Hawaiian, Aloha airlines hope lower airfares spur demand

By Frank Cho
Advertiser Staff Writer

A financially flat interisland travel market has both of Hawai'i's major interisland carriers touting lower air fares to fill seats on some of their most unpopular flights.

Aloha and Hawaiian airlines both launched $49.99 one-way interisland fares in recent weeks, the lowest published rate in more than two years. The fares are mostly for very-early morning and late-evening flights, the airlines said.

The new fares are lower than the airlines' popular $63 coupon rate, but come with significant restrictions.

Tickets must be purchased seven days in advance, are nonrefundable and cannot be transferred. The fares are available for a limited number of seats on select flights that vary depending on demand that day, the airlines said.

"It's no secret that traffic is soft and the slow economy has had an affect on leisure travel," said Julie King, a spokeswoman for Aloha Airlines.

Travel agents said the price of airline coupons has steadily risen over the years and the lower ticket prices should improve demand, but it was still unclear how much.

"I think for a family of four, this could really make a difference," said Rachel Shimamoto, an agent and past president of the Hawai'i chapter of the American Society of Travel Agents.

Shimamoto said that because the rates are still relatively new, demand has been low.

Both airlines have been struggling with skyrocketing fuel costs and increased direct flights by Mainland and international carriers to the Neighbor Islands, which has cut into the interisland business.

"The idea is to stimulate incremental demand," Keoni Wagner, a spokesman for Hawaiian Airlines, said yesterday of the new fares.

Hawaiian reported a loss of $3.2 million during the first quarter, excluding any one-time adjustments.

Aloha has not reported first-quarter figures but has said it lost $4.3 million last year.

Frank Cho can be reached by phone at 525-8088, or by e-mail at fcho@honoluluadvertiser.com