Hawaiian Airlines Turn a Profit

Posted by Zotta Rendevouz


Even with rising fuel costs last year, Hawaiian Airlines has managed to turn a profit thanks to good planning and strategy.

increases in fuel prices have hit hard all over the United States are filled by the pump. The person on average $ 1.00 + increase in the price of gas is the same as an extra $ 40 a month a small car $ 80 or more large vehicles and SUVs. Now imagine that the same dollars per gallon added hundreds of thousands of gallons of fuel used by major airlines such as Hawaii. For each increase of one hundredth of the cost of a gallon of kerosene Hawaiian revenues are subject to change as much as $ 1,600,000.

On the cover of their fuel costs, mainly for setting the fuel prices for a period of time, committing to a purchase agreement, Hawaii was able to save about eight and a half dollars in fuel costs. It's like closing a mortgage rate for a set amount of time. If rates rise, you win. If you fall, you lose.

While it may be a bit 'of play, when it works, as was recently in Hawaii, and as it did at Southwest Airlines, when prices skyrocketed 2008-2009, may make the airline much more advantageous position than the competition.

As fuel prices rise to a competitor, they are forced to raise rates, while those that locked in fuel prices may keep rates low. If the lower fuel costs, of course, exactly the opposite may occur.

Hawaiian Airlines strategy to pay to give them a net income of $ 855,000 for the last quarter. At the same time they lost five largest U.S. airlines over U.S. $ one billion handsets.