United Airlines Adds Flights To Honolulu As Hawaiian & Alaska Airlines Merger Hits Headwinds

Summary

  • While United Airlines has increased flights to Hawaii and HNL during the three summer months, it was questionable whether it was because of the potential collapse of the Alaska Airlines – Hawaiian Airlines merger.
  • The two airlines have also collectively increased flights from the mainland United States to Hawaii.
  • Recent reports have suggested that the DOJ could block the Alaska Airlines and Hawaiian Airlines merger.

While the Department of Justice (DOJ) could reportedly block the Alaska Airlines and Hawaiian Airlines merger, United Airlines has continued adding flights and seats to one of its core markets, namely Hawaii, which directly impacts competition between the mainland United States and Hawaii.

However, was it a move to pounce on weaker competition, or was it a response to growing demand for flights to the Pacific islands?

Increased summer season flying

Data from the aviation analytics company Cirium showed that during the International Air Transport Association (IATA) summer season, lasting between March and October, United Airlines has increased flying to the islands and the main airport serving Hawaii, Daniel K. Inouye International Airport (HNL).

A United Airlines Boeing 777-200 just after take off.

Photo: Anatoliy Lukich | Shutterstock

Between March and October, on average, United Airlines has 195.75 weekly flights to Hawaii, averaging 51,160 weekly seats on routes to the Pacific islands.

In comparison, during the same period in 2023, United Airlines had an average of 197.75 weekly flights to Hawaii. However, while it has fewer departures, the airline’s average weekly seats are scheduled to grow to 51,556.

Month

Year-on-Year (YoY) difference in weekly flights versus 2023 (%)

Year-on-Year (YoY) difference in weekly seats versus 2023 (%)

March

-9 %

-7.5%

April

-4 %

-0.3%

May

-5.6%

-1.8%

June

-5.5%

-4.2%

July

6.5%

4%

August

6.4%

2.6%

September

4%

4.2%

October

-1.2%

-2.5%

Overall

-1 %

-0.6%

Related

How Have United Airlines’ Flights To Hawaii Evolved Over The Years?

With modest operations of a little over thousand passengers in the first month of its operations, United now takes millions of people to Hawaii.

Difference in flights to HNL

At the same time, when looking at data for flights to HNL exclusively, its flights to the island’s main airport have increased YoY, which showed that demand for flights to other airports in Hawaii has potentially decreased.

In addition to HNL, the airline also flies to Kona International Airport (KOA), Lihue Airport (LIH), and Kahului Airport (OGG).

Month

Year-on-Year (YoY) difference in weekly flights versus 2023 (%)

Year-on-Year (YoY) difference in weekly seats versus 2023 (%)

March

7%

7.5%

April

1%

-1%

May

-5.2%

-5.7%

June

0.8%

2.9%

July

11.9%

9.7%

August

12.7%

7.4%

September

-1.2%

-3.2%

October

-8.7%

-7%

Overall

2.8 %

1.8%

As evident by the data above, while overall flying to Hawaii during the summer season has declined, United Airlines has increased its capacity to HNL during the same period, especially during the three summer months, June, July, and August.

Related

United Airlines’ Flights To Hawaii: The 5 Hubs Offering The Most Flights To The Aloha State

United Airlines has 190 weekly flights to Hawaii from several United States mainland airports, as well as Guam.

Weakening competition?

At the same time, Alaska Airlines and Hawaiian Airlines have attempted to merge, with the former buying the latter for $18 per share in a cash transaction, with the acquisition being valued at around $1.9 billion at the time. The deal included Hawaiian Airlines’ net debt of over $900 million.

Nevertheless, Cirium data showed that while Alaska Airlines reduced its flights from mainland US to Hawaii during the summer season by 3.4% YoY, Hawaiian Airlines has increased its capacity by 5.3% YoY, resulting in an overall increase of 1.5% for the two carriers.

Alaska Airlines and Hawaiian Airlines aircraft shutterstock_2121442103

Photo: christianthiel.net | Shutterstock

As a reminder, the potential merger would result in the two airlines maintaining their brands operating under a single platform. Furthermore, Alaska Airlines said that HNL would become a key hub for the airline, enabling convenient one-stop flights to Asia-Pacific from the US.

Seeking Alpha, citing CTFN, reported on July 24 that it was highly likely that the DOJ would block the two companies’ merger, citing competition concerns and the lack of remedies that were proposed by the two entities.

Simple Flying has approached Alaska Airlines and Hawaiian Airlines for comment.

Related

Hawaiian Airlines Stocks’ Tumble As DOJ Reportedly Seeks To Challenge Alaska Airlines Merger

It is believed the DOJ will block the merger.

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