Lower levels of travel demand due to wildfires on Maui affect Hawaiian Holdings' outlook
Hawaiian Holdings, the operator of commercial flights to Hawaii, has announced a reduction in its revenue expectations for the third quarter. This adjustment is a result of the wildfires on the island of Maui, which have significantly impacted travel demand.
The company has stated that the wildfires are projected to have adverse effects on capacity, revenue, and costs for the period ending September 30. As a result, Hawaiian Holdings now anticipates a decline of 4% to 7% in third-quarter revenue per available seat mile. This is an increase from the previously forecasted decline of 2% to 5%.
Furthermore, the airline expects an increase of 4% to 5.5% in available seat miles, which measure capacity. This is in contrast to the previous guidance of 4.5% to 7.5% growth. The increased inspections of Pratt & Whitney's GTF engines have contributed to this adjustment.
Looking ahead to the rest of the year, Hawaiian Holdings projects a capacity increase of 8% to 10%, which is slightly lower than the prior view of 10.5%.