Posted on: Friday, January 28, 2005
State tops nation for largest increase in airfares
| • | Chart (opens in a new window): Airfare changes in some U.S. cities |
By Dan Nakaso
Advertiser Staff Writer
On top of the highest gasoline prices in the country, sky-high grocery bills and rising housing costs, Hawai'i now has the distinction of being home to America's biggest airfare increases.
The country saw an overall 2.9 percent decrease in airfares between the third quarter of 2003 and the third quarter of 2004. But Honolulu and three Neighbor Island communities led the 85 biggest markets in rising ticket prices, according to data released yesterday by the U.S. Department of Transportation's statistics bureau.
Honolulu had a 14.6 percent jump in fares. Rounding out the top five markets were Kona, Hawai'i (up 14.5 percent), Lihu'e, Kaua'i (14.1 percent), Kahului, Maui (12.7 percent), and Milwaukee (with a mere 4.9 percent rise).
"It certainly discourages local travel," said Bonnie Gutner, the owner of Travel Inc. "It's terrible. Who in their right minds thinks up these fares?"
In most of the country, airfares were on the decline in the third quarter and the average airfare was at its lowest level since the third quarter of 1999. Philadelphia had the largest drop in air- fares at 15.8 percent.
The data is based on a 10 percent sample of all airline tickets for U.S. carriers, not including charters. The Bureau of Transportation Statistics only looks at the actual fares paid by travelers from their originating city.
Hawai'i's major airports also took four of the top five spots for largest jumps in airfares since 1995, according to the Bureau of Labor Statistics.
Airfares originating out of Lihu'e jumped 125.9 percent, followed by Kona (up 91.7 percent), Honolulu (53.2 percent), Long Beach, Calif. (48 percent) and Kahului (41.1 percent).
"I'm sure it's all got to do with the cost of fuel," said Rachel Shimamoto, vice president of Travel Ways. "Because we're so far away from everything, they need more fuel to go further and fuel costs a lot more now."
The high demand for seats to Hawai'i, especially from the West Coast, could also be driving the prices. The rise seems to coincide with record levels of West Coast travelers to the Islands, said Gutner of Travel Inc.
Gutner ran through airfare prices on her computerized reservation system yesterday and found surprising inequities in ticket prices out of Honolulu.
"Right now it will cost you anywhere from $458 to $849 for a roundtrip ticket to Los Angeles," Gutner said. "But I can get you to Paris from Honolulu for $391. That's crazy. You can even fly from Honolulu to the East Coast, in many cases, cheaper than to the West Coast. Most of the airlines right now are flying to New York City for just $432."
Hawai'i's two major airlines, Hawaiian and Aloha, have also increased rates on their money-losing interisland service. And many of Gutner's customers are passing up Neighbor Island weekend trips for cheaper three- and four-night stays in Las Vegas.
"I have lots of clients who want to talk about an interisland fare," Gutner said. "Pretty soon they're booking a Las Vegas package because it costs less."
Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or at 525-8085.
