Consolidation of the US aviation industry isn’t over with the possibility of the four major players scooping up small carriers to expand their international reach.
By July, Hawaiian will fly to 13 destinations in Asia and Oceania, up from just four in 2010. Adding these international flights has provided significant revenue diversification for Hawaiian; international routes account for 32% of Hawaiian’s revenue, and that percentage is growing. Most recently, Hawaiian has been focusing its growth on markets where there is little or no competition.
Hawaiian Airlines’ increasing international footprint is a key asset for the company. Over the next few years, the focus on international routes that have less competition should boost the company’s profit margin. Moreover, this large international presence could also make Hawaiian a desirable takeover target in the next few years.
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Photo Credit: Hawaiian Airlines Boeing 767 jets sit at Honolulu International Airport. Daniel Betts / Hawaiian Airlines