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The Honolulu Advertiser
Posted on: Thursday, January 5, 2006

Holiday fliers aid airlines’ outlook

By Rick Daysog
Advertiser Staff Writer

A strong holiday season most likely lifted 2005 passenger traffic beyond expectations at the state's two largest airlines.

Despite bankruptcy, soaring fuel prices and increased competition from Mainland airlines, the passenger counts at Hawaiian Airlines and Aloha Airlines for 2005 likely will match or exceed the previous year.

"It's not off-the-charts kind of increases, but with the stronger economy you're going to have more people flying," said Wendy Goodenow, president and owner of HNL Travel Associates.

"More Mainland visitors are flying and you have more local business customers flying interisland."

Hawaiian, which emerged from bankruptcy protection in June, said it flew more than 5.3 million passengers during the first 11 months last year, which is up 3.1 percent from 5.2 million in the same period the previous year.

Full-year figures for Hawaiian won't be available until next week, but airline spokesman Keoni Wagner noted that the company's late-December holiday traffic was busier in 2005 than in the past year.

Privately held Aloha Airlines — which is attempting to exit bankruptcy protection under new ownership — said it is meeting expectations for the year partly because of a busy holiday season.

Aloha, the state's second largest airline, which filed for Chapter 11 reorganization in December 2004, served more than 3 million travelers during the first nine months of 2005, which is even from the year-earlier period, according to figures provided by the airline to the U.S. Department of Transportation.

Full-year traffic results for Aloha won't be available for months.

The 2005 passenger traffic comes as Aloha eliminated two Mainland routes and reduced its fleet from 13 jets to eight as part of a cost-cutting move last year.

It also comes as fuel costs have doubled while competition from Mainland carriers has increased significantly.

According to figures compiled by the state Department of Business, Economic Development and Tourism, the number of airline seats coming to Hawai'i from the West Coast is up about 6.8 percent during the October-to-December period.

The increased capacity included America West Airlines, which began flying new Phoenix-to-Honolulu and Phoenix-to-Maui flights in mid-December, and Delta Airlines, which added a new Atlanta-to-Honolulu route.

Duke Ah Moo, vice president of operations at Pleasant Holidays LLC, said the increased competition is keeping fares low for Hawaiian, Aloha and its Mainland competitors.

"There is so much competition that the price for seats have come down," so consumers are the clear winners here, he said.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.