premium and global expansion.
I was excited about the Dreamliner from NYC. We booked specifically for the new first class cabin, and now it’s going to be gone? Bummer.