Inter-island CASM?
Apr 25, 2012, 6:26 pm
#1
Original Poster
Join Date: Jul 2007
Location: ATL
Programs: AA GLD Skymiles DM MM, a+ rewards lifetime elite, AS, Marriott plat, PC plat, HH gold
Posts: 1,275
Inter-island CASM?
Anyone with insight into the HA CASM on inter-island flights? One of the highlights of the quarterly conference call was the poor performance of these flights. The reported overall HA CASM was less than 14 CPM. A couple of rough calculations would put the inter-island CASM around 50 CPM if we are to believe that HA lost money here.
I was assuming an $80 average fare, 120 mile stage length, with a 75 % load factor. This give a 50 RASM number which means costs would have to be 50 CPM or greater to result in a loss. Is it really that expensive to run 717s inter-island? It must be crazy expensive running a CRJ on the same routes.
I was assuming an $80 average fare, 120 mile stage length, with a 75 % load factor. This give a 50 RASM number which means costs would have to be 50 CPM or greater to result in a loss. Is it really that expensive to run 717s inter-island? It must be crazy expensive running a CRJ on the same routes.
Apr 27, 2012, 1:28 am
#2
Join Date: Sep 2006
Location: HNL
Programs: UA GS4MM, MR LT Plat, Hilton Gold
Posts: 6,447
Anyone with insight into the HA CASM on inter-island flights? One of the highlights of the quarterly conference call was the poor performance of these flights. The reported overall HA CASM was less than 14 CPM. A couple of rough calculations would put the inter-island CASM around 50 CPM if we are to believe that HA lost money here.
I was assuming an $80 average fare, 120 mile stage length, with a 75 % load factor. This give a 50 RASM number which means costs would have to be 50 CPM or greater to result in a loss. Is it really that expensive to run 717s inter-island? It must be crazy expensive running a CRJ on the same routes.
I was assuming an $80 average fare, 120 mile stage length, with a 75 % load factor. This give a 50 RASM number which means costs would have to be 50 CPM or greater to result in a loss. Is it really that expensive to run 717s inter-island? It must be crazy expensive running a CRJ on the same routes.
Apr 27, 2012, 1:13 pm
#3
Join Date: May 2008
Location: LIH, HNL, LAS, Bay Area
Programs: HA Pualani Platinum, National EC Executive, UA & AAdvantage
Posts: 178
Hmm, it's probably fuel which is expensive for everyone. Also, if I recall, HA lost some tax breaks/exemptions from the State of Hawaii. I think I recall a while back that the landing fees for Hawaii airports went up...this impacts HA the most since they have more landings/departures than any other airline. Then there is also labor...with most 717's at 123 seats, HA is required to have 3 flight attendants. If HA could cram an additional 27 seats into those 717's, they probably would. Of course too, labor costs go up like everything else.