Hawaiian Airlines looks past short term headwinds on Hawaii

Premium Analysis

Hawaiian Airlines has periodically battled periods of heightened capacity in its markets, particularly from the Hawaiian Islands to the US west coast, and has always taken the long view that rational behaviour will return to the market after a period of time. 

The airline has attempted to maintain that perspective during Southwest’s build-up in the Hawaiian market during the past year. But the outsized competitive capacity Hawaiian faces in early 2020 is creating stiff headwinds for the airline, which is pressuring Hawaiian’s unit revenue performance during the first quarter. 

Those headwinds, driven by the capacity increases, should weaken as 2020 progresses. And even as Hawaiian faces tough competitive dynamics, the airline is projecting a solid cost performance for 2020.

Over time, Hawaiian believes its long view will prevail, with the possibility of airlines exiting routes that generate an unfavourable revenue performance. 

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