Originally Posted by
flytoeat
Good business analysis by the Seattle Times Dominic Gates:
https://www.seattletimes.com/busines...made/#comments "In a conference call with Wall Street analysts late Sunday, Alaska CEO Ben Minicucci noted that Hawaiian’s travails are temporary setbacks for a market that previously was lucrative and outlined the promised upside. Hawaii, he said, is “an $8 billion market, in which we’re going to be the clear market leader with over $4 billion of revenue. It becomes our second-largest hub."
HA (for obvious reasons) has a lot of eggs in its Hawaii basket. As the pandemic and recent Maui fires have showed, things can turn on a dime. I was just talking to a property investor about this. They were looking at going all-in with their investing everything on Maui. Sure, when times are great the demand is high and the money is great, but when things change it can dry up literally overnight.
HA has a lot of the same built-in potentials. Of course, pandemics, fires, recessions, etc. can hurt all airlines. I just think Hawaii has the potential to be harder hit by all those things. This is where overpaying could REALLY hurt the bottom line for the ALK stockholders. Our US economy is on pretty shaky ground these days and natural disasters are definitely happening with greater frequency.