JAL may cut
Honolulu flights

The lost airline seats would
make up 12% of the capacity
between Hawaii and Japan

Japan Airlines said yesterday that pressure to stem the flow of financial losses caused by rising fuel prices have caused the carrier to consider suspending less-profitable Hawaii flights.

Honolulu's only daily flight from Fukuoka, Japan, as well as one of the daily flights that runs from Osaka to Oahu could be on the chopping block, said Gilbert Kimura, JAL sales director in Hawaii.

"Like any business, JAL has got to concentrate on moneymaking routes," Kimura said. The Japanese government, media and shareholders are pressing the company to improve its financial performance.

If JAL cuts the flights, it will reduce scheduled airlift between Hawaii and Japan by as much as 12 percent, said Frank Haas, marketing director for the state Hawaii Tourism Authority. The agency has been working with the airline to increase the profitability of routes.

JAL's profitability has been falling steadily in the face of rising fuel costs and events such as 9/11, the SARS and bird-flu epidemics, the spread of terrorism and the southern Asia tsunami disaster, Kimura said.

Moreover, flights from regional airports like Fukuoka and Osaka have been less profitable than JAL's other routes because they have attracted a greater number of lower-fare passengers, Kimura said.

JAL expects to decide which flights it plans to suspend by the end of July, with any changes going into effect Oct. 1, Kimura said.

The Fukuoka route can carry about 8,500 passengers to Hawaii each month and the Osaka route can carry about 12,000, state economist Pearl Imada Iboshi said.

"We would certainly be disappointed if JAL decides to suspend this service," Haas said. The impact on Hawaii's tourism market would depend on whether other airlines or charter services fill the void.

"We're working hard to position Hawaii not as a cheap destination but as a special destination that warrants higher spending," Haas said.