HONOLULU — As the coronavirus pandemic wanes and pandemic-related travel restrictions loosen in places worldwide, the president and CEO of Hawaiian Airlines told investors to expect robust and pent-up demand for travel to and from the islands in the coming months.

What You Need To Know

  • Hawaiian Airlines officials told investors to expect robust and pent-up demand as pandemic related travel restrictions loosen worldwide

  • The company reported an adjusted net loss of $130 million in the first quarter of 2022

  • Hawaiian Airlines has leaned heavily on its domestic operations while awaiting international borders to reopen

  • Hawaiian Airlines officials said to expect visitors from Australia, New Zealand, and South Korea

"With the effects of the pandemic more muted now than at any point since the beginning of 2020, we are enjoying a period of strong demand for travel to, from, and within Hawaii," said Peter Ingram, president, and CEO of Hawaiian Holdings, the parent company of Hawaiian Airlines.

The comment comes during Hawaiian Holdings' first-quarter earnings call Tuesday, where the airline continues to rebound from the economic impacts of the pandemic.

The company reported an adjusted net loss of $130.3 million in the first quarter of 2022. 

The airline's operating revenue is down 27% from the first quarter of 2019 as its international network is still rebuilding.

Passenger revenue is still 33% below 2019 numbers as the airline continues to lean heavily on its domestic operations. International travel only accounts for 25% of Hawaiian Airlines' current travel operations, said Hawaiian Airlines senior vice president and chief revenue officer, Brent Overbeek.

Still, the airline sees bright spots as they continue to rebound two years into the ongoing pandemic. 

Overbeek said there had been strong demand for the airlines' premium seating, with business/first class revenue and extra comfort revenue exceeding 2019 levels.  

Overbeek said that other forms of revenue were up 32% compared to the first quarter of 2019, driven by a record quarter of cargo revenue — mostly from Asia — and the highest first-quarter revenue from their co-branded Master Card HawaiianMiles program. 

As the second quarter arrives, Hawaiian Airlines officials are banking on the loosening of travel restrictions in key international markets to drive demand. 

In February, Australia lifted travel restrictions, allowing its residents to travel abroad. 

In April, South Korea loosened travel restrictions for residents to travel to Hawaii and other places. 

Overbeek said they plan to increase flights to Seoul, flying five times weekly to South Korea's capital this summer.

In May, New Zealand will reopen its borders to vaccinated visitors from visa waiver countries, including the United States.

And Japan is slowly relaxing its travel restrictions, first removing the required quarantine and increasing allowable daily visitor arrivals to 10,000.

Overbeek said there's a direct correlation between relaxing travel restrictions in certain places to direct bookings. 

When Hawaii's governor lifted all travel restrictions in March, flight sales to Hawaii following the announcement were among Hawaiian Airlines' highest single-day sales records.

There's plenty of pent-up demand, Overbeek said.

"Internationally, we have seen particularly in South Pacific, in Australia, New Zealand and in South Korea, when announcements have been made and [policy changes in their countries], we've seen a pretty quick and dramatic move towards bookings," said Overbeek. "What we've seen is more direct bookings, shorter booking curves, folks keen to travel as those policies changed. We're encouraged with what we see there."

But there are still more challenges ahead. The cost of fuel is up, reportedly 216% in the first three months of the quarter due to Russia's invasion of Ukraine, according to KITV. 

Second quarter revenue is still far from pre-pandemic levels. 

Overbeek said things are improving, and when Japan reopens, they'll see plenty more demand. 

"We know we're going to be really appealing to Japan as it opens up, and we're very much looking forward to that," he said.