Jet fuel prices have fallen by more than 20 percent since the last interisland fare hike but don't expect local airlines to cut ticket prices anytime soon.

In May, Hawaiian Airlines and go! increased their standard interisland fare by $10 to $64, citing the soaring price of aviation fuel. Since then, jet fuel prices have tumbled by more than 84 cents a gallon to about $3.20 a gallon, but no one is talking about lower ticket prices.

"They sure as heck are not going to lower fares because fuel prices are dropping," said Scott Hamilton, a Washington state-based aviation industry consultant.

"Now that they are getting some relief in fuel why would they give back their fare increases?"

Hawaiian said fuel prices are still much higher than what they were last year and will cost the airline tens of millions of dollars more this year.

"The fact that oil prices have dropped from roughly double what they were last year to only two-thirds more than they were last year hasn't removed the need for airlines to increase revenues in order to cover our dramatically higher costs," said Keoni Wagner, vice president of public affairs.

go!, which is owned by Phoenix-based Mesa Air Group, did not return calls.

Airlines typically lower fares when there is excess capacity or to protect market share when a new competitor comes to town, Hamilton said.

But those factors no longer exist in the interisland market due to the March 31 shutdown of Aloha Airlines, Hamilton said.

The shutdown of Aloha, Hawai'i's second largest carrier, left the market with just two major players, making it easier for the airlines to pass on their fuel costs to consumers.

All three airlines — Hawaiian, go! and Aloha — have lost tens of millions of dollars in recent years due to the soaring fuel prices and a bruising, 22-month fare war that saw fares slashed by half to $39.

Since Aloha's demise, Hawaiian and go! raised fares twice, first on May 1 when they increased the basic interisland fare by $5 to $54, and then on May 27 when they upped ticket prices by $10 to $64.

Both airlines began charging interisland passengers $17 for the second checked-in luggage. Earlier this month, go! began charging customers $10 for the first checked-in bag.

INTERISLAND LULL

Travel agents say that today's higher fares are curtailing interisland travel.

When fares were as low as $19 and $29, interisland traffic soared as residents took advantage of the lower fares to travel to family gatherings, weddings and graduations.

These days, many local residents are flying interisland only when they have to, said Mark Shimamoto, owner of Travel Ways Inc.

Shimamoto said the lowest $64 fare is becoming harder to find due to the reduced lift in the market. One customer who is flying to Kaua'i today had to pay $115 for a one-way ticket because there weren't any cheaper seats, Shimamoto said.

"People who don't have to travel are not paying the high fares," Shimamoto said.

"Airlines are always quick to increase the cost to consumers. But when fuel prices go down, it takes them a while to reduce their fares."