Hawaiian Airlines has revealed its expansion of routes to the U.S. mainland as a means to compensate for the decrease in revenue from its Japan routes.
Peter Ingram, President and CEO, stated that “there is still much room for improvement with Japan” and noted that “the newly established routes from Salt Lake City to Honolulu and Sacramento to Kona-Lihue are performing very well.”
Sales in the Japanese market have remained weak due to the historic depreciation of the yen and the soaring accommodation costs in Hawaii. Brent Overbeek, Chief Revenue Officer (CRO), mentioned that “while the Japanese yen exchange rate continues to be the biggest headwind for this market, there is still strong affinity among Japanese consumers for Hawaii and our brand.”
Ingram further explained, “Japan, historically our largest market, has been the slowest to recover. Although we’ve seen a decline in the Australian and New Zealand dollars, it’s not as significant as the yen. As a result, we are focusing more on sales in the United States and other Asian countries, especially over the next three to six months, working diligently on capturing connecting demand and enhancing brand recognition.”
Additionally, Hawaiian Airlines has returned its seven weekly round-trip slots for the Tokyo/Haneda to Honolulu-Kona route, and has announced cancellations of additional flights, continuous reductions, and other route adjustments.
