The money seems to be going to just keeping the companies afloat. Yes, I understand the problem and how the fact that the lack of profits doesn't make any sense...
But... you must keep in mind that the airlines rely a lot on Japanese tourists, and according to the new figures released just today (http://the.honoluluadvertiser.com/article/2003/May/23/br/br01p.html), Japanese visitors are down 33.2%.

Domestic/Mainland visitors have the option to fly direct to an island... even if it's cheaper to fly into HNL and take a connecting flight to a neighbor island... studies/visitor travel patterns have shown they would rather take the direct flight to their island of choice.

It's all supply and demand, like I've said. Sure... they have had their anti-trust exemption... sure, they've cut flights (to really 12 a day for both carriers to Hilo)... but it's just not cutting it. Even the paycuts aren't enough to keep the airlines afloat.

So... how high do the prices need to go until supply meets demand? As high as they need to. Without the equlibrium of supply and demand, prices are going to continue to rise. We need to find ways to stimulate the Japanese tourists IMHO back to the islands, or else interisland service will be just as expensive as flying to the mainland.

I know the discrepancies that arise... if airlines follow point A, B, and C.. they should inevitably become profitable again. But maybe the short and correct answer to it is that it just takes time for these things to take effect.

Maybe the airlines need to learn.

Maybe the airlines are hiding something from us.

Maybe... this is just the way it's going to be from now on.

Aloha